[Congressional Record Volume 142, Number 137 (Saturday, September 28, 1996)]
[House]
[Pages H11644-H12021]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


_______________________________________________________________________

 CONFERENCE REPORT ON H.R. 3610, DEPARTMENT OF DEFENSE APPROPRIATIONS 
                               ACT, 1997

  Mr. LIVINGSTON submitted the following conference report and 
statement on the bill (H.R. 3610) making appropriations for the 
Department of Defense for the fiscal year ending September 30, 1997, 
and for other purposes:

                  Conference Report (H. Rept. 104-863)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     3610) ``making appropriations for the Department of Defense 
     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 House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter stricken and inserted by said 
     amendment, insert:


                               division a

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the several 
     departments, agencies, corporations and other organizational 
     units of the Government for the fiscal year 1997, and for 
     other purposes, namely:

                    TITLE I--OMNIBUS APPROPRIATIONS

       Sec. 101(a) For programs, projects or activities in the 
     Departments of Commerce, Justice, and State, the Judiciary, 
     and Related Agencies Appropriations Act, 1997, provided as 
     follows, to be effective as if it had been enacted into law 
     as the regular appropriations Act:
     AN ACT Making appropriations for the Departments of Commerce, 
     Justice, and State, the Judiciary, and related agencies for 
     the fiscal year ending September 30, 1997, and for other 
     purposes

                     TITLE I--DEPARTMENT OF JUSTICE

                         General Administration


                         salaries and expenses

       For expenses necessary for the administration of the 
     Department of Justice, $75,773,000 of which not to exceed 
     $3,317,000 is for the Facilities Program 2000, to remain 
     available until expended: Provided, That not to exceed 43 
     permanent positions and 44 full-time equivalent workyears and 
     $7,477,000 shall be expended for the Department Leadership 
     Program exclusive of augmentation that occurred in these 
     offices in fiscal year 1996: Provided further, That not to 
     exceed 41 permanent positions and 48 full-time equivalent 
     workyears and $4,660,000 shall be expended for the Offices of 
     Legislative Affairs and Public Affairs: Provided further, 
     That the latter two aforementioned offices shall not be 
     augmented by personnel details, temporary transfers of 
     personnel on either a reimbursable or non-reimbursable basis 
     or any other type of formal or informal transfer or 
     reimbursement of personnel or funds on either a temporary or 
     long-term basis.
       For an additional amount, for enhancements for the Office 
     of Intelligence Policy and Review and security measures, 
     $3,600,000; of which $2,170,000 is for security enhancements: 
     Provided, That the entire amount is designated by Congress as 
     an emergency requirement pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.


                         counterterrorism fund

       For necessary expenses, as determined by the Attorney 
     General, $9,450,000, to remain available until expended, to 
     reimburse any Department of Justice organization for (1) the 
     costs incurred in reestablishing the operational capability 
     of an office or facility which has been damaged or destroyed 
     as a result of the bombing of the Alfred P. Murrah Federal 
     Building in Oklahoma City or any domestic or international 
     terrorist incident, (2) the costs of providing support to 
     counter, investigate or prosecute domestic or international 
     terrorism, including payment of rewards in connection with 
     these activities, and (3) the costs of conducting a terrorism 
     threat assessment of Federal agencies and their facilities: 
     Provided, That funds provided under this heading shall be 
     available only after the Attorney General notifies the 
     Committees on Appropriations of the House of Representatives 
     and the Senate in accordance with section 605 of this Act.
       For an additional amount for necessary expenses, as 
     determined by the Attorney General, $20,000,000, to remain 
     available until expended,

[[Page H11645]]

     to reimburse any Department of Justice organization for (1) 
     the costs incurred in reestablishing the operational 
     capability of an office or facility which has been damaged or 
     destroyed as a result of any domestic or international 
     terrorist incident, or (2) the costs of providing support to 
     counter, investigate or prosecute domestic or international 
     terrorism, including payment of rewards in connection with 
     these activities: Provided, That the entire amount is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.


                   administrative review and appeals

       For expenses necessary for the administration of pardon and 
     clemency petitions and immigration related activities, 
     $62,000,000.
       For an additional amount for security measures for the 
     Executive Office of Immigration Review, $1,000,000: Provided, 
     That the entire amount is designated by Congress as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget, and Emergency Deficit Control Act of 
     1985, as amended.


  violent crime reduction programs, administrative review and appeals

       For activities authorized by section 130005 of the Violent 
     Crime Control and Law Enforcement Act of 1994 (Public Law 
     103-322), as amended, $48,000,000 to remain available until 
     expended, which shall be derived from the Violent Crime 
     Reduction Trust Fund.


                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, $31,960,000; including not to exceed 
     $10,000 to meet unforeseen emergencies of a confidential 
     character, to be expended under the direction of, and to be 
     accounted for solely under the certificate of, the Attorney 
     General; and for the acquisition, lease, maintenance, and 
     operation of motor vehicles, without regard to the general 
     purchase price limitation for the current fiscal year.

                    United States Parole Commission


                         salaries and expenses

       For necessary expenses of the United States Parole 
     Commission as authorized by law, $4,845,000.

                            Legal Activities


            Salaries and Expenses, General Legal Activities

       For expenses, necessary for the legal activities of the 
     Department of Justice, not otherwise provided for, including 
     not to exceed $20,000 for expenses of collection evidence, to 
     be expended under the direction of, and to be accounted for 
     solely under the certificate if, the Attorney General; and 
     rent of private or Government-owned space in the District of 
     Columbia; $420,793,000 of which not to exceed $10,000,000 for 
     litigation support contracts shall remain available until 
     expended: Provided, That of the funds available in this 
     appropriation, not to exceed $17,525,000 shall remain 
     available until expended for office automation systems for 
     the legal divisions covered by this appropriation, and for 
     the United States Attorneys, the Antitrust Division, and 
     offices funded through ``Salaries and Expenses'', General 
     Administration: Provided further, That of the total amount 
     appropriated, not to exceed $1,000 shall be available to the 
     United States National Central Bureau, INTERPOL, for official 
     reception and representation expenses: Provided further, That 
     notwithstanding 31 U.S.C. 1342, the Attorney General may 
     accept on behalf of the United States, and credit to this 
     appropriation, gifts of money, personal property and 
     services, for the purposes of hosting the International 
     Criminal Police Organization's (INTERPOL) American Regional 
     Conference in the United States during fiscal year 1997: 
     Provided, further, That not to exceed 8 permanent positions 
     and 10 full-time equivalent workyears and $987,000 shall be 
     expended for the Office of Legislative Affairs and Public 
     Affairs: Provided further, That the latter two aforementioned 
     offices shall not be augmented by personnel details. 
     temporary transfers of personnel on either a reimbursable or 
     nonreimbursable basis or any other type of formal or informal 
     transfer or reimbursement of personnel or funds on either a 
     temporary or long-term basis.
       In addition, for reimbursement of expenses of the 
     Department of Justice associated with processing cases under 
     the National Childhood Vaccine Injury Act of 1986 as amended, 
     not to exceed $4,028,000, to be appropriated from the Vaccine 
     Injury Compensation Trust Fund.
       For an additional amount for expenses of the Criminal 
     Division relating to terrorism, $1,719,000: Provided, That 
     the entire amount is designated by Congress as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.


       violent crime reduction programs, general legal activities

       For the expeditious deportation of denied asylum 
     applicants, as authorized by section 130005 of the Violent 
     Crime Control and Law Enforcement Act of 1994 (Public Law 
     103-322), as amended, $7,750,000, to remain available until 
     expended, which shall be derived from the Violent Crime 
     Reduction Trust Fund.


               salaries and expenses, antitrust division

       For expenses necessary for the enforcement of antitrust and 
     kindred laws, $76,447,000: Provided, That notwithstanding any 
     other provision of law, not to exceed $58,905,000 of 
     offsetting collections derived from fees collected for 
     premerger notification filings under the Hart-Scott-Rodino 
     Antitrust Improvements Act of 1976 (15 U.S.C. 18(a)) shall be 
     retained and used for necessary expenses in this 
     appropriation, and shall remain available until expended: 
     Provided further, That the sum herein appropriated from the 
     General Fund shall be reduced as such offsetting collections 
     are received during fiscal year 1997, so as to result in a 
     final fiscal year 1997 appropriation from the General Fund 
     estimated at not more than $17,542,000: Provided further, 
     That any fees received in excess of $58,905,000 in fiscal 
     year 1997, shall remain available until expended, but shall 
     not be available for obligation until October 1, 1997.


             salaries and expenses, united states attorneys

       For necessary expenses of the Office of the United States 
     Attorneys, including intergovernmental agreements, 
     $923,340,000, of which not to exceed $2,500,000 shall be 
     available until September 30, 1998, for the purposes of (1) 
     providing training of personnel of the Department of Justice 
     in debt collection, (2) providing services to the Department 
     of Justice related to locating debtors and their property, 
     such as title searches, debtor skiptracing, asset searches, 
     credit reports and other investigations, (3) paying the costs 
     of the Department of Justice for the sale of property not 
     covered by the sale proceeds, such as auctioneers' fees and 
     expenses, maintenance and protection of property and 
     businesses, advertising and title search and surveying costs, 
     and (4) paying the costs of processing and tracking debts 
     owed to the United States Government: Provided, That of the 
     total amount appropriated, not to exceed $8,000 shall be 
     available for official reception and representation expenses: 
     Provided further, That not to exceed $10,000,000 of those 
     funds available for automated litigation support contracts 
     shall remain available until expended: Provided further, That 
     $1,900,000 for supervision of the International Brotherhood 
     of Teamsters national election, shall remain available until 
     expended: Provided further, That in addition to reimbursable 
     full-time equivalent workyears available to the Office of the 
     United States Attorneys, not to exceed 8,652 positions and 
     8,936 full-time equivalent workyears shall be supported from 
     the funds appropriated in this Act for the United States 
     Attorneys.
       For an additional amount for expenses relating to terrorism 
     and security needs, $10,900,000: Provided, That the entire 
     amount is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended.


       violent crime reduction programs, united states attorneys

       For activities authorized by sections 40114, 130005, 
     190001(b), 190001(d) and 250005 of the Violent Crime Control 
     and Law Enforcement Act of 1994 (Public Law 103-322), as 
     amended, and section 815 of the Antiterrorism and Effective 
     Death Penalty Act of 1996 (Public Law 104-132), $43,876,000, 
     to remain available until expended, which shall be derived 
     from the Violent Crime Reduction Trust Fund, of which 
     $28,602,000 shall be available to help meet the increased 
     demands for litigation and related activities, $4,641,000 for 
     Southwest Border Control, $1,000,000 for Federal victim 
     counselors, and $9,633,000 for expeditious deportation of 
     denied asylum applicants.


                   united states trustee system fund

       For necessary expenses of the United States Trustee 
     Program, as authorized by 28 U.S.C. 589a(a), $107,950,000, to 
     remain available until expended and to be derived from the 
     United States Trustee System Fund: Provided, That 
     notwithstanding any other provision of law, deposits to the 
     Fund shall be available in such amounts as may be necessary 
     to pay refunds due depositors: Provided further, That 
     notwithstanding any other provision of law, $107,950,000 of 
     offsetting collections derived from fees collected pursuant 
     to 28 U.S.C. 589a(b) shall be retained and used for necessary 
     expenses in this appropriation and remain available until 
     expended: Provided further, That the sum herein appropriated 
     from the Fund shall be reduced as such offsetting collections 
     are received during fiscal year 1997, so as to result in a 
     final fiscal year 1997 appropriation from the Fund estimated 
     at $0: Provided further, That any such fees collected in 
     excess of $107,950,000 in fiscal year 1997 shall remain 
     available until expended but shall not be available for 
     obligation until October 1, 1997.


      salaries and expenses, foreign claims settlement commission

       For expenses necessary to carry out the activities of the 
     Foreign Claims Settlement Commission, including services as 
     authorized by 5 U.S.C. 3109, $953,000.


         salaries and expenses, united states marshals service

       For necessary expenses of the United States Marshals 
     Service; including the acquisition, lease, maintenance, and 
     operation of vehicles and aircraft, and the purchase of 
     passenger motor vehicles for police-type use, without regard 
     to the general purchase price limitation for the current 
     fiscal year, $457,495,000, as authorized by 28 U.S.C. 561(i); 
     of which not to exceed $6,000 shall be available for official 
     reception and representation expenses; and of which not to 
     exceed $4,000,000 for development, implementation, 
     maintenance and support, and training for an automated 
     prisoner information system, and $2,200,000 to support the 
     Justice Prisoner and Alien Transportation System, shall 
     remain available until expended: Provided, That, with respect 
     to the amounts appropriated above, the service of maintaining 
     and transporting State, local, or territorial prisoners shall 
     be considered a specialized or technical service for purposes 
     of 31 U.S.C. 6505, and any prisoners so transported shall be 
     considered persons (transported for other than commercial 
     purposes) whose presence is associated with the performance 
     of a governmental function for purposes of 49 U.S.C. 40102: 
     Provided further, That not to exceed 12 permanent positions 
     and 12 full-time equivalent

[[Page H11646]]

     workyears and $700,000 shall be expended for the Offices of 
     Legislative Affairs and Public Affairs: Provided further, 
     That the latter two aforementioned offices shall not be 
     augmented by personnel details, temporary transfers of 
     personnel on either a reimbursable or nonreimbursable basis 
     or any other type of formal or informal transfer or 
     reimbursement of personnel or funds on either a temporary or 
     long-term basis.


    violent crime reduction programs, united states marshals service

       For activities authorized by section 190001(b) of the 
     Violent Crime Control and Law Enforcement Act of 1994 (Public 
     Law 103-322), as amended, $25,000,000, to remain available 
     until expended, which shall be derived from the Violent Crime 
     Reduction Trust Fund.


                       federal prisoner detention

       For expenses, related to United States prisoners in the 
     custody of the United States Marshals Service as authorized 
     in 18 U.S.C. 4013, but not including expenses otherwise 
     provided for in appropriations available to the Attorney 
     General, $405,262,000, as authorized by 28 U.S.C. 561(i), to 
     remain available until expended: Provided, That this 
     appropriation hereafter shall not be available for expenses 
     authorized under 18 U.S.C. 4013(a)(4).


                     fees and expenses of witnesses

       For expenses, mileage, compensation, and per diems of 
     witnesses, for expenses of contracts for the procurement and 
     supervision of expert witnesses, for private counsel 
     expenses, and for per diems in lieu of subsistence, as 
     authorized by law, including advances, $100,702,000, to 
     remain available until expended; of which not to exceed 
     $4,750,000 may be made available for planning, construction, 
     renovations, maintenance, remodeling, and repair of 
     buildings, and the purchase of equipment incident thereto, 
     for protected witness safesites; of which not to exceed 
     $1,000,000 may be made available for the purchase and 
     maintenance of armored vehicles for transportation of 
     protected witnesses; and of which not to exceed $4,000,000 
     may be made available for the purchase, installation and 
     maintenance of a secure, automated information network to 
     store and retrieve the identities and locations of protected 
     witnesses.


           salaries and expenses, community relations service

       For necessary expenses of the Community Relations Service, 
     established by title X of the Civil Rights Act of 1964, 
     $5,319,000: Provided, That notwithstanding any other 
     provision of law, upon a determination by the Attorney 
     General that emergent circumstances require additional 
     funding for conflict prevention and resolution activities of 
     the Community Relations Service, the Attorney General may 
     transfer such amounts to the Community Relations Service, 
     from available appropriations for the current fiscal year for 
     the Department of Justice, as may be necessary to respond to 
     such circumstances: Provided further, That any transfer 
     pursuant to this paragraph shall be treated as a 
     reprogramming under section 605 of this Act and shall not be 
     available for obligation or expenditure except in compliance 
     with the procedures set forth in that section.


                         assets forfeiture fund

       For expenses authorized by 28 U.S.C. 524(c)(1)(A)(ii), (B), 
     (C), (F), and (G), as amended, $23,000,000, to be derived 
     from the Department of Justice Assets Forfeiture Fund.

                    Radiation Exposure Compensation


                        administrative expenses

       For necessary administrative expenses in accordance with 
     the Radiation Exposure Compensation Act, $2,000,000.


         payment to radiation exposure compensation trust fund

       For payments to the Radiation Exposure Compensation Trust 
     Fund, $13,736,000, not to be available for obligation until 
     September 30, 1997.

                      Interagency Law Enforcement


                 interagency crime and drug enforcement

       For necessary expenses for the detection, investigation, 
     and prosecution of individuals involved in organized crime 
     drug trafficking not otherwise provided for, to include 
     intergovernmental agreements with State and local law 
     enforcement agencies engaged in the investigation and 
     prosecution of individuals involved in organized crime drug 
     trafficking, $359,430,000, of which $50,000,000 shall remain 
     available until expended: Provided, That any amounts 
     obligated from appropriations under this heading may be used 
     under authorities available to the organizations reimbursed 
     from this appropriation: Provided further, That any 
     unobligated balances remaining available at the end of the 
     fiscal year shall revert to the Attorney General for 
     reallocation among participating organizations in succeeding 
     fiscal years, subject to the reprogramming procedures 
     described in section 605 of this Act.

                    Federal Bureau of Investigation


                         salaries and expenses

       For necessary expenses of the Federal Bureau of 
     Investigation for detection, investigation, and prosecution 
     of crimes against the United States; including purchase for 
     police-type use of not to exceed 2,706 passenger motor 
     vehicles, of which 1,945 will be for replacement only, 
     without regard to the general purchase price limitation for 
     the current fiscal year, and hire of passenger motor 
     vehicles; acquisition, lease, maintenance, and operation of 
     aircraft; and not to exceed $70,000 to meet unforeseen 
     emergencies of a confidential character, to be expended under 
     the direction of, and to be accounted for solely under the 
     certificate of, the Attorney General: $2,451,361,000, of 
     which not to exceed $50,000,000 for automated data processing 
     and telecommunications and technical investigative equipment 
     and $1,000,000 for undercover operations shall remain 
     available until September 30, 1998; of which not less than 
     $147,081,000 shall be for counterterrorism investigations, 
     foreign counterintelligence, and other activities related to 
     our national security; of which not to exceed $98,400,000 
     shall remain available until expended; and of which not to 
     exceed $10,000,000 is authorized to be made available for 
     making payments or advances for expenses arising out of 
     contractual or reimbursable agreements with State and local 
     law enforcement agencies while engaged in cooperative 
     activities related to violent crime, terrorism, organized 
     crime, and drug investigations; and of which $1,500,000 shall 
     be available to maintain an independent program office 
     dedicated solely to the relocation of the Criminal Justice 
     Information Services Division and the automation of 
     fingerprint identification services: Provided, That not to 
     exceed $45,000 shall be available for official reception and 
     representation expenses: Provided further, That not to exceed 
     81 permanent positions and 85 full-time equivalent workyears 
     and $5,959,000 shall be expended for the Office of 
     Legislative Affairs and Public Affairs: Provided further, 
     That the latter two aforementioned offices shall not be 
     augmented by personnel details, temporary transfers of 
     personnel on either a reimbursable or nonreimbursable basis 
     or any other type of formal or informal transfer or 
     reimbursement of personnel or funds on either a temporary or 
     long-term basis.
       For an additional amount for necessary expenses of the 
     Federal Bureau of Investigation to prevent and investigate 
     terrorism activities and incidents; provide for additional 
     agents and support staff; protect key physical assets; 
     establish a capability for chemical, biological and nuclear 
     research; improve domestic intelligence; and improve security 
     at Federal Bureau of Investigation offices, $115,610,000, as 
     authorized by the Antiterrorism and Effective Death Penalty 
     Act of 1996 (P.L. 104-132): Provided, That the entire amount 
     is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended.


                    violent crime reduction programs

       For activities authorized by the Violent Crime Control and 
     Law Enforcement Act of 1994 (Public Law 103-322) as amended 
     (``the 1994 Act''), and the Antiterrorism and Effective Death 
     Penalty Act of 1996 (``the Antiterrorism Act''), 
     $169,000,000, to remain available until expended, which shall 
     derived from the Violent Crime Reduction Trust Fund; of which 
     $76,356,000 shall be for activities authorized by section 
     190001(c) of the 1994 Act and section 811 of the 
     Antiterrorism Act; $53,404,000 shall be for activities 
     authorized by section 190001(b) of the 1994 Act, of which 
     $20,240,000 shall be for activities authorized by section 103 
     of the Brady Handgun Violence Prevention Act (Public Law 103-
     159), as amended; $4,000,000 shall be for training and 
     investigative assistance authorized by section 210501 of the 
     1994 Act; $9,500,000 shall be for grants to States, as 
     authorized by section 811(b) of the Antiterrorism Act; and 
     $5,500,000 shall be for establishing DNA quality-assurance 
     and proficiency-testing standards, establishing an index to 
     facilitate law enforcement exchange of DNA identification 
     information, and related activities authorized by section 
     210501 of the 1994 Act.


               telecommunications carrier compliance fund

       For necessary expenses, as determined by the Attorney 
     General, $60,000,000, to remain available until expended, to 
     be deposited in the Telecommunications Carrier Compliance 
     Fund for making payments to telecommunications carriers, 
     equipment manufacturers, and providers of telecommunications 
     support services pursuant to section 110 of this Act: 
     Provided, That the entire amount is designated by Congress as 
     an emergency requirement pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended: Provided further, That the entire amount 
     not previously designated by the President as an emergency 
     requirement shall be available only to the extent an official 
     budget request, for a specific dollar amount that includes 
     designation of the entire amount of the request as an 
     emergency requirement, as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted to Congress.


                              construction

       For necessary expenses to construct or acquire buildings 
     and sites by purchase, or as otherwise authorized by law 
     (including equipment for such buildings); conversion and 
     extension of federally-owned buildings; and preliminary 
     planning and design of projects; $41,639,000, to remain 
     available until expended.

                    Drug Enforcement Administration


                         salaries and expenses

       For necessary expenses of the Drug Enforcement 
     Administration, including not to exceed $70,000 to meet 
     unforeseen emergencies of a confidential character, to be 
     expended under the direction of, and to be accounted for 
     solely under the certificate of, the Attorney General; 
     expenses for conducting drug education and training programs, 
     including travel and related expenses for participants in 
     such programs and the distribution of items of token value 
     that promote the goals of such programs; purchase of not to 
     exceed 1,158 passenger motor vehicles, of which 1,032 will be 
     for replacement only, for police-type use without regard to 
     the general purchase price limitation for the current fiscal 
     year; and acquisition, lease, maintenance, and operation of 
     aircraft; $745,388,000, of which not to exceed $1,800,000 for 
     research and $15,000,000 for transfer to the Drug Diversion 
     Control Fee Account for operating expenses shall remain 
     available until expended, and of which not to exceed 
     $4,000,000 for purchase of evidence and payments for 
     information, not to exceed $4,000,000

[[Page H11647]]

     for contracting for automated data processing and 
     telecommunications equipment, and not to exceed $2,000,000 
     for laboratory equipment, $4,000,000 for technical equipment, 
     and $2,000,000 for aircraft replacement retrofit and parts, 
     shall remain available until September 30, 1998; and of which 
     not to exceed $50,000 shall be available for official 
     reception and representation expenses: Provided, That not to 
     exceed 25 permanent positions and 25 full-time equivalent 
     workyears and $1,828,000 shall be expended for the Office of 
     Legislative Affairs and Public Affairs: Provided further, 
     That the latter two aforementioned offices shall not be 
     augmented by personnel details, temporary transfers of 
     personnel on either a reimbursable or nonreimbursable basis 
     or any other type of formal or informal transfer or 
     reimbursement of personnel or funds on either a temporary or 
     long-term basis.
       For an additional amount for security measures for domestic 
     and foreign Drug Enforcement Administration offices, 
     $5,000,000: Provided, That the entire amount is designated by 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.


                    violent crime reduction programs

       For activities authorized by sections 180104 and 190001(b) 
     of the Violent Crime Control and Law Enforcement Act of 1994 
     (Public Law 103-322), as amended, and section 814 of the 
     Antiterrorism and Effective Death Penalty Act of 1996 (Public 
     Law 104-132), and for the purchase of passenger motor 
     vehicles for police-type use, as otherwise authorized in this 
     title, $220,000,000, to remain available until expended, 
     which shall be derived from the Violent Crime Reduction Trust 
     Fund.


                              CONSTRUCTION

       For necessary expenses to construct or acquire buildings 
     and sites by purchase, or as otherwise authorized by law 
     (including equipment for such buildings); conversion and 
     extension of federally-owned buildings; and preliminary 
     planning and design of projects; $30,806,000, to remain 
     available until expended.

                 Immigration and Naturalization Service


                         SALARIES AND EXPENSES

                     (including transfer of funds)

       For expenses, not otherwise provided for, necessary for the 
     administration and enforcement of the laws relating to 
     immigration, naturalization, and allien registration, 
     including not to exceed $50,000 to meet unforeseen 
     emergencies of a confidential character, to be expended under 
     the direction of, and to be accounted for solely under the 
     certificate of, the Attorney General; purchase for police 
     type use (not to exceed 2,691, of which 1,711 are for 
     replacement only), without regard to the general purchase 
     price limitation for the current fiscal year, and hire of 
     passenger motor vehicles; acquisition, lease, maintenance and 
     operation of aircraft; and research related to immigration 
     enforcement; $1,590,159,00 of which not to exceed $400,000 
     for research shall remain available until expended; and of 
     which not to exceed $10,000,000 shall be available for costs 
     associated with the training program for basic officer 
     training, and $5,000,000 is for payments or advances arising 
     out of contractual or reimbursable agreements with State and 
     local law enforcement agencies while engaged in cooperative 
     activities related to immigration: Provided, That none of the 
     funds available to the Immigration and Naturalization Service 
     shall be available to pay any employee overtime pay in an 
     amount in excess of $30,000 during the calendar year 
     beginning January 1, 1997: Provided further, That uniforms 
     may be purchased without regard to the general purchase price 
     limitation for the current fiscal year: Provided further, 
     That not to exceed $5,000 shall be available for official 
     reception and representation expenses: Provided further; That 
     none of the funds provided in this or any other Act shall be 
     used for the continued operation of the San Clemente and 
     Temecula checkpoints unless the cheek points are open and 
     traffic is being checked one continuous 24-hour basis: 
     Provided further, That the Land Border Fee Pilot Project 
     scheduled to end September 30, 1996, is extended to September 
     30, 1999 for projects on both the northern and southern 
     borders of the United States, except that no pilot program 
     may implement a universal land border crossing toll: Provided 
     further, That obligated and unobligated balances available to 
     ``Salaries and Expenses, Community Relations Service'' under 
     section 501(c) of the Refugee Education Assistance Act of 
     1980 are transferred to this account and shall remain 
     available until expended: Provided further, That not to 
     exceed 48 permanent positions and 48 full-time equivalent 
     workyears and $4,628,000 shall be expended for the Office of 
     Legislative Affairs and Public Affairs: Provided further, 
     That the latter two aforementioned offices shall not be 
     augmented by personnel details, temporary transfers of 
     personnel on either a reimbursable or nonreimbursable basis 
     or any other type of formal or informal transfer or 
     reimbursement of personnel or funds on either a temporary or 
     long-term basis.
       For an additional amount to support the detention and 
     removal of aliens with ties to terrorist organizations and 
     expand the detention and removal of illegal aliens and 
     enhance the intelligence of the Immigration and 
     Naturalization Service, $15,000,000, of which $10,000,000 
     shall be for detention and removal of aliens: Provided, That 
     the entire amount is designated by Congress as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.


                    violent crime reduction programs

       For activities authorized by sections 130002, 130005, 
     130006, 130007, and 190001(b) of the Violent Crime Control 
     and Law Enforcement Act of 1994 (Public Law 103-322), as 
     amended, and section 813 of the Antiterrorism and Effective 
     Death Penalty Act of 1996 (Public Law 104-132), $500,000,000, 
     to remain available until expended, which will be derived 
     from the Violent Crime Reduction Trust Fund, of which 
     $66,217,000 shall be for expeditious deportation of denied 
     asylum applicants, $317,256,000 shall be for improving border 
     controls, and $116,527,000 shall be for detention and 
     deportation proceedings: Provided, That amounts not required 
     for asylum processing provided under the expeditious 
     deportation of denied asylum applicants shall also be 
     available for other deportation program activities.


                              construction

       For planning, construction, renovation, equipping, and 
     maintenance of buildings and facilities necessary for the 
     administration and enforcement of the laws relating to 
     immigration, naturalization, and alien registration, not 
     otherwise provided for, $9,841,000, to remain available until 
     expended.

                         Federal Prison System


                         salaries and expenses

       For expenses necessary for the administration, operation, 
     and maintenance of Federal penal and correctional 
     institutions, including purchase (not to exceed 836, of which 
     572 are for replacement only) and hire of law enforcement and 
     passenger motor vehicles, and for the provision of technical 
     assistance and advice on corrections related issues to 
     foreign governments; $2,768,316,000: Provided, That the 
     Attorney General may transfer to the Health Resources and 
     Services Administration such amounts as may be necessary for 
     direct expenditures by that Administration for medical relief 
     for inmates of Federal penal and correctional institutions: 
     Provided further, That the Director of the Federal Prison 
     System (FPS), where necessary, may enter into contracts with 
     a fiscal agent/fiscal intermediary claims processor to 
     determine the amounts payable to persons who, on behalf of 
     the FPS, furnish health services to individuals committed to 
     the custody of the FPS: Provided further, That uniforms may 
     be purchased without regard to the general purchase price 
     limitation for the current fiscal year: Provided further, 
     That not to exceed $6,000 shall be available for official 
     reception and representation expenses: Provided further, That 
     not to exceed $90,000,000 for the activation of new 
     facilities shall remain available until September 30, 1998: 
     Provided further, That of the amounts provided for Contract 
     Confinement, not to exceed $20,000,000 shall remain available 
     until expended to make payments in advance for grants, 
     contracts and reimbursable agreements, and other expenses 
     authorized by section 501(c) of the Refugee Education 
     Assistance Act of 1980, as amended, for the care and security 
     in the United States of Cuban and Haitian entrants: Provided 
     further, That notwithstanding section 4(d) of the Service 
     Contract Act of 1965 (41 U.S.C. 353(d)), FPS may enter into 
     contracts and other agreements with private entities for 
     periods of not to exceed 3 years and 7 additional option 
     years for the confinement of Federal prisoners: Provided 
     further, That the National Institute of Corrections hereafter 
     shall be included in the FPS Salaries and Expenses budget, in 
     the Contract Confinement program and shall continue to 
     perform its current functions under 18 U.S.C. 4351, et seq., 
     with the exception of its grant program and shall collect 
     reimbursement for services whenever possible: Provided 
     further, That any unexpended balances available to the 
     ``National Institute of Corrections'' account shall be 
     credited to and merged with this appropriation, to remain 
     available until expended.


                    violent crime reduction programs

       For substance abuse treatment in Federal prisons as 
     authorized by section 32001(e) of the Violent Crime Control 
     and Law Enforcement Act of 1994 (Public Law 103-322), as 
     amended, $25,224,000, to remain available until expended, 
     which shall be derived from the Violent Crime Reduction Trust 
     Fund.


                        buildings and facilities

       For planning, acquisition of sites and construction of new 
     facilities; leasing the Oklahoma City Airport Trust Facility; 
     purchase and acquisition of facilities and remodeling, and 
     equipping of such facilities for penal and correctional use, 
     including all necessary expenses incident thereto, by 
     contract or force account; and constructing, remodeling, and 
     equipping necessary buildings and facilities at existing 
     penal and correctional institutions, including all necessary 
     expenses incident thereto, by contract or force account; 
     $395,700,000, to remain available until expended, of which 
     not to exceed $14,074,000 shall be available able to 
     construct areas for inmate work programs: Provided, That 
     labor of United States prisoners may be used for work 
     performed under this appropriation: Provided further, That 
     not to exceed 10 percent of the funds appropriated to 
     ``Buildings and Facilities'' in this Act or any other Act may 
     be transferred to ``Salaries and Expenses'', Federal Prison 
     System, upon notification by the Attorney General to the 
     Committees on Appropriations of the House of Representatives 
     and the Senate in compliance with provisions set forth in 
     section 605 of this Act: Provided further, That of the total 
     amount appropriated, not to exceed $36,570,000 shall be 
     available for the renovation and construction of United 
     States Marshals Service prisoner-holding facilities.


                federal prison industries, incorporated

       The Federal Prison Industries, Incorporated, is hereby 
     authorized to make such expenditures, within the limits of 
     funds and borrowing authority available, and in accord with 
     the law, and to make such contracts and commitments, without 
     regard to fiscal year limitations as provided by section 9104 
     of title 31, United States Code, as may be necessary in 
     carrying out the program set forth in the budget for the 
     current fiscal year for such corporation, including purchase 
     of (not to exceed five for replacement only) and hire of 
     passenger motor vehicles.

[[Page H11648]]

   limitation on administrative expenses, federal prison industries, 
                              incorporated

       Not to exceed $3,042,000 of the funds of the corporation 
     shall be available for its administrative expenses, and for 
     services as authorized by 5 U.S.C. 3109, to be computed on an 
     accrual basis to be determined in accordance with the 
     corporation's current prescribed accounting system, and such 
     amounts shall be exclusive of depreciation, payment of 
     claims, and expenditures which the said accounting system 
     requires to be capitalized or charged to cost of commodities 
     acquired or produced, including selling and shipping 
     expenses, and expenses in connection with acquisition, 
     construction, operation, maintenance, improvement, 
     protection, or disposition of facilities and other property 
     belonging to the corporation or in which it has an interest.

                       Office of Justice Programs


                           justice assistance

       For grants, contracts, cooperative agreements, and other 
     assistance authorized by title I of the Omnibus Crime Control 
     and Safe Streets Act of 1968, as amended, and the Missing 
     Children's Assistance Act, as amended, including salaries and 
     expenses in connection therewith, and with the Victims of 
     Crime Act of 1984, as amended, $101,429,000, to remain 
     available until expended, as authorized by section 1001 of 
     title I of the Omnibus Crime Control and Safe Streets Act, as 
     amended by Public Law 102-534 (106 Stat. 3524).
       For an additional amount, $17,000,000, to remain available 
     until expended; of which $5,000,000 shall be for Local 
     Firefighter and Emergency Services Training Grants as 
     authorized by section 819 of the Antiterrorism and Effective 
     Death Penalty Act of 1996 (``the Antiterrorism Act''); of 
     which $10,000,000 shall be for development of 
     counterterrorism technologies to help State and local law 
     enforcement combat terrorism, as authorized by section 821 of 
     the Antiterrorism Act; of which $2,000,000 shall be for 
     specialized multi-agency response training: Provided, That 
     the entire amount is designated by Congress as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended: Provided further, That the entire amount not 
     previously designated by the President as an emergency 
     requirement shall be available only to the extent an official 
     budget request, for a specific dollar amount that includes 
     designation of the entire amount of the request as an 
     emergency requirement, as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted to Congress.


               state and local law enforcement assistance

       For grants, contracts, cooperative agreements, and other 
     assistance authorized by part E of title I of the Omnibus 
     Crime Control and Safe Streets Act of 1968, as amended, for 
     State and Local Narcotics Control and Justice Assistance 
     Improvements, notwithstanding the provisions of section 511 
     of said Act, $361,000,000, to remain available until 
     expended, as authorized by section 1001 of title I of said 
     Act, as amended by Public Law 102-534 (106 Stat. 3524), of 
     which $60,000,000 shall be available to carry out the 
     provisions of chapter A of subpart 2 of part E of title I of 
     said Act, for discretionary grants under the Edward Byrne 
     Memorial State and Local Law Enforcement Assistance Programs.


   violent crime reduction programs, state and local law enforcement 
                               assistance

       For assistance (including amounts for administrative costs 
     for management and administration, which amounts shall be 
     transferred to and merged with the ``Justice Assistance'' 
     account) authorized by the Violent Crime Control and Law 
     Enforcement Act of 1994 (Public Law 103-322), as amended 
     (``the 1994 Act''); the Omnibus Crime Control and Safe 
     Streets Act of 1968, as amended (``the 1968 Act'') and the 
     Victims of Child Abuse Act of 1990, as amended (``the 1990 
     Act'') $2,036,150,000, to remain available until expended, 
     which shall be derived from the Violent Crime Reduction Trust 
     Fund, of which $523,000,000 shall be for Local Law 
     Enforcement Block Grants, pursuant to H.R. 728 as passed by 
     the House of Representatives of February 14, 1995, except 
     that for purposes of this Act, the Commonwealth of Puerto 
     Rico shall be considered a ``unit of local government'' as 
     well as a ``State'', for the purposes set forth in paragraphs 
     (A), (B), (D), (F), and (I) of section 101(a)(2) of H.R. 728 
     and for establishing crime prevention programs involving 
     cooperation between community residents and law enforcement 
     personnel in order to control, detect, or investigate crime 
     or the prosecution of criminals: Provided, That no funds 
     provided under this heading may be used as matching funds for 
     any other Federal grant program: Provided further, That 
     $20,000,000 of this amount shall be for Boys and Girls Clubs 
     in public housing facilities and other areas in cooperation 
     with State and local law enforcement: Provided further, That 
     funds may also be used to defray the costs of indemnification 
     insurance for law enforcement officers; of which $50,000,000 
     shall be for grants to upgrade criminal records, as 
     authorized by section 106(b) of the Brady Handgun Violence 
     Prevention Act of 1993, as amended, and section 4(b) of the 
     National Child Protection Act of 1993; of which $199,000,000 
     shall be available as authorized by section 1001 of title I 
     of the 19678 Act, to carry out the provisions of subpart 1, 
     part E of title I of the 1968 Act, notwithstanding section 
     511 of said Act, for the Edward Byrne Memorial State and 
     Local Law Enforcement Assistance Programs; of which 
     $440,000,000 shall be for the State Criminal Alien Assistance 
     Program, as authorized by section 242(j) of the Immigration 
     and Nationality Act, as amended; of which $670,000,000 shall 
     be for Violent Offender Incarceration and Truth in Sentencing 
     Incentive Grants pursuant to subtitle A of title II of the 
     1994 Act, of which $170,000,000 shall be available for 
     payments to States for incarceration of criminal aliens, and 
     of which $12,500,000 shall be available for the Cooperative 
     Agreement Program: Provided further, that funds made 
     available for Violent Offender Incarceration and Truth in 
     Sentencing Incentive Grants to the State of California may, 
     at the discretion of the recipient, be used for payments for 
     the incarceration of criminal aliens: Provided further, That 
     beginning in fiscal year 1999, and thereafter, no funds shall 
     be available to make grants to a State pursuant to section 
     20103 or section 20104 of the Violent Crime Control and Law 
     Enforcement Act of 1994 unless no later than September 1, 
     1998, such State has implemented a program of controlled 
     substance testing and intervention for appropriate categories 
     of convicted offenders during periods of incarceration and 
     criminal justice supervision, with sanctions including denial 
     or revocation of release for positive controlled substance 
     tests, consistent with guidelines issued by the Attorney 
     General; of which $6,000,000 shall be for the Court Appointed 
     Special Advocate Program, as authorized by section 218 of the 
     1990 Act; of which $1,000,000 shall be for Child Abuse 
     Training Programs for Judicial Personnel and Practitioners, 
     as authorized by section 224 of the 1990 Act; of which 
     $145,000,000 shall be for Grants to Combat Violence Against 
     Women, to States, units of local government, and Indian 
     tribal governments, as authorize by section 1001(a)(18) of 
     the 1968 Act; of which $33,000,000 shall be for Grants to 
     Encourage Arrest Policies to States, units of local 
     government, and Indian tribal governments, as authorized by 
     section 1001(a)(19) of the 1968 Act; of which $8,000,000 
     shall be for Rural Domestic Violence and Child Abuse 
     Enforcement Assistance Grants, as authorized by section 40295 
     of the 1994 Act; of which $1,000,000 shall be for training 
     programs to assist probation and parole officers who work 
     with released sex offenders, as authorized by section 
     40152(c) of the 1994 Act; of which $1,750,000 shall be for 
     national stalker and domestic violence reduction, as 
     authorized by section 40603 of the 1994 Act; of which 
     $30,000,000 shall be for grants for residential substance 
     abuse treatment for State prisoners as authorized by section 
     1001(a)(17) of the 1968 Act; of which $3,000,000 shall be for 
     grants to States and units of local government for projects 
     to improve DNA analysis, as authorized by section 1001(a)(22) 
     of the 1968 Act; of which $900,000 shall be for the Missing 
     Alzheimer's Disease Patient Alert Program, as authorized by 
     section 24001(c) of the 1994 Act; of which $750,000 shall be 
     for Motor Vehicle Theft Prevention Programs, as authorized by 
     section 220002(h) of the 1994 Act; of which $200,000 shall be 
     for a National Baseline Study on Campus Sexual Assault, as 
     authorized by section 40506(e) of the 1994 Act; of which 
     $30,000,000 shall be for Drug Courts, as authorized by title 
     V of the 1994 Act; of which $1,000,000 shall be for Law 
     Enforcement Family Support Programs, as authorized by section 
     1001(a)(21) of the 1968 Act; and of which $2,000,000 shall be 
     for public awareness programs addressing marketing scams 
     aimed at senior citizens, as authorized by section 250005(3) 
     of the 1994 Act: Provided further, That funds made available 
     in fiscal year 1997 under subpart 1 of part E of title I of 
     the Omnibus Crime Control and Safe Streets Act of 1968, as 
     amended, may be obligated for programs to assist States in 
     the litigation processing of death penalty Federal habeas 
     corpus petitions and for drug testing initiatives: Provided 
     further, That any 1996 balances for these programs shall be 
     transferred to and merged with this appropriation: Provided 
     further, That if a unit of local government uses any of the 
     funds made available under this title to increase the number 
     of law enforcement officers, the unit of local government 
     will achieve a net gain in the number of law enforcement 
     officers who perform nonadministrative public safety service.


                       weed and seed program fund

       For necessary expenses, including salaries and related 
     expenses of the Executive Office for Weed and Seed, to 
     implement ``Weed and Seed'' program activities, $28,500,000, 
     which shall be derived from discretionary grants provided 
     under the Edward Byrne Memorial State and Local Law 
     Enforcement Assistance Programs, to remain available until 
     expended for intergovernmental agreements, including grants, 
     cooperative agreements, and contracts, with State and local 
     law enforcement agencies engaged in the investigation and 
     prosecution of violent crimes and drug offenses in ``Weed and 
     Seed'' designated communities, and for either reimbursements 
     or transfers to appropriation accounts of the Department of 
     Justice and other Federal agencies which shall be specified 
     by the Attorney General to execute the ``Weed and Seed'' 
     program strategy: Provided, That funds designated by Congress 
     through language for other Department of Justice 
     appropriation accounts for ``Weed and Seed'' program 
     activities shall be managed and executed by the Attorney 
     General through the Executive Office for Weed and Seed: 
     Provided further, That the Attorney General may direct the 
     use of other Department of Justice funds and personnel in 
     support of ``Weed and Seed'' program activities only after 
     the Attorney General notifies the Committees on 
     Appropriations of the House of Representatives and the Senate 
     in accordance with section 605 of this Act.

                  Community Oriented Policing Services


                    violent crime reduction programs

       For activities authorized by the Violent Crime Control and 
     Law Enforcement Act of 1994, Public Law 103-322 (``the 1994 
     Act'') (including administrative costs), $1,400,000,000, to 
     remain available until expended, which shall be derived from 
     Violent Crime Reduction Trust Fund, for Public Safety and 
     Community Policing Grants pursuant to title I of the 1994 
     Act: Provided, That not to exceed 186 permanent positions and 
     174 full-time equivalent workyears and

[[Page H11649]]

     $19,800,000 shall be expended for program management and 
     administration.
       In addition, for programs of Police Corps education, 
     training and service as set forth in sections 200101-200113 
     of the Violent Crime Control and Law Enforcement Act of 1994 
     (Public Law 103-322), $20,000,000, to remain available until 
     expended, which shall be derived from the Violent Crime 
     Reduction Trust Fund.


                       juvenile justice programs

       For grants, contracts, cooperative agreements, and other 
     assistance authorized by the Juvenile Justice and Delinquency 
     Prevention Act of 1974, as amended, including salaries and 
     expenses in connection therewith to be transferred to and 
     merged with the appropriations for Justice Assistance, 
     $170,000,000, to remain available until expended, as 
     authorized by section 299 of part I of title II and section 
     506 of title V of the Act, as amended by Public Law 102-586, 
     of which (1) notwithstanding any other provision of law, 
     $5,000,000 shall be available for expenses authorized by part 
     A of title II of the Act, $86,500,000 shall be available for 
     expenses authorized by part B of title II of the Act, and 
     $29,500,000 shall be available for expenses authorized by 
     part C of title II of the Act: Provided, That $16,500,000 of 
     the amounts provided for part B of title II of the Act, as 
     amended, is for the purpose of providing additional formula 
     grants under part B, for innovative local law enforcement and 
     community policing programs, to States that provide 
     assurances to the Administrator that the State has in effect 
     (or will have in effect no later than 1 year after date of 
     application) policies and programs, that ensure that 
     juveniles are subject to accountability-based sanctions for 
     every act for which they are adjudicated delinquent; (2) 
     $12,000,000 shall be available for expenses authorized by 
     sections 281 and 282 of part D of title II of the Act for 
     prevention and treatment programs relating to juvenile gangs; 
     (3) $10,000,000 shall be available for expenses authorized by 
     section 285 of part E of title II of the Act; (4) $7,000,000 
     shall be available for expenses authorized by part G of title 
     II of the Act for juvenile mentoring programs; and (5) 
     $20,000,000 shall be available for expenses authorized by 
     title V of the Act for incentive grants for local delinquency 
     prevention programs: Provided, That upon the enactment of 
     reauthorization legislation for Juvenile Justice Programs 
     under the Juvenile Justice and Delinquency Prevention Act of 
     1974, as amended, funding provided in this Act shall from 
     that date be subject to the provisions of that legislation 
     and any provisions in this Act that are inconsistent with 
     that legislation shall no longer have effect.
       In addition, for grants, contracts, cooperative agreements, 
     and other assistance authorized by the Victims of Child Abuse 
     Act of 1990, as amended, $4,500,000, to remain available 
     until expended, as authorized by sections 214B of the Act.


                    public safety officers benefits

       For payments authorized by part L of title I of the Omnibus 
     Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796), 
     as amended, such sums as are necessary, to remain available 
     until expended, as authorized by section 6093 of Public Law 
     100-690 (102 Stat. 4339-4340), and, in addition, $2,200,000, 
     to remain available until expended, for payments as 
     authorized by section 1201(b) of said Act.

               General Provisions--Department of Justice

       Sec. 101. In addition to amounts otherwise made available 
     in this title for official reception and representation 
     expenses, a total of not to exceed $45,000 from funds 
     appropriated to the Department of Justice in this title shall 
     be available to the Attorney General for official reception 
     and representation expenses in accordance with distributions, 
     procedures, and regulations established by the Attorney 
     General.
       Sec. 102. Authorities contained in the Department of 
     Justice Appropriation Authorization Act, Fiscal Year 1980 
     (Pub. L. 96-132, 93 Stat. 1040 (1979)), as amended, shall 
     remain in effect until the termination date of this Act or 
     until the effective date of a department of Justice 
     Appropriation Act, whichever is earlier.
       Sec. 103. None of the funds appropriated by this title 
     shall be available to pay for an abortion, except where the 
     life of the mother would be endangered if the fetus were 
     carried to term, or in the case of rape: Provided, That 
     should this prohibition be declared unconstitutional by a 
     court of competent jurisdiction, this section shall be null 
     and void.
       Sec. 104. None of the funds appropriated under this title 
     shall be used to require any person to perform, or facilitate 
     in any way the performance of, any abortion.
       Sec. 105. Nothing in the preceding section shall remove the 
     obligation of the Director of the Bureau of Prisons to 
     provide escort services necessary for a female inmate to 
     receive such service outside the Federal facility: Provided, 
     That nothing in this section in any way diminishes the effect 
     of section 104 intended to address the philosophical beliefs 
     of individual employees of the bureau of Prisons.
       Sec. 106. Notwithstanding any other provision of law, not 
     to exceed $10,000,000 of the funds made available in this Act 
     may be used to establish and publicize a program under which 
     a publicly-advertised, extraordinary rewards may be paid, 
     which shall not be subject to spending limitations contained 
     in sections 3059 and 3072 of title 18, United States Code: 
     Provided, That any reward of $100,000 or more, up to a 
     maximum of $2,000,000, may not be made without the personal 
     approval of the President or the Attorney General and such 
     approval may not be delegated.
       Sec. 107. Not to exceed 5 percent of any appropriation made 
     available for the current fiscal year for the Department of 
     Justice in this Act, including those derived from the Violent 
     Crime Reduction Trust Fund, may be transferred between such 
     appropriations, but no such appropriation, except as 
     otherwise specifically provided, shall be increased by more 
     than 10 percent by any such transfers: Provided, That any 
     transfer pursuant to this section shall be treated as a 
     reprogramming of funds under section 605 of this Act and 
     shall not be available for obligation except in compliance 
     with the procedures set forth in that section.
       Sec. 108. Section 524(c)(8)(E) of title 28, United States 
     Code, is amended by striking the year in the date therein 
     contained and replacing the same with ``1996''.
       Sec. 109. (a) Section 1930(a) of title 28, United States 
     Code, is amended in paragraph (3), by inserting ``$'' before 
     ``800'', and in paragraph (6), by striking everything after 
     ``total less than $15,000;'' and inserting in lieu thereof: 
     ``$500 for each quarter in which disbursements total $15,000 
     or more but less than $75,000; $750 for each quarter in which 
     disbursements total $75,000 or more but less than $150,000; 
     $1,250 for each quarter in which disbursements total $150,000 
     or more but less than $225,000; $1,500 for each quarter in 
     which disbursements total $225,000 or more but less than 
     $300,000; $3,750 for each quarter in which disbursements 
     total $300,000 or more but less than $1,000,000; $5,000 for 
     each quarter in which disbursements total $1,000,000 or more 
     but less than $2,000,000; $7,500 for each quarter in which 
     disbursements total $2,000,000 or more but less than 
     $3,000,000; $8,000 for each quarter in which disbursements 
     total $3,000,000 or more but less than $5,000,000; $10,000 
     for each quarter in which disbursements total $5,000,000 or 
     more. The fee shall be payable on the last day of the 
     calendar month following the calendar quarter for which the 
     fee is owed.''.
       (b) Section 589a of title 28, United States Code, is 
     amended to read as follows:

     ``Sec. 589a. United States Trustee System Fund

       ``(a) There is hereby established in the Treasury of the 
     United States a special fund to be known as the `United 
     States Trustee System Fund' (hereinafter in this section 
     referred to as the `Fund'). Monies in the Fund shall be 
     available to the Attorney General without fiscal year 
     limitation in such amounts as may be specified in 
     appropriations Acts for the following purposes in connection 
     with the operations of United States trustees--
       ``(1) salaries and related employee benefits;
       ``(2) travel and transportation;
       ``(3) rental of space;
       ``(4) communication, utilities, and miscellaneous computer 
     charges;
       ``(5) security investigations and audits;
       ``(6) supplies, books, and other materials for legal 
     research;
       ``(7) furniture and equipment;
       ``(8) miscellaneous services, including those obtained by 
     contract; and
       ``(9) printing.
       ``(b) For the purpose of recovering the cost of services of 
     the United States Trustee System, there shall be deposited as 
     offsetting collections to the appropriation `United States 
     Trustee System Fund', to remain available until expended, the 
     following--
       ``(1) 23.08 percent of the fees collected under section 
     1930)a)(1) of this title;
       ``(2) one-half of the fees collected under section 
     1930(a)(3) of this title;
       ``(3) one-half of the fees collected under section 
     1930(a)(4) of this title;
       ``(4) one-half of the fees collected under section 
     1930(a)(5) of this title;
       ``(5) 100 percent of the fees collected under section 
     1930(a)(6) of this title;
       ``(6) three-fourths of the fees collected under the last 
     sentence of section 1930(a) of this title;
       ``(7) the compensation of trustees received under section 
     330(d) of title 11 by the clerks of the bankruptcy courts; 
     and
       ``(8) excess fees collected under section 586(e)(2) of this 
     title.
       ``(c) Amounts in the Fund which are not currently needed 
     for the purposes specified in subsection (a) shall be kept on 
     deposit or invested in obligations of, or guaranteed by, the 
     United States.
       ``(d) The Attorney General shall transmit to the Congress, 
     not later than 120 days after the end of each fiscal year, a 
     detailed report on the amounts deposited in the Fund and a 
     description of expenditures made under this section.
       ``(e) There are authorized to be appropriated to the Fund 
     for any fiscal year such sums as may be necessary to 
     supplement amounts deposited under subsection (b) for the 
     purposes specified in subsection (a).''.
       (c) Notwithstanding any other provision of law or of this 
     Act, the amendments to 28 U.S.C. 589a made by subsection (b) 
     of this section shall take effect upon enactment of this Act.
       (d) Section 101(a) of Public Law 104-91, as amended by 
     section 211 of Public Law 104-99 is further amended by 
     inserting ``: Provided further, That, notwithstanding any 
     other provision of law, the fees under 28 U.S.C. 1930(a)(6) 
     shall accrue and be payable from and after January 27, 1996, 
     in all cases (including, without limitation, any cases 
     pending as of that date), regardless of confirmation status 
     of their plans'' after ``enacted into law''.
       Sec. 110. Public Law 103-414 (108 Stat. 4279) is amended by 
     inserting at its conclusion a new title IV, as follows:

       ``TITLE IV--TELECOMMUNICATIONS CARRIER COMPLIANCE PAYMENTS

     ``SEC. 401. DEPARTMENT OF JUSTICE TELECOMMUNICATIONS CARRIER 
                   COMPLIANCE FUND.

       ``(a) Establishment of Fund.--There is hereby established 
     in the United States Treasury a fund to be known as the 
     Department of Justice Telecommunications Carrier Compliance 
     Fund (hereafter referred to as `the Fund'), which shall be 
     available without fiscal year limitation to the Attorney 
     General for making payments to

[[Page H11650]]

     telecommunications carriers, equipment manufacturers, and 
     providers of telecommunications support services pursuant to 
     section 109 of this Act.
       ``(b) Deposits to the Fund.--Notwithstanding any other 
     provision of law, any agency of the United States with law 
     enforcement or intelligence responsibilities may deposit as 
     offsetting collections to the Fund any unobligated balances 
     that are available until expended, upon compliance with any 
     Congressional notification requirements for reprogramming of 
     funds applicable to the appropriation from which the deposit 
     is to be made.
       ``(c) Termination.--
       ``(1) The Attorney General may terminate the Fund at such 
     time as the Attorney General determines that the Fund is no 
     longer necessary.
       ``(2) Any balance in the Fund at the time of its 
     termination shall be deposited in the General Fund of the 
     Treasury.
       ``(3) A decision of the Attorney General to terminate the 
     Fund shall not be subject to judicial review.
       ``(d) Availability of Funds for Expenditure.--Funds shall 
     not be available for obligation unless an implementation plan 
     as set forth in subsection (e) is submitted to each member of 
     the Committees on the Judiciary and Appropriations of both 
     the House of Representatives and the Senate and the Congress 
     does not by law block or prevent the obligation of such 
     funds. Such funds shall be treated as a reprogramming of 
     funds under section 605 of the Department of Commerce, 
     Justice, and State, the Judiciary, and Related Agencies 
     Appropriations Act, 1997, and shall not be available for 
     obligation or expenditure except in compliance with the 
     procedures set forth in that section and this section.
       ``(e) Implementation Plan.--The implementation plan shall 
     include:
       ``(1) the law enforcement assistance capability 
     requirements and an explanation of law enforcement's 
     recommended interface;
       ``(2) the proposed actual and maximum capacity requirements 
     for the number of simultaneous law enforcement communications 
     intercepts, pen registers, and trap and trace devices that 
     authorized law enforcement agencies may seek to conduct, set 
     forth on a county-by-county basis for wireline services and 
     on a market service area basis for wireless services, and the 
     historical baseline of electronic surveillance activity upon 
     which such capacity requirements are based;
       ``(3) a prioritized list of carrier equipment, facilities, 
     and services deployed on or before January 1, 1995, to be 
     modified by carriers at the request of law enforcement based 
     on its investigative needs;
       ``(4) a projected reimbursement plan that estimates the 
     cost for the coming fiscal year and for each fiscal year 
     thereafter, based on the prioritization of law enforcement 
     needs as outlined in (3), of modification by carriers of 
     equipment, facilities and services, installed on or before 
     January 1, 1995.
       ``(f) Annual Report to the Congress.--The Attorney General 
     shall submit to the Congress each year a report specifically 
     detailing all deposits and expenditures made pursuant to this 
     Act in each fiscal year. This report shall be submitted to 
     each member of the Committees on the Judiciary and 
     Appropriations of both the House of Representatives and the 
     Senate, and to the Speaker and minority leader of the House 
     of Representatives and to the majority and minority leaders 
     of the Senate, no later than 60 days after the end of each 
     fiscal year.''.
       Sec. 111. It is the sense of the Congress that the Drug 
     Enforcement Administration, together with other appropriate 
     Federal agencies, should take such actions as may be 
     necessary to end the illegal importation into the United 
     States of Rohypnol (Flunitrazepam), a drug frequently 
     distributed with the intent to facilitate sexual assault and 
     rape.
       Sec. 112. Section 1402 of the Victims of Crime Act of 1984, 
     as amended (42 U.S.C. 10601), is amended at subsection (e) by 
     deleting ``2'' and inserting ``3'', and at subsection (d) by 
     adding a new paragraph (5) as follows:
       ``(5) The Director may set aside up to $500,000 of the 
     reserve fund described in paragraph (4) to maker supplemental 
     grants to United States Attorneys Offices to provide 
     necessary assistance to victims of the bombing of the Alfred 
     P. Murrah Federal Building in Oklahoma City, to facilitate 
     observation of and/or participation by such victims in trial 
     proceedings arising therefrom, including, without limitation, 
     provision of lodging and travel assistance, and to pay such 
     other, related expenses determined to be necessary by the 
     Director.''.
       Sec. 113. Section 732 of Public Law 104-132 (110 Stat. 
     1303; 18 U.S.C. 841 note) is amended--
       (1) in subsection (a), by adding at the end the following 
     new paragraph:
       ``(3) New prevention technologies.--In addition to the 
     study of taggants as provided herein, the Secretary, in 
     consultation with the Attorney General, shall concurrently 
     report to the Congress on the possible use, and exploitation 
     of technologies such as vapor detection devices, computed 
     tomography, nuclear quadropole resonance, thermal neutron 
     analysis, pulsed fast-neutron analysis, and other 
     technologies upon which recommendations to the Congress may 
     be made for further study, funding, and use of the same in 
     preventing and solving acts of terrorism involving explosive 
     devices.''; and
       (2) by adding at the end the following new subsection:
       ``(f) Special Study.--
       ``(1) In general.--Notwithstanding subsection (a), the 
     Secretary of the Treasury shall enter into a contract with 
     the National Academy of Sciences (referred to in this section 
     as the `Academy') to conduct a study of the tagging of 
     smokeless and black powder by any viable technology for 
     purposes of detection and identification. The study shall be 
     conducted by an independent panel of 5 experts appointed by 
     the Academy.
       ``(2) Study elements.--The study conducted under this 
     subsection shall--
       ``(A) indicate whether the tracer elements, when added to 
     smokeless and black powder--
       ``(i) will pose a risk to human life or safety;
       ``(ii) will substantially assist law enforcement officers 
     in their investigative efforts;
       ``(iii) will impair the quality and performance of the 
     powders (which shall include a broad and comprehensive 
     sampling of all available powders) for their intended lawful 
     use, including, but not limited to the sporting, defense, and 
     handloading uses of the powders, as well as their use in 
     display and lawful consumer pyrotechnics;
       ``(iv) will have a substantially adverse effect on the 
     environment;
       ``(v) will incur costs which outweigh the benefits of their 
     inclusion, including an evaluation of the probable production 
     and regulatory cost of compliance to the industry, and the 
     costs and effects on consumers, including the effect on the 
     demand for ammunition; and
       ``(vi) can be evaded, and with what degree of difficulty, 
     by terrorists or terrorist organizations, including evading 
     tracer elements by the use of precursor chemicals to make 
     black or other powders; and
       ``(B) provide for consultation on the study with Federal, 
     State, and local officials, non-governmental organizations, 
     including all national police organizations, national 
     sporting organizations, and national industry associations 
     with expertise in this area and such other individuals as 
     shall be deemed necessary.
       ``(3) Report and costs.--The study conducted under this 
     subsection shall be presented to Congress 12 months after the 
     enactment of this subsection and be made available to the 
     public, including any data tapes or data used to form such 
     recommendations. There are authorized to be appropriated such 
     sums as may be necessary to carry out the study.''.
       Sec. 114. (a) Section 524(c)(1) of title 28, United States 
     Code, is amended in the first sentence following the second 
     subparagraph (I) by deleting ``(C),''.
       (b) Section 524 (c)(8)(A) is amended by deleting ``(C),''.
       Sec. 115. Effective with the enactment of this Act and in 
     any fiscal year hereafter, under policies established by the 
     Attorney General, the Department of Justice may reimburse 
     employees who are paid by an appropriation account within the 
     Department of Justice and are traveling on behalf of the 
     United States in temporary duty status to investigate, 
     prosecute, or litigate (including the provision of support 
     therefor) a criminal or civil matter, or for other similar 
     special circumstances, for Federal, State, and local taxes 
     heretofore and hereafter resulting from any reimbursement of 
     travel expenses from an appropriation account within the 
     Department of Justice: Provided, That such reimbursement may 
     include an amount equal to all income taxes for which the 
     employee would be liable due to such reimbursement.
       Sec. 116. Section 524 of the title 28, United States Code, 
     is amended by adding a new subsection (d) as follows:
       ``(d)(1) The Attorney General may accept, hold, administer, 
     and use gifts, devises, and bequests of any property for the 
     purpose of aiding or facilitating the work of the Department 
     of Justice.
       ``(2) Gifts, devises, and bequests of money, the proceeds 
     of sale or liquidation of any other property accepted 
     hereunder, and any income accruing from any property accepted 
     hereunder--
       ``(A) shall be deposited in the Treasury in a separate fund 
     and held in trust by the Secretary of the Treasury for the 
     benefit of the Department of Justice; and
       ``(B) are hereby appropriated, without fiscal year 
     limitation, and shall be disbursed on order of the Attorney 
     General.
       ``(3) Upon request of the Attorney General, the Secretary 
     of the Treasury may invest and reinvest the fund described 
     herein in public debt securities with maturities suitable for 
     the needs of the fund and bearing interest at rates 
     determined by the Secretary of the Treasury, taking into 
     consideration the current average market yield on outstanding 
     marketable obligations of the United States or comparable 
     maturities.
       ``(4) Evidences of any intangible personal property (other 
     than money) accepted hereunder shall be deposited with the 
     Secretary of the Treasury, who may hold or liquidate them, 
     except that they shall be liquidated upon the request of the 
     Attorney General.
       ``(5) For purposes of federal income, estate, and gift 
     taxes, property accepted hereunder shall be considered a 
     gift, devise, or bequest to, or for the use of, the United 
     States.''.
       Sec. 117. Section 524(c)(9), of title 28 United States 
     Code, is amended to read as follows:
       ``(9)(A) Following the completion of procedures for the 
     forfeiture of property pursuant to any law enforced or 
     administered by the Department, the Attorney General is 
     authorized, in her discretion, to warrant clear title to any 
     subsequent purchaser or transferee of such property.
       ``(B) For fiscal year 1997, the Attorney General is 
     authorized to transfer, under such terms and conditions as 
     the Attorney General shall specify, real or personal property 
     of limited or marginal value, to a State or local government 
     agency, or its designated contractor or transferee, for use 
     to support drug abuse treatment, drug and crime prevention 
     and education, housing, job skills, and other community-based 
     public health and safety programs. Such transfer shall not 
     create or confer any private right of action in any person 
     against the United States.''.

[[Page H11651]]

       Sec. 118. Section 594(b)(3)(A) of title 28 United States 
     Code, is amended in the second sentence by--
       (a) striking ``by 6 months'' and inserting ``for successive 
     6-month periods''; and
       (b) striking the phrase ``employee assigned duties under 
     subsection (l)(1)(A)(iii) certifies'' and inserting 
     ``independent counsel and the division of the court 
     certify''; and
       (c) striking ``such employee'' and inserting ``the 
     independent counsel'' and ``the division of the court''.
       Sec. 119. This section may be cited as the ``Age 
     Discrimination in Employment Amendments of 1996''.

               Subsection 1. Age Discrimination Amendment

       (a) Repeal of Repealer.--Section 3(b) of the Age 
     Discrimination in Employment Amendments of 1986 (29 U.S.C. 
     623 note) is repealed.
       (b) Exemption.--Section 4(j) of the Age Discrimination in 
     Employment Act of 1967 (29 U.S.C. 623(j)), as in effect 
     immediately before December 31, 1993--
       (1) is reenacted as such section; and
       (2) as so reenacted, is amended in paragraph (1) by 
     striking ``and the individual has attained the age'' and all 
     that follows through ``1983, and'' and inserting the 
     following: ``, the employer has complied with section 3(d)(2) 
     of the Age Discrimination in Employment Amendments of 1996 if 
     the individual was discharged after the date described in 
     such section, and the individual has attained--
       ``(A) the age of hiring or retirement, respectively, in 
     effect under applicable State or local law on March 3, 1983; 
     or
       ``(B)(i) if the individual was not hired, the age of hiring 
     in effect on the date of such failure or refusal to hire 
     under applicable State or local law enacted after the date of 
     enactment of the Age Discrimination in Employment Amendments 
     of 1996; or
       ``(ii) if applicable State or local law was enacted after 
     the date of enactment of the Age Discrimination in Employment 
     Amendments of 1996 and the individual was discharged, the 
     higher of--
       ``(I) the age of retirement in effect on the date of such 
     discharge under such law; and
       ``(II) age 55; and''.
       (c) Construction.--Nothing in the repeal, reenactment, and 
     amendment made by subsections (a) and (b) shall be construed 
     to make lawful the failure or refusal to hire, or the 
     discharge of, an individual pursuant to a law that--
       (1) was enacted after March 3, 1983 and before the date of 
     enactment of the Age Discrimination in Employment Amendments 
     of 1996; and
       (2) lowered the age of hiring or retirement, respectively, 
     for firefighters or law enforcement officers that was in 
     effect under applicable State or local law on March 3, 1983.

     Subsection 2. Study and Guidelines for Performance Tests

         (a) Study.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary of Health and Human 
     Services, acting through the Director of the National 
     Institute for Occupational Safety and Health (referred to in 
     this section as the ``Secretary''), shall conduct, directly 
     or by contract, a study, and shall submit to the appropriate 
     committees of Congress a report based on the results of the 
     study that shall include--
       (1) a list and description of all tests available for the 
     assessment of abilities important for the completion of 
     public safety tasks performed by law enforcement officers and 
     firefighters.
       (2) a list of the public safety tasks for which adequate 
     tests described in paragraph (1) do not exist;
       ``(3) a description of the technical characteristics that 
     the tests shall meet to be in compliance with applicable 
     Federal civil rights law and policies;
       (4) a description of the alternative methods that are 
     available for determining minimally acceptable performance 
     standards on the tests;
       (5) a description of the administrative standards that 
     should be met in the administration, scoring, and score 
     interpretation of the tests; and
       (6) an examination of the extent to which the tests are 
     cost-effective, are safe, and comply with the Federal civil 
     rights law and policies.
       (b) Consultation Requirement; Opportunity for Public 
     Comment.--
       (1) Consultation.--The Secretary shall, during the conduct 
     of the study required by subsection (a), consult with--
       (A) the Deputy Administration of the United States Fire 
     Administration:
       (B) the Director of the Federal Emergency Management 
     Agency;
       (C) organizations that represent law enforcement officers, 
     firefighters, and employers of the officers and firefighters; 
     and
       (D) organizations that represent older individuals.
       (2) Public comment.--Prior to issuing the advisory 
     guidelines required in subsection (e), the Secretary shall 
     provide an opportunity for public comment on the proposal 
     advisory guidelines.
        (c) Advisory Guidelines.--Not later than 4 years after the 
     date of enactment of this Act, the Secretary shall develop 
     and issue, based on the results of the study required by 
     subsection (a), advisory guidelines for the administration 
     and use of physical and mental fitness tests to measure the 
     ability and competency of law enforcement officers and 
     firefighters to perform the requirements of the jobs of the 
     officers and firefighters.
         (d) Job Performance Tests.--
       (1) Identification of tests.--After issuance of the 
     advisory guidelines described in subsection (e), the 
     Secretary shall issue regulations identifying valid, 
     nondiscriminatory job performance tests that shall be used by 
     employers seeking the exemption described in section 4(j) of 
     the Age Discrimination in Employment Act of 1967 with respect 
     to firefighters or law enforcement officers who have attained 
     an age of retirement described in such section 4(j).
       (2) Use of tests.--Effective on the date of issuance of the 
     regulations described in paragraph (1), any employer seeking 
     such exemption with respect to a firefighter or law 
     enforcement officer who has attained such age shall provide 
     to each firefighter or law enforcement officer who has 
     attained such age an annual opportunity to demonstrate 
     physical and mental fitness by passing a test described in 
     paragraph (1), in order to continue employment.
         (e) Development of Standards for Wellness Programs.--Not 
     later than 2 years after the date of enactment of this Act, 
     the Secretary shall propose advisory standards for wellness 
     programs for law enforcement officers and firefighters.
       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated $5,000,000 to carry out this section.

                     Subsection 3. Effective Dates

       (a) General Effective Date.--Except as provided in 
     subsection (b), this title and the amendments made by this 
     title shall take effect on the date of enactment of this Act.
       (b) Special Effective Date.--The repeal made by section 
     2(a) and the reenactment made by section 2(b)(1) shall take 
     effect on December 31, 1993.
       Sec. 120. Section 320935(e) of the Violent Crime Control 
     and Law Enforcement Act of 1994 is amended by inserting '', 
     including all trails commenced on or after the effective date 
     of such amendments'' after ``such amendments''.
       Sec. 121. This section may be cited as the ``Child 
     Pornography Prevention Act of 1996''.

                         Subsection 1. Findings

       Congress finds that--
       (1) the use of children in the production of sexually 
     explicit material, including photographs, films, videos, 
     computer images, and other visual depictions, is a form of 
     sexual abuse which can result in physical or psychological 
     harm, or both, to the children involved;
       (2) where children are used in its production, child 
     pornography permanently records the victim's abuse, and its 
     continued existence causes the child victims of sexual abuse 
     continuing harm by haunting those children in future years;
       (3) child pornography is often used as part of a method of 
     seducing other children into sexual activity; a child who is 
     reluctant to engage in sexual activity with an adult, or to 
     pose for sexually explicit photographs, can sometimes be 
     convinced by viewing depictions of other children ``having 
     fun'' participating in such activity;
       (4) child pornography is often used by pedophiles and child 
     sexual abusers to stimulate and whet their own sexual 
     appetites, and as a model for sexual acting out with 
     children; such use of child pornography can desensitize the 
     viewer to the pathology of sexual abuse or exploitation of 
     children, so that it can become acceptable to and even 
     preferred by the viewer;
       (5) new photographic and computer imagining technologies 
     make it possible to produce by electronic, mechanical, or 
     other means, visual depictions of what appear to be children 
     engaging in sexually explicit conduct that are virtually 
     indistinguishable to the unsuspecting viewer from unretouched 
     photographic images of actual children engaging in sexually 
     explicit conduct;
       (6) computers and computer imaging technology can be used 
     to--
       (A) alter sexually explicit photographs, films, and videos 
     in such a way as to make it virtually impossible for 
     unsuspecting viewers to identify individuals, or to determine 
     if the offending material was produced using children;
       (B) produce visual depictions of child sexual activity 
     designed to satisfy the preferences of individual child 
     molesters, pedophiles, and pornography collectors; and
       (C) alter innocent pictures of children to create visual 
     depictions of those children engaging in sexual conduct;
       (7) the creation or distribution of child pornography which 
     includes an image of a recognizable minor invades the child's 
     privacy and reputational interests, since images that are 
     created showing a child's face or other identifiable feature 
     on a body engaging in sexually explicit conduct can haunt the 
     minor for years to come;
       (8) the effect of visual depictions of child sexual 
     activity on a child molester or pedophile using that material 
     to stimulate or whet his own sexual appetites, or on a child 
     where the material is being used as a means of seducing or 
     breaking down the child's inhibitions to sexual abuse or 
     exploitation, is the same whether the child pornography 
     consists of photographic depictions of actual children or 
     visual depictions produced wholly or in part by electronic, 
     mechanical, or other means, including by computer, which are 
     virtually indistinguishable to the unsuspecting viewer from 
     photographic images of actual children;
       (9) the danger to children who are seduced and molested 
     with the aid of child sex pictures is just as great when the 
     child pornographer or child molester uses visual depictions 
     of child sexual activity produced wholly or in part by 
     electronic, mechanical, or other means, including by 
     computer, as when the material consists of unretouched 
     photographic images of actual children engaging in sexually 
     explicit conduct;
       (10)(A) the existence of and traffic in child pornographic 
     images creates the potential for many types of harm in the 
     community and presents a clear and present danger to all 
     children; and
       (B) it inflames the desires of child molesters, pedophiles, 
     and child pornographers who prey on children, thereby 
     increasing the creation and distribution of child pornography 
     and the sexual abuse and exploitation of actual children who 
     are victimized as a result of the existence and use of these 
     materials;

[[Page H11652]]

       (11)(A) the sexualization and eroticization of minors 
     through any form of child pornographic images has a 
     deleterious effect on all children by encouraging a societal 
     perception of children as sexual objects and leading to 
     further sexual abuse and exploitation of them; and
       (B) this sexualization of minors creates an unwholesome 
     environment which affects the psychological, mental and 
     emotional development of children and undermines the efforts 
     of parents and families to encourage the sound mental, moral 
     and emotional development of children;
       (12) prohibiting the possession and viewing of child 
     pornography will encourage the possessors of such material to 
     rid themselves of or destroy the material, thereby helping to 
     protect the victims of child pornography and to eliminate the 
     market for the sexual exploitative use of children; and
       (13) the elimination of child pornography and the 
     protection of children from sexual exploitation provide a 
     compelling governmental interest for prohibiting the 
     production, distribution, possession, sale, or viewing of 
     visual depictions of children engaging in sexually explicit 
     conduct, including both photographic images of actual 
     children engaging in such conduct and depictions produced by 
     computer or other means which are virtually indistinguishable 
     to the unsuspecting viewer from photographic images of actual 
     children engaging in such conduct.

                       Subsection 2. Definitions

       Section 2256 of title 18, United States Code, is amended--
       (1) in paragraph (5), by inserting before the semicolon the 
     following: ``, and data stored on computer disk or by 
     electronic means which is capable of conversion into a visual 
     image'';
       (2) in paragraph (6), by striking ``and'';
       (3) in paragraph (7), by striking the period and inserting 
     a semicolon; and
       (4) by adding at the end the following new paragraphs:
       ``(8) `child pornography' means any visual depiction, 
     including any photograph, film, video, picture, or computer 
     or computer-generated image or picture, whether made or 
     produced by electronic, mechanical, or other means, of 
     sexually explicit conduct, where--
       ``(A) the production of such visual depiction involves the 
     use of a minor engaging in sexually explicit conduct;
       ``(B) such visual depiction is, or appears to be, of a 
     minor engaging in sexually explicit conduct;
       ``(C) such visual depiction has been created, adapted, or 
     modified to appear that an identifiable minor is engaging in 
     sexually explicit conduct; or
       ``(D) such visual depiction is advertised, promoted, 
     presented, described, or distributed in such a manner that 
     conveys the impression that the material is or contains a 
     visual depiction of a minor engaging in sexually explicit 
     conduct; and
       ``(9) `identifiable minor'--
       ``(A) means a person--
       ``(i)(I) who was a minor at the time the visual depiction 
     was created, adapted, or modified; or
       ``(II) whose image as a minor was used in creating, 
     adapting, or modifying the visual depiction; and
       ``(ii) who is recognizable as an actual person by the 
     person's face, likeness, or other distinguishing 
     characteristic, such as a unique birthmark or other 
     recognizable feature; and
       ``(B) shall not be construed to require proof of the actual 
     identity of the identifiable minor.''.

     Subsection 3. Prohibited Activities Relating to Material 
                   Constituting or Containing Child Pornography

       (a) In General.--Chapter 110 of title 18, United States 
     Code, is amended by adding after section 2252 the following:

     ``Sec. 2252A. Certain activities relating to material 
       constituting or containing child pornography

       ``(a) Any person who--
       ``(1) knowingly mails, or transports or ships in interstate 
     or foreign commerce by any means, including by computer, any 
     child pornography;
       ``(2) knowingly receives or distributes--
       ``(A) any child pornography that has been mailed, or 
     shipped or transported in interstate or foreign commerce by 
     any means, including by computer; or
       ``(B) any material that contains child pornography that has 
     been mailed, or shipped or transported in interstate or 
     foreign commerce by any means, including by computer;
       ``(3) knowingly reproduces any child pornography for 
     distribution through the mails, or in interstate or foreign 
     commerce by any means, including by computer;
       ``(4) either--
       ``(A) in the special maritime and territorial jurisdiction 
     of the United States, or on any land or building owned by, 
     leased to, or otherwise used by or under the control of the 
     United States Government, or in the Indian country (as 
     defined in section 1151), knowingly sells or possesses with 
     the intent to sell any child pornography; or
       ``(B) knowingly sells or possesses with the intent to sell 
     any child pornography that has been mailed, or shipped or 
     transported in interstate or foreign commerce by any means, 
     including by computer, or that was produced using materials 
     that have been mailed, or shipped or transported in 
     interstate or foreign commerce by any means, including by 
     computer; or
       ``(5) either--
       ``(A) in the special maritime and territorial jurisdiction 
     of the United States, or on any land or building owned by, 
     leased to, or otherwise used by or under the control of the 
     United States Government, or in the Indian country (as 
     defined in section 1151), knowingly possesses any book, 
     magazine, periodical, film, videotape, computer disk, or any 
     other material that contains 3 or more images of child 
     pornography; or
       ``(B) knowingly possesses any book, magazine, periodical, 
     film, videotape, computer disk, or any other material that 
     contains 3 or more images of child pornography that has been 
     mailed, or shipped or transported in interstate or foreign 
     commerce by any means, including by computer, or that was 
     produced using materials that have been mailed, or shipped or 
     transported in interstate or foreign commerce by any means, 
     including by computer,

     shall be punished as provided in subsection (b).
       ``(b)(1) Whoever violates, or attempts or conspires to 
     violate, paragraphs (1), (2), (3), or (4) of subsection (a) 
     shall be fined under this title or imprisoned not more than 
     15 years, or both, but, if such person has a prior conviction 
     under this chapter or chapter 109A, or under the laws of any 
     State relating to aggravated sexual abuse, sexual abuse, or 
     abusive sexual conduct involving a minor or ward, or the 
     production, possession, receipt, mailing, sale, distribution, 
     shipment, or transportation of child pornography, such person 
     shall be fined under this title and imprisoned for not less 
     than 5 years nor more than 30 years.
       ``(2) Whoever violates, or attempts or conspires to 
     violate, subsection (a)(5) shall be fined under this title or 
     imprisoned not more than 5 years, or both, but, if such 
     person has a prior conviction under this chapter or chapter 
     109A, or under the laws of any State relating to the 
     possession of child pornography, such person shall be fined 
     under this title and imprisoned for not less than 2 years nor 
     more than 10 years.
       ``(c) It shall be an affirmative defense to a charge of 
     violating paragraphs (1), (2), (3), or (4) of subsection (a) 
     that--
       ``(1) the alleged child pornography was produced using an 
     actual person or persons engaging in sexually explicit 
     conduct;
       ``(2) each such person was an adult at the time the 
     material was produced; and
       ``(3) the defendant did not advertise, promote, present, 
     describe, or distribute the material in such a manner as to 
     convey the impression that it is or contains a visual 
     depiction of a minor engaging in sexually explicit 
     conduct.''.
       (b) Technical Amendment.--The table of sections for chapter 
     110 of title 18, United States Code, is amended by adding 
     after the item relating to section 2252 the following:
``2252A. Certain activities relating to material constituting or 
              containing child pornography.''.

      Subsection 4. Penalties for Sexual Exploitation of Children.

       Section 2251(d) of title 18, United States Code, is amended 
     to read as follows:

       ``(d) Any individual who violates, or attempts or conspires 
     to violate, this section shall be fined under this title or 
     imprisoned not less than 10 years nor more than 20 years, or 
     both, but if such person has one prior conviction under this 
     chapter or chapter 109A, or under the laws of any State 
     relating to the sexual exploitation of children, such person 
     shall be fined under this title and imprisoned for not less 
     than 15 years nor more than 30 years, but if such person has 
     2 or more prior convictions under this chapter or chapter 
     109A, or under the laws of any State relating to the sexual 
     exploitation of children, such person shall be fined under 
     this title and imprisoned not less than 30 years nor more 
     than life. Any organization that violates, or attempts or 
     conspires to violate, this section shall be fined under this 
     title. Whoever, in the course of an offense under this 
     section, engages in conduct that results in the death of a 
     person, shall be punished by death or imprisoned for any term 
     of years or for life.''.

     Subsection 5. Material Involving Sexual Exploitation of Minors

       Section 2252 of title 18, United States Code, is amended by 
     striking subsection (b) and inserting the following:
       ``(b)(1) Whoever violates, or attempts or conspires to 
     violate, paragraphs (1), (2), or (3) of subsection (a) shall 
     be fined under this title or imprisoned not more than 15 
     years, or both, but if such person has a prior conviction 
     under this chapter or chapter 109A, or under the laws of any 
     State relating to aggravated sexual abuse, sexual abuse, or 
     abusive sexual conduct involving a minor or ward, or the 
     production, possession, receipt, mailing, sale, distribution, 
     shipment, or transportation of child pornography, such person 
     shall be fined under this title and imprisoned for not less 
     than 5 years nor more than 30 years.
       ``(2) Whoever violates, or attempts or conspires to 
     violate, paragraph (4) of subsection (a) shall be fined under 
     this title or imprisoned not more than 5 years, or both, but 
     if such person has a prior conviction under this chapter or 
     chapter 109A, or under the laws of any State relating to the 
     possession of child pornography, such person shall be fined 
     under this title and imprisoned for not less than 2 years nor 
     more than 10 years.''.

            Subsection 6. Privacy Protection Act Amendments

       Section 101 of the Privacy Protection Act of 1980 (42 
     U.S.C. 2000aa) is amended--
       (1) in subsection (a)(1), by inserting before the 
     parenthesis at the end the following: ``, or if the offense 
     involves the production, possession, receipt, mailing, sale, 
     distribution, shipment, or transportation of child 
     pornography, the sexual exploitation of children, or the sale 
     or purchase of children under section 2251, 2251A, 2252, or 
     2252A of title 18, United States Code''; and
       (2) in subsection (b)(1), by inserting before the 
     parenthesis at the end the following: ``, or if the offense 
     involves the production, possession, receipt, mailing, sale, 
     distribution, shipment, or transportation of child 
     pornography, the sexual exploitation of children, or the sale 
     or purchase of children under section 2251, 2251A, 2252, or 
     2252A of title 18, United States Code''.

[[Page H11653]]

       Subsection 7. Amber Hagerman Child Protection Act of 1996

       (a) Short Title.--This section may be cited as the ``Amber 
     Hagerman Child Protection Act of 1996''.
       (b) Aggravated Sexual Abuse of a Minor.--Section 2241(c) of 
     title 18, United States Code, is amended to read as follows:
       ``(c) With Children.--Whoever crosses a State line with 
     intent to engage in a sexual act with a person who has not 
     attained the age of 12 years, or in the special maritime and 
     territorial jurisdiction of the United States or in a Federal 
     prison, knowingly engages in a sexual act with another person 
     who has not attained the age of 12 years, or knowingly 
     engages in a sexual act under the circumstances described in 
     subsections (a) and (b) with another person who has attained 
     the age of 12 years but has not attained the age of 16 years 
     (and is at least 4 years younger than that person), or 
     attempts to do so, shall be fined under this title, 
     imprisoned for any term of years or life, or both. If the 
     defendant has previously been convicted of another Federal 
     offense under this subsection, or of a State offense that 
     would have been an offense under either such provision had 
     the offense occurred in a Federal prison, unless the death 
     penalty is imposed, the defendant shall be sentenced to life 
     in prison.''.
       (c) Sexual Abuse of a Minor.--Section 2243(a) of title 18, 
     United States Code, is amended by inserting ``crosses a State 
     line with intent to engage in a sexual act with a person who 
     has not attained the age of 12 years, or'' after ``Whoever''.

                       Subsection 8. Severability

       If any provision of this Act, including any provision or 
     section of the definition of the term child pornography, an 
     amendment made by this Act, or the application of such 
     provision or amendment to any person or circumstance is held 
     to be unconstitutional, the remainder of this Act, including 
     any other provision or section of the definition of the term 
     child pornography, the amendments made by this Act, and the 
     application of such to any other person or circumstance shall 
     not be affected thereby.
       This title may be cited as the ``Department of Justice 
     Appropriations Act, 1997''.

         TITLE II--DEPARTMENT OF COMMERCE AND RELATED AGENCIES

                  Trade and Infrastructure Development

                            RELATED AGENCIES

            Office of the United States Trade Representative


                         salaries and expenses

       For necessary expenses of the Office of the United States 
     Trade Representative, including the hire of passenger motor 
     vehicles and the employment of experts and consultants as 
     authorized by 5 U.S.C. 3109, $21,449,000, of which $2,500,000 
     shall remain available until expended: Provided, That not to 
     exceed $98,000 shall be available for official reception and 
     representation expenses.

                     International Trade Commission


                         salaries and expenses

       For necessary expenses of the International Trade 
     Commission, including hire of passenger motor vehicles, and 
     services as authorized by 5 U.S.C. 3109, and not to exceed 
     $2,500 for official reception and representation expenses, 
     $40,850,000, to remain available until expended.

                         DEPARTMENT OF COMMERCE

                   International Trade Administration


                     operations and administration

       For necessary expenses for international trade activities 
     of the Department of Commerce provided for by law, and 
     engaging in trade promotional activities abroad, including 
     expenses of grants and cooperative agreements for the purpose 
     of promoting export of United States firms, without regard to 
     44 U.S.C. 3702 and 3703; full medical coverage for dependent 
     members of immediate families of employees stationed overseas 
     and employees temporarily posted overseas; travel and 
     transportation of employees of the United States and Foreign 
     Commercial Service between two points abroad, without regard 
     to 49 U.S.C. 1517; employment of Americans and aliens by 
     contract for services; rental of space abroad for periods not 
     exceeding ten years, and expenses of alteration, repair, or 
     improvement; purchase or construction of temporary 
     demountable exhibition structures for use abroad; payment of 
     tort claims, in the manner authorized in the first paragraph 
     of 28 U.S.C. 2672 when such claims arise in foreign 
     countries; not to exceed $327,000 for official representation 
     expenses abroad; purchase of passenger motor vehicles for 
     official use abroad, not to exceed $30,000 per vehicle; 
     obtain insurance on official motor vehicles; and rent tie 
     lines and teletype equipment; $270,000,000 to remain 
     available until expended: Provided, That the provisions of 
     the first sentence of sanction 105(f) and all of section 
     108(c) of the Mutual Educational and Cultural Exchange Act of 
     1961 (22 U.S.C. 2455(f) and 2458(c)) shall apply in carrying 
     out these activities without regard to section 5412 of the 
     Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 
     4912); and that for the purpose of this Act, contributions 
     under the provisions of the Mutual Educational and Cultural 
     Exchange Act shall include payment for assessments for 
     services provided as part of these activities.

                         Export Administration


                     operations and administration

       For necessary expenses for export administration and 
     national security activities of the Department of Commerce, 
     including costs associated with the performance of export 
     administration field activities both domestically and abroad; 
     full medical coverage for dependent members of immediate 
     families of employees stationed overseas; employment of 
     Americans and aliens by contract for services abroad; rental 
     of space abroad for periods not exceeding ten years, and 
     expenses of alteration, repair, or improvement; payment of 
     tort claims, in the manner authorized in the first paragraph 
     of 28 U.S.C. 2672 when such claims arise in foreign 
     countries; not to exceed $15,000 for official representation 
     expenses abroad; awards of compensation to informers under 
     the Export Administration Act of 1979, and as authorized by 
     22 U.S.C. 401(b); purchase of passenger motor vehicles for 
     official use and motor vehicles for law enforcement use with 
     special requirement vehicles eligible for purchase without 
     regard to any price limitation otherwise established by law; 
     $36,000,000, to remain available until expended: Provided, 
     That the provisions of the first sentence of section 105(f) 
     and all of section 108(c) of the Mutual Educational and 
     Cultural Exchange Act of 1961 (22 U.S.C. 2455(f) and 2458(c)) 
     shall apply in carrying out these activities: Provided 
     further, That payments and contributions collected and 
     accepted for materials or services provided as part of such 
     activities may be retained for use in covering the cost of 
     such activities, and for providing information to the public 
     with respect to the export administration and national 
     security activities of the Department of Commerce and other 
     export control programs of the United States and other 
     governments.
       For an additional amount for nonproliferation efforts to 
     prevent illegal exports of chemical weapon precursors, 
     biological agents, nuclear weapons and missile development 
     equipment, $3,900,000, to remain available until expended; 
     Provided, That the entire amount is designated by Congress as 
     an emergency requirement pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.

                  Economic Development Administration


                economic development assistance programs

       For grants for economic development assistance as provided 
     by the Public Works and Economic Development Act of 1965, as 
     amended, Public Law 91-304, and such laws that were in effect 
     immediately before September 30, 1982, and for trade 
     adjustment assistance, $328,500,000: Provided, That none of 
     the funds appropriated or otherwise made available under this 
     heading may be used directly or indirectly for attorneys' or 
     consultants' fees in connection with securing grants and 
     contracts made by the Economic Development Administration: 
     Provided further, That, notwithstanding any other provision 
     of law, the Secretary of Commerce may provide financial 
     assistance for projects to be located on military 
     installations closed or scheduled for closure or realignment 
     to grantees eligible for assistance under the Public Works 
     and Economic Development Act of 1965, as amended, without it 
     being required that the grantee have title or ability to 
     obtain a lease for the property, for the useful life of the 
     project, when in the opinion of the Secretary of Commerce, 
     such financial assistance is necessary for the economic 
     development of the area: Provided further, That the Secretary 
     of Commerce may, as the Secretary considers appropriate, 
     consult with the Secretary of Defense regarding the title to 
     land on military installations closed or scheduled for 
     closure or realignment.


                         salaries and expenses

       For necessary expenses of administering the economic 
     development assistance programs as provided for by law, 
     $20,036,000: Provided, That these funds may be used to 
     monitor projects approved pursuant to title I of the Public 
     Works Employment Act of 1976, as amended, title II of the 
     Trade Act of 1974, as amended, and the Community Emergency 
     Drought Relief Act of 1977.

                  Minority Business Development Agency


                     minority business development

       For necessary expenses of the Department of Commerce in 
     fostering, promoting, and developing minority business 
     enterprise, including expenses of grants, contracts, and 
     other agreements with public or private organizations, 
     $28,000,000: Provided, That of the total amount provided, 
     $2,000,000 shall be available for obligation and expenditure 
     only for projects jointly developed, implemented and 
     administered with the Small Business Administration.

                Economic and Information Infrastructure

                   Economic and Statistical Analysis


                         salaries and expenses

       For necessary expenses, as authorized by law, of economic 
     and statistical analysis programs of the Department of 
     Commerce, $45,900,000, to remain available until September 
     30, 1998.


         economics and statistics administration revolving fund

       The Secretary of Commerce is authorized to disseminate 
     economic and statistical data products as authorized by 
     sections 1, 2, and 4 of Public Law 91-412 (15 U.S.C. 1525-
     1527) and, notwithstanding section 5412 of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4912), charge fees 
     necessary to recover the full costs incurred in their 
     production. Notwithstanding 31 U.S.C. 3302, receipts received 
     from these data dissemination activities shall be credited to 
     this account, to be available for carrying out these purposes 
     without further appropriation.

                          Bureau of the Census


                         salaries and expenses

       For expenses necessary for collecting, compiling, 
     analyzing, preparing, and publishing statistics, provided for 
     by law, $135,000,000.


                     periodic censuses and programs

       For expenses necessary to collect and publish statistics 
     for periodic censuses and programs provided for by law, 
     $210,500,000, to remain available until expended.

[[Page H11654]]

       National Telecommunications and Information Administration


                         salaries and expenses

       For necessary expenses, as provided for by law, of the 
     National Telecommunications and Information Administration 
     (NTIA), $15,000,000, to remain available until expended: 
     Provided, That notwithstanding 31 U.S.C. 1535(d), the 
     Secretary of Commerce shall charge Federal agencies for costs 
     incurred in spectrum management, analysis, and operations, 
     and related services and such fees shall be retained and used 
     as offsetting collections for costs of such spectrum 
     services, to remain available until expended: Provided 
     further, That hereafter, notwithstanding any other provision 
     of law, NTIA shall not authorize spectrum use or provide any 
     spectrum functions pursuant to the NTIA Organization Act, 47 
     U.S.C. Sec. Sec. 902-903, to any Federal entity without 
     reimbursement as required by NTIA for such spectrum 
     management costs, and Federal entities withholding payment of 
     such cost shall not use spectrum: Provided further, That the 
     Secretary of Commerce is authorized to retain and use as 
     offsetting collections all funds transferred, or previously 
     transferred, from other Government agencies for all costs 
     incurred in telecommunications research, engineering, and 
     related activities by the Institute for Telecommunication 
     Sciences of the NTIA, in furtherance of its assigned 
     functions under this paragraph, and such funds received from 
     other Government agencies shall remain available until 
     expended.


       public broadcasting facilities, planning and construction

       For grants authorized by section 392 of the Communications 
     Act of 1934, as amended, $15,250,000, to remain available 
     until expended as authorized by section 391 of the Act, as 
     amended: Provided, That not to exceed $1,500,000 shall be 
     available for program administration as authorized by section 
     391 of the Act: Provided further, That notwithstanding the 
     provisions of section 391 of the Act, the prior year 
     unobligated balances may be made available for grants for 
     projects for which applications have been submitted and 
     approved during any fiscal year.


                   information infrastructure grants

       For grants authorized by section 392 of the Communications 
     Act of 1934, as amended, $21,490,000, to remain available 
     until expended as authorized by section 391 of the Act, as 
     amended: Provided, That not to exceed $3,000,000 shall be 
     available for program administration and other support 
     activities as authorized by section 391: Provided further, 
     That of the funds appropriated herein, not to exceed 5 
     percent may be available for telecommunications research 
     activities for projects related directly to the development 
     of a national information infrastructure: Provided further, 
     That notwithstanding the requirements of section 392(a) and 
     392(c) of the Act, these funds may be used for the planning 
     and construction of telecommunications networks for the 
     provision of educational, cultural, health care, public 
     information, public safety, or other social services.

                      Patient and Trademark Office


                         salaries and expenses

       For necessary expenses of the Patent and Trademark Office 
     provided for by law, including defense of suits instituted 
     against the Commissioner of Patents and Trademarks, 
     $61,252,000, to remain available until expended: Provided, 
     That the funds made available under this heading are to be 
     derived from deposits in the Patent and Trademark Office Fee 
     Surcharge Fund as authorized by law: Provided further, That 
     the amounts made available under the Fund shall not exceed 
     amounts deposited; and such fees as shall be collected 
     pursuant to 15 U.S.C. 1113 and 35 U.S.C. 41 and 376, shall 
     remain available until expended.

                       Technology Administration


       under secretary for technology/office of technology policy

                         salaries and expenses

       For necessary expenses for the Under Secretary for 
     Technology/Office of Technology Policy, $9,500,000: Provided, 
     That $2,500,000 of the total amount provided under this 
     heading shall be available to support the United States-
     Israel Science and Technology Commission.

                         Science and Technology

             National Institute of Standards and Technology


             scientific and technical research and services

       For necessary expenses of the National Institute of 
     Standards and Technology, $268,000,000, to remain available 
     until expended, of which not to exceed $1,625,000 may be 
     transferred to the ``Working Capital Fund''.


                     industrial technology services

       For necessary expenses of the Manufacturing Extension 
     Partnership of the National Institute of Standards and 
     Technology, $95,000,000, to remain available until expended, 
     of which not to exceed $300,000 may be transferred to the 
     ``Working Capital Fund'': Provided, That notwithstanding the 
     time limitations imposed by 15 U.S.C. 278k(c) (1) and (5) on 
     the duration of Federal financial assistance that may be 
     awarded by the Secretary of Commerce to Regional Centers for 
     the transfer of Manufacturing Technology (``Centers''), such 
     Federal financial assistance for a Center may continue beyond 
     six years and may be renewed for additional periods, not to 
     exceed one year, at a rate not to exceed one-third of the 
     Center's total annual costs, subject before any such renewal 
     to a positive evaluation of the Center and to a finding by 
     the Secretary of Commerce that continuation of Federal 
     funding to the Center is in the best interest of the Regional 
     Centers for the transfer of Manufacturing Technology Program.
       In addition, for necessary expenses of the Advanced 
     Technology Program of the National Institute of Standards and 
     Technology, $225,000,000, to remain available until expended, 
     of which not to exceed $500,000 may be transferred to the 
     ``Working Capital Fund.''

            National Oceanic and Atmospheric Administration


                  operations, research, and facilities

                     (including transfer of funds)

       For necessary expenses of activities authorized by law for 
     the National Oceanic and Atmospheric Administration, 
     including acquisition, maintenance, operation, and hire of 
     aircraft; not to exceed 299 commissioned officers on the 
     active list as of September 30, 1997; grants, contracts, or 
     other payments to nonprofit organizations for the purposes of 
     conducting activites pursuant to cooperative agreements; and 
     alteration, modernization, and relocation of facilities as 
     authorized by 33 U.S.C. 883i; $1,854,067,000, to remain 
     available until expended: Provided, That notwithstanding 31 
     U.S.C. 3302 but consistent with other existing law, fees 
     shall be assessed, collected, and credited to this 
     appropriation as offsetting collections to be available until 
     expended, to recover the costs of administering aeronautical 
     charting programs: Provided further, That the sum herein 
     appropriated from the general fund shall be reduced as such 
     additional fees are received during fiscal year 1997, so as 
     to result in a final general fund appropriation, estimated at 
     not more than $1,851,067,000: Provided further, That any such 
     additional fees received in excess of $3,000,000 in fiscal 
     year 1997 shall not be available for obligation until October 
     1, 1997: Provided further, That fees and donations received 
     by the National Ocean Service for the management of the 
     national marine sanctuaries may be retained and used for the 
     salaries and expenses associated with those activities, 
     notwithstanding 31 U.S.C. 3302: Provided further, That in 
     addition, $66,000,000 shall be derived by transfer from the 
     fund entitled ``Promote and Develop Fishery Products and 
     Research Pertaining to American Fisheries'': Provided 
     further, That grants to States pursuant to sections 306 and 
     306A of the Coastal Zone Management Act of 1972, as amended, 
     shall not exceed $2,000,000: Provided further, That not later 
     than November 15, 1996, the Department of Commerce, in 
     conjunction with the National Oceanic and Atmospheric 
     Administration, shall submit to the appropriate committees of 
     the Congress, a long-term plan and a legislative proposal 
     necessary to implement such plan regarding the continuation 
     of a National Oceanic and Atmospheric Administration 
     commissioned corps.


                      coastal zone management fund

       Of amounts collected pursuant to section 308 of the Coastal 
     Zone Management Act of 1972 (16 U.S.C. 1456a), not to exceed 
     $7,800,000, for purposes set forth in sections 308(b)(2)(A), 
     308(b)(2)(B)(v), and 315(e) of such Act.


                              construction

       For repair and modification of, and addition to, existing 
     facilities and construction of new facilities, and for 
     facility planning and design and land acquisition not 
     otherwise provided for the National Oceanic and Atmospheric 
     Administration, $58,250,000, to remain available until 
     expended, of which $8,500,000 shall be available only for a 
     grant to the University of New Hampshire for construction and 
     related expenses for an environmental technology facility.


            fleet modernization, shipbuilding and conversion

       For expenses necessary for the repair, acquisition, 
     leasing, or conversion of vessels, including related 
     equipment to maintain and modernize the existing fleet and to 
     continue planning the modernization of the fleet, for the 
     National Oceanic and Atmospheric Administration, $8,000,000, 
     to remain available until expended.


            fishing vessel and gear damage compensation fund

       For carrying out the provisions of section 3 of Public Law 
     95-376, not to exceed $200,000, to be derived from receipts 
     collected pursuant to subsections (b) and (f) of section 10 
     of the Fishermen's Protective Act of 1967 (22 U.S.C. 1980), 
     to remain available until expended.


                      fishermen's contingency fund

       For carrying out the provisions of title IV of Public Law 
     95-372, not to exceed $1,000,000, to be derived from receipts 
     collected pursuant to that Act, to remain available until 
     expended.


                     foreign fishing observer fund

       For expenses necessary to carry out the provisions of the 
     Atlantic Tunas Convention Act of 1975, as amended (Public Law 
     96-339), the Magnuson Fishery Conservation and Management Act 
     of 1976, as amended (Public Law 100-627), and the American 
     Fisheries Promotion Act (Public Law 96-561), to be derived 
     from the fees imposed under the foreign fishery observer 
     program authorized by these Acts, not to exceed $196,000, to 
     remain available until expended.


                 fishing vessel obligations guarantees

       For the cost of guaranteed loans, $250,000, as authorized 
     by the Merchant Marine Act of 1936, as amended: Provided, 
     that such costs, including the cost of modifying such loans, 
     shall be as defined in section 502 of the Congressional 
     Budget Act of 1974: Provided further, That none of the funds 
     made available under this heading may be used to guarantee 
     loans for any new fishing vessel that will increase the 
     harvesting capacity in any United States fishery.

                         General Administration


                         salaries and expenses

       For expenses necessary for the general administration of 
     the Department of Commerce provided for by law, including not 
     to exceed $3,000 for official entertainment, $28,490,000.


                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of

[[Page H11655]]

     the Inspector General Act of 1978, as amended (5 U.S.C. App. 
     1-11 as amended by Public Law 100-504), $20,140,000.

             National Institute of Standards and Technology


                  construction of research facilities

                              (rescission)

       Of the obligated and unobligated balances available under 
     this heading, $16,000,000 are rescinded.

            National Oceanic and Atmospheric Administration


                  operations, research, and facilities

                              (rescission)

       Of the unobligated balances available under this heading, 
     $20,000,000 are rescinded,

               General Provisions--Department of Commerce

       Sec. 201. During the current fiscal year, applicable 
     appropriations and funds made available to the Department of 
     Commerce by this Act shall be available for the activities 
     specified in the Act of October 26, 1949 (15 U.S.C. 1514), to 
     the extent and in the manner prescribed by the Act, and, 
     notwithstanding 31 U.S.C. 3324, may be used for advanced 
     payments not otherwise authorized only upon the certification 
     of officials designated by the Secretary that such payments 
     are in the public interest.
       Sec. 202. During the current fiscal year, appropriations 
     made available to the Department of Commerce by this Act for 
     salaries and expenses shall be available for hire of 
     passenger motor vehicles as authorized by 31 U.S.C. 1343 and 
     1344; services as authorized by 5 U.S.C. 3109; and uniforms 
     or allowances therefor, as authorized by law (5 U.S.C. 5901-
     5902).
       Sec. 203. None of the funds made available by this Act may 
     be used to support the hurricane reconnaissance aircraft and 
     activities that are under the control of the United States 
     Air Force or the United States Air Force Reserve.
       Sec. 204. None of the funds provided in this or any 
     previous Act, or hereinafter made available to the Department 
     of Commerce, shall be available to reimburse the Unemployment 
     Trust fund or any other fund or account of the Treasury to 
     pay for any expenses paid before October 1, 1992, as 
     authorized by section 8501 of title 5, United States Code, 
     for services performed after April 20, 1990, by individuals 
     appointed to temporary positions within the Bureau of the 
     Census for purposes relating to the 1990 decennial census of 
     population.
       Sec. 205. Not to exceed 5 percent of any appropriation made 
     available for the current fiscal year for the Department of 
     Commerce in this Act may be transferred between such 
     appropriations, but no such appropriation shall be increased 
     by more than 10 percent by any such transfers: Provided, That 
     any transfer pursuant to this section shall be treated as a 
     reprogramming of funds under section 605 of this Act and 
     shall not be available for obligation or expenditure except 
     in compliance with the procedures set forth in that section.
       Sec. 206. (a) Should legislation be enacted to dismantle or 
     reorganize the Department of Commerce, the Secretary of 
     Commerce, no later than 90 days thereafter, shall submit to 
     the Committees on Appropriations of the House and the Senate 
     a plan for transferring funds provided in this Act to the 
     appropriate successor organizations: Provided, That the plan 
     shall include a proposal for transferring or rescinding funds 
     appropriated herein for agencies or programs terminated under 
     such legislation: Provided further, That such plan shall be 
     transmitted in accordance with section 605 of this Act.
       (b) The Secretary of Commerce or the appropriate head of 
     any successor organization(s) may use any available funds to 
     carry out legislation dismantling or reorganizing the 
     Department of Commerce to cover the costs of actions relating 
     to the abolishment, reorganization, or transfer of functions 
     and any related personnel action, including voluntary 
     separation incentives if authorized by such legislation; 
     Provided, That the authority to transfer funds between 
     appropriations accounts that may be necessary to carry out 
     this section is provided in addition to authorities included 
     under section 205 of this Act Provided further, That use of 
     funds to carry out this section shall be treated as a 
     reprogramming of funds under section 605 of this Act and 
     shall not be available for obligation or expenditure except 
     in compliance with the procedures set forth in that section.
       Sec. 207. Any costs incurred by a Department or agency 
     funded under this title resulting from personnel actions 
     taken in response to funding reductions included in this 
     title shall be absorbed within the total budgetary resources 
     available to such Department or agency: Provided, That the 
     authority to transfer funds between appropriations accounts 
     as may be necessary to carry out this section is provided in 
     addition to authorities included elsewhere in this Act: 
     Provided further, That use of funds to carry out this section 
     shall be treated as a reprogramming of funds under section 
     605 of this Act and shall not be available for obligation or 
     expenditure except in compliance with the procedure set forth 
     in that section.
       Sec. 208. None of the funds appropriated under this Act or 
     any other Act henceforth may be used to develop new fishery 
     management plans, amendments, or regulations which create new 
     individual fishing quota programs (whether such quotas are 
     transferable or not) or to implement any such plans, 
     amendments or regulations approved by a Regional Fishery 
     Management Council or the Secretary after January 4, 1995, 
     until offsetting fees to pay for the cost of administering 
     such plans, amendments, or regulations are expressly 
     authorized under the Magnuson Fishery Conservation and 
     Management Act (16 U.S.C. 1801 et seq.). This restriction 
     shall also apply to any program relating to the Gulf of 
     Mexico commercial red snapper fishery that authorizes the 
     consolidation of licenses, permits or endorsements that 
     result in different trip limits for vessels in the same 
     class. This restriction shall not apply in any way to the 
     North Pacific halibut and sablefish, South Atlantic 
     wreckfish, or the Mid-Atlantic surfclam and ocean (including 
     mahogany) quohog individual fishing quota programs. The term 
     ``individual fishing quota'' does not include a community 
     development quota.
       Sec. 209. The Secretary may award contracts for 
     hydrographic, geodetic, and photogrammetric surveying and 
     mapping services in accordance with title IX of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     541 et seq.).
       Sec. 210. There is hereby established the Bureau of the 
     Census Working Capital Fund, which shall be available without 
     fiscal year limitation, for expenses and equipment necessary 
     for the maintenance and operation of such services and 
     projects as the Director of the Census Bureau determines may 
     be performed more advantageously when centralized: Provided, 
     That such central services shall, to the fullest extent 
     practicable, be used to make unnecessary the maintenance of 
     separate like services in the divisions and offices of the 
     Bureau: Provided further, That a separate schedule of 
     expenditures and reimbursements, and a statement of the 
     current assets and liabilities of the Working Capital Fund as 
     of the close of the last completed fiscal year, shall be 
     prepared each year: Provided further, That notwithstanding 31 
     U.S.C. 3302, the Working Capital Fund may be credited with 
     advances and reimbursements from applicable appropriations of 
     the Bureau and from funds of other agencies or entities for 
     services furnished pursuant to law: Provided further, That 
     any inventories, equipment, and other assets pertaining to 
     the services to be provided by such funds, either on hand or 
     on order, less the related liabilities or unpaid obligations, 
     and any appropriations made hereafter for the purpose of 
     providing capital, shall be used to capitalize the Working 
     Capital Fund: Provided further, That the Working Capital Fund 
     shall provide for centralized services at rates which will 
     return in full all expenses of operation, including 
     depreciation of fund plant and equipment, amortization of 
     automated data processing software and hardware systems, and 
     an amount necessary to maintain a reasonable operating 
     reserve as determined by the Director.
       Sec. 211. (a) Effective 15 days after the enactment of the 
     Sustainable Fisheries Act, section 1 of the Magnuson Fishery 
     Conservation and Management Act (16 U.S.C. 1801) shall be 
     amended to read as follows: ``That this Act may be cited as 
     the ``Magnuson-Stevens Fishery Conservation and Management 
     Act'.''
       (b) Effective 15 days after the enactment of the 
     Sustainable Fisheries Act, all references to the Magnuson 
     Fishery Conservation and Management Act shall be redesignated 
     as references to the Magnuson-Stevens Fishery Conservation 
     and Management Act.
       This title may be cited as the ``Department of Commerce and 
     Related Agencies Appropriations Act, 1997''.

                        TITLE III--THE JUDICIARY

                   Supreme Court of the United States


                         salaries and expenses

       For expenses necessary for the operation of the Supreme 
     Court, as required by law, excluding care of the building and 
     grounds, including purchase or hire, driving, maintenance, 
     and operation of an automobile for the Chief Justice, not to 
     exceed $10,000 for the purpose of transporting Associate 
     Justices, and hire of passenger motor vehicles as authorized 
     by 31 U.S.C. 1343 and 1344; not to exceed $10,000 for 
     official reception and representation expenses; and for 
     miscellaneous expenses, to be expended as the Chief Justice 
     may approve; $27,157,000.


                    care of the building and grounds

       For such expenditures as may be necessary to enable the 
     Architect of the Capitol to carry out the duties imposed upon 
     him by the Act approved May 7, 1934 (40 U.S.C. 13a-13b), 
     $2,800,000, of which $260,000 shall remain available until 
     expended.

         United States Court of Appeals for the Federal Circuit


                         salaries and expenses

       For salaries of the chief judge, judges, and other officers 
     and employees, and for necessary expenses of the court, as 
     authorized by law, $15,013,000.

               United States Court of International Trade


                         salaries and expenses

       For salaries of the chief judge and eight judges, salaries 
     of the officers and employees of the court, services as 
     authorized by 5 U.S.C. 3109, and necessary expenses of the 
     court, as authorized by law, $11,114,000.

    Courts of Appeals, District Courts, and Other Judicial Services


                         salaries and expenses

                     (including transfer of funds)

       For the salaries of circuit and district judges (including 
     judges of the territorial courts of the United States), 
     justices and judges retire from office or from regular active 
     service, judges of the United States Court of Federal Claims, 
     bankruptcy judges, magistrate judges, and all other officers 
     and employees of the Federal Judiciary not otherwise 
     specifically provided for, and necessary expenses of the 
     courts, as authorized by law, $2,556,000,000 (including the 
     purchase of firearms and ammunition); of which not to exceed 
     $13,454,000 shall remain available until expended for space 
     alteration projects; of which $500,000 shall be transferred 
     to the Commission on Structural Alternatives for the Federal 
     Courts of Appeals only after legislation is

[[Page H11656]]

     enacted to establish the Commission; of which not to exceed 
     $10,000,000 shall remain available until expended for 
     furniture and furnishings related to new space alteration and 
     construction projects; and of which $500,000 is to remain 
     available until expended for acquisition of books, 
     periodicals, and newspapers, and all other legal reference 
     materials, including subscriptions.
       In addition, for expenses of the United States Court of 
     Federal Claims associated with processing cases under the 
     National Childhood Vaccine Injury Act of 1986, not to exceed 
     $2,390,000, to be appropriated from the Vaccine Injury 
     Compensation Trust Fund.
       For an additional amount for expenses relating to 
     additional workload from the Antiterrorism and Effective 
     Death Penalty Act of 1996, and for Court Security needs, 
     $10,000,000, to remain available until expended: Provided, 
     That the entire amount is designated by Congress as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended: Provided further, That the amount not 
     previously designated by the President as an emergency 
     requirement shall be available only to the extent an official 
     budget request, for a specific dollar amount that includes 
     designation of the entire amount of the request as an 
     emergency requirement, as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted to Congress.


                    Violent Crime Reduction Programs

       For activities of the Federal Judiciary as authorized by 
     law, $30,000,000, to remain available until expended, which 
     shall be derived from the Violent Crime Reduction Trust Fund, 
     as authorized by section 190001(a) of Public Law 103-322.


                           Defender Services

       For the operation of Federal Public Defender and Community 
     Defender organizations; the compensation and reimbursement of 
     expenses of attorneys appointed to represent persons under 
     the Criminal Justice Act of 1964, as amended; the 
     compensation and reimbursement of expenses of persons 
     furnishing investigative, expert and other services under the 
     Criminal Justice Act (18 U.S.C. 3006A(e)); the compensation 
     (in accordance with Criminal Justice Act maximums) and 
     reimbursement of expenses of attorneys appointed to assist 
     the court in criminal cases where the defendant has waived 
     representation by counsel; the compensation and reimbursement 
     of travel expenses of guardians ad litem acting on behalf of 
     financially eligible minor or incompetent offenders in 
     connection with transfers from the United States for foreign 
     countries with which the United States has a treaty for the 
     execution of penal sentences; and the compensation of 
     attorneys * * *


                    fees of jurors and commissioners

       For fees and expenses of jurors as authorized by 28 U.S.C. 
     1871 and 1876; compensation of jury commissioners as 
     authorized by 28 U.S.C. 1863; and compensation of 
     commissioners appointed in condemnation cases pursuant to 
     rule 71A(h) of the Federal Rules of Civil Procedure (28 
     U.S.C. Appendix Rule 71A(h)); $67,000,000, to remain 
     available until expended: Provided, That the compensation of 
     land commissioners shall not exceed the daily equivalent of 
     the highest rate payable under section 5332 of title 5, 
     United States Code.


                             court security

       For necessary expenses, not otherwise provided for, 
     incident to the procurement, installation, and maintenance of 
     security equipment and protective services for the United 
     States Courts in courtrooms and adjacent areas, including 
     building ingress-egress control, inspection of packages, 
     directed security patrols, and other similar activities as 
     authorized by section 1010 of the Judicial Improvement and 
     Access to Justice Act (Public Law 100-702); $127,000,000, to 
     be expended directly or transferred to the United States 
     Marshals Service which shall be responsible for administering 
     elements of the Judicial Security Program consistent with 
     standards or guidelines agreed to by the Director of the 
     Administrative Office of the United States Courts and the 
     Attorney General.

           Administrative Office of the United States Courts


                         salaries and expenses

       For necessary expenses of the Administrative Office of the 
     United States Courts as authorized by law, including travel 
     as authorized by 31 U.S.C. 1343(b), advertising and rent in 
     the District of Columbia and elsewhere, $49,450,000, of which 
     not to exceed $7,500 is authorized for official reception and 
     representation expenses.

                        Federal Judicial Center


                         salaries and expenses

       For necessary expenses of the Federal Judicial Center, as 
     authorized by Public Law 90-219, $17,495,000; of which 
     $1,800,000 shall remain available through September 30, 1998, 
     to provide education and training to Federal court personnel; 
     and of which not to exceed $1,000 is authorized for official 
     reception and representation expenses.

                       Judicial Retirement Funds


                    payment to judiciary trust funds

       For payment to the Judicial Officers' Retirement Fund, as 
     authorized by 28 U.S.C. 377(o), $21,000,000, to the Judicial 
     Survivors' Annuities Fund, as authorized by 28 U.S.C. 376(c), 
     $7,300,000, and to the United States Court of Federal Claims 
     Judges' Retirement Fund, as authorized by 28 U.S.C. 178(l), 
     $1,900,000.

                  United States Sentencing Commission


                         salaries and expenses

       For the salaries and expenses necessary to carry out the 
     provisions of chapter 58 of title 28, United States Code, 
     $8,490,000, of which not to exceed $1,000 is authorized for 
     official reception and representation expenses.

                   General Provisions--The Judiciary

       Sec. 301. Appropriations and authorizations made in this 
     title which are available for salaries and expenses shall be 
     available for services as authorized by 5 U.S.C. 3109.
       Sec. 302. Appropriations made in this title shall be 
     available for salaries and expenses of the Special Court 
     established under the Regional Rail Reorganization Act of 
     1973, Public Law 93-236.
       Sec. 303. Not to exceed 5 percent of any appropriation made 
     available for the current fiscal year for the Judiciary in 
     this Act may be transferred between such appropriations, but 
     no such appropriation, except ``Courts of Appeals, District 
     Courts, and other Judicial Services, Defender Services'' and 
     ``Courts of Appeals, District Courts, and other Judicial 
     Services, Fees of Jurors and Commissioners'', shall be 
     increased by more than 10 percent by any such transfers: 
     Provided, That any transfer pursuant to this section shall be 
     treated as a reprogramming of funds under section 605 of this 
     Act and shall not be available for obligation or expenditure 
     except in compliance with the procedures set forth in that 
     section.
       Sec. 304. Notwithstanding any other provision of law, the 
     salaries and expenses appropriation for district courts, 
     courts of appeals, and other judicial services shall be 
     available for official reception and representation expenses 
     of the Judicial Conference of the United States: Provided, 
     That such available funds shall not exceed $10,000 and shall 
     be administered by the Director of the Administrative Office 
     of the United States Courts in his capacity as Secretary of 
     the Judicial Conference.
       Sec. 305. Section 612(l) of title 28, United States Code, 
     shall be amended as follows: strike ``1997'', and insert in 
     lieu thereof ``1998''.
       Sec. 306. None of the funds available to the Judiciary in 
     fiscal years 1996 and 1997 and hereafter shall be available 
     for expenses authorized pursuant to section 802(a) of title 
     VIII of section 101(a) of title I of the Omnibus Consolidated 
     Rescissions and Appropriations Act of 1996, Public Law 104-
     134, for costs related to the appointment of Special Masters 
     prior to April 26, 1996.
       Sec. 307.
       The United States courthouse at 310 West Sixth Street in 
     Medford, Oregon, shall be known and designated as the ``James 
     A. Redden Federal Courthouse''.
       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the United States 
     courthouse at 310 West Sixth Street in Medford, Oregon, shall 
     be deemed to be a reference to the ``James A. Redden Federal 
     Courthouse''.
       This title may be cited as ``The Judiciary Appropriations 
     Act, 1997''.

           TITLE IV--DEPARTMENT OF STATE AND RELATED AGENCIES

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    DIPLOMATIC AND CONSULAR PROGRAMS

       For necessary expenses of the Department of State and the 
     Foreign Service not otherwise provided for, including 
     expenses authorized by the State Department Basic Authorities 
     Act of 1956, as amended; representation to certain 
     international organizations in which the United States 
     participates pursuant to treaties, ratified pursuant to the 
     advice and consent of the Senate, or specific Acts of 
     Congress; acquisition by exchange or purchase of passenger 
     motor vehicles as authorized by 31 U.S.C. 1343, 40 U.S.C. 
     481(c) and 22 U.S.C. 2674; and for expenses of general 
     administration; $1,700,450,000: Provided, That 
     notwithstanding section 140(a)(5), and the second sentence of 
     section 140(a)(3), of the Foreign Relations Authorization 
     Act, Fiscal Years 1994 and 1995 (Public Law 103-236), not to 
     exceed $150,000,000 of fees may be collected during fiscal 
     year 1997 under the authority of section 140(a)(1) of that 
     Act: Provided further, That all fees collected under the 
     preceding proviso shall be deposited in fiscal year 1997 as 
     an offsetting collection to appropriations made under this 
     heading to recover the costs of providing consular services 
     and shall remain available until expended: Provided further, 
     That in fiscal year 1998, a system shall be in place that 
     allocates to each department and agency the full cost of its 
     presence outside of the United States.
       Of the funds provided under this heading, $24,856,000 shall 
     be available only for the Diplomatic Telecommunications 
     Service for operation of existing base services and not to 
     exceed $17,230,000 shall be available only for the 
     enhancement of the Diplomatic Telecommunications Service and 
     shall remain available until expended. Of the latter amount, 
     $2,500,000 shall not be made available until expiration of 
     the 15 day period beginning on the date when the Secretary of 
     State and the Director of the Diplomatic Telecommunications 
     Service submit the pilot program report required by section 
     507 of Public Law 103-317.
       In addition, not to exceed $700,000 in registration fees 
     collected pursuant to section 38 of the Arms Export Control 
     Act, as amended, may be used in accordance with section 45 of 
     the State Department Basic Authorities Act of 1956 (22 U.S.C. 
     2717); and in addition not to exceed $1,223,000 shall be 
     derived from fees collected from other executive agencies for 
     lease or use of facilities located at the International 
     Center in accordance with section 4 of the International 
     Center Act (Public Law 90-553), as amended, and in addition, 
     as authorized by section 5 of such Act $450,000, to be 
     derived from the reserve authorized by that section, to be 
     used for the purposes set out in that section; and in 
     addition not to exceed $15,000 which shall be derived from 
     reimbursements, surcharges, and fees for use of Blair House 
     facilities in accordance with section 46 of the State of 
     Department Basic Authorities Act of 1956 (22 U.S.C. 2718(a)).
       Notwithstanding section 402 of this Act, not to exceed 20 
     percent of the amounts made available

[[Page H11657]]

     in this Act in the appropriation accounts ``Diplomatic and 
     Consular Programs'' and ``Salaries and Expenses'' under the 
     heading ``Administration of Foreign Affairs'' may be 
     transferred between such appropriation accounts: Provided, 
     That any transfer pursuant to this sentence shall be treated 
     as a reprogramming of funds under section 605 of this Act and 
     shall not be available for obligation or expenditure except 
     in compliance with the procedures set forth in that section.
       For an additional amount for counterterrorism requirements 
     overseas, including security guards and equipment, 
     $23,700,000, to remain available until expended: Provided, 
     That the entire amount is designated by Congress as an 
     emergency requirement pursuant to section 251(b) (2) (D) (i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.


                         salaries and expenses

       For expenses necessary for the general administration of 
     the Department of State and Foreign Service, provided for by 
     law, including expenses authorized by section 9 of the Act of 
     August 31, 1964, as amended (31 U.S.C. 3721), and the State 
     Department Basic Authorities Act of 1956, as amended, 
     $352,300,000.


                        capital investment fund

       For necessary expenses of the Capital Investment Fund, 
     $24,600,000, to remain available until expended, as 
     authorized in Public Law 103-236: Provided, That section 
     135(e) of Public Law 103-236 shall not apply to funds 
     appropriated under this heading.


                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended (5 U.S.C. App.), $27,495,000, 
     notwithstanding section 209(a)(1) of the Foreign Service Act 
     of 1980, as amended (Public Law 96-465), as it relates to 
     post inspections: Provided, That notwithstanding any other 
     provision of law, the merger of the Office of Inspector 
     General of the United States Information Agency with the 
     Office of Inspector General of the Department of State 
     provided for in the Departments of Commerce, Justice, and 
     State, the Judiciary and Related Agencies Appropriations Act, 
     1996, contained in Public Law 104-134, is effective 
     hereafter.


                       REPRESENTATION ALLOWANCES

       For representation allowances as authorized by section 905 
     of the Foreign Service Act of 1980, as amended (22 U.S.C. 
     4085), $4,490,000.


              PROTECTION OF FOREIGN MISSIONS AND OFFICIALS

       For expenses, not otherwise provided, to enable the 
     Secretary of State to provide for extraordinary protective 
     services in accordance with the provisions of section 214 of 
     the State Department Basic Authorities Act of 1956 (22 U.S.C. 
     4314) and 3 U.S.C. 208, $8,332,000, to remain available until 
     September 30, 1998.


           SECURITY AND MAINTENANCE OF UNITED STATES MISSIONS

       For necessary expenses for carrying out the Foreign Service 
     Buildings Act of 1926, as amended (22 U.S.C. 292-300), and 
     the Diplomatic Security Construction Program as authorized by 
     title IV of the Omnibus Diplomatic Security and Anti 
     Terrorism Act of 1986 (22 U.S.C. 4851), $364,495,000, to 
     remain available until expended as authorized by section 
     24(c) of the State Department Basic Authorities Act of 1956 
     (22 U.S.C. 2696(c)): Provided, That none of the funds 
     appropriated in this paragraph shall be available for 
     acquisition of furniture and furnishings and generators for 
     other departments and agencies.
       For an additional amount for security improvements, 
     necessary relocation expenses, and security equipment for 
     United States diplomatic facilities and missions overseas, 
     $24,825,000, to remain available until expended: Provided, 
     That of this amount $9,400,000 is for security projects on 
     behalf of United States and Foreign Commercial Service 
     missions and $1,125,000 is for security projects on behalf of 
     United States Information Agency missions: Provided further, 
     That the entire amount is designated by Congress as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended: Provided further, That the amount not 
     previously designated by the President as an emergency 
     requirement shall be available only to the extent an official 
     budget request, for a specific dollar amount that includes 
     designation of the entire amount of the request as an 
     emergency requirement, as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted to Congress.


           emergencies in the diplomatic and consular service

       For expenses necessary to enable the Secretary of State to 
     meet unforeseen emergencies arising in the Diplomatic and 
     Consular Service pursuant to the requirement of 31 U.S.C. 
     3526(e), $5,800,000, to remain available until expended as 
     authorized by section 24(c) of the State Department Basic 
     Authorities Act of 1956 (22 U.S.C. 2696(C)), of which not to 
     exceed $1,000,000 may be transferred to and merged with the 
     Repatriation Loans Program Account, subject to the same terms 
     and conditions.


                   repatriation loans program account

       For the cost of direct loans, $593,000, as authorized by 
     section 4 of the State Department Basic Authorities Act of 
     1956 (22 U.S.C. 2671): Provided, That such costs, including 
     the cost of modifying such loans, shall be as defined in 
     section 502 of the Congressional Budget Act of 1974. In 
     addition, for administrative expenses necessary to carry out 
     the direct loan program, $663,000 which may be transferred to 
     and merged with the Salaries and Expenses account under 
     Administration of Foreign Affairs.


              payment to the american institute in taiwan

       For necessary expenses to carry out the Taiwan Relations 
     Act, Public Law 96-8 (93 Stat. 14), $14,490,000.


     payment to the foreign service retirement and disability fund

       For payment to the Foreign Service Retirement and 
     Disability Fund, as authorized by law, $126,491,000.

              International Organizations and Conferences


              CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

       For expenses, not otherwise provided for, necessary to meet 
     annual obligations of membership in international 
     multilateral organizations, pursuant to treaties ratified 
     pursuant to the advice and consent of the Senate, conventions 
     or specific Acts of Congress, $892,000,000: Provided, That 
     any payment of arrearages shall be directed toward special 
     activities that are mutually agreed upon by the United States 
     and the respective international organization: Provided 
     further, That 20 percent of the funds appropriated in this 
     paragraph for the assessed contribution of the United States 
     to the United Nations shall be withheld from obligation and 
     expenditure until a certification is made under section 
     401(b) of Public Law 103-236 for fiscal year 1997: Provided 
     further, That certification under section 401(b) of Public 
     Law 103-236 for fiscal year 1997 may only be made if the 
     Committees on Appropriations and Foreign Relations of the 
     Senate and the Committees on Appropriations and International 
     Relations of the House of Representatives are notified of the 
     steps taken, and anticipated, to meet the requirements of 
     section 401(b) of Public Law 103-236 at least 15 days in 
     advance of the proposed certification: Provided further, That 
     none of the funds appropriated in this paragraph shall be 
     available for a United States contribution to an 
     international organization for the United States share of 
     interest costs made known to the United States Government by 
     such organization for loans incurred on or after October 1, 
     1984, through external borrowings: Provided further, That of 
     the funds appropriated in this paragraph, $100,000,000 may be 
     made available only pursuant to a certification by the 
     Secretary of State by no later than January 30, 1997, that 
     the United Nations has taken no action during calendar year 
     1996 to increase funding for any United Nations program 
     without identifying an offsetting decrease elsewhere in the 
     United Nations budget and cause the United Nations to exceed 
     its no growth budget for the biennium 1996-1997 adopted in 
     December, 1995: Provided further, That if the Secretary of 
     State is unable to make the aforementioned certification, the 
     $100,000,000 is to be applied to paying the current year 
     assessment for other international organizations for which 
     the assessment has not been paid in full or to paying the 
     assessment due in the next fiscal year for such 
     organizations, subject to the reprogramming procedures 
     contained in Section 605 of this Act: Provided further, That 
     notwithstanding section 402 of this Act, not to exceed 
     $10,000,000 may be transferred from the funds made available 
     under this heading to the ``International Conferences and 
     Contingencies'' account for assessed contributions to new or 
     provisional international organizations or for travel 
     expenses of official delegates to international conferences: 
     Provided further, That any transfer pursuant to this 
     paragraph shall be treated as a reprogramming of funds under 
     section 605 of this Act and shall not be available for 
     obligation or expenditure except in compliance with the 
     procedures set forth in that section.


        contributions for international peacekeeping activities

       For necessary expenses to pay assessed and other expenses 
     of international peacekeeping activities directed to the 
     maintenance or restoration of international peace and 
     security $352,400,000, of which $50,000,000 is for payment of 
     arrearages accumulated in 1995, and which shall be available 
     only upon certification by the Secretary of State that at 
     least two of the following have been achieved: (1) savings of 
     at least $100,000,000 will be achieved in the biennial 
     expenses of the following United Nations divisions and 
     activities--the United Nations Conference on Trade and 
     Development, the Regional Economic Commissions, the 
     Department of Public Information, and the Department of 
     Conference Services, travel and overtime; (2) the number of 
     professional and general service staff employed by the United 
     Nations Secretariat at the conclusion of the 1996-1997 
     biennium will be at least ten percent below the number of 
     such positions on January 1, 1996; and (3) the United Nations 
     has adopted a budget outline for the 1998-1999 biennium that 
     is below $2,608,000,000; as part of a five-year program to 
     achieve major cost-saving reforms in the United Nations and 
     specialized agencies: Provided, That none of the funds made 
     available under this Act shall be obligated or expended for 
     any new or expanded United Nations peacekeeping mission 
     unless, at least fifteen days in advance of voting for the 
     new or expanded mission in the United Nations Security 
     Council (or in an emergency, as far in advance as is 
     practicable), (1) the Committees on Appropriations of the 
     House of Representatives and the Senate and other appropriate 
     Committees of the Congress are notified of the estimated cost 
     and length of the mission, the vital national interest that 
     will be served, and the planned exit strategy; and (2) a 
     reprogramming of funds pursuant to section 605 of this Act is 
     submitted, and the procedures therein followed, setting forth 
     the source of funds that will be used to pay for the cost of 
     the new or expanded mission: Provided further, That funds 
     shall be available for peacekeeping expenses only upon a 
     certification by the Secretary of State to the appropriate 
     committees of the Congress that American manufacturers and 
     suppliers are being

[[Page H11658]]

     given opportunities to provide equipment, services, and 
     material for United Nations peacekeeping activities equal to 
     those being given to foreign manufacturers and suppliers.

                       International Commissions

       For necessary expenses, not otherwise provided for, to meet 
     obligations of the United States arising under treaties, or 
     specific Acts of Congress, as follows:


 international boundary and water commission, united states and mexico

       For necessary expenses for the United States Section of the 
     International Boundary and Water Commission, United States 
     and Mexico, and to comply with laws applicable to the United 
     States Section, including not to exceed $6,000 for 
     representation; as follows:


                         salaries and expenses

       For salaries and expenses, not otherwise provided for, 
     $15,490,000.


                              construction

       For detailed plan preparation and construction of 
     authorized projects, $6,463,000, to remain available until 
     expended, as authorized by section 24(c) of the State 
     Department Basic Authorities Act of 1956 (22 U.S.C. 2696(c)).


              american sections, international commissions

       For necessary expenses, not otherwise provided for the 
     International Joint Commission and the international Boundary 
     Commission, United States and Canada, as authorized by 
     treaties between the United States and Canada or Great 
     Britain, and for the Border Environment Cooperation 
     Commission as authorized by Public Law 103-182; $5,490,000, 
     of which not to exceed $9,000 shall be available for 
     representation expenses incurred by the International Joint 
     Commission.


                  international fisheries commissions

       For necessary expenses for international fishers 
     commissions, not otherwise provided for, as authorized by 
     law, $145,549,000: Provided, That the United States' share of 
     such expenses may be advanced to the respective commissions, 
     pursuant to 31 U.S.C. 3324.

                                 Other


                     Payment to the Asia Foundation

       For a grant to the Asia Foundation, as authorized by 
     section 501 of Public Law 101-246, $8,000,000, to remain 
     available until expended, as authorized by section 24(c) of 
     the State Department Basic Authorities Act of 1956 (22 U.S.C. 
     2696(c)).

                            RELATED AGENCIES

                  Arms Control and Disarmament Agency


                Arms Control and Disarmament Activities

       For necessary expenses not otherwise provided, for arms 
     control, nonproliferation, and disarmament activities, 
     $41,500,000 of which not to exceed $50,000 shall be for 
     official reception and representation expenses as authorized 
     by the Act of September 26, 1961, as amended (22 U.S.C. 2551 
     et seq.).

                    United States Information Agency


                         Salaries and Expenses

       For expenses, not otherwise provided for, necessary to 
     enable the United States Information Agency, as authorized by 
     the Mutual Educational and Cultural Exchange Act of 1961, as 
     amended (22 U.S.C. 2451 et seq.), the United States 
     Information and Educational Exchange Act of 1948, as amended 
     (22 U.S.C. 1431 et seq.), and Reorganization Plan No. 2 of 
     1977 (91 Stat. 1636), to carry out international 
     communication, educational and cultural activities; and to 
     carry out related activities authorized by law, including 
     employment, without regard to civil service and 
     classification laws, of persons on a temporary basis (not to 
     exceed $700,000 of this appropriation), as authorized by 
     section 801 of such Act of 1948 (22 U.S.C. 1471), and 
     entertainment, including official receptions, within the 
     United States, not to exceed $25,000 as authorized by section 
     804(3) of such Act of 1948 (22 U.S.C. 1474(3)); $440,000,000: 
     Provided, That not to exceed $1,400,000 may be used for 
     representation abroad as authorized by section 302 of such 
     Act of 1948 (22 U.S.C. 1452) and section 905 of the Foreign 
     Service Act of 1980 (22 U.S.C. 4085): Provided further, That 
     not to exceed $7,615,000, to remain available until expended, 
     may be credited to this appropriation from fees or other 
     payments received from or in connection with English 
     teaching, library, motion pictures, and publication programs 
     as authorized by section 810 of such Act of 1948 (22 U.S.C. 
     1475e and, notwithstanding any other law, fees from student 
     advising and counseling: Provided further; That not to exceed 
     $1,100,000 to remain available until expended may be used to 
     carry out projects involving security construction and 
     related improvements for agency facilities not physically 
     located together with Department of State facilities abroad.
       For an additional amount for necessary expenses relating to 
     security, $1,375,000: Provided, That the entire amount is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, a amended.


                            technology fund

       For expenses necessary to enable the United States 
     Information Agency to provide for the procurement of 
     information technology improvements, as authorized by the 
     United States Information and Educational Exchange Act of 
     1948, as amended (22 U.S.C. 1431 et seq.), the Mutual 
     Educational and Cultural Exchange Act of 1961, as amended (22 
     U.S.C. 2451 et seq.), and Reorganization Plan No. 2 of 1977 
     (91 Stat. 1636), $5,050,000, to remain available until 
     expended.


              ecducational and cultural exchange programs

       For expenses of educational and cultural exchange programs, 
     as authorized by the Mutual Educational and Cultural Exchange 
     Act of 1961, as amended (22 U.S.C. 2451 et seq.), and 
     Reorganization Plan No. 2 of 1977 (91 Stat. 1636), 
     $185,000,000, to remain available until expended as 
     authorized by section 105 of such Act of 1961 (22 U.S.C. 
     2455).


           eisenhower exchange fellowship program trust fund

       For necessary expenses of Eisenhower Exchange Fellowships, 
     Incorporated, as authorized by sections 4 and 5 of the 
     Eisenhower Exchange Fellowship Act of 1990 (20 U.S.C. 5204-
     5205), all interest and earnings accruing to the Eisenhower 
     Exchange Fellowship Program Trust Fund on or before September 
     30, 1997, to remain available until expended: Provided, That 
     none of the funds appropriated herein shall be used to pay 
     any salary or other compensation, or to enter into any 
     contract providing for the payment thereof, in excess of the 
     rate authorized by 5 U.S.C. 5376; or for purposes which are 
     not in accordance with OMB Circulars A-110 (Uniform 
     Administrative Requirements) and A-122) (Cost Principles for 
     Non-profit Organizations), including the restrictions on 
     compensation for personal services.


                    israeli arab scholarship program

       For necessary expenses of the Israeli Arab Scholarship 
     Program as authorized by section 214 of the Foreign Relations 
     Authorization Act, Fiscal Years 1992 and 1993 (22 U.S.C. 
     2452), all interest and earnings accruing to the Israeli Arab 
     Scholarship Fund on or before September 30, 1997, to remain 
     available until expended.


                 international broadcasting operations

       For expenses necessary to enable the United States 
     Information Agency, as authorized by the United States 
     Information and Educational Exchange Act of 1948, as amended, 
     the United States International Broadcasting Act of 1994, as 
     amended, and Reorganization Plan No. 2 of 1977, to carry out 
     international communication activities; $325,000,000, of 
     which not to exceed $16,000 may be used for official 
     receptions within the United States as authorized by section 
     804(3) of such Act of 1948 (22 U.S.C. 1747(3)), not to exceed 
     $35,000 may be used for representation abroad as authorized 
     by section 302 of such Act of 1948 (22 U.S.C. 1452) and 
     section 905 of the Foreign Service Act of 1980 (22 U.S.C. 
     4085), and not to exceed $39,000 may be used for official 
     reception and representation expenses of Radio Free Europe/
     Radio Liberty; and in addition, not to exceed $250,000 from 
     fees as authorized by section 810 of such Act of 1948 (22 
     U.S.C. 1475e), to remain available until expended for 
     carrying out authorized purposes; and in addition, 
     notwithstanding any other provision of law, not to exceed 
     $1,000,000 in monies received (including receipts from 
     advertising, if any) by or for the use of the United States 
     Information Agency from or in connection with broadcasting 
     resources owned by or on behalf of the Agency, to be 
     available until expended for carrying out authorized 
     purposes.


                          broadcasting to cuba

       For expenses necessary to enable the United States 
     Information Agency to carry out the Radio Broadcasting to 
     Cuba Act, as amended, the Television Broadcasting to Cuba 
     Act, and the International Broadcasting Act of 1994, 
     including the purchase, rent, construction, and improvement 
     of facilities for radio and television transmission and 
     reception, and purchase and installation of necessary 
     equipment for radio and television transmission and 
     reception, $25,000,000, to remain available until expended.


                           radio construction

       For the purchase, rent construction, and improvement of 
     facilities for radio transmission and reception, and purchase 
     and installation of necessary equipment for radio and 
     television transmission and reception as authorized by 
     section 801 of the United States Information and Educational 
     Exchange Act of 1948 (22 U.S.C. 1471), $35,490,000, to remain 
     available until expended, as authorized by section 704(a) of 
     such Act of 1948 (22 U.S.C. 1477b(a)).


                            east-west center

       To enable the Director of the United States Information 
     Agency to provide for carrying out the provisions of the 
     Center for Cultural and Technical Interchange Between East 
     and West Act of 1960 (22 U.S.C. 2054-2057), by grant to the 
     Center for Cultural and Technical Interchange Between East 
     and West in the State of Hawaii, $10,000,000: Provided, that 
     none of the funds appropriated herein shall be used to pay 
     any salary, or enter into any contract providing for the 
     payment thereof, in excess of the rate authorized by 5 U.S.C. 
     5376.


                           North/South Center

       To enable the Director of the United States Information 
     Agency to provide for carrying out the provisions of the 
     North/South Center Act of 1991 (22 U.S.C. 2075), by grant to 
     an educational institution in Florida known as the North/
     South Center, $1,495,000, to remain available until expended.


                    national endowment for democracy

       For grants made by the United States Information Agency to 
     the National Endowment for Democracy as authorized by the 
     National Endowment for Democracy Act, $30,000,000, to remain 
     available until expended.

      General Provisions--Department of State and Related Agencies

       Sec. 401. Funds appropriated under this title shall be 
     available, except as otherwise provided, for allowances and 
     differentials as authorized by subchapter 59 of 5 U.S.C.; for 
     services as authorized by 5 U.S.C. 3109; and hire of 
     passenger transportation pursuant to 31 U.S.C. 1343(b).
       Sec. 402. Not to exceed 5 percent of any appropriation made 
     available for the current fiscal year for the Department of 
     State in this Act may be transferred between such 
     appropriations, but no such appropriations, except as 
     otherwise specifically provided, shall be increased by more

[[Page H11659]]

     than 10 percent by any such transfers: Provided, That not to 
     exceed 5 percent of any appropriation made available for the 
     current fiscal year for the United States Information Agency 
     in this Act may be transferred between such appropriations, 
     but no such appropriation, except as otherwise specifically 
     provided, shall be increased by more than 10 percent by any 
     such transfers: Provided further, That any transfer pursuant 
     to this section shall be treated as a reprogramming of funds 
     under section 605 of this Act and shall not be available for 
     obligation or expenditure except in compliance with the 
     procedures set forth in that section.
       Sec. 403. Funds hereafter appropriated or otherwise made 
     available under this Act or any other Act may be expended for 
     compensation of the United States Commissioner of the 
     International Boundary Commission, United States and Canada, 
     only for actual hours worked by such Commissioner.
       Sec. 404. Funds appropriated by this Act for the United 
     States Information Agency, the Arms Control and Disarmament 
     Agency, and the Department of State may be obligated and 
     expended notwithstanding section 701 of the United States 
     Information and Educational Exchange Act of 1948 and section 
     313 of the Foreign Relations Authorization Act, Fiscal Years 
     1994 and 1995, section 53 of the Arms Control and Disarmament 
     Act, and section 15 of the State Department Basic Authorities 
     Act of 1956.
       Sec. 405. Any costs incurred by a Department or agency 
     funded under this title resulting from personnel actions 
     taken in response to funding reductions included in this 
     title shall be absorbed within the total budgetary resources 
     available to such Department or agency: Provided, That the 
     authority to transfer funds between appropriations accounts 
     as may be necessary to carry out this section is provided in 
     addition to authorities included elsewhere in this Act: 
     Provided further, That use of funds to carry out this section 
     shall be treated as a reprogramming of funds under section 
     605 of this Act and shall not be available for obligation or 
     expenditure except in compliance with the procedures set 
     forth in that section.
       Sec. 406. Starting sixty days after enactment of this Act, 
     none of the funds made available by this Act may be made 
     available to support the activities of the Standing 
     Consultative Commission (SCC) unless the President provides 
     to the Congress a report containing a detailed analysis of 
     whether the Memorandum of Understanding on Succession and the 
     Agreed Statement regarding Demarcation agreed to by the 
     Standing Consultative Commission on June 24, 1996, which was 
     reaffirmed by Secretary of State Warren Christopher and 
     Minister of Foreign Affairs Evgeny Primakov on September 23, 
     1996, represent substantive changes to the Anti-Ballistic 
     Missile Treaty of 1972 and whether these agreements will 
     require the advice and consent of the Senate of the United 
     States.
       Sec. 407. Section 1 of the Act of June 4, 1920 (41 Stat. 
     750; 22 U.S.C. 214) is amended by--
       (1) inserting before the period at the end of the first 
     sentence the following: ``; except that the Secretary of 
     State may by regulation authorize State officials or the 
     United States Postal Service to collect and retain the 
     execution fee for each application for a passport accepted by 
     such officials or by that Service''; and
       (2) striking the second sentence.
       This title may be cited as the ``Department of State and 
     Related Agencies Appropriations Act, 1997''.

                       TITLE V--RELATED AGENCIES

                      DEPARTMENT OF TRANSPORTATION

                        Maritime Administration


                    operating-differential subsidies

                  (liquidation of contract authority)

       For the payment of obligations incurred for operating-
     differential subsidies, as authorized by the Merchant Marine 
     Act, 1936, as amended, $148,430,000, to remain available 
     until expended.


                       maritime security program

       For necessary expenses to maintain and preserve a U.S.-flag 
     merchant fleet to serve the national security needs of the 
     United States, $54,000,000, to remain available until 
     expended: Provided, That these funds will be available only 
     upon enactment of an authorization for this program.


                        operations and training

       For necessary expenses of operations and training 
     activities authorized by law, $65,000,000: Provided, That 
     reimbursements may be made to this appropriation from 
     receipts to the ``Federal Ship Financing Fund'' for 
     administrative expenses in support of that program in 
     addition to any amount heretofore appropriated.


          maritime guaranteed loan (title xi) program account

       For the cost of guaranteed loans, as authorized by the 
     Merchant Marine Act, 1936, $37,450,000, to remain available 
     until expended: Provided, That such costs, including the cost 
     of modifying such loans, shall be as defined in section 502 
     of the Congressional Budget Act of 1974, as amended: Provided 
     further, That these funds are available to subsidize total 
     loan principal, any part of which is to be guaranteed, not to 
     exceed $1,000,000,000.
       In addition, for administrative expenses to carry out the 
     guaranteed loan program, not to exceed $3,450,000, which 
     shall be transferred to and merged with the appropriation for 
     Operations and Training.


           ADMINISTRATIVE PROVISIONS--MARITIME ADMINISTRATION

       Notwithstanding any other provision of this Act, the 
     Maritime Administration is authorized to furnish utilities 
     and services and make necessary repairs in connection with 
     any lease, contract, or occupancy involving Government 
     property under control of the Maritime Administration, and 
     payments received therefor shall be credited to the 
     appropriation charged with the cost thereof: Provided, That 
     rental payments under any such lease, contract, or occupancy 
     for items other than such utilities, services, or repairs 
     shall be covered into the Treasury as miscellaneous receipts.
       No obligations, shall be incurred during the current fiscal 
     year from the construction fund established by the Merchant 
     Marine Act, 1936, or otherwise, in excess of the 
     appropriations and limitations contained in this Act or in 
     any prior appropriation Act, and all receipts which otherwise 
     would be deposited to the credit of said fund shall be 
     covered into the Treasury as miscellaneous receipts.

      Commission for the Preservation of America's Heritage Abroad


                         SALARIES AND EXPENSES

       For expenses for the Commission for the Preservation of 
     America's Heritage Abroad, $206,000, as authorized by Public 
     Law 99-83,section 1303.

                       Commission on Civil Rights


                         SALARIES AND EXPENSES

       For necessary expenses of the Commission on Civil Rights, 
     including hire of passenger motor vehicles, $8,740,000: 
     Provided, That not to exceed $50,000 may be used to employ 
     consultants: Provided further, That none of the funds 
     appropriated in this paragraph shall be used to employ in 
     excess of four full-time individuals under Schedule C of the 
     Excepted Service exclusive of one special assistant for each 
     Commissioner: Provided further, That none of the funds 
     appropriated in this paragraph shall be used to reimburse 
     Commissioners for more than 75 billable days, with the 
     exception of the chairperson who is permitted 125 billable 
     days.

                    Commission on Immigration Reform


                         SALARIES AND EXPENSES

       For necessary expenses of the Commission on Immigration 
     Reform pursuant to section 141(f) of the Immigration Act of 
     1990, $2,196,000, to remain available until expended.

            Commission on Security and Cooperation in Europe


                         salaries and expenses

       For necessary expenses of the Commission on Security and 
     Cooperation in Europe, as authorized by Public Law 94-304, 
     $1,090,000, to remain available until expended as authorized 
     by section 3 of Public Law 99-7.

                Equal Employment Opportunity Commission


                         salaries and expenses

       For necessary expenses of the Equal Employment Opportunity 
     Commission as authorized by title VII of the Civil Rights act 
     of 1964, as amended (29 U.S.C. 206(d) and 621-634), the 
     Americans with Disabilities Act of 1990, and the Civil Rights 
     Act of 1991, including services as authorized by 5 U.S.C. 
     3109; hire of passenger motor vehicles as authorized by 31 
     U.S.C. 1343(b); non-monetary awards to private citizens; not 
     to exceed $27,500,000, for payments to State and local 
     enforcement agencies for services to the Commission pursuant 
     to title VII of the Civil Rights Act of 1964, as amended, 
     sections 6 and 14 of the Age Discrimination in Employment 
     Act, the Americans with Disabilities Act of 1990, and the 
     Civil Rights Act of 1991; $239,740,000: Provided, That the 
     Commission is authorized to make available for official 
     reception and representation expenses not to exceed $2,500 
     from available funds.

                   Federal Communications Commission


                         salaries and expenses

       For necessary expenses of the Federal Communications 
     Commission, as authorized by law, including uniforms and 
     allowances therefor, as authorized by 5 U.S.C. 5901-02; not 
     to exceed $600,000 for land and structure; not to exceed 
     $500,000 for improvement and care of grounds and repair to 
     buildings; not to exceed $4,000 for official reception and 
     representation expenses; purchase (not to exceed sixteen) and 
     hire of motor vehicles; special counsel fees; and services as 
     authorized by 5 U.S.C. 3109; $189,079,000, of which not to 
     exceed $300,000 shall remain available until September 30, 
     1998, for research and policy studies: Provided, That 
     $152,523,000 of offsetting collections shall be assessed and 
     collected pursuant to section 9 of title I of the 
     Communications Act of 1934, as amended, and shall be retained 
     and used for necessary expenses in this appropriation, and 
     shall remain available until expended: Provided further, That 
     the sum herein appropriated shall be reduced as such 
     offsetting collections are received during fiscal year 1997 
     so as to result in a final fiscal year 1997 appropriation 
     estimated at $36,556,000: Provided further, That any 
     offsetting collections received in excess of $152,523,000 in 
     fiscal year 1997 shall remain available until expended, but 
     shall not be available for obligation until October 1, 1997.

                      Federal Maritime Commission


                         salaries and expenses

       For necessary expenses of the Federal Maritime Commission 
     as authorized by section 201(d) of the Merchant Marine Act of 
     1936, as amended (46 App. U.S.C. 1111), including services as 
     authorized by 5 U.S.C. 3109; hire of passenger motor vehicles 
     as authorized by 31 U.S.C. 1343(b); and uniforms or 
     allowances therefor, as authorized by 5 U.S.C. 5901-02; 
     $14,000,000: Provided, That not to exceed $2,000 shall be 
     available for official reception and representation expenses.

                        Federal Trade Commission


                         salaries and expenses

       For necessary expenses of the Federal Trade Commission, 
     including uniforms or allowances therefor, as authorized by 5 
     U.S.C. 5901-5902; services as authorized by 5 U.S.C. 3109; 
     hire of passenger motor vehicles; and not to exceed $2,000 
     for official reception and representation expenses; 
     $85,930,000: Provided, That not to exceed $300,000 shall be 
     available for use to contract with a person or persons for 
     collection

[[Page H11660]]

     services in accordance with the terms of 31 U.S.C. 3718, as 
     amended: Provided further, That notwithstanding any other 
     provision of law, not to exceed $58,905,000 of offsetting 
     collections derived from fees collected for premerger 
     notification filings under the Hart-Scott-Rodino Antitrust 
     Improvements Act of 1976 (15 U.S.C. 18(a)) shall be retained 
     and used for necessary expenses in this appropriation, and 
     shall remain available until expended: Provided further, That 
     the sum herein appropriated from the General Fund shall be 
     reduced as such offsetting collections are received during 
     fiscal year 1997, so as to result in a final fiscal year 1997 
     appropriation from the General Fund estimated at not more 
     than $27,025,000, to remain available until expended: 
     Provided further, That any fees received in excess of 
     $58,905,000 in fiscal year 1997 shall remain available until 
     expended, but shall not be available for obligation until 
     October 1, 1997: Provided further, That none of the funds 
     made available to the Federal Trade Commission shall be 
     available for obligation for expenses authorized by section 
     151 of the Federal Deposit Insurance Corporation Improvement 
     Act of 1991 (Public Law 102-242, 105 Stat. 2282-2285).

                    Gambling Impact Study Commission


                         salaries and expenses

       For necessary expenses of the National Gambling Impact 
     Study Commission, $4,000,000 to remain available until 
     expended: Provided, That these funds will be available only 
     upon enactment of an authorization for this Commission.

                       Legal Services Corporation


               payment to the legal services corporation

       For payment to the Legal Services Corporation to carry out 
     the purposes of the Legal Services Corporation Act of 1974, 
     as amended, $283,000,000, of which $274,400,000 is for basic 
     field programs and required independent audits; $1,500,000 is 
     for the Office of Inspector General, of which such amounts as 
     may be necessary may be used to conduct additional audits of 
     recipients; and $7,100,000 is for management and 
     administration.


         administrative provisions--legal services corporation

       Sec. 501. (a) Continuation of Competitive Selection 
     Process.--None of the funds appropriated in this Act to the 
     Legal Services Corporation may be used to provide financial 
     assistance to any person or entity except through a 
     competitive selection process conducted in accordance with 
     regulations promulgated by the Corporation in accordance with 
     the criteria set forth in subsections (c), (d), and (e) of 
     section 503 of Public Law 104-134 (110 Stat. 1321-52 et 
     seq.).
       (b) Inapplicability of Noncompetitive Procedures.--For 
     purposes of the funding provided in this Act, rights under 
     sections 1007(a)(9) and 1011 of the Legal Services 
     Corporation Act (42 U.S.C. 2996f(a)(9) and 42 U.S.C. 2996j) 
     shall not apply.
       Sec. 502. (A) Continuation of Requirements and 
     Restrictions.--None of the funds appropriated in this Act to 
     the Legal Services Corporation shall be expended for any 
     purpose prohibited or limited by, or contrary to any of the 
     provisions of--
       (1) sections 501, 502, 505, 506, and 507 of Public Law 104-
     134 (110 Stat. 1321-51 et seq.), and all funds appropriated 
     in this Act to the Legal Services Corporation shall be 
     subject to the same terms and conditions as set forth in such 
     sections, except that all references in such sections to 1995 
     and 1996 shall be deemed to refer instead to 1996 and 1997, 
     respectively; and
       (2) section 504 of Public Law 104-134 (110 Stat. 1321-53 et 
     seq.), and all funds appropriated in this Act to the Legal 
     Services Corporation shall be subject to the same terms and 
     conditions set forth in such section, except that--
       (A) subsection (c) of such section 504 shall not apply;
       (B) paragraph (3) of section 508(b) of Public Law 104-134 
     (110 Stat. 1321-58) shall apply with respect to the 
     requirements of subsection (a)(13) of such section 504, 
     except that all references in such section 508(b) to the date 
     of enactment shall be deemed to refer to April 26, 1996; and
       (C) subsection (a)(11) of such section 504 shall not be 
     construed to prohibit a recipient from using funds derived 
     from a source other than the Corporation to provide related 
     legal assistance to--
       (i) an alien who has been battered or subjected to extreme 
     cruelty in the United States by a spouse or a parent, or by a 
     member of the spouse's or parent's family residing in the 
     same household as the alien and the spouse or parent 
     consented or acquiesced to such battery or cruelty; or
       (ii) an alien whose child has been battered or subjected to 
     extreme cruelty in the United States by a spouse or parent of 
     the alien (without the active participation of the alien in 
     the battery or extreme cruelty), or by a member of the 
     spouse's or parent's family residing in the same household as 
     the alien and the spouse or parent consented or acquiesced to 
     such battery or cruelty, and the alien did not actively 
     participate in such battery or cruelty.
       (b) Definitions.--For purposes of subsection (a)(2)(C):
       (1) The term ``battered or subjected to extreme cruelty'' 
     has the meaning given such term under regulations issued 
     pursuant to subtitle G of the Violence Against Women Act of 
     1994 (Pub. L. 103-322; 108 Stat. 1953).
       (2) The Term ``related legal assistance'' means legal 
     assistance directly related to the prevention of, or 
     obtaining of relief from, the battery or cruelty described in 
     such subsection.
       Sec. 503. (a) Continuation of Audit Requirements.--The 
     requirements of section 509 of Public Law 104-134 (110 Stat. 
     1321-58 et seq.), other than subsection (l) of such section, 
     shall apply during fiscal year 1997.
       (b) Requirement of Annual Audit.--An annual audit of each 
     person or entity receiving financial assistance from the 
     Legal Services Corporation under this Act shall be conducted 
     during fiscal year 1997 in accordance with the requirements 
     referred to in subsection (a).

                        Marine Mammal Commission


                         salaries and expenses

       For necessary expenses of the Marine Mammal Commission as 
     authorized by title II of Public Law 92-522, as amended, 
     $1,189,000.

                 National Bankruptcy Review Commission


                         salaries and expenses

       For necessary expenses of the National Bankruptcy Review 
     Commission, as authorized by the Bankruptcy Reform Act of 
     1994, $494,000.

                      Ounce of Prevention Council

       For activities authorized by sections 30101 and 30102 of 
     Public Law 103-322 (including administrative costs), 
     $1,500,000, to remain available until expended, for the Ounce 
     of Prevention Grant Program: Provided, That the Council may 
     accept and use gifts and donations, both real and personal, 
     for the purpose of aiding or facilitating the authorized 
     activities of the Council, of which not to exceed $5,000 may 
     be used for official reception and representation expenses.

                   Securities and Exchange Commission


                         salaries and expenses

       For necessary expenses for the Securities and Exchange 
     Commission, including services as authorized by 5 U.S.C. 
     3109, the rental of space (to include multiple year leases) 
     in the District of Columbia and elsewhere, and not to exceed 
     $3,000 for official reception and representation expenses, 
     $260,400,000, of which not to exceed $10,000 may be used 
     toward funding a permanent secretariat for the International 
     Organization of Securities Commissions, and of which not to 
     exceed $100,000 shall be available for expenses for 
     consultations and meetings hosted by the Commission with 
     foreign governmental and other regulatory officials, members 
     of their delegations, appropriate representatives and staff 
     to exchange views concerning developments relating to 
     securities matters, development and implementation of 
     cooperation agreements concerning securities matters and 
     provision of technical assistance for the development of 
     foreign securities markets, such expenses to include 
     necessary logistic and administrative expenses and the 
     expenses of Commission staff and foreign invitees in 
     attendance at such consultations and meetings including (1) 
     such incidental expenses as meals taken in the course of such 
     attendance, (2) any travel and transportation to or from such 
     meetings, and (3) any other related lodging or subsistance: 
     Provided, That immediately upon enactment of this Act, the 
     rate of fees under section 6(b) of the Securities Act of 1933 
     (15 U.S.C. 77f(b)) shall increase from one-fiftieth of one 
     percentum to one-thirty-third of one percentum, and such 
     increase shall be deposited as an offsetting collection to 
     this appropriation, to remain available until expended, to 
     recover costs of services of the securities registration 
     process: Provided further, That effective January 1, 1997, 
     every national securities association shall pay to the 
     Commission a fee at a rate of one-three-hundredth of one 
     percentum of the aggregate dollar amount of sales transacted 
     by or through any member of such association otherwise than 
     on a national securities exchange (other than bonds, 
     debentures, and other evidences of indebtedness) subject to 
     prompt last sale reporting pursuant to the rules of the 
     Commission or a registered national securities association, 
     excluding any sales for which fee is paid under section 31 of 
     the Securities Exchange Act of 1934 (15 U.S.C. 78ee), and 
     such increase shall be deposited as an offsetting collection 
     to this appropriation, to remain available until expended, to 
     recover the costs to the Government of the supervision and 
     regulation of securities markets and securities 
     professionals: Provided further, That the fee due from every 
     national securities association shall be paid on or before 
     September 30, 1997, with respect to transactions and sales 
     occurring during the period beginning on January 1, 1997, and 
     ending at the close of August 31, 1997: Provided further, 
     That the total amount appropriated for fiscal year 1997 under 
     this heading shall be reduced as all such offsetting fees are 
     deposited to this appropriation so as to result in a final 
     total fiscal year 1997 appropriation from the General Fund 
     estimated at not more than $37,778,000: Provided further, 
     That any such fees collected in excess of $222,622,000 shall 
     remain available until expended but shall not be available 
     for obligation until October 1, 1997.

                     Small Business Administration


                         salaries and expenses

       For necessary expenses, not otherwise provided for, of the 
     Small Business Administration as authorized by Public Law 
     103-403, including hire of passenger motor vehicles as 
     authorized by 31 U.S.C. 1343 and 1344, and not to exceed 
     $3,500 for official reception and representation expenses, 
     $223,547,000, of which $1,000,000 shall only be available for 
     obligation and expenditure for projects jointly developed, 
     implemented and administered with the Minority Business 
     Development Agency of the Department of Commerce: Provided, 
     That the Administration is authorized to charge fees to cover 
     the cost of publications developed by the Small Business 
     Administration, and certain loan servicing activities: 
     Provided further, That notwithstanding 31 U.S.C. 3302, 
     revenues received from all such activities shall be credited 
     to this account, to be available for carrying out these 
     purposes without further appropriations: Provided further, 
     That $75,500,000 shall be available to fund grants for 
     performance in fiscal year 1997 or fiscal year 1998 as 
     authorized by section 21 of the Small Business Act, as 
     amended. In addition, for expenses not otherwise provided 
     for, of the Small Business Administration, $11,500,000, of 
     which: $3,000,000 shall be available for a grant to continue 
     the WVHTC

[[Page H11661]]

     Foundation outreach program to assist small business 
     development; $7,000,000 shall be available for a grant to the 
     Center for Rural Development in Somerset, Kentucky, for small 
     business and rural technology development assistance; 
     $1,000,000 shall be available for a grant to Indiana State 
     University for the renovation and equipping of a training 
     facility, to assist in creating small business and economic 
     development opportunities; and $500,000 shall be available 
     for a continuation grant to the Center for Entrepreneurial 
     Opportunity in Greensburg, Pennsylvania, to provide for small 
     business consulting and assistance.


                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended (5 U.S.C. App. 1-11, as amended by Public 
     Law 100-504), $9,000,000.


                     business loans program account

       For the cost of direct loans, $1,691,000, and for the cost 
     of guaranteed loans, $182,017,000, authorized by 15 U.S.C. 
     631 note, of which $2,317,000, to be available until 
     expended, shall be for the Microloan Guarantee Program, and 
     of which $40,510,000 shall remain available until September 
     30, 1998: Provided, That such costs, including the cost of 
     modifying such loans, shall be as defined in section 502 of 
     the Congressional Budget Act of 1974: Provided Further, That 
     during fiscal year 1997, commitments to guarantee loans under 
     section 503 of the Small Business Investment Act of 1958, as 
     amended, shall not exceed the amount of financings authorized 
     under section 20(n)(2)(b) of the Small Business Act, as 
     amended.
       In addition, for administrative expenses to carry out the 
     direct and guaranteed loan programs, $94,000,000, which may 
     be transferred to and merged with the appropriation for 
     Salaries and Expenses.


                     disaster loans program account

       For the cost of direct loans authorized by section 7(b) of 
     the Small Business Act, as amended, $105,432,000, to remain 
     available until expended: Provided, That such costs, 
     including the cost of modifying such loans, shall be as 
     defined in section 502 of the Congressional Budget Act of 
     1974.
       In addition, for administrative expenses to carry out the 
     direct loan program, $86,500,000, including not to exceed 
     $500,000 for the Office of Inspector General of the Small 
     Business Administration for audits and reviews of disaster 
     loans and the disaster loan program, and said sums may be 
     transferred to and merged with appropriations for Salaries 
     and Expenses and Office of Inspector General.


                 surety bond guarantees revolving fund

       For additional capital for the ``Surety Bond Guarantees 
     Revolving Fund'', authorized by the Small Business Investment 
     Act, as amended, $3,730,000, to remain available without 
     fiscal year limitation as authorized by 15 U.S.C. 631 note.


        administrative provision--small business administration

       Sec. 504. Not to exceed 5 percent of any appropriation made 
     available for the current fiscal year for the Small Business 
     Administration in this Act may be transferred between such 
     appropriations, but no such appropriation shall be increased 
     by more than 10 percent by any such transfers: Provided, That 
     any transfer pursuant to this section shall be treated as a 
     reprogramming of fund under section 605 of this Act and shall 
     not be available for obligation or expenditure except in 
     compliance with the procedures set forth in that section.

                        State Justice Institute


                         salaries and expenses

       For necessary expenses of the State Justice Institute, as 
     authorized by the State Justice Institute Authorization Act 
     of 1992 (Public Law 102-572 (106 Stat. 4515-4516)), 
     $6,000,000, to remain available until expended: Provided, 
     That not to exceed $2,500 shall be available for official 
     reception and representation expenses.

                      TITLE VI--GENERAL PROVISIONS

       Sec. 601. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes not 
     authorized by the Congress.
       Sec. 602. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 603. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to 5 U.S.C. 3109, shall be limited to those 
     contracts where such expenditures are a matter of public 
     record and available for public inspection, except where 
     otherwise provided under existing law, or under existing 
     Executive order issued pursuant to existing law.
       Sec. 604. If any provision of this Act or the application 
     of such provision to any person or circumstances shall be 
     held invalid, the remainder of the Act and the application of 
     each provision to persons or circumstances other than those 
     as to which it is held invalid shall not be affected thereby.
       Sec. 605. (a) None of the funds provided under this Act, or 
     provided under previous appropriations Acts to the agencies 
     funded by this Act that remain available for obligation or 
     expenditure in fiscal year 1997, or provided from any 
     accounts in the Treasury of the United States derived by the 
     collection of fees available to the agencies funded by this 
     Act, shall be available for obligation or expenditure through 
     a reprogramming of funds which (1) creates new programs; (2) 
     eliminates a program, project, or activity; (3) increases 
     funds or personnel by any means for any project or activity 
     for which funds have been denied or restricted; (4) relocates 
     an office or employees; (5) reorganizes offices, programs, or 
     activities; or (6) contracts out or privatizes any functions, 
     or activities presently performed by Federal employees; 
     unless the Appropriations Committees of both Houses of 
     Congress are notified fifteen days in advance of such 
     reprogramming of funds.
       (b) None of the funds provided under this Act, or provided 
     under previous appropriations Acts to the agencies funded by 
     this Act that remain available for obligation or expenditure 
     in fiscal year 1997, or provided from any accounts in the 
     Treasury of the United States derived by the collection of 
     fees available to the agencies funded by this Act, shall be 
     available for obligation or expenditure for activities, 
     programs, or projects through a reprogramming of funds in 
     excess of $500,000 or 10 percent, whichever is less, that (1) 
     augments existing programs, projects, or activities; (2) 
     reduces by 10 percent funding for any existing program, 
     project, or activity, or numbers of personnel by 10 percent 
     as approved by Congress; or (3) results from any general 
     savings from a reduction in personnel which would result in a 
     change in existing programs, activities, or projects as 
     approved by Congress; unless the Appropriations Committees of 
     both Houses of Congress are notified fifteen days in advance 
     of such reprogramming of funds.
       Sec. 606. None of the funds made available in this Act may 
     be used for the construction, repair (other than emergency 
     repair), overhaul, conversion, or modernization of vessels 
     for the National Oceanic and Atmospheric Administration in 
     shipyards located outside of the United States.
       Sec. 607. (a) Purchase of American-Made Equipment and 
     Products.--It is the sense of the Congress that, to the 
     greatest extent practicable, all equipment and products 
     purchased with funds made available in this Act should be 
     American-made.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     funds made available in this Act, the head of each Federal 
     agency, to the greatest extent practicable, shall provide to 
     such entity a notice describing the statement made in 
     subsection (a) by the Congress.
       (c) Prohibition of Contracts With Persons Falsely Labeling 
     Products as Made in America.--If it has been finally 
     determined by a court or Federal agency that any person 
     intentionally affixed a label bearing a ``Made in America'' 
     inscription, or any inscription with the same meaning, to any 
     product sold in or shipped to the United States that is not 
     made in the United States, the person shall be ineligible to 
     receive any contract or subcontract made with funds made 
     available in this Act, pursuant to the debarment, suspension, 
     and ineligibility procedures described in sections 9.400 
     through 9.409 of title 48, Code of Federal Regulations.
       Sec. 608. None of the funds made available in this Act may 
     be used to implement, administer, or enforce any guidelines 
     of the Equal Employment Opportunity Commission covering 
     harassment based on religion, when it is made known to the 
     Federal entity or official to which such funds are made 
     available that such guidelines do not differ in any respect 
     from the proposed guidelines published by the Commission on 
     October 1, 1993 (58 Fed. Reg. 51266).
       Sec. 609. None of the funds appropriated or otherwise made 
     available by this Act may be obligated or expended to pay for 
     any cost incurred for (1) opening or operating any United 
     States diplomatic or consular post in the Socialist Republic 
     of Vietnam that was not operating on July 11, 1995; (2) 
     expanding any United States diplomatic or consular post in 
     the Socialist Republic of Vietnam that was operating on July 
     11, 1995; or (3) increasing the total number of personnel 
     assigned to United States diplomatic or consular posts in the 
     Socialist Republic of Vietnam above the levels existing on 
     July 11, 1995, unless the President certifies within 60 days, 
     based upon all information available to the United States 
     Government that the Government of the Socialist Republic of 
     Vietnam is cooperating in full faith with the United States 
     in the following four areas:
       (1) Resolving discrepancy cases, live sightings and field 
     activities,
       (2) Recovering and repatriating American remains,
       (3) Accelerating efforts to provide documents that will 
     help lead to fullest possible accounting of POW/MIA's.
       (4) Providing further assistance in implementing trilateral 
     investigations with Laos.
       Sec. 610. None of the funds made available by this Act may 
     be used for any United Nations undertaking when it is made 
     known to the Federal official having authority to obligate or 
     expend such funds (1) that the United Nations undertaking is 
     a peacekeeping mission, (2) that such undertaking will 
     involve United States Armed Forces under the command or 
     operational control of a foreign national, and (3) that the 
     President's military advisors have not submitted to the 
     President a recommendation that such involvement is in the 
     national security interests of the United States and the 
     President has not submitted to the Congress such a 
     recommendation.
       Sec. 611. None of the funds made available in this Act 
     shall be used to provide the following amenities or personal 
     comforts in the Federal prison system--
       (1) in-cell television viewing except for prisoners who are 
     segregated from the general prison population for their own 
     safety;
       (2) the viewing of R, X, and NC-17 rated movies, through 
     whatever medium presented;
       (3) any instruction (live or through broadcasts) or 
     training equipment for boxing, wrestling, judo, karate, or 
     other martial art, or any bodybuilding or weightlifting 
     equipment of any sort;
       (4) possession of in-cell coffee pots, hot plates or 
     heating elements; or
       (5) the use of possession of any electric or electronic 
     musical instrument.

[[Page H11662]]

       Sec. 612. None of the funds made available in title II for 
     the National Oceanic and Atmospheric Administration (NOAA) 
     under the heading ``Fleet Modernization, Shipbuilding and 
     Conversion'' may be used to implement sections 603, 604, and 
     605 of Public Law 102-567: Provided, That NOAA may develop a 
     modernization plan for its fisheries research vessels that 
     takes fully into account opportunities for contracting for 
     fisheries surveys.
       Sec. 613. Any costs incurred by a Department or agency 
     funded under this Act resulting from personnel actions taken 
     in response to funding reductions included in this Act shall 
     be absorbed within the total budgetary resources available to 
     such Department or Agency: Provided, That the authority to 
     transfer funds between appropriations accounts as may be 
     necessary to carry out this section is provided in addition 
     to authorities included elsewhere in this Act: Provided 
     further, That use of funds to carry out this section shall be 
     treated as a reprogramming of funds under section 605 of this 
     Act and shall not be available for obligation or expenditure 
     except in compliance with the procedures set forth in that 
     section.
       Sec. 614. None of the funds made available in this Act to 
     the Federal Bureau of Prisons may be used to distribute or 
     make available any commercially published information or 
     material to a prisoner when it is made known to the Federal 
     official having authority to obligate or expend such funds 
     that such information or material is sexually explicit or 
     features nudity.
       Sec. 615. Of the funds appropriated in this Act under the 
     heading ``OFFICE OF JUSTICE PROGRAMS--state and local law 
     enforcement assistance'' and ``Community Oriented Policing 
     Services Program'', not more than ninety percent of the 
     amount to be awarded to an entity under the Local Law 
     Enforcement Block Grant and part Q of title I of the Omnibus 
     Crime Control and Safe Streets Act of 1968 shall be made 
     available to such an entity when it is made known to the 
     Federal official having authority to obligate or expend such 
     funds that the entity that employs a public safety officer 
     (as such term is defined in section 1204 of title I of the 
     Omnibus Crime Control and Safe Streets Act of 1968) does not 
     provide such a public safety officer who retires or is 
     separated from service due to injury suffered as the direct 
     and proximate result of a personal injury sustained in the 
     line of duty while responding to an emergency situation or a 
     hot pursuit (as such terms are defined by State law) with the 
     same or better level of health insurance benefits that are 
     paid by the entity at the time of retirement or separation.

     SEC. 616. LIMITATION ON PATENT INFRINGEMENTS RELATING TO A 
                   MEDICAL PRACTITIONER'S PERFORMANCE OF A MEDICAL 
                   ACTIVITY.

       Section 287 of title 35, United States Code, is amended by 
     adding at the end the following new subsection:
       (c)(1) With respect to a medical practitioner's 
     performance, of a medical activity that constitutes an 
     infringement under section 271 (a) or (b) of this title, the 
     provisions of sections 281, 283, 284, and 285 of this title 
     shall not apply against the medical practitioner or against a 
     related health care entity with respect to such medical 
     activity.
       (2) For the purposes of this subsection:
       (A) the term ``medical activity'' means the performance of 
     a medical or surgical procedure on a body, but shall not 
     include (i) the use of a patented machine, manufacture, or 
     composition of matter in violation of such patent, (ii) the 
     practice of a patented use of a composition of matter in 
     violation of such patent, or (iii) the practice of a process 
     in violation of a biotechnology patent.
       (B) the term ``medical parctioner'' means any natural 
     person who is licensed by a State to provide the medical 
     activity described in subsection (c)(1) or who is acting 
     under the direction of such person in the performance of the 
     medical activity.
       (C) the term ``related health care entity'' shall mean an 
     entity with which a medical practitioner has a professional 
     affiliation under which the medical practitioner performs the 
     medical activity, including but not limited to nursing home, 
     hospital, university, medical school, health maintenance 
     organization, group medical practice, or a medical clinic.
       (D) the term ``professional affiliation'' shall mean staff 
     privileges, medical staff membership, employment or 
     contractual relationship, partnership or ownership interest, 
     academic appointment, or other affiliation under which a 
     medical practitioner provides the medical activity on behalf 
     of, or in association with, the health care entity.
       (E) the term ``body'' shall mean a human body, organ or 
     cadaver, or a nonhuman animal used in medical research or 
     instruction directly relating to the treatment of humans.
       (F) the term ``patented use of a composition of matter'' 
     does not include a claim for a method of performing a medical 
     or surgical procedure on a body that recites the use of a 
     composition of matter where the use of that composition of 
     matter does not directly contribute to achievement of the 
     objective of the claimed method.
       (G) the term ``State'' shall mean any state or territory of 
     the United States, the District of Columbia, and the 
     Commonwealth of Puerto Rico.
       (3) This subsection does not apply to the activities of any 
     person, or employee or agent of such person (regardless of 
     whether such person is a tax exempt organization under 
     section 501(c) of the Internal Revenue Code), who is engaged 
     in the commercial development, manufacture, sale, 
     importation, or distribution of a machine, manufacture, or 
     composition of matter or the provision of pharmacy or 
     clinical laboratory services (other than clinical laboratory 
     services provided in a physician's office), where such 
     activities are:
       (A) directly related to the commercial development, 
     manufacture, sale, importation, or distribution of a machine, 
     manufacture, or composition of matter or the provision of 
     pharmacy or clinical laboratory services (other than clinical 
     laboratory services provided in a physician's office), and
       (B) regulated under the Federal Food, Drug, and Cosmetic 
     Act, the Public Health Service Act, or the Clinical 
     Laboratories Improvement Act.
       (4) This subsection shall not apply to any patent issued 
     before the date of enactment of this subsection.
       Sec. 617. Effective with the enactment of this Act and to 
     any fiscal year hereafter, section 8 of Public Law 96-132 is 
     hereby repealed.
       Sec. 618. (a) In General.--The Secretary may issue a 
     guarantee or a commitment to guarantee obligations under 
     title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 
     1271 et seq.), upon such terms as the Secretary may 
     prescribe, to assist in the reactivation and modernization of 
     any shipyard in the United States that is closed on the date 
     of the enactment of this Act, if the Secretary finds that--
       (1) the closed shipyard historically built military vessels 
     and responsible entities now seek to reopen it as an 
     internationally competitive commercial shipyard;
       (2)(A) the closed shipyard has been designated by the 
     President as a public-private partnership project; or
       (B) has a reuse plan approved by the Navy in which 
     commercial shipbuilding and repair are primary activities and 
     has a revolving economic conversion fund approved by the 
     Department of Defense; and
       (3) the State in which the shipyard is located, and each 
     other involved State, or a State-chartered agency, is making 
     a significant financial investment in the overall cost of 
     reactivation and modernization as its contribution to the 
     reactivation and modernization project, in addition to the 
     funds required by subsection (d)(2) of this section.
       (b) Waivers.--Notwithstanding any other provision of title 
     XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et 
     seq.), the Secretary shall not apply the requirements of 
     section 1104A(d) of that Act when issuing a guarantee or a 
     commitment to guarantee an obligation under this section.
       (c) Conditions.--The Secretary shall impose such conditions 
     on the issuance of a guarantee or a commitment to guarantee 
     under this section as are necessary to protect the interests 
     of the United States from the risk of a default. The 
     Secretary shall consider the interdependency of such shipyard 
     modernization and reactivation projects and related vessel 
     loan guarantee requests pending under title XI of the 
     Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.) 
     before issuing a guarantee of a commitment to guarantee under 
     this section.
       (d) Funding Provisions.--
       (1) The Secretary may not guarantee or commit to guarantee 
     obligations under this section that exceed $50,000,000 in the 
     aggregate.
       (2) The amount of appropriated funds required by the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661a et seq.) in 
     advance of the Secretary's issuance of a guarantee or a 
     commitment to guarantee under this section shall be provided 
     by the State in which the shipyard is located, and other 
     involved States, or by a State-chartered agency, and 
     deposited by the Secretary in the financing account 
     established under the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a et seq.) for loan guarantees issued by the 
     Secretary under title XI of the Merchant Marine Act of 1936 
     (46 App. U.S.C. 1271 et seq.). No federally appropriated 
     funds shall be available for this purpose. The funds 
     deposited into that financing account shall be held and 
     applied by the Secretary in accordance with the provisions of 
     the Federal Credit Reform Act of 1990 (2 U.S.C. 661a et 
     seq.), except that, unless the Secretary shall have earlier 
     paid an obligee or been required to pay an obligee pursuant 
     to the terms of a loan guarantee, the funds deposited in that 
     financing account shall be returned, upon the expiration of 
     the Secretary's loan guarantee, to the State, States, or 
     State-chartered agency which originally provided the funds to 
     the Secretary.
       (3) Notwithstanding the provisions of any other law or 
     regulation, the cost (as that term is defined by the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661a et seq.)) of a 
     guarantee or commitment to guarantee issued under this 
     section--
       (A) may only be determined with reference to the merits of 
     the specific closed shipyard reactivation project which is 
     the subject of that guarantee or commitment to guarantee, 
     without reference to any other project, type of project, or 
     averaged risk; and
       (B) may not be used in determining the cost of any other 
     project, type of project, or averaged risk applicable to 
     guarantees or commitments to guarantee issued under title XI 
     of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et 
     seq.).
       (e) Sunset.--No commitment to guarantee obligations under 
     this section shall be issued by the Secretary after one year 
     after the date of enactment of this section.
       (f) Definition.--As used in this section, the term 
     ``Secretary'' means the Secretary of Transportation.

                         TITLE VII--RESCISSIONS

                         DEPARTMENT OF JUSTICE

                         General Administration


                          working capital fund

                              (rescission)

       Of the unobligated balances available under this heading on 
     October 31, 1996, $30,000,000 are rescinded.

                 Immigration and Naturalization Service


                       immigration emergency fund

                              (rescission)

       Of the unobligated balances available under this heading 
     $34,779,000 are rescinded.

[[Page H11663]]

        TITLE VIII--FISCAL YEAR 1996 SUPPLEMENTAL AND RESCISSION

                         DEPARTMENT OF JUSTICE

                         Federal Prison System


                         salaries and expenses

       In addition to funds made available under this heading, 
     $40,000,000, which shall remain available until September 30, 
     1997: Provided, That these funds shall be available upon 
     enactment of this Act: Provided further, That these funds 
     shall only be available if enacted by September 30, 1996.


                              (rescission)

       Of the unobligated balances made available under this 
     heading until September 30, 1996, $40,000,000 are rescinded: 
     Provided, That these funds shall only be available for 
     rescission if enacted by September 30, 1996.

                 TITLE IX--SUPPLEMENTAL APPROPRIATIONS

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration


                economic development assistance programs

       For an additional amount for ``Economic Development 
     Assistance Programs'' for emergency infrastructure expenses 
     resulting from Hurricane Fran and Hurricane Hortense and 
     other natural disasters, $25,000,000, to remain available 
     until expended: Provided, That the entire amount is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

                             RELATED AGENCY

                     Small Business Administration


                     disaster loans program account

       For an additional amount for ``Disaster Loans Program 
     Account'' for emergency expenses resulting from Hurricanes 
     Fran and Hortense and other disasters, $113,000,000 for the 
     cost of direct loans, to remain available until expended: 
     Provided, That such costs, including the cost of modifying 
     such loans, shall be as defined in section 502 of the 
     Congressional Budget Act of 1974; and for administrative 
     expenses to carry out the disaster loan program, $22,000,000, 
     to remain available until expended, which may be transferred 
     to and merged with ``Salaries and Expenses'': Provided 
     further, That both amounts are hereby designated by Congress 
     as emergency requirements pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.
       This Act may be cited as the ``Departments of Commerce, 
     Justice, and State, the Judiciary, and Related Agencies 
     Appropriations Act, 1997''.
       (b) For programs, projects or activities in the Department 
     of Defense Appropriations Act, 1997, provided as follows, to 
     be effective as if it had been enacted into law as the 
     regular appropriations Act:
     AN ACT Making appropriations for the Department of Defense 
     for the fiscal year ending September 30, 1997, and for other 
     purposes

                                TITLE I

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Army on active 
     duty (except members of reserve components provided for 
     elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), to section 229(b) of the Social Security 
     Act (42 U.S.C. 429(b)), and to the Department of Defense 
     Military Retirement Fund; $20,633,998,000.

                        Military Personnel, Navy

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Navy on active 
     duty (except members of the Reserve provided for elsewhere), 
     midshipmen, and aviation cadets; and for payments pursuant to 
     section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
     note), to section 229(b) of the Social Security Act (42 
     U.S.C. 429(b)), and to the Department of Defense Military 
     Retirement Fund; $16,986,976,000.

                    Military Personnel, Marine Corps

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Marine Corps on 
     active duty (except members of the Reserve provided for 
     elsewhere); and for payments pursuant to section 156 of 
     Public Law 97-377, as amended (42 U.S.C. 402 note), to 
     section 229(b) of the Social Security Act (42 U.S.C. 429(b)), 
     and to the Department of Defense Military Retirement Fund; 
     $6,111,728,000.

                     Military Personnel, Air Force

       For pay, allowances, individual clothing, subsistence, 
     interest on deposits, gratuities, permanent change of station 
     travel (including all expenses thereof for organizational 
     movements), and expenses of temporary duty travel between 
     permanent duty stations, for members of the Air Force on 
     active duty (except members of reserve components provided 
     for elsewhere), cadets, and aviation cadets; and for payments 
     pursuant to section 156 of Public Law 97-377, as amended (42 
     U.S.C. 402 note), to section 229(b) of the Social Security 
     Act (42 U.S.C. 429(b)), and to the Department of Defense 
     Military Retirement Fund; $17,069,490,000.

                        Reserve Personnel, Army

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Army 
     Reserve on active duty under sections 10211, 10302, and 3038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Reserve Officers' 
     Training Corps, and expenses authorized by section 16131 of 
     title 10, United States Code; and for payments to the 
     Department of Defense Military Retirement Fund; 
     $2,073,479,000.

                        Reserve Personnel, Navy

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Navy 
     Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Reserve Officers' Training Corps, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund; $1,405,606,000.

                    Reserve Personnel, Marine Corps

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Marine 
     Corps Reserve on active duty under section 10211 of title 10, 
     United States Code, or while serving on active duty under 
     section 12301(d) of title 10, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing reserve 
     training, or while performing drills or equivalent duty, and 
     for members of the Marine Corps platoon leaders class, and 
     expenses authorized by section 16131 of title 10, United 
     States Code; and for payments to the Department of Defense 
     Military Retirement Fund; $388,643,000.

                      Reserve Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air Force 
     Reserve on active duty under sections 10211, 10305, and 8038 
     of title 10, United States Code, or while serving on active 
     duty under section 12301(d) of title 10, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     reserve training, or while performing drills or equivalent 
     duty or other duty, and for members of the Air Reserve 
     Officers' Training Corps, and expenses authorized by section 
     16131 of title 10, United States Code; and for payment to the 
     Department of Defense Military Retirement Fund; $783,697,000.

                     National Guard Personnel, Army

       For pay, allowances, clothing, subsistence gratuities, 
     travel, and related expenses for personnel of the Army 
     National Guard while on duty under section 10211, 10302, or 
     12402 of title 10 or section 708 of title 32, United States 
     Code, or while serving on duty under section 12301(d) of 
     title 10 or section 502(f) of title 32, United States Code, 
     in connection with performing duty specified in section 
     12310(a) of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $3,266,393,000.

                  National Guard Personnel, Air Force

       For pay, allowances, clothing, subsistence, gratuities, 
     travel, and related expenses for personnel of the Air 
     National Guard on duty under section 10211, 10305, or 12402 
     of title 10 or section 708 of title 32, United States Code, 
     or while serving on duty under section 12301(d) of title 10 
     or section 502(f) of title 32, United States Code, in 
     connection with performing duty specified in section 12310(a) 
     of title 10, United States Code, or while undergoing 
     training, or while performing drills or equivalent duty or 
     other duty, and expenses authorized by section 16131 of title 
     10, United States Code; and for payments to the Department of 
     Defense Military Retirement Fund; $1,296,490,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army


                     (INCLUDING TRANSFER OF FUNDS)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Army, as authorized by law; 
     and not to exceed $11,437,000 can be used for emergencies and 
     extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Army, and payments may be 
     made on his certificate of necessity for confidential 
     military purposes; $17,519,340,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund: Provided, That during the 
     current fiscal year and hereafter, funds appropriated under 
     this paragraph may be made available to the Department of the 
     Interior to support the Memorial Day and Fourth of July 
     ceremonies and activities in the National Capital Region: 
     Provided further, That of the funds appropriated in this 
     paragraph, not less than $300,000,000 shall be made available 
     only for conventional ammunition care and maintenance.

                    Operation and Maintenance, Navy


                     (INCLUDING TRANSFER OF FUNDS)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the

[[Page H11664]]

     Navy and the Marine Corps, as authorized by law; and not to 
     exceed $3,995,000, can be used for emergencies and 
     extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Navy, and payments may be 
     made on his certificate of necessity for confidential 
     military purposes; $20,061,961,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund.

                Operation and Maintenance, Marine Corps

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Marine Corps, as authorized 
     by law; $2,254,119,000.

                  Operation and Maintenance, Air Force


                     (INCLUDING TRANSFER OF FUNDS)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of the Air Force, as authorized by 
     law; and not to exceed $8,362,000 can be used for emergencies 
     and extraordinary expenses, to be expended on the approval or 
     authority of the Secretary of the Air Force, and payments may 
     be made on his certificate of necessity for confidential 
     military purposes; $17,263,193,000 and, in addition, 
     $50,000,000 shall be derived by transfer from the National 
     Defense Stockpile Transaction Fund.

                Operation and Maintenance, Defense-Wide


                     (INCLUDING TRANSFER OF FUNDS)

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of activities and agencies of the 
     Department of Defense (other than the military departments), 
     as authorized by law; $10,044,200,000, of which not to exceed 
     $25,000,000 may be available for the CINC initiative fund 
     account; and of which not to exceed $28,500,000 can be used 
     for emergencies and extraordinary expenses, to be expended on 
     the approval or authority of the Secretary of Defense, and 
     payments may be made on his certificate of necessity for 
     confidential military purposes: Provided, That of the funds 
     appropriated under this heading, $20,000,000 shall be made 
     available only for use in federally owned education 
     facilities located on military installations for the purpose 
     of transferring title of such facilities to the local 
     education agency: Provided further, That of the funds 
     appropriated under this heading, $1,000,000 is available, by 
     grant or other transfer, to the Harnett County School Board, 
     Lillington, North Carolina, for use by the school board for 
     the education of dependents of members of the Armed Forces 
     and employees of the Department of Defense located at Fort 
     Bragg and Pope Air Force Base, North Carolina.

                Operation and Maintenance, Army Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Army Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications; 
     $1,119,436,000.

                Operation and Maintenance, Navy Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Navy Reserve; repair of facilities 
     and equipment; hire of passenger motor vehicles; travel and 
     transportation; care of the dead; recruiting; procurement of 
     services, supplies, and equipment; and communications; 
     $886,027,000.

            Operation and Maintenance, Marine Corps Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Marine Corps Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications; $109,667,000.

              Operation and Maintenance, Air Force Reserve

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance, including training, organization, 
     and administration, of the Air Force Reserve; repair of 
     facilities and equipment; hire of passenger motor vehicles; 
     travel and transportation; care of the dead; recruiting; 
     procurement of services, supplies, and equipment; and 
     communications; $1,496,553,000.

             Operation and Maintenance, Army National Guard

       For expenses of training, organizing, and administering the 
     Army National Guard, including medical and hospital treatment 
     and related expenses in non-Federal hospitals; maintenance, 
     operation, and repairs to structures and facilities; hire of 
     passenger motor vehicles; personnel services in the National 
     Guard Bureau; travel expenses (other than mileage), as 
     authorized by law for Army personnel on active duty, for Army 
     National Guard division, regimental, and battalion commanders 
     while inspecting units in compliance with national Guard 
     Bureau regulations when specifically authorized by the Chief, 
     National Guard Bureau; supplying and equipping the Army 
     National Guard as authorized by law; and expenses of repair, 
     modification, maintenance, and issue of supplies and 
     equipment (including aircraft); $2,254,477,000.

             Operation and Maintenance, Air National Guard

       For operation and maintenance of the Air National Guard, 
     including medical and hospital treatment and related expenses 
     in non-Federal hospitals, maintenance, operation, repair, and 
     other necessary expenses of facilities for the training and 
     administration of the Air National Guard, including repair of 
     facilities, maintenance, operation, and modification of 
     aircraft; transportation of things, hire of passenger motor 
     vehicles; supplies, materials, and equipment, as authorized 
     by law for the Air National Guard; and expenses incident to 
     the maintenance and use of supplies, materials, and 
     equipment, including such as may be furnished from stocks 
     under the control of agencies of the Department of Defense; 
     travel expenses (other than mileage) on the same basis as 
     authorized by law for Air National Guard personnel on active 
     Federal duty, for Air National Guard commanders while 
     inspecting units in compliance with National Guard Bureau 
     regulations when specifically authorized by the Chief, 
     National Guard Bureau; $2,716,379,000.

             Overseas Contingency Operations Transfer Fund


                     (including transfer of funds)

       For expenses directly relating to Overseas Contingency 
     Operations by United States military forces; $1,140,157,000: 
     Provided, That the Secretary of Defense may transfer these 
     funds only to operation and maintenance accounts within this 
     title: Provided further, That the funds transferred shall be 
     merged with and shall be available for the same purposes and 
     for the same time period, as the appropriation to which 
     transferred: Provided further, That the transfer authority 
     provided in this paragraph is in addition to any other 
     transfer authority contained elsewhere in this Act.

          United States Court of Appeals for the Armed Forces

       For salaries and expenses necessary for the United States 
     Court of Appeals for the Armed Forces; $6,797,000, of which 
     not to exceed $2,500 can be used for official representation 
     purposes.

                    Environmental Restoration, Army


                     (including transfer of funds)

       For the Department of the Army, $339,109,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Army shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Army, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Army, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation: 
     Provided further, That not more than twenty-five percent of 
     funds provided under this heading may be obligated for 
     environmental remediation by the Corps of Engineers under 
     total environmental remediation contracts.

                    Environmental Restoration, Navy


                     (including transfer of funds)

       For the Department of the Navy, $287,788,000, to remain 
     available until transferred: Provided, That the Secretary of 
     the Navy shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of the Navy, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of the Navy, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

                  Environmental Restoration, Air Force


                     (including transfer of funds)

       For the Department of the Air Force, $394,010,000, to 
     remain available until transferred: Provided, That the 
     Secretary of the Air Force shall, upon determining that such 
     funds are required by environmental restoration, reduction 
     and recycling of hazardous waste, removal of unsafe buildings 
     and debris of the Department of the Air Force, or for similar 
     purposes, transfer the funds made available by this 
     appropriation to other appropriations made available to the 
     Department of the Air Force, to be merged with and to be 
     available for the same purposes and for the same time period 
     as the appropriations to which transferred: Provided further, 
     That upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation.

                Environmental Restoration, Defense-Wide


                     (including transfer of funds)

       For the Department of the Defense $36,722,000, to remain 
     available until transferred: Provided, that the Secretary of 
     Defense shall, upon determining that such funds are required 
     for environmental restoration, reduction and recycling of 
     hazardous waste, removal of unsafe buildings and debris of 
     the Department of Defense, or for similar purposes, transfer 
     the funds made available by this appropriation to other 
     appropriations made available to the Department of Defense, 
     to be merged with and to be available for the same purposes 
     and for the same time period as the appropriations to which 
     transferred: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

         Environmental Restoration, Formerly Used Defense Sites


                     (including transfer of funds)

       For the Department of the Army, $256,387,000, to remain 
     available until transferred: Provided,

[[Page H11665]]

     That the Secretary of the Army shall, upon determining that 
     such funds are required for environmental restoration, 
     reduction and recycling of hazardous waste, removal of unsafe 
     buildings and debris at sites formerly used by the Department 
     of Defense, transfer the funds made available by this 
     appropriation to other appropriations made available to the 
     Department of the Army, to be merged with and to be available 
     for the same purposes and for the same time period as the 
     appropriations to which transferred: Provided further, That 
     upon a determination that all or part of the funds 
     transferred from this appropriation are not necessary for the 
     purposes provided herein, such amounts may be transferred 
     back to this appropriation.

             Overseas Humanitarian, Disaster, and Civil Aid

       For expenses relating to the Overseas Humanitarian, 
     Disaster, and Civic Aid programs of the Department of Defense 
     (consisting of the programs provided under sections 401, 402, 
     404, 2547, and 2551 of title 10, United States Code); 
     $49,000,000, to remain available until September 30, 1998.

                  Former Soviet Union Threat Reduction

       For assistance to the republics of the former Soviet Union, 
     including assistance provided by contract or by grants, for 
     facilitating the elimination and the safe and secure 
     transportation and storage of nuclear, chemical and other 
     weapons; for establishing programs to prevent the 
     proliferation of weapons, weapons components, and weapon-
     related technology and expertise; for programs relating to 
     the training and support of defense and military personnel 
     for demilitarization and protection of weapons, weapons 
     components and weapons technology and expertise; 
     $327,900,000, to remain available until expended.

                 Quality of Life Enhancements, Defense

       For expenses, not otherwise provided for, resulting from 
     unfunded shortfalls in the repair and maintenance of real 
     property of the Department of Defense (including military 
     housing and barracks); $600,000,000, for the maintenance of 
     real property of the Department of Defense (including minor 
     construction and major maintenance and repair), which shall 
     remain available for obligation until September 30, 1998, as 
     follows:
       Army, $149,000,000;
       Navy, $108,000,000;
       Marine Corps, $45,000,000;
       Air Force, $108,000,000;
       Army Reserve, $18,000,000;
       Navy Reserve, $18,000,000;
       Marine Corps Reserve, $9,000,000;
       Air Force Reserve, $15,000,000;
       Army National Guard, $86,000,000; and
       Air National Guard, $44,000,000.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     thereof; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefore, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the following purposes; 
     $1,348,434,000, to remain available for obligation until 
     September 30, 1999.

                       Missile Procurement, Army

       For construction, procurement, production, modification, 
     and modernization of missiles, equipment, including ordnance, 
     ground handling equipment, spare parts, and accessories 
     therefor; specialized equipment and training devices; 
     expansion of public and private plants, including the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $1,041,867,000, to remain available for obligation until 
     September 30, 1999.

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For construction, procurement, production, and modification 
     of weapons and tracked combat vehicles, equipment, including 
     ordnance, spare parts, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including the land necessary therefor, for 
     the foregoing purposes, and such lands and interests therein, 
     may be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; and other expenses necessary for the 
     foregoing purposes; $1,470,286,000, to remain available for 
     obligation until September 30, 1999: Provided, That of the 
     funds appropriated in this paragraph and notwithstanding the 
     provisions of title 31, United States Code, Section 1502(a), 
     not to exceed $33,100,000 may be obligated for future year 
     V903 diesel engine requirements to maintain the industrial 
     base.

                    Procurement of Ammunition, Army

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854, title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $1,127,149,000, to remain available for obligation until 
     September 30, 1999.

                        Other Procurement, Army

       For construction, procurement, production, and modification 
     of vehicles, including tactical, support, and non-tracked 
     combat vehicles; the purchase of not to exceed 14 passenger 
     motor vehicles for replacement only; communications and 
     electronic equipment; other support equipment; spare parts, 
     ordnance, and accessories therefor; specialized equipment and 
     training devices; expansion of public and private plants, 
     including the land necessary therefor, for the foregoing 
     purposes, and such lands and interests therein, may be 
     acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; and other expenses necessary for the 
     foregoing purposes; $3,172,485,000, to remain available for 
     obligation until September 30, 1999: Provided, That of the 
     funds appropriated in this paragraph and notwithstanding the 
     provisions of title 31, United States Code, Section 1502(a), 
     not to exceed $2,400,000 may be obligated for future year 
     V903 diesel engine requirements to maintain the industrial 
     base.

                       Aircraft Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of aircraft, equipment, including ordnance, 
     spare parts, and accessories therefor; specialized equipment; 
     expansion of public and private plants, including the land 
     necessary therefor, and such lands and interests therein, may 
     be acquired, and construction prosecuted thereon prior to 
     approval of title; and procurement and installation of 
     equipment, appliances, and machine tools in public and 
     private plants; reserve plant and Government and contractor-
     owned equipment layaway; $7,027,010,000, to remain available 
     for obligation until September 30, 1999.

                       Weapons Procurement, Navy

       For construction, procurement, production, modification, 
     and modernization of missiles, torpedoes, other weapons, and 
     related support equipment including spare parts, and 
     accessories therefor; expansion of public and private plants, 
     including the land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools, in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; 
     $1,389,913,000, to remain available for obligation until 
     September 30, 1999: Provided, That in addition to the 
     foregoing purposes, the funds appropriated above under this 
     heading shall be available to liquidate reported deficiencies 
     in appropriations provided under this heading in prior 
     Department of Defense appropriations acts, to the extent such 
     deficiencies cannot otherwise be liquidated pursuant to 31 
     U.S.C. 1553(b).

            Procurement of Ammunition, Navy and Marine Corps

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854, title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; and 
     other expenses necessary for the foregoing purposes; 
     $289,695,000, to remain available for obligation until 
     September 30, 1999.

                   Shipbuiliding and Conversion, Navy

       For expenses necessary for the construction, acquisition, 
     or conversion of vessels as authorized by law, including 
     armor and armament thereof, plant equipment, appliances, and 
     machine tools and installation thereof in public and private 
     plants; reserve plant and Government and contractor-owned 
     equipment layaway; procurement of critical, long leadtime 
     components and designs for vessels to be constructed or 
     converted in the future; and expansion of public and private 
     plants, including land necessary therefor, and such lands and 
     interests therein, may be acquired, and construction 
     prosecuted thereon prior to approval of title, as follows:
       For continuation of the SSN-21 attack submarine program, 
     $649,071,000;
       NSSN-1 (A), $296,186,000;
       NSSN-2 (A), $501,000,000;
       CVN Refuelings, $237,029,000;
       DDG-51 destroyer program, $3,609,072,000;
       Oceanographic ship program, $54,400,000;
       Oceanographic ship SWATH, $45,000,000;
       LCAC landing craft air cushion program (AP-CY), $3,000,000; 
     and
       For craft, outfitting, post delivery, conversions, and 
     first destination transportation, $218,907,000;

     in all: $5,613,665,000, to remain available for obligation 
     until September 30, 2201: Provided, That additional 
     obligations may be incurred after

[[Page H11666]]

     September 30, 2001, for engineering services, tests, 
     evaluations, and other such budgeted work that must be 
     performed in the final stage of ship construction: Provided 
     further, That none of the funds herein provided for the 
     construction or conversion of any naval vessel to be 
     constructed in shipyards in the United States shall be 
     expended in foreign facilities for the construction of major 
     components of such vessel: Provided further, That none of the 
     funds herein provided shall be used for the construction of 
     any naval vessel in foreign shipyards.

                        Other Procurement, Navy

       For procurement, production, and modernization of support 
     equipment and materials not otherwise provided for, Navy 
     ordnance (except ordnance for new aircraft, new ships, and 
     ships authorized for conversion); expansion of public and 
     private plants, including the land necessary therefor, and 
     such lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     and procurement and installation of equipment, appliances, 
     and machine tools in public and private plants; reserve plant 
     and Government and contractor-owned equipment layaway; 
     $3,067,944,000, to remain available for obligation until 
     September 30, 1999.

                       Procurement, Marine Corps

       For expenses necessary for the procurement, manufacture, 
     and modification of missiles, armament, military equipment, 
     spare parts, and accessories therefor; plant equipment, 
     appliances, and machine tools, and installation thereof in 
     public and private plants; reserve plant and Government and 
     contractor-owned equipment layaway; vehicles for the Marine 
     Corps, including the purchase of not to exceed 88 passenger 
     motor vehicles for replacement only; and expansion of public 
     and private plants, including land necessary therefor, and 
     such lands and interests therein, may be acquired and 
     construction prosecuted thereon prior to approval of title; 
     $569,073,000, to remain available for obligation until 
     September 30, 1999.

                    Aircraft Procurement, Air Force

       For construction, procurement, and modification of aircraft 
     and equipment, including armor and armament, specialized 
     ground handling equipment, and training devices, spare parts, 
     and accessories therefor; specialized equipment; expansion of 
     public and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and constractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things; 
     $6,404,980,000, to remain available for obligation until 
     September 30, 1999.

                     Missile Procurement, Air Force

       For construction, procurement, and modification of 
     missiles, spacecraft, rockets, and related equipment, 
     including spare parts and accessories therefor, ground 
     handling equipment, and training devices; expansion of public 
     and private plants, Government-owned equipment and 
     installation thereof in such plants, erection of structures, 
     and acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; and other expenses necessary for the foregoing 
     purposes including rents and transportation of things; 
     $2,297,145,000, to remain available for obligation until 
     September 30, 1999.

                  Procurement of Ammunition, Air Force

       For construction, procurement, production, and modification 
     of ammunition, and accessories therefor; specialized 
     equipment and training devices; expansion of public and 
     private plants, including ammunition facilities authorized by 
     section 2854, title 10, United States Code, and the land 
     necessary therefor, for the foregoing purposes, and such 
     lands and interests therein, may be acquired and construction 
     prosecuted thereon prior to approval of title; and 
     procurement and installation of equipment, appliances, and 
     machine tools in public and private plants; reserve plant and 
     Government and constractor-owned equipment layaway; and other 
     expenses necessary for the foregoing purposes; $293,153,000, 
     to remain available for obligation until September 30, 1999.

                      Other Procurement, Air Force

       For procurement and modification of equipment (including 
     ground guidance and electronic control equipment, and ground 
     electronic and communication equipment), and supplies, 
     materials, and spare parts therefor, not otherwise provided 
     for; the purchase of not to exceed 506 passenger motor 
     vehicles for replacement only; the purchase of 1 vehicle 
     required for physical security of personnel, notwithstanding 
     price limitations applicable to passenger vehicles but not to 
     exceed $287,000 per vehicle; and expansion of public and 
     private plants, Government-owned equipment and installation 
     thereof in such plants, erection of structures, and 
     acquisition of land, for the foregoing purposes, and such 
     lands and interests therein, may be acquired, and 
     construction prosecuted thereon, prior to approval of title; 
     reserve plant and Government and contractor-owned equipment 
     layaway; $5,944,680,000, to remain available for obligation 
     until September 30, 1999.

                       Procurement, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments) necessary 
     for procurement, production, and modification of equipment, 
     supplies, materials, and spare parts therefor, not otherwise 
     provided for; the purchase of not to exceed 389 passenger 
     motor vehicles for replacement only; expansion of public and 
     private plants, equipment, and installation thereof in such 
     plants, erection of structures, and acquisition of land for 
     the foregoing purposes, and such lands and interests therein, 
     may be acquired, and construction prosecuted thereon prior to 
     approval of title; reserve plant and Government and 
     contractor-owned equipment layaway; $1,978,005,000, to remain 
     available for obligation until September 30, 1999.

                  National Guard and Reserve Equipment

       For procurement of aircraft missiles, tracked combat 
     vehicles, ammunition, other weapons, and other procurement 
     for the reserve components of the Armed Forces; $780,000,000, 
     to remain available for obligation until September 30, 1999: 
     Provided, That the Chiefs of the Reserve and National Guard 
     component shall, not later than 30 days after the enactment 
     of this Act, individually submit to the congressional defense 
     committees the modernization priority assessment for their 
     respective Reserve or National Guard component.

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            research, development, test and evaluation, army

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $5,062,763,000 to remain available 
     for obligation until September 30, 1998.

            Research, Development, Test and Evaluation, Navy

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $8,208,946,000, to remain available 
     for obligation until September 30, 1998: Provided, That funds 
     appropriated in this paragraph which are available for the V-
     22 may be used to meet unique requirements of the Special 
     Operations Forces.

         Research, Development, Test and Evaluation, Air Force

       For expenses necessary for basic and applied scientific 
     research, development, test and evaluation, including 
     maintenance, rehabilitation, lease, and operation of 
     facilities and equipment; $14,499,606,000, to remain 
     available for obligation until September 30, 1998: Provided, 
     That not less than $1,000,000 of the funds appropriated in 
     this paragraph shall be made available only to assess the 
     budgetary, cost, technical, operational, training, and safety 
     issues associated with a decision to eliminate development of 
     the F-22B two-seat training variant of the F-22 advanced 
     tactical fighter: Provided further, That the assessment 
     required by the preceding proviso shall be submitted, in 
     classified and unclassified versions, by the Secretary of the 
     Air Force to the congressional defense committees not later 
     than February 15, 1997: Provided further, That of the funds 
     made available in this paragraph, $10,000,000 shall be only 
     for development of reusable launch vehicle technologies.

        Research, Development, Test and Evaluation, Defense-Wide

       For expenses of activities and agencies of the Department 
     of Defense (other than the military departments), necessary 
     for basic and applied scientific research, development, test 
     and evaluation; advanced research projects as may be 
     designated and determined by the Secretary of Defense, 
     pursuant to law; maintenance, rehabilitation, lease, and 
     operation of facilities and equipment; $9,362,800,000, to 
     remain available for obligation until September 30, 1998: 
     Provided, That not less than $304,171,000 of the funds 
     appropriate in this paragraph shall be made available only 
     for the Sea-Based Wide Area Defense (Navy Upper-Tier) 
     program.

               Developmental Test and Evaluation, Defense

       For expenses, not otherwise provided for, of independent 
     activities of the Director, Test and Evaluation in the 
     direction and supervision of developmental test and 
     evaluation, including performance and joint developmental 
     testing and evaluation; and administrative expenses in 
     connection therewith; $282,038,000, to remain available for 
     obligation until September 30, 1998.

                Operational Test and Evaluation, Defense

       For expenses, not otherwise provided for, necessary for the 
     independent activities of the Director, Operational Test and 
     Evaluation in the direction and supervision of operational 
     test and evaluation, including initial operational test and 
     evaluation which is conducted prior to, and in support of, 
     production decisions; joint operational testing and 
     evaluation; and administrative expenses in connection 
     therewith; $24,968,000, to remain available for obligation 
     until September 30, 1998.

                TITLE V--REVOLVING AND MANAGEMENT FUNDS

                    Defense Business Operations Fund

       For the Defense Business Operations Fund; $947,900,000.

                     National Defense Sealift Fund

       For National Defense Sealift Fund programs, projects, and 
     activities, and for expenses of the National Defense Reserve 
     Fleet, as established by section 11 of the Merchant Ship 
     Sales Act of 1946 (50 U.S.C. App. 1744); $1,428,002,000, to 
     remain available until expended: Provided, That none of the 
     funds provided in this paragraph shall be used to award a new 
     contract that provides for the acquisition of any of the 
     following major components unless such components are 
     manufactured in the United States: auxiliary equipment, 
     including pumps, for all ship-board services; propulsion 
     system components (that is;

[[Page H11667]]

     engines, reduction gears, and propellers); shipboard cranes; 
     and spreaders for shipboard cranes: Provided further, That 
     the exercise of an option in a contract awarded through the 
     obligation of previously appropriated funds shall not be 
     considered to be the award of a new contract: Provided 
     further, That the Secretary of the military department 
     responsible for such procurement may waive these restrictions 
     on a case-by-case basis by certifying in writing to the 
     Committees on Appropriations of the House of Representatives 
     and the Senate, that adequate domestic supplies are not 
     available to meet Department of Defense requirements on a 
     timely basis and that such an acquisition must be made in 
     order to acquire capability for national security purposes.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For expenses, not otherwise provided for, for medical and 
     health care programs of the Department of Defense, as 
     authorized by law; $10,207,308,000, of which $9,937,838,000 
     shall be for Operation and maintenance, of which not to 
     exceed three percent shall remain available until September 
     30, 1998; and of which $269,470,000, to remain available for 
     obligation until September 30, 1999, shall be for 
     Procurement: Provided, That of the funds appropriated under 
     this heading, $14,500,000 shall be made available for 
     obtaining emergency communications services for members of 
     the Armed Forces and their families from the American 
     National Red Cross: Provided further, That notwithstanding 
     any other provision of law, of the funds provided under this 
     heading, the Secretary of Defense is directed to use and 
     obligate, within thirty days of enactment of this Act, not 
     less than $3,400,000 only to permit private sector or non-
     Federal physicians who have used and will use the 
     antibacterial treatment method based upon the excretion of 
     dead and decaying spherical bacteria to work in conjunction 
     with the Walter Reed Army Medical Center on a treatment 
     protocol and related studies for Desert Storm Syndrome 
     affected veterans.

           Chemical Agents and Munitions Destruction, Defense

       For expenses, not otherwise provided for, necessary for the 
     destruction of the United States stockpile of lethal chemical 
     agents and munitions in accordance with the provisions of 
     section 1412 of the Department of Defense Authorization Act, 
     1986 (50 U.S.C. 1521), and for the destruction of other 
     chemical warfare materials that are not in the chemical 
     weapon stockpile, $758,447,000, of which $478,947,000 shall 
     be for Operation and maintenance, $191,200,000 shall be for 
     Procurement to remain available until September 30, 1999, and 
     $88,300,000 shall be for Research, development, test and 
     evaluation to remain available until September 30, 1998: 
     Provided, That of the funds made available under this 
     heading, $1,000,000 shall be available until expended only 
     for a Johnston Atoll off-island leave program: Provided 
     further, That notwithstanding any other provision of law, the 
     Secretaries concerned may, pursuant to uniform regulations 
     prescribe travel and transportation allowances for travel by 
     participants in the off-island leave program.

         Drug Interdiction and Counter-Drug Activities, Defense


                     (including transfer of funds)

       For drug interdiction and counter-drug activities of the 
     Department of Defense, for transfer to appropriations 
     available to the Department of Defense for military personnel 
     of the reserve components serving under the provisions of 
     title 10 and title 32, United States Code; for Operation and 
     maintenance; for Procurement; and for Research, development, 
     test and evaluation; $807,800,000: Provided, That the funds 
     appropriated by this paragraph shall be available for 
     obligation for the same time period and for the same purpose 
     as the appropriation to which transferred: Provided further, 
     That the transfer authority provided in this paragraph is in 
     addition to any transfer authority contained elsewhere in 
     this Act.

                    Office of the Inspector General

       For expenses and activities of the Office of the Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended; $139,157,000, of which 
     $137,157,000 shall be for Operation and maintenance, of which 
     not to exceed $500,000 is available for emergencies and 
     extraordinary expenses to be expended on the approval or 
     authority of the Inspector General, and payments may be made 
     on his certificate of necessity for confidential military 
     purposes; and of which $2,000,000, to remain available until 
     September 30, 1999, shall be for Procurement.

                      TITLE VII--RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

       For payment to the Central Intelligence Agency Retirement 
     and Disability System Fund, to maintain proper funding level 
     for continuing the operation of the Central Intelligence 
     Agency Retirement and Disability System; $196,400,000.

               Intelligence Community Management Account

       For necessary expenses of the Intelligence Community 
     Management Account; $129,146,000: Provided, That of the funds 
     appropriated under this hearing, $27,000,000 shall be 
     transferred to the Department of Justice for the National 
     Drug Intelligence Center to support the Department of 
     Defense's counterdrug monitoring and detection 
     responsibilities.

Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental 
                            Restoration Fund

       For payment to Kaho'olawe Island Conveyance, Remediation, 
     and Environmental Restoration Fund, as authorized by law; 
     $10,000,000, to remain available until expended.

                 National Security Education Trust Fund

       For the purposes of title VIII of Public Law 102-183, 
     $5,100,000, to be derived from the National Security 
     Education Trust Fund, to remain available until expended.

                     TITLE VIII--GENERAL PROVISIONS

       Sec. 8001. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes not 
     authorized by the Congress.
       Sec. 8002. During the current fiscal year, provisions of 
     law prohibiting the payment of compensation to, or employment 
     of, any person not a citizen of the United States shall not 
     apply to personnel of the Department of Defense: Provided, 
     That salary increases granted to direct and indirect hire 
     foreign national employees of the Department of Defense 
     funded by this Act shall not be at a rate in excess of the 
     percentage increase authorized by law for civilian employees 
     of the Department of Defense whose pay is computed under the 
     provisions of section 5332 of title 5, United States Code, or 
     at a rate in excess of the percentage increase provided by 
     the appropriate host nation to its own employees, whichever 
     is higher: Provided further, That this section shall not 
     apply to Department of Defense foreign service national 
     employees serving at United States diplomatic missions whose 
     pay is set by the Department of State under the Foreign 
     Service Act of 1980: Provided further, That the limitations 
     of this provision shall not apply to foreign national 
     employees of the Department of Defense in the Republic of 
     Turkey.
       Sec. 8003. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year, unless expressly so provided herein.
       Sec. 8004. No more than 20 per centum of the appropriations 
     in this Act which are limited for obligation during the 
     current fiscal year shall be obligated during the last two 
     months of the fiscal year: Provided, That this section shall 
     not apply to obligations for support of active duty training 
     of reserve components or summer camp training of the Reserve 
     Officers' Training Corps.


                          (transfer of funds)

       Sec. 8005. Upon determination by the Secretary of Defense 
     that such action is necessary in the national interest he 
     may, with the approval of the Office of Management and 
     Budget, transfer not to exceed $2,000,000,000 of working 
     capital funds of the Department of Defense or funds made 
     available in this Act to the Department of Defense for 
     military functions (except military construction) between 
     such appropriations or funds or any subdivision thereof, to 
     be merged with and to be available for the same purposes, and 
     for the same time period, as the appropriation or fund to 
     which transferred: Provided, That such authority to transfer 
     may not be used unless for higher priority items, based on 
     unforeseen military requirements, than those for which 
     originally appropriated and in no case where the item for 
     which funds are requested has been denied by Congress: 
     Provided further, That the Secretary of Defense shall notify 
     the Congress promptly of all transfers made pursuant to this 
     authority or any other authority in this Act: Provided 
     further, That no part of the funds in this Act shall be 
     available to prepare or present a request to the Committees 
     on Appropriations by reprogramming of funds, unless for 
     higher priority items, based on unforeseen military 
     requirements, than those for which originally appropriated 
     and in no case where the item for which reprogramming is 
     requested has been denied by the Congress.


                          (transfer of funds)

       Sec. 8006. During the current fiscal year, cash balances in 
     working capital funds of the Department of Defense 
     established pursuant to section 2208 of title 10, United 
     States Code, may be maintained in only such amounts as are 
     necessary at any time for cash disbursements to be made from 
     such funds: Provided, That transfers may be made between such 
     funds and the ``Foreign Currency Fluctuations, Defense'' and 
     ``Operation and Maintenance'' appropriation accounts in such 
     amounts as may be determined by the Secretary of Defense, 
     with the approval of the Office of Management and Budget, 
     except that such transfers may not be made unless the 
     Secretary of Defense has notified the Congress of the 
     proposed transfer. Except in amounts equal to the amounts 
     appropriated to working capital funds in this Act, no 
     obligations may be made against a working capital fund to 
     procure or increase the value of war reserve material 
     inventory, unless the Secretary of Defense has notified the 
     Congress prior to any such obligation.
       Sec. 8007. Funds appropriated by this Act may not be used 
     to initiate a special access program without prior 
     notification 30 calendar days in session in advance to the 
     congressional defense committees.
       Sec. 8008. None of the funds contained in this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services shall be available for payments to 
     physicians and other non-institutional health care providers 
     in excess of the amounts allowed in fiscal year 1996 for 
     similar services, except that: (a) for services for which the 
     Secretary of Defense determines an increase is justified by 
     economic circumstances, the allowable amounts may be 
     increased in accordance with appropriate economic index data 
     similar to that used pursuant to title XVIII of the Social 
     Security Act; and (b) for services the Secretary determines 
     are overpriced based on allowable payments under title XVIII 
     of the Social Security Act, the allowable amounts shall be 
     reduced by not more than 15 percent (except that the 
     reduction may be waived if the Secretary determines that it 
     would impair adequate access to health care services for 
     beneficiaries). The Secretary shall solicit public comment 
     prior to promulgating regulations to implement this section. 
     Such regulations shall include a limitation, similar to that 
     used under title XVIII of

[[Page H11668]]

     the Social Security Act, on the extent to which a provider 
     may bill a beneficiary on actual charge in excess of the 
     allowable amount.
       Sec. 8009. None of the funds provided in this Act shall be 
     available to initiate (1) a multiyear contract that employs 
     economic order quantity procurement in excess of $20,000,000 
     in any one year of the contract or that includes an unfunded 
     contingent liability in excess of $20,000,000, or (2) a 
     contract for advance procurement leading to a multiyear 
     contract that employs economic order quantity procurement in 
     excess of $20,000,000 in any one year, unless the 
     congressional defense committees have been notified at least 
     thirty days in advance of the proposed contract award: 
     Provided, That no part of any appropriation contained in this 
     Act shall be available to initiate a multiyear contract for 
     which the economic order quantity advance procurement is not 
     funded at least to the limits of the Government's liability: 
     Provided further, That no part of any appropriation contained 
     in this Act shall be available to initiate multiyear 
     procurement contracts for any systems or component thereof if 
     the value of the multiyear contract would exceed $500,000,000 
     unless specifically provided in this Act: Provided further, 
     That no multiyear procurement contract can be terminated 
     without 10-day prior notification to the congressional 
     defense committees: Provided further, That the execution of 
     multiyear authority shall require the use of a present value 
     analysis to determine lowest cost compared to an annual 
     procurement: Provided further, That notwithstanding Section 
     8010 of Public Law 104-61, funds appropriated for the DDG-15 
     destroyer program in Public Law 104-61 may be used to 
     initiate a multiyear contract for the Raleigh Burke class 
     destroyer program.
       Funds appropriated in title III of this Act may be used for 
     multiyear procurement contracts as follows:
       Javelin missiles;
       Army Tactical Missile System (ATACMS);
       MK19-3 grenade machine guns:
       M16A2 rifles:
       M249 Squad Automatic Weapons;
       M4 carbine rifles;
       M240B machine guns; and
       Arleigh Burke (DDG-15) class destroyers.
       Sec. 8010. Within the funds appropriated for the operation 
     and maintenance of the Armed Forces, funds are hereby 
     appropriated pursuant to section 401 of title 10, United 
     States Code, for humanitarian and civic assistance costs 
     under chapter 20 of title 10, United States Code. Such funds 
     may also be obligated for humanitarian and civic assistance 
     costs incidental to authorized operations and pursuant to 
     authority granted in section 401 of chapter 20 of title 10, 
     United States Code, and these obligations shall be reported 
     to Congress on September 30 of each year: Provided, That 
     funds available for operation and maintenance shall be 
     available for providing humanitarian and similar assistance 
     by using Civic Action Teams in the Trust Territories of the 
     Pacific Islands and freely associated states of Micronesia, 
     pursuant to the Compact of Free Association as authorized by 
     Public Law 99-239: Provided further, That upon a 
     determination by the Secretary of the Army that such action 
     is beneficial for graduate medical education programs 
     conducted at Army medical facilities located in Hawaii, the 
     Secretary of the Army may authorize the provision of medical 
     services at such facilities and transportation to such 
     facilities, on a nonreimbursable basis, for civilian patients 
     from American Samoa, the Commonwealth of the Northern Mariana 
     Islands, the Marshall Islands, the Federated States of 
     Micronesia, Palau, and Guam.
       Sec. 8011. (a) During fiscal year 1997, the civilian 
     personnel of the Department of Defense may not be managed on 
     the basis of any end-strength, and the management of such 
     personnel during that fiscal year shall not be subject to any 
     constraint or limitation (known as an end-strength) on the 
     number of such personnel who may be employed on the last day 
     of such fiscal year.
       (b) The fiscal year 1998 budget request for the department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 1998 Department of 
     Defense budget request shall be prepared and submitted to the 
     Congress as if subsections (a) and (b) of this provision were 
     effective with regard to fiscal year 1998.
       (c) Nothing in this section shall be construed to apply to 
     military (civilian) technicians.
       Sec. 8012. Notwithstanding any other provision of law, none 
     of the funds made available by this Act shall be used by the 
     Department of Defense to exceed, outside the fifty United 
     States, its territories, and the District of Columbia, 
     125,000 civilian workyears: Provided, That workyears shall be 
     applied as defined in the Federal Personnel Manual: Provided 
     further, That workyears expended in dependent student hiring 
     programs for disadvantaged youths shall not be included in 
     this workyear limitation.
       Sec. 8013. None of the funds made available by this Act 
     shall be used in any way, directly or indirectly, to 
     influence congressional action on any legislation or 
     appropriation matters pending before the Congress.
       Sec. 8014. (a) None of the funds appropriated by this Act 
     shall be used to make contributions to the Department of 
     Defense Education Benefits Fund pursuant to section 2006(g) 
     of title 10, United States Code, representing the normal cost 
     for future benefits under section 3015(c) of title 38, United 
     States Code, for any member of the armed services who, on or 
     after the date of enactment of this Act--
       (1) enlists in the armed services for a period of active 
     duty of less than three years; or
       (2) receives an enlistment bonus under section 308a or 308f 
     of title 37, United States Code,

     nor shall any amounts representing the normal cost of such 
     future benefits be transferred from the Fund by the Secretary 
     of the Treasury to the Secretary of Veterans Affairs pursuant 
     to section 2006(d) of title 10, United States Code; nor shall 
     the Secretary of Veterans Affairs pay such benefits to any 
     such member: Provided, That in the case of a member covered 
     by clause (1), these limitations shall not apply to members 
     in combat arms skills or to members who enlist in the armed 
     services on or after July 1, 1989, under a program continued 
     or established by the Secretary of Defense in fiscal year 
     1991 to test the cost-effective use of special recruiting 
     incentives involving not more than nineteen noncombat arms 
     skills approved in advance by the Secretary of Defense: 
     Provided further, That this subsection applies only to active 
     components of the Army.
       (b) None of the funds appropriated by this Act shall be 
     available for the basic pay and allowances of any member of 
     the Army participating as a full-time student and receiving 
     benefits paid by the Secretary of Veterans Affairs from the 
     Department of Defense Education Benefits Fund when time spent 
     as a full-time student is credited toward completion of a 
     service commitment: Provided, That this subsection shall not 
     apply to those members who have reenlisted with this option 
     prior to October 1, 1987: Provided further, That this 
     subsection applies only to active components of the Army.
       Sec. 8015. None of the funds appropriated by this Act shall 
     be available to convert to contractor performance an activity 
     or function of the Department of Defense that, on or after 
     the date of enactment of this Act, is performed by more than 
     ten Department of Defense civilian employees until a most 
     efficient and cost-effective organization analysis is 
     completed on such activity or function and certification of 
     the analysis is made to the Committees on Appropriations of 
     the House of Representatives and the Senate: Provided, That 
     this section shall not apply to a commercial or industrial 
     type function of the Department of Defense that: (1) is 
     included on the procurement list established pursuant to 
     section 2 of the Act of June 25, 1938 (41 U.S.C. 47), 
     popularly referred to as the Javits-Wagner-O'Day Act; (2) is 
     planned to be converted to performance by a qualified 
     nonprofit agency for the blind or by a qualified nonprofit 
     agency for other severely handicapped individuals in 
     accordance with that Act; or (3) is planned to be converted 
     to performance by a qualified firm under 51 percent Native 
     American ownership.


                          (transfer of funds)

       Sec. 8016. Funds appropriated in title III of this Act for 
     the Department of Defense Pilot Mentor-Protege Program may be 
     transferred to any other appropriation contained in this Act 
     solely for the purpose of implementing a Mentor-Protege 
     Program developmental assistance agreement pursuant to 
     section 831 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2301 note), 
     as amended, under the authority of this provision or any 
     other transfer authority contained in this Act.
       Sec. 8017. None of the funds in this Act may be available 
     for the purchase by the Department of Defense (and its 
     departments and agencies) of welded shipboard anchor and 
     mooring chain 4 inches in diameter and under unless the 
     anchor and mooring chain are manufactured in the United 
     States from components which are substantially manufactured 
     in the United States: Provided, That for the purpose of this 
     section manufactured will include cutting, heat treating, 
     quality control, testing of chain and welding (including the 
     forging and shot blasting process): Provided further, That 
     for the purpose of this section substantially all of the 
     components of anchor and mooring chain shall be considered to 
     be produced or manufactured in the United States if the 
     aggregate cost of the components produced or manufactured in 
     the United States exceeds the aggregate cost of the 
     components produced or manufactured outside the United 
     States: Provided further, That when adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis, the Secretary of the service 
     responsible for the procurement may waive this restriction on 
     a case-by-case basis by certifying in writing to the 
     Committees on Appropriations that such an acquisition must be 
     made in order to acquire capability for national security 
     purposes.
       Sec. 8018. None of the funds appropriated by this Act 
     available for the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS) shall be available for the 
     reimbursement of any health care provider for inpatient 
     mental health service for care received when a patient is 
     referred to a provider of inpatient mental health care or 
     residential treatment care by a medical or health care 
     professional having an economic interest in the facility to 
     which the patient is referred: Provided, That this limitation 
     does not apply in the case of inpatient mental health 
     services provided under the program for the handicapped under 
     subsection (d) of section 1079 of title 10, United States 
     Code, provided as partial hospital care, or provided pursuant 
     to a waiver authorized by the Secretary of Defense because of 
     medical or psychological circumstances of the patient that 
     are confirmed by a health professional who is not a Federal 
     employee after a review, pursuant to rules prescribed by the 
     Secretary, which takes into account the appropriate level of 
     care for the patient, the intensity of services required by 
     the patient, and the availability of that care.
       Sec. 8019. Funds available in this Act may be used to 
     provide transportation for the next-of-kin of individuals who 
     have been prisoners of war or missing in action from the 
     Vietnam era to an annual meeting in the United States, under 
     such regulations as the Secretary of Defense may prescribe.
       Sec. 8020. Notwithstanding any other provision of law, 
     during the current fiscal year, the

[[Page H11669]]

     Secretary of Defense may, be Executive Agreement, establish 
     with host nation governments in NATO member states a separate 
     account into which such residual value amounts negotiated in 
     the return of United States military installations in NATO 
     member states may be deposited, in the currency of the host 
     nation, in lieu of direct monetary transfers to the United 
     States Treasury: Provided, That such credits may be utilized 
     only for the construction of facilities to support United 
     States military forces in that host nation, or such real 
     property maintenance and base operating costs that are 
     currently executed through monetary transfers to such host 
     nations: Provided further, That the Department of Defense's 
     budget submission for fiscal year 1998 shall identify such 
     sums anticipated in residual value settlements, and identify 
     such construction, real property maintenance or base 
     operating costs that shall be funded by the host nation 
     through such credits: Provided further, That all military 
     construction projects to be executed from such accounts must 
     be previously approved in a prior Act of Congress: Provided 
     further, That each such Executive Agreement with a NATO 
     member host nation shall be reported to the congressional 
     defense committees, the Committee on International Relations 
     of the House of Representatives and the Committee on Foreign 
     Relations of the Senate thirty days prior to the conclusion 
     and endorsement of any such agreement established under this 
     provision.
       Sec. 8021. None of the funds available to the Department of 
     Defense may be used to demilitarize or dispose of M-1 
     Carbines, M-1 Garand rifles, M-14 rifles, .22 caliber rifles, 
     .30 caliber rifles, or M-1911 pistols.
       Sec. 8022. Notwithstanding any other provision of law, none 
     of the funds appropriated by this Act shall be available to 
     pay more than 50 percent of an amount paid to any person 
     under section 308 of title 37, United States Code, in a lump 
     sum.
       Sec. 8023. None of the funds appropriated by this Act shall 
     be available for payments under the Department of Defense 
     contract with the Louisiana State University Medical Center 
     involving the use of cats for Brain Missile Wound Research, 
     and the Department of Defense shall not make payments under 
     such contract from funds obligated prior to the date of the 
     enactment of this Act, except as necessary for costs incurred 
     by the contractor prior to the enactment of this Act: 
     Provided, That funds necessary for the care of animals 
     covered by this contract are allowed.
       Sec. 8024. Of the funds made available by this Act in title 
     III, Procurement, $8,000,000, drawn pro rata from each 
     appropriations account in title III, shall be available for 
     incentive payments authorized by section 504 of the Indian 
     Financing Act of 1974, 25 U.S.C. 1544. These payments shall 
     be available only to contractors which have submitted 
     subcontracting plans pursuant to 15 U.S.C. 637(d), and 
     according to regulations which shall be promulgated by the 
     Secretary of Defense within 90 days of the passage of this 
     Act.
       Sec. 8025. None of the funds provided in this Act or any 
     other Act shall be available to conduct bone trauma research 
     at any Army Research Laboratory until the Secretary of the 
     Army certifies that the synthetic compound to be used in the 
     experiments is of such a type that its use will result in a 
     significant medical finding, the research has military 
     application, the research will be conducted in accordance 
     with the standards set by an animal care and use committee, 
     and the research does not duplicate research already 
     conducted by a manufacturer or any other research 
     organization.
       Sec. 8026. During the current fiscal year, none of the 
     funds available to the Department of Defense may be used to 
     procure or acquire (1) defensive handguns unless such 
     handguns are the M9 or M11 9mm Department of Defense standard 
     handguns, or (2) offensive handguns except for the Special 
     Operations Forces: Provided, That the foregoing shall not 
     apply to handguns and ammunition for marksmanship 
     competitions.
       Sec. 8027. No more than $500,000 of the funds appropriated 
     or made available in this Act shall be used for any single 
     relocation of an organization, unit, activity or function of 
     the Department of Defense into or within the National Capital 
     Region: Provided, That the Secretary of Defense may waive 
     this restriction on a case-by-case basis by certifying in 
     writing to the Congressional defense committees that such a 
     relocation is required in the best interest of the 
     Government.
       Sec. 8028. During the current fiscal year, funds 
     appropriated or otherwise available for any Federal agency, 
     the Congress, the judicial branch, or the District of 
     Columbia may be used for the pay, allowances, and benefits of 
     an employee as defined by section 2105 of title 5 or an 
     individual employed by the government of the District of 
     Columbia, permanent or temporary indefinite, who--
       (1) is a member of a Reserve component of the Armed Forces, 
     as described in section 261 of title 10, or the National 
     Guard, as described in section 101 of title 32;
       (2) performs, for the purpose of providing military aid to 
     enforce the law or providing assistance to civil authorities 
     in the protection or saving of life or property or prevention 
     of injury--
       (A) Federal service under sections 331, 332, 333, or 12406 
     of title 10, or other provision of law, as applicable, or
       (B) full-time military service for his or her State, the 
     District of Columbia, the Commonwealth of Puerto Rico, or a 
     territory of the United States; and
       (3) requests and is granted--
       (A) leave under the authority of this section; or
       (B) annual leave, which may be granted without regard to 
     the provisions of sections 5519 and 6323(b) of title 5, if 
     such employee is otherwise entitled to such annual leave:

     Provided, That any employee who requests leave under 
     subsection (3)(A) for service described in subsection (2) of 
     this section is entitled to such leave, subject to the 
     provisions of this section and of the last sentence of 
     section 6323(b) of title 5, and such leave shall be 
     considered leave under section 6323(b) of title 5.
       Sec. 8029. None of the funds appropriated by this Act shall 
     be available to perform any cost study pursuant to the 
     provisions of OMB Circular A-76 if the study being performed 
     exceeds a period of twenty-four months after initiation of 
     such study with respect to a single function activity or 
     forty-eight months after initiation of such study for a 
     multi-function activity.
       Sec. 8030. Funds appropriated by this Act for the American 
     Forces Information Service shall not be used for any national 
     or international political or psychological activities.
       Sec. 8031. Notwithstanding any other provision of law or 
     regulation, the Secretary of Defense may adjust wage rates 
     for civilian employees hired for certain health care 
     occupations as authorized for the Secretary of Veterans 
     Affairs by section 7455 of title 38, United States Code.
       Sec. 8032. None of the funds appropriated or made available 
     in this Act shall be used to reduce or disestablish the 
     operation of the 53rd Weather Reconnaissance Squadron of the 
     Air Force Reserve, if such action would reduce the WC-130 
     Weather Reconnaissance mission below the levels funded in 
     this Act.
       Sec. 8033. (a) Of the funds for the procurement of supplies 
     or services appropriated by this Act, qualified nonprofit 
     agencies for the blind or other severely handicapped shall be 
     afforded the afforded the maximum practicable opportunity to 
     participate as subcontractors and supplies in the performance 
     of contracts let by the Department of Defense.
       (b) During the current fiscal year, a business concern 
     which has negotiated with a military service or defense 
     agency a subcontracting plan for the participation by small 
     business concerns pursuant to section 8(d) of the Small 
     Business Act (15 U.S.C. 637(d)) shall be given credit toward 
     meeting that subcontracting goal for any purchases made from 
     qualified nonprofit agencies for the blind or other severely 
     handicapped.
       (c) For the purpose of this section, the phrase ``qualified 
     nonprofit agency for the blind or other severely 
     handicapped'' means a nonprofit agency for the blind or other 
     severely handicapped that has been approved by the Committee 
     for the Purchase from the Blind and Other Severely 
     Handicapped under the Javits-Wagner-O'Day Act (41 U.S.C. 46-
     48).
       Sec. 8034. During the current fiscal year, net receipts 
     pursuant to collections from third party payers pursuant to 
     section 1095 of title 10, United States Code, shall be made 
     available to the local facility of the uniformed services 
     responsible for the collections and shall be over and above 
     the facility's direct budget amount.
       Sec. 8035. During the current fiscal year, the Department 
     of Defense is authorized to incur obligations of not to 
     exceed $350,000,000 for purposes of specified in section 
     2350j(c) of title 10, United States Code, in anticipation of 
     receipt of contributions, only from the Government of Kuwait, 
     under that section: Provided, That, upon receipt, such 
     contributions from the Government of Kuwait shall be credited 
     to the appropriations or fund which incurred such 
     obligations.
       Sec. 8036. Of the funds made available in this Act, not 
     less than $23,626,000 shall be available for the Civil Air 
     Patrol, of which $19,926,000 shall be available for Operation 
     and maintenance.
       Sec. 8037. (a) None of the funds appropriated in this Act 
     are available to establish a new Department of Defense 
     (department) federally funded research and development center 
     (FFRDC), either as a new entity, or as a separate entity 
     administrated by an organization managing another FFRDC, or 
     as a nonprofit membership corporation consisting of a 
     consortium of other FFRDCs and other non-profit entities.
       (b) Limitation on Compensation.--No member of a Board of 
     Directors, Trustees, Overseers, Advisory Group, Special 
     Issues Panel, Visiting Committee, or any similar entity of a 
     defense FFRDC, and no paid consultant to any defense FFRDC, 
     may be compensated for his or her services as a member of 
     such entity, or as a paid consultant, except under the same 
     conditions, and to the same extent, as members of the Defense 
     Science Board: Provided, That a member of any such entity 
     referred to previously in this subsection shall be allowed 
     travel expenses and per diem as authorized under the Federal 
     Joint Travel Regulations, when engaged in the performance of 
     membership duties.
       (c) Notwithstanding any other provision of law, none of the 
     funds available to the department from any source during 
     fiscal year 1997 may be used by a defense FFRDC, through a 
     fee or other payment mechanism, for charitable contributions, 
     for construction of new buildings, for payment of cost 
     sharing for projects funded by government grants, or for 
     absorption of contract overruns.
       (d) Notwithstanding any other provision of law, of the 
     funds available to the department during fiscal year 1997, 
     not more than 5,975 staff years of technical effort (staff 
     years) may be funded for defense FFRDCs: Provided, That of 
     the specific amount referred to previously in this 
     subsection, not more than 1,088 staff years may be funded for 
     the defense studies and analysis FFRDCs.
       (e) Notwithstanding any other provision of law, the 
     Secretary of Defense shall control the total number of staff 
     years to be performed by defense FFRDCs during fiscal year 
     1997 so as to reduce the total amounts appropriated in titles 
     II, III, and IV of this Act by $52,286,000: Provided, That 
     the total amounts appropriated in

[[Page H11670]]

     titles II, III, and IV of this Act are hereby reduced by 
     $52,286,000 to reflect savings from the use of defense FFRDCs 
     by the department.
       (f) Within 60 days after enactment of this Act, the 
     Secretary of Defense shall submit to the Congressional 
     defense committees a report presenting the specific amounts 
     of staff years of technical effort to be allocated by the 
     department for each defense FFRDC during fiscal year 1997: 
     Provided, That, after the submission of the report required 
     by this subsection, the department may not reallocate more 
     than five percent of an FFRDC's staff years among other 
     defense FFRDCs until 30 days after a detailed justification 
     for any such reallocation is submitted to the Congressional 
     defense committees.
       (g) The Secretary of Defense shall, with the submission of 
     the department's fiscal year 1998 budget request, submit a 
     report presenting the specific amounts of staff years of 
     technical effort to be allocated for each defense FFRDC 
     during that fiscal year.
       (h) The total amounts appropriated to or for the use of the 
     department in titles II, III, and IV of this Act are hereby 
     further reduced by $102,286,000 to reflect savings from the 
     decreased use of non-FFRDC consulting services by the 
     department.
       (i) No part of the reductions contained in subsections (e) 
     and (h) of this section may be applied against any budget 
     activity, activity group, subactivity group, line item, 
     program element, program, project, subproject or activity 
     which does not fund defense FFRDC activities or non-FFRDC 
     consulting services within each appropriation account.
       (j) Not later than 90 days after enactment of this Act, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report listing the specific funding 
     reductions allocated to each category listed in subsection 
     (i) above pursuant to this section.
       Sec. 8038. None of the funds in this or any other Act shall 
     be available for the preparation of studies on--
       (a) the feasibility of removal and transportation of 
     unitary chemical weapons or agents from the eight chemical 
     storage sites within the continental United States to 
     Johnston Atoll: Provided, That this prohibition shall not 
     apply to General Accounting Office studies requested by a 
     Member of Congress or a Congressional Committee; and
       (b) the potential future uses of the nine chemical disposal 
     facilities other than for the destruction of stockpile 
     chemical munitions and as limited by section 1412(c)(2), 
     Public Law 99-145: Provided, That this prohibition does not 
     apply to future use studies for the CAMDS facility at Tooele, 
     Utah.
       Sec. 8039. None of the funds appropriated or made available 
     in this Act shall be used to procure carbon, alloy or armor 
     steel plate for use in any Government-owned facility or 
     property under the control of the Department of Defense which 
     were not melted and rolled in the United States or Canada: 
     Provided, That these procurement restrictions shall apply to 
     any and all Federal Supply Class 9515, American Society of 
     Testing and Materials (ASTM) or American Iron and Steel 
     Institute (AISI) specifications of carbon, alloy or armor 
     steel plate: Provided further, That the Secretary of the 
     military department responsible for the procurement may waive 
     this restriction on a case-by-case basis by certifying in 
     writing to the Committees on Appropriations of the House of 
     Representatives and the Senate that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes: Provided further, That these restrictions 
     shall not apply to contracts which are in being as of the 
     date of enactment of this Act.
       Sec. 8040. For the purposes of this Act, the term 
     ``congressional defense committees'' means the National 
     Security Committee of the House of Representatives, the Armed 
     Services Committee of the Senate, the subcommittee on Defense 
     of the Committee on Appropriations of the Senate, and the 
     subcommittee on National Security of the Committee on 
     Appropriations of the House of Representatives.
       Sec. 8041. During the current fiscal year, the Department 
     of Defense may acquire the modification, depot maintenance 
     and repair of aircraft, vehicles and vessels as well as the 
     production of components and other Defense-related articles, 
     through competition between Department of Defense depot 
     maintenance activities and private firms: Provided, That the 
     Senior Acquisition Executive of the military department or 
     defense agency concerned, with power of delegation, shall 
     certify that successful bids include comparable estimates of 
     all direct and indirect costs for both public and private 
     bids: Provided further, That Office of Management and Budget 
     Circular A-76 shall not apply to competitions conducted under 
     this section.
       Sec. 8042. (a)(1) If the Secretary of Defense, after 
     consultation with the United States Trade Representative, 
     determines that a foreign country which is party to an 
     agreement described in paragraph (2) has violated the terms 
     of the agreement by discriminating against certain types of 
     products produced in the United States that are covered by 
     the agreement, the Secretary of Defense shall rescind the 
     Secretary's blanket waiver of the Buy American Act with 
     respect to such types of products produced in that foreign 
     country.
       (2) An agreement referred to in paragraph (1) is any 
     reciprocal defense procurement memorandum of understanding, 
     between the United States and a foreign country pursuant to 
     which the Secretary of Defense has prospectively waived the 
     Buy American Act for certain products in that country.
       (b) The Secretary of Defense shall submit to Congress a 
     report on the amount of Department of Defense purchases from 
     foreign entities in fiscal year 1997. Such report shall 
     separately indicate the dollar value of items for which the 
     Buy American Act was waived pursuant to any agreement 
     described in subsection (a)(2), the Trade Agreement Act of 
     1979 (19 U.S.C. 2501 et seq.), or any international agreement 
     to which the United States is a party.
       (c) For purposes of this section, the term ``Buy American 
     Act'' means title III of the Act entitled ``An Act making 
     appropriations for the Treasury and Post Office Departments 
     for the fiscal year ending June 30, 1934, and for other 
     purposes'', approved March 3, 1933 (41 U.S.C. 10a et seq.).
       Sec. 8043. Appropriations contained in this Act that remain 
     available at the end of the current fiscal year as a result 
     of energy cost savings realized by the Department of Defense 
     shall remain available for obligation for the next fiscal 
     year to the extent, and for the purposes, provided in section 
     2865 of title 10, United States Code.
       Sec. 8044. During the current fiscal year and hereafter, 
     voluntary separation incentives payable under 10 U.S.C. 1175 
     may be paid in such amounts as are necessary from the assets 
     of the Voluntary Separation Incentive Fund established by 
     section 1175(h)(1).


                     (including transfer of funds)

       Sec. 8045. Amounts deposited during the current fiscal year 
     to the special account established under 40 U.S.C. 485(h)(2) 
     and to the special account established under 10 U.S.C. 
     2667(d)(1) are appropriated and shall be available until 
     transferred by the Secretary of Defense to current applicable 
     appropriations or funds of the Department of Defense under 
     the terms and conditions specified by 40 U.S.C. 485(h)(2) (A) 
     and (B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to 
     be available for the same time period and the same purposes 
     as the appropriation to which transferred.
       Sec. 8046. During the current fiscal year, appropriations 
     available to the Department of Defense may be used to 
     reimburse a member of a reserve component of the Armed Forces 
     who is not otherwise entitled to travel and transportation 
     allowances and who occupies transient government housing 
     while performing active duty for training or inactive duty 
     training: Provided, That such members may be provided lodging 
     in kind if transient government quarters are unavailable as 
     if the member was entitled to such allowances under 
     subsection (a) of section 404 of title 37, United States 
     Code: Provided further, That if lodging in kind is provided, 
     any authorized service charge or cost of such lodging may be 
     paid directly from funds appropriated for operation and 
     maintenance of the reserve component of the member concerned.
       Sec. 8047. The President shall include with each budget for 
     a fiscal year submitted to the Congress under section 1105 of 
     title 31, United States Code, materials that shall identify 
     clearly and separately the amounts requested in the budget 
     for appropriation for that fiscal year for salaries and 
     expenses related to administrative activities of the 
     Department of Defense, the military departments, and the 
     Defense Agencies.
       Sec. 8048. Notwithstanding any other provision of law, 
     funds available for ``Drug Interdiction and Counter-Drug 
     Activities, Defense'' may be obligated for the Young Marines 
     program.
       Sec. 8049. During the current fiscal year, amounts 
     contained in the Department of Defense Overseas Military 
     Facility Investment Recovery Account established by section 
     2921(c)(1) of the National Defense Authorization Act of 1991 
     (Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
     until expended for the payments specified by section 
     2921(c)(2) of that Act.
       Sec. 8050. During the current fiscal year and hereafter, 
     annual payments granted under the provisions of section 4416 
     of the National Defense Authorization Act for Fiscal Year 
     1993 (Public Law 102-484; 106 Stat. 2714) shall be made from 
     appropriations in this Act which are available for the pay of 
     reserve component personnel.
       Sec. 8051. Of the funds appropriated or otherwise made 
     available by this Act, not more than $119,200,000 shall be 
     available for payment of the operating costs of NATO 
     Headquarters: Provided, That the Secretary of Defense may 
     waive this section for Department of Defense support provided 
     to NATO forces in and around the former Yugoslavia.
       Sec. 8052. During the current fiscal year, appropriations 
     which are available to the Department of Defense for 
     operation and maintenance may be used to purchase items 
     having an investment item unit cost of not more than 
     $100,000.
       Sec. 8053. During the current fiscal year and hereafter, 
     appropriations available for the pay and allowances of active 
     duty members of the Armed Forces shall be available to pay 
     the retired pay which is payable pursuant to section 4403 of 
     Public Law 102-484 (10 U.S.C. 1293 note) under the terms and 
     conditions provided in section 4403.
       Sec. 8054. (a) During the current fiscal year, none of the 
     appropriations or funds available to the Defense Business 
     Operations Fund shall be used for the purchase of an 
     investment item for the purpose of acquiring a new inventory 
     item for sale or anticipated sale during the current fiscal 
     year or a subsequent fiscal year to customers of the Defense 
     Business Operations Fund if such an item would not have been 
     chargeable to the Defense Business Operations Fund during 
     fiscal year 1994 and if the purchase of such an investment 
     item would be chargeable during the current fiscal year to 
     appropriations made to the Department of Defense for 
     procurement.
       (b) The fiscal year 1998 budget request for the Department 
     of Defense as well as all justification material and other 
     documentation supporting the fiscal year 1998 Department of 
     Defense budget shall be prepared and submitted to the 
     Congress on the basis that any equipment which was classified 
     as an end item and funded in a procurement appropriation 
     contained in this Act

[[Page H11671]]

     shall be budgeted for in a proposed fiscal year 1998 
     procurement appropriation and not in the supply management 
     business area or any other area or category of the Defense 
     Business Operations Fund.
       Sec. 8055. None of the funds provided in this Act shall be 
     available for use by a Military Department to modify an 
     aircraft, weapon, ship or other item of equipment, that the 
     Military Department concerned plans to retire or otherwise 
     dispose of within five years after completion of the 
     modification: Provided, That this prohibition shall not apply 
     to safety modifications: Provided further, That this 
     prohibition may be waived by the Secretary of a Military 
     Department if the Secretary determines it is in the best 
     national security interest of the United States to provide 
     such waiver and so notifies the congressional defense 
     committees in writing.
       Sec. 8056. None of the funds appropriated by this Act for 
     programs of the Central Intelligence Agency shall remain 
     available for obligation beyond the current fiscal year, 
     except for funds appropriated for the Reserve for 
     Contingencies, which shall remain available until September 
     30, 1998.
       Sec. 8057. Notwithstanding any other provision of law, 
     funds made available in this Act for the Defense Intelligence 
     Agency may be used for the design, development, and 
     deployment of General Defense Intelligence Program 
     intelligence communications and intelligence information 
     systems for the Services, the Unified and Specified Commands, 
     and the component commands.
       Sec. 8058. (a) Notwithstanding any other provision of law, 
     funds appropriated in this Act for the High Performance 
     Computing Modernization Program shall be made available only 
     for the acquisition, modernization and sustainment of 
     supercomputing capability and capacity at Department of 
     Defense (DoD) science and technology sites under the 
     cognizance of the Director of Defense Research and 
     Engineering and DoD test and evaluation facilities under the 
     Director of Test and Evaluation, OUSD (A&T): Provided, That 
     these funds shall be awarded based on user-defined 
     requirements.
       (b) Of the funds appropriated in this Act under the heading 
     ``Procurement, Defense-Wide'', $124,735,000 shall be made 
     available for the High Performance Computing Modernization 
     Program. Of the total funds made available for the program 
     pursuant to this subsection, $20,000,000 shall be for the 
     Army High Performance Computing Research Center.
       Sec. 8059. Of the funds appropriated by the Department of 
     Defense under the heading ``Operation and Maintenance, 
     Defense-Wide'', not less than $8,000,000 shall be made 
     available only for the mitigation of environmental impacts, 
     including training and technical assistance to tribes, 
     related administrative support, the gathering of information, 
     documenting of environmental damage, and developing a system 
     for prioritization of mitigation, on Indian lands resulting 
     from Department of Defense activities.
       Sec. 8060. Amounts collected for the use of the facilities 
     of the National Science Center for Communications and 
     Electronics during the current fiscal year pursuant to 
     section 1459(g) of the Department of Defense Authorization 
     Act, 1986, and deposited to the special account established 
     under subsection 1459(g)(2) of that Act are appropriated and 
     shall be available until expended for the operation and 
     maintenance of the Center as provided for in subsection 
     1459(g)(2).
       Sec. 8061. None of the funds appropriated in this Act may 
     be used to fill the commander's position at any military 
     medical facility with a health care professional unless the 
     prospective candidate can demonstrate professional 
     administrative skills.
       Sec. 8062. (a) None of the funds appropriated in this Act 
     may be expended by an entity of the Department of Defense 
     unless the entity, in expending the funds, complies with Bay 
     American Act. For purposes of this subsection, the term ``Bay 
     American Act'' means title III of the Act entitled ``An Act 
     making appropriations for the Treasury and Post Office 
     Departments for the fiscal year ending June 30, 1934, and for 
     other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
     seq.).
       (b) If the Secretary of Defense determines that a person 
     has been convicted of intentionally affixing a label bearing 
     a ``Made in America'' inscription to any product sold in or 
     shipped to the United States that is not made in America, the 
     Secretary shall determine, in accordance with section 2410f 
     of title 10, United States Code, whether the person should be 
     debarred from contracting with the Department of Defense.
       (c) In the case of any equipment or products purchased with 
     appropriations provided under this Act, it is the sense of 
     the Congress that any entity of the Department of Defense, in 
     expending the appropriation, purchase only American-made 
     equipment and products, provided that American-made equipment 
     and products are cost-competitive, quality-competitive, and 
     available in a timely fashion.
       Sec. 8063. None of the funds appropriated by this Act shall 
     be available for a contract for studies, analysis, or 
     consulting services entered into without competition on the 
     basis of an unsolicited proposal unless the head of the 
     activity responsible for the procurement determines--
       (1) as a result of thorough technical evaluation, only one 
     source is found fully qualified to perform the proposal work, 
     or
       (2) the purpose of the contract is to explore an 
     unsolicited proposal which offers significant scientific or 
     technological promise, represents the product of original 
     thinking, and was submitted in confidence by one source, or
       (3) the purpose of the contract is to take advantage of 
     unique and significant industrial accomplishment by a 
     specific concern, or to insure that a new product or idea of 
     a specific concern is given financial support:

     Provided, That this limitation shall not apply to contracts 
     in an amount of less than $25,000, contracts related to 
     improvements of equipment that is in development or 
     production, or contracts as to which a civilian official of 
     the Department of Defense, who has been confirmed by the 
     Senate, determines that the award of such contract is in the 
     interest of the national defense.
       Sec. 8064. Funds appropriated by this Act for intelligence 
     activities are deemed to be specifically authorized by the 
     Congress for purposes of section 504 of the National Security 
     Act of 1947 (50 U.S.C. 414).
       Sec. 8065. Notwithstanding section 142 of H.R. 3230, the 
     National Defense Authorization Act for Fiscal Year 1997, as 
     passed by the Senate on September 10, 1996, of the funds 
     provided in title VI of this Act, under the heading 
     ``Chemical Agents and Munitions Destruction, Defense'', 
     $40,000,000 shall only be available for the conduct of a 
     pilot program to identify and demonstrate not less than two 
     alternatives to the baseline incineration process for the 
     demilitarization of assembled chemical munitions: Provided, 
     That the Under Secretary of Defense for Acquisition and 
     Technology shall, not later than December 1, 1996, designate 
     a program manager who is not, nor has been, in direct or 
     immediate control of the baseline reverse assembly 
     incineration demilitarization program to carry out the pilot 
     program: Provided further, That the Under Secretary of 
     Defense for Acquisition and Technology shall evaluate the 
     effectiveness of each alternative chemical munitions 
     demilitarization technology identified and demonstrated under 
     the pilot program to demilitarize munitions and assembled 
     chemical munitions while meeting all applicable Federal and 
     State environmental and safety requirements: Provided 
     further, That the Under Secretary of Defense for Acquisition 
     and Technology shall transmit, by December 15 of each year, a 
     report to the congressional defense committees on the 
     activities carried out under the pilot program during the 
     preceding fiscal year in which the report is to be made: 
     Provided further, That section 142(f)(3) of H.R. 3230, the 
     National Defense Authorization Act for Fiscal Year 1997, as 
     passed by the Senate on September 10, 1996, is repealed: 
     Provided further, That no funds may be obligated for the 
     construction of a baseline incineration facility at the 
     Lexington Blue Grass Army Depot or the Pueblo Depot activity 
     until 180 days after the Secretary of Defense has submitted 
     to the congressional defense committees a report detailing 
     the effectiveness of each alternative chemical munitions 
     demilitarization technology identified and demonstrated under 
     the pilot program and its ability to meet the applicable 
     safety and environmental requirements: Provided further, That 
     none of the funds in this or any other Act may be obligated 
     for the preparation of studies, assessments, or planning of 
     the removal and transportation of stockpile assembled unitary 
     chemical weapons or neutralized chemical agent to any of the 
     eight chemical weapons storage sites within the continental 
     United States.
       Sec. 8066. (a) None of the funds made available by this Act 
     may be obligated for design, development, acquisition, or 
     operation of more than 47 Titan IV expendable launch 
     vehicles, or for satellite mission-model planning for a Titan 
     IV requirement beyond 47 vehicles.
       (b) $59,600,000 made available in this Act for Research, 
     Development, Test and Evaluation, Air Force, may only be 
     obligated for development of a new family of medium-lift and 
     heavy-lift expendable launch vehicles evolved from existing 
     technologies.
       Sec. 8067. None of the funds available to the Department of 
     Defense in this Act may be used to establish additional field 
     operating agencies of any element of the Department during 
     fiscal year 1997, except for field operating agencies funded 
     within the National Foreign Intelligence Program: Provided, 
     That the Secretary of Defense may waive this section by 
     certifying to the House and Senate Committees on 
     Appropriations that the creation of such field operating 
     agencies will reduce either the personnel and/or financial 
     requirements of the Department of Defense.
       Sec. 8068. Notwithstanding section 303 of Public Law 96-487 
     or any other provision of law, the Secretary of the Navy is 
     authorized to lease real and personal property at Naval Air 
     Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for 
     commercial, industrial or other purposes.
       Sec. 8069. Notwithstanding any other provision of law, for 
     resident classes entering the war colleges after September 
     30, 1997, the Department of Defense shall require that not 
     less than 20 percent of the total of United States military 
     student at each war college shall be from military 
     departments other than the hosting military department: 
     Provided, That each military department will recognize the 
     attendance at a sister military department war college as the 
     equivalent of attendance at its own war college for promotion 
     and advancement of personnel.


                             (rescissions)

       Sec. 8070. Of the funds provided in Department of Defense 
     Appropriations Acts, the following funds are hereby rescinded 
     from the following accounts in the specified amounts:
       ``Procurement of Ammunition, Army, 1995/1997'', $4,500,000;
       ``Aircraft Procurement, Navy, 1995/1997'', $8,000,000;
       ``Procurement of Ammunition, Navy and Marine Corps, 1995/
     1997'', $2,000,000;
       ``Other Procurement, Navy, 1995/1997'', $10,000,000;
       ``Aircraft Procurement, Air Force, 1995/1997'', $3,100,000;
       ``Missile Procurement, Air Force, 1995/1997'', $31,900,000;
       ``Aircraft Procurement, Navy, 1996/1998'', $5,400,000;

[[Page H11672]]

       ``Procurement of Ammunition, Navy, and Marine Corps, 1996/
     1998'', $12,708,000;
       ``Aircraft Procurement, Air Force, 1996/1998'', $9,000,000;
       ``Missile Procurement, Air Force, 1996/1998'', $20,000,000;
       ``Other Procurement, Air Force, 1996/1998'', $26,000,000;
       ``Research, Development, Test and Evaluation, Navy 1996/
     1997'', $4,500,000.
       Sec. 8071. None of the funds provided in this Act may be 
     obligated for payment on new contracts on which allowable 
     costs charged to the government include payments for 
     individual compensation at a rate in excess of $250,000 per 
     year.
       Sec. 8072. Of the funds appropriated in the Department of 
     Defense Appropriations Act, 1996 (Public Law 104-61), under 
     the hearing ``Other Procurement, Army'', the Department of 
     the Army shall grant $477,000 to the Kansas Unified School 
     District 207 for the purpose of integrating schools at Fort 
     Leavenworth into the existing fiber optic network on post.
       Sec. 8073. None of the funds available in this Act may be 
     used to reduce the authorized positions for military 
     (civilian) technicians of the Army National Guard, the Air 
     National Guard, Army Reserve and Air Force Reserve for the 
     purpose of applying any administratively imposed civilian 
     personnel ceiling, freeze, or reduction on military 
     (civilian) technicians, unless such reductions are a direct 
     result of a reduction in military force structure.
       Sec. 8074. None of the funds appropriated or otherwise made 
     available in this Act may be obligated or expended for 
     assistance to the Democratic People's Republic of North Korea 
     unless specifically appropriated for that purpose.
       Sec. 8075. During the current fiscal year, funds 
     appropriated in this Act are available to compensate members 
     of the National Guard for duty performed pursuant to a plan 
     submitted by a Governor of a State and approved by the 
     Secretary of Defense under section 112 of title 32, United 
     States Code: Provided, That during the performance of such 
     duty, the members of the National Guard shall be under State 
     command and control: Provide further, That such duty shall be 
     treated as full-time National Guard duty for purposes of 
     section 12602 (a)(2) and (b)(2) of title 10, United States 
     Code.
       Sec. 8076. Funds appropriated in this Act for operation and 
     maintenance of the Military Departments, Unified and 
     Specified Commands and Defense Agencies shall be available 
     for reimbursement of pay, allowances and other expenses which 
     would otherwise be incurred against appropriations for the 
     National Guard and Reserve when members of the National Guard 
     and Reserve provide intelligence support to Unified Commands, 
     Defense Agencies and Joint Intelligence Activities, including 
     the activities and programs included within the General 
     Defense Intelligence Program and the Consolidated Cryptologic 
     Program: Provided, That nothing in this section authorizes 
     deviation from established Reserve and National Guard 
     personnel and training procedures.
       Sec. 8077. During the current fiscal year, none of the 
     funds appropriated in this Act may be used to reduce the 
     civilian medical and medical support personnel assigned to 
     military treatment facilities below the September 30, 1996 
     level: Provided, That the Service Surgeons General may waive 
     this section by certifying to the congressional defense 
     committees that the beneficiary population is declining in 
     some catchment areas and civilian strength reductions may be 
     consistent with responsible resource stewardship and 
     capitation-based budgeting.
       Sec. 8078. All refunds or other amounts collected in the 
     administration of the Civilian Health and Medical Program of 
     the Uniformed Services (CHAMPUS) shall be credited to current 
     year appropriations.


                     (including transfer of funds)

       Sec. 8079. None of the funds appropriated in this Act may 
     be transferred to or obligated from the Pentagon Reservation 
     Maintenance Revolving Fund, unless the Secretary of Defense 
     certifies that the total cost for the planning, design, 
     construction and installation of equipment for the renovation 
     of the Pentagon Reservation will not exceed $1,118,000,000.
       Sec. 8080. (a) None of the funds available to the 
     Department of Defense for any fiscal year for drug 
     interdiction or counter-drug activities may be transferred to 
     any other department or agency of the United States except as 
     specifically provided in an appropriations law.
       (b) None of the funds available to the Central Intelligence 
     Agency for any fiscal year for drug interdiction and counter-
     drug activities may be transferred to any other department or 
     agency of the United States except as specifically provided 
     in an appropriations law.


                          (transfer of funds)

       Sec. 8081. Appropriations available in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' for 
     increasing energy and water efficiency in Federal buildings 
     may, during their period of availability, be transferred to 
     other appropriations or funds of the Department of Defense 
     for projects related to increasing energy and water 
     efficiency, to be merged with and to be available for the 
     same general purposes, and for the same time period, as the 
     appropriation or fund to which transferred.
       Sec. 8082. None of the funds appropriated by this Act may 
     be used for the procurement of ball and roller bearings other 
     than those produced by a domestic source and of domestic 
     origin: Provided, That the Secretary of the military 
     department responsible for such procurement may waive this 
     restriction on a case-by-case basis by certifying in writing 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate, that adequate domestic 
     supplies are not available to meet Department of Defense 
     requirements on a timely basis and that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes.
       Sec. 8083. Notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to American Samoa: 
     Provided, That notwithstanding any other provision of law, 
     funds available to the Department of Defense shall be made 
     available to provide transportation of medical supplies and 
     equipment, on a nonreimbursable basis, to the Indian Health 
     Service when it is in conjunction with a civil-military 
     project.
       Sec. 8084. None of the funds in this Act may be used to 
     purchase any supercomputer which is not manufactured in the 
     United States, unless the Secretary of Defense certifies to 
     the congressional defense committees that such an acquisition 
     must be made in order to acquire capability for national 
     security purposes that is not available from United States 
     manufacturers.
       Sec. 8085. Notwithstanding any other provision of law, the 
     Naval shipyards of the United States shall be eligible to 
     participate in any manufacturing extension program financed 
     by funds appropriated in this or any other Act.
       Sec. 8086. None of the funds appropriated by this Act shall 
     be available to lease or charter a vessel in excess of 
     seventeen months (inclusive of any option periods) to 
     transport fuel or oil for the Department of Defense if the 
     vessel was constructed after October 1, 1995 unless the 
     Secretary of Defense requires that the vessel be constructed 
     in the United States with a double hull under the long-term 
     lease or charter authority provided in section 2401 note of 
     title 10, United States Code: Provided, That this limitation 
     shall not apply to contracts in force on the date of 
     enactment of this Act: Provided further, That by 1997 at 
     least 20 percent of annual leases and charters must be for 
     ships of double hull design constructed after October 1, 1995 
     if available in numbers sufficient to satisfy this 
     requirement: Provided further, That the Military Sealift 
     Command shall plan to achieve the goal of eliminating single 
     hull ship leases by the year 2015.


                          (transfer of funds)

       Sec. 8087. In addition to amounts appropriated or otherwise 
     made available by this Act, $300,000,000 is hereby 
     appropriated to the Department of Defense and shall be 
     available only for transfer to the United States Coast Guard.
       Sec. 8088. Notwithstanding any other provision in this Act, 
     the total amount appropriated in this Act is hereby reduced 
     by $150,000,000 to reflect savings from reduced carryover of 
     activities funded through the Defense Business Operations 
     Fund, to be distributed as follows: ``Operation and 
     Maintenance, Army'', $60,000,000; and ``Operation and 
     Maintenance, Navy'', $90,000,000.
       Sec. 8089. Notwithstanding any other provision of law, each 
     contract awarded by the Department of Defense during the 
     current fiscal year for construction or service performed in 
     whole or in part in a State which is not contiguous with 
     another State and has an unemployment rate in excess of the 
     national average rate of unemployment as determined by the 
     Secretary of Labor, shall include a provision requiring the 
     contractor to employ, for the purpose of performing that 
     portion of the contract in such State that is not contiguous 
     with another State, individuals who are residents of such 
     State and who, in the case of any craft or trade, possess or 
     would be able to acquire promptly the necessary skills: 
     Provided, That the Secretary of Defense may waive the 
     requirements of this section, on a case-by-case basis, in the 
     interest of national security.
       Sec. 8090. During the current fiscal year, the Army shall 
     use the former George Air Force Base as the airhead for the 
     National Training Center at Fort Irwin: Provided, That none 
     of the funds in this Act shall be obligated or expended to 
     transport Army personnel into Edwards Air Force Base for 
     training rotations at the National Training Center.
       Sec. 8091. (a) The Secretary of Defense shall submit, on a 
     quarterly basis, a report to the congressional defense 
     committees, the Committee on International Relations of the 
     House of Representatives and the Committee on Foreign 
     Relations of the Senate setting forth all costs (including 
     incremental costs) incurred by the Department of Defense 
     during the preceding quarter in implementing or supporting 
     resolutions of the United Nations Security Council, including 
     any such resolution calling for international sanctions, 
     international peacekeeping operations, and humanitarian 
     missions undertaken by the Department of Defense. The 
     quarterly report shall include an aggregate of all such 
     Department of Defense costs by operation or mission.
       (b) The Secretary of Defense shall detail in the quarterly 
     reports all efforts made to seek credit against past United 
     Nations expenditures and all efforts made to seek 
     compensation from the United Nations for costs incurred by 
     the Department of Defense in implementing and supporting 
     United Nations activities.
       Sec. 8092 (a) Limitation on Transfer of Defense Articles 
     and Services.--Notwithstanding any other provision of law, 
     none of the funds available to the Department of Defense for 
     the current fiscal year may be obligated or expended to 
     transfer to another nation or an international organization 
     any defense articles or services (other than intelligence 
     services) for use in the activities described in subsection 
     (b) unless the congressional defense committees, the 
     Committee on International Relations of the House of 
     Representatives, and the Committee on Foreign Relations of 
     the Senate are notified 15 days in advance of such transfer.
       (b) Covered Activities.--(1) This section applies to--

[[Page H11673]]

       (A) any international peacekeeping or peace-enforcement 
     operation under the authority of chapter VI or chapter VII of 
     the United Nations Charter under the authority of a United 
     Nations Security Council resolution; and
       (B) any other international peacekeeping, peace-
     enforcement, or humanitarian assistance operation.
       (c) Required Notice.--A notice under subsection (a) shall 
     include the following:
       (1) A description of the equipment, supplies, or services 
     to be transferred.
       (2) A statement of the value of the equipment, supplies, or 
     services to be transferred.
       (3) In the case of a proposed transfer of equipment or 
     supplies--
       (A) a statement of whether the inventory requirements of 
     all elements of the Armed Forces (including the reserve 
     components) for the type of equipment or supplies to be 
     transferred have been met; and
       (B) a statement of whether the items proposed to be 
     transferred will have to be replaced and, if so, how the 
     President proposes to provide funds for such replacement.
       Sec. 8093. To the extent authorized by subchapter VI of 
     Chapter 148 of title 10, United States Code, the Secretary of 
     Defense shall issue loan guarantees in support of U.S. 
     defense exports not otherwise provided for: Provided, That 
     the total contingent liability of the United States for 
     guarantees issued under the authority of this section may not 
     exceed $15,000,000,000: Provided further, That the exposure 
     fees charged and collected by the Secretary for each 
     guarantee, shall be paid by the country involved and shall 
     not be financed as part of a loan guaranteed by the United 
     States: Provided further, That the Secretary shall provide 
     quarterly reports to the Committees on Appropriations, Armed 
     Services and Foreign Relations of the Senate and the 
     Committees on Appropriations, National Security and 
     International Relations in the House of Representatives on 
     the implementation of this program: Provided further, That 
     amounts charged for administrative fees and deposited to the 
     special account provided for under section 2540c(d) of title 
     10, shall be available for paying the costs of administrative 
     expenses of the Department of Defense that are attributable 
     to the loan guarantee program under subchapter VI of Chapter 
     148 of title 10.
       Sec. 8094. None of the funds available to the Department of 
     Defense shall be obligated or expended to make a financial 
     contribution to the United Nations for the cost of an United 
     Nations peacekeeping activity (whether pursuant to assessment 
     or a voluntary contribution) or for payment of any United 
     States arrearage to the United Nations.
       Sec. 8095. None of the funds available to the Department of 
     Defense under this Act shall be obligated or expended to pay 
     a contractor under a contract with the Department of Defense 
     for costs of any amount paid by the contractor to an employee 
     when--
       (1) such costs are for a bonus or otherwise in excess of 
     the normal salary paid by the contractor to the employee; and
       (2) such bonus is part of restructuring costs associated 
     with a business combination.
       Sec. 8096. The amount otherwise provided by this Act for 
     ``Operation and Maintenance, Air Force'' is hereby reduced by 
     $194,500,000, to reflect a reduction in the pass-through to 
     the Air Force business areas of the Defense Business 
     Operations Fund.
       Sec. 8097. (a) None of the funds appropriated or otherwise 
     made available in this Act may be used to transport or 
     provide for the transportation of chemical munitions or 
     agents to the Johnston Atoll for the purpose of storing or 
     demilitarizing such munitions or agents.
       (b) The prohibition in subsection (a) shall not apply to 
     any obsolete World War II chemical munition or agent of the 
     United States found in the World War II Pacific Theater of 
     Operations.
       (c) The President may suspend the application of subsection 
     (a) during a period of war in which the United States is a 
     party.
       Sec. 8098. None of the funds provided in title II of this 
     Act for ``Former Soviet Union Threat Reduction'' may be 
     obligated or expended to finance housing for any individual 
     who was a member of the military forces of the Soviet Union 
     or for any individual who is or was a member of the military 
     forces of the Russian Federation.
       Sec. 8099. During the current fiscal year, no more than 
     $15,000,000 of appropriations made in this Act under the 
     heading ``Operation and Maintenance, Defense-Wide'' may be 
     transferred to appropriations available for the pay of 
     military personnel, to be merged with, and to be available 
     for the same time period as the appropriations to which 
     transferred, to be used in support of such personnel in 
     connection with support and services for eligible 
     organizations and activities outside the Department of 
     Defense pursuant to section 2012 of title 10, United States 
     Code.
       Sec. 8100. Beginning in fiscal year 1997 and thereafter, 
     and notwithstanding any other provision of law, fixed and 
     mobile telecommunications support shall be provided by the 
     White House Communications Agency (WHCA) to the United States 
     Secret Service (USSS), without reimbursement, in connection 
     with the Secret Service's duties directly related to the 
     protection of the President or the Vice President or other 
     officer immediately next in order of succession to the office 
     of the President at the White House Security Complex in the 
     Washington, D.C. Metropolitan Area and Camp David, Maryland. 
     For these purposes, the White House Security Complex includes 
     the White House, the White House grounds, the Old Executive 
     Office Building, the New Executive Office Building, the Blair 
     House, the Treasury Building, and the Vice President's 
     Residence at the Naval Observatory.
       Sec. 8101. None of the funds provided in this Act may be 
     obligated or expended for the sale of zinc in the National 
     Defense Stockpile if zinc commodity prices decline more than 
     five percent below the London Metals Exchange market price 
     reported on the date of enactment of this Act.
       Sec. 8102. For purposes of section 1553(b) of title 31, 
     United States Code, any subdivision of appropriations made in 
     this Act under the heading ``Shipbuilding and Conversion, 
     Navy'' shall be considered to be for the same purpose as any 
     subdivision under the heading ``Shipbuilding and Conversion, 
     Navy'' appropriations in any prior year, and the one percent 
     limitation shall apply to the total amount of the 
     appropriation.
       Sec. 8103. During the current fiscal year, and 
     notwithstanding 31 U.S.C. 1552(a), not more than $107,000,000 
     appropriated under the heading ``Aircraft Procurement, Air 
     Force'' in Public Law 101-511 and not more than $15,000,000 
     appropriated under the heading ``Aircraft Procurement, Air 
     Force'' in Public Law 102-172 which were available and 
     obligated for the B-2 Aircraft Program shall remain available 
     for expenditure and for adjusting obligations for such 
     Program until September 30, 2002.
       Sec. 8104. During the current fiscal year, in the case of 
     an appropriation account of the Department of Defense for 
     which the period of availability for obligation has expired 
     or which has closed under the provisions of section 1552 of 
     title 31, United States Code, and which has a negative 
     unliquidated or unexpended balance, an obligation or an 
     adjustment of an obligation may be charged to any current 
     appropriation account for the same purpose as the expired or 
     closed account if--
       (1) the obligation would have been properly chargeable 
     (except as to amount) to the expired or closed account before 
     the end of the period of availability or closing of that 
     account;
       (2) the obligation is not otherwise properly chargeable to 
     any current appropriation account of the Department of 
     Defense; and
       (3) in the case of an expired account, the obligation is 
     not chargeable to a current appropriation of the Department 
     of Defense under the provisions of section 1405(b)(8) of the 
     National Defense Authorization Act for Fiscal Year 1991, 
     Public Law 101-510, as amended (31 U.S.C. 1551 note): 
     Provided, That in the case of an expired account, if 
     subsequent review or investigation discloses that there was 
     not in fact a negative unliquidated or unexpended balance in 
     the account, any charge to a current account under the 
     authority of this section shall be reversed and recorded 
     against the expired account: Provided further, That the total 
     amount charged to a current appropriation under this section 
     may not exceed an amount equal to one percent of the total 
     appropriation for that account.


                          (transfer of funds)

       Sec. 8105. Upon enactment of this Act, the Secretary of 
     Defense shall make the following transfers of funds: 
     Provided, That the amounts transferred shall be available for 
     the same purposes as the appropriations to which transferred, 
     and for the same time period as the appropriation from which 
     transferred: Provided further, That the amounts shall be 
     transferred between the following appropriations in the 
     amount specified:
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1985/1995'':
       CG-47 cruiser program, $4,300,000;
       For craft, outfitting, and post delivery, $2,000,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1985/1995'':
       DDG-51 destroyer program, $6,300,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1986/1996'':
       LHD-1 amphibious assault ship program, $2,154,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1986/1996'':
       For craft, outfitting and post delivery, $2,154,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1987/1996'':
       T-AO fleet oiler program, $1,095,000;
       Oceanographic ship program, $735,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1987/1996'';
       For craft, outfitting, and post delivery, $1,830,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/2000'':
       T-AO fleet oiler program, $6,571,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1989/2000'';
       SSN-21 attack submarine program, $6,571,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/2001'':
       DDG-51 destroyer program, $12,687,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1991/2001'';
       LHD-1 amphibious assault ship program, $9,387,000;
       MHC coastal mine hunter program, $3,300,000
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1992/1996'':
       For escalation, $1,600,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1992/1996'';
       MHC coastal mine hunter program, $1,600,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1993/1997'':

[[Page H11674]]

       DDG-51 destroyer program, $5,000,000;
       LSD-41 cargo variant ship program, $2,700,000;
       For craft, outfitting, post delivery, and first destination 
     transportation, and inflation adjustment, $1,577,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1993/1997'';
       AOE combat support ship program, $9,277,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/1999'':
       Carrier replacement program, $18,023,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1993/1997'';
       MHC coastal mine hunter program, $6,7000,000;
       AOE combat support ship program, $11,323,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/1998'':
       LHD-1 amphibious assault ship program, $4,1000,000;
       Mine warfare command and control ship, $1,000,000;
       For craft, outfitting, post delivery, and first destination 
     transportation, $2,000,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/1999'':
       Carrier replacement program, $9,477,000;
       From:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1996/2000'':
       NSSN-1 (AP), $3,791,000;
       DDG-51 destroyer program, $4,075,000;
       CVN Refuelings, $5,212,000;
       LHD-1 amphibious ship program, $16,800,000;
       T-AGS-64 multi-purpose oceanographic survey ship, $375,000;
       For craft, outfitting, post delivery, conversions and first 
     destination transportation, $11,770,000;
       To:
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1994/1998'':
       DDG-51 destroyer program, $41,800,000; and
       Under the heading, ``Shipbuilding and Conversion, Navy, 
     1995/1999'':
       For craft, outfitting, post delivery, conversions and first 
     destination transportation, $16,800,000.
       Sec. 8106. (a) The Secretary of Defense shall require not 
     later than June 30, 1997, each disbursement by the Department 
     of Defense in an amount in excess of $3,000,000 be matched to 
     a particular obligation before the disbursement is made.
       (b) The Secretary shall ensure that a disbursement in 
     excess of the threshold amount applicable under section (a) 
     is not divided into multiple disbursements of less than that 
     amount for the purpose of avoiding the applicability of such 
     section to that disbursement.
       Sec. 8107. Notwithstanding any other provision of law, the 
     Air Force shall not introduce any new supplier for the 
     remaining production units for the AN/ALE-47 Countermeasures 
     Dispenser System without conducting a full and open 
     competition that will include, but not be limited to, small 
     businesses.
       Sec. 8108. The Under Secretary of Defense (Comptroller) 
     shall submit to the congressional defense committees a 
     detailed report identifying, by amount and by separate budget 
     activity, activity group, subactivity group, line item, 
     program element, program, project, subproject, and activity, 
     any activity for which the fiscal year 1998 budget request 
     was reduced because Congress appropriated funds above the 
     President's budget request for that specific activity for 
     fiscal year 1997.
       Sec. 8109. In applying section 9005 of the Department of 
     Defense Appropriations Act, 1993, Public Law 102-396 (10 
     U.S.C. 2241 note), during the current fiscal year and 
     thereafter--
       (1) the term ``synthetic fabric and coated synthetic 
     fabric'' shall be deemed to include all textile fibers and 
     yarns that are for use in such fabrics; and
       (2) such section shall be treated, notwithstanding section 
     34 of Public Law 93-400 (41 U.S.C. 430), as being applicable 
     to contracts and subcontracts for the procurement of 
     commercial items that are articles or items, specialty 
     metals, or tools covered by that section 9005.
       Sec. 8110. Notwithstanding any other provision of law, 
     including Section 2304(j) of title 10, United States Code, of 
     the funds appropriated under the heading ``Aircraft 
     Procurement, Navy'' in Public Law 104-61, $45,000,000 shall 
     be made available only for acquisition of T-39N aircraft, 
     associated ground-based training system (GBTS), service life 
     extension related components and parts, associated equipment, 
     and data that meet the Undergraduate Flight Officer (UNFO) 
     training requirements by procurement of the T-39N aircraft 
     currently being used by the Navy for UNFO training under a 
     services contract.
       Sec. 8111. Trade-off Study of Current and Future Deep-
     Strike Capabilities.--
       (1) The Secretary of Defense shall carry out the deep-
     strike tradeoff study announced by the President to study 
     tradeoffs between bombers, land and sea-based tactical 
     aircraft, and missiles capable of striking targets in an 
     enemy's rear area.
       (2) The Secretary of Defense shall establish an ad hoc 
     review committee under the auspices of the Defense Science 
     Board to establish the methodological approach to the 
     tradeoff study, to establish a broad range of stressing 
     scenarios of interest, and to review assumptions regarding 
     the analysis to be conducted.
       (3) The ad hoc review committee to be established under 
     paragraph (2) shall include among its members analysts who 
     have performed or participated in bomber tradeoff analysis, 
     retired military personnel with broad experience in recent 
     conventional warfare operations, and experts on the logistics 
     of both initial deployment and sustaining support. These 
     members shall be selected without regard for current service 
     on the Defense Science Board.
       (4) After submitting its recommendations for the conduct of 
     the deep-strike tradeoff study to the Secretary of Defense 
     the ad hoc review committee shall continue to meet regularly 
     to review preliminary results of the analysis and to 
     recommend additional variations in assumptions that may be 
     required to illuminate particular force tradeoff issues.
       Sec. 8112. Notwithstanding 31 U.S.C. 1552(a), of the funds 
     provided in Department of Defense Appropriations Acts, not 
     more than the specific amounts of funds from the following 
     accounts shall remain available for the payment of satellite 
     on-orbit incentive fees until the fees are paid:
       ``Missile Procurement, Air Force, 1990/1992'', $17,800,000;
       ``Missile Procurement, Air Force, 1991/1993'', $19,330,000;
       ``Missile Procurement, Air Force, 1992/1994'', $23,570,000;
       ``Missile Procurement, Air Force, 1993/1995'', $16,780,000;
       ``Missile Procurement, Air Force, 1994/1996'', $16,780,000;
     Sec. 8113. Tactical Aircraft Requirement Study.--The 
     Secretary of Defense and the Chairman of the Joint Chiefs of 
     Staff shall carry out a joint study under the direct 
     supervision of the Joint Requirements Oversight Council 
     (JROC) assessing future tactical aircraft requirement across 
     service jurisdictions. This study shall determine the best 
     and most affordable mix of weapon systems to carry out 
     different mission areas and shall include recommendations for 
     changes to the planned numbers and types of tactical aircraft 
     to be developed and procured over the next ten years if 
     appropriate. Such report shall be submitted to the 
     congressional defense committees no later than March 30, 
     1997.
       Sec. 8114. None of the funds available to the Department of 
     the Navy may be used to enter into any contract for the 
     overhaul, repair, or maintenance of any naval vessel 
     homeported on the West Coast of the United States which 
     includes charges for interport differential as an evaluation 
     factor for award.
       Sec. 8115. (a) None of the funds available to the 
     Department of Defense under this Act may be obligated or 
     expended to reimburse a defense contractor for restructuring 
     costs associated with a business combination of the defense 
     contractor that occurs after the date of enactment of this 
     Act unless:
       (10 the audible savings for the Department of Defense 
     resulting from the restructuring will exceed the costs 
     allowed by a factor of at least two to one, or
       (2) the savings for the Department of Defense resulting 
     from the restructuring will exceed the costs allowed and the 
     Secretary of Defense determines that the business combination 
     will result in the preservation of a critical capability that 
     might otherwise be lost to the Department, and
       (3) the report required by Section 818(c) of Public Law 
     103-337 to be submitted to Congress in 1996 is submitted.
       (b) Not later than April 1, 1997, the Comptroller General 
     shall, in consultation with the Inspector General of the 
     Department of Defense, the Secretary of Defense, and the 
     Secretary of Labor, submit to Congress a report which shall 
     include the following:
       (1) an analysis and breakdown of the restructuring costs 
     paid by or submitted to the Department of Defense to 
     companies involved in business combinations since 1993;
       (2) an analysis of the specific costs associated with 
     workforce reductions;
       (3) an analysis of the services provided to the workers 
     affected by business combinations;
       (4) an analysis of the effectiveness of the restructuring 
     costs used to assist laid off workers in gaining employment;
       (5) in accordance with section 818 of Public Law 103-337, 
     an analysis of the savings reached from the business 
     combination relative to the restructuring costs paid by the 
     Department of Defense.
       (c) The report should set forth recommendations to make 
     this program more effective for workers affected by business 
     combinations and more efficient in terms of the use of 
     Federal dollars.
       Sec. 8116. Notwithstanding any other provision of law, none 
     of the funds appropriated in this Act may be used to 
     purchase, install, replace, or otherwise repair any lock on a 
     safe or security container which protects information 
     critical to national security or any other classified 
     materials and which has not been certified as passing the 
     security lock specifications contained in regulation FF-L-
     2740 dated October 12, 1989, and has not passed all testing 
     criteria and procedures established through February 28, 
     1992: Provided, That the Director of Central Intelligence may 
     waive this provision, on a case-by-case basis only, upon 
     certification that the above cited locks are not adequate for 
     the protection of sensitive intelligence information.
       Sec. 8117. Section 8110 of Public Law 104-61 (109 Stat. 
     674) is hereby repealed.
       Sec. 8118. The Secretary of Defense, in conjunction with 
     the Secretary of Labor, shall take such steps as required to 
     ensure that those Department of Defense contractors and other 
     entities subject to section 4212(d) of title 38, United 
     States Code are aware of, and in compliance with, the 
     requirements of that section regarding submission of an 
     annual report to the Secretary of Labor concerning employment 
     of certain veterans: Provided, That the Secretary of Defense 
     shall ensure that those Department of Defense contractors and 
     other entities subject to section 4212(d) of title 38, United 
     States Code which

[[Page H11675]]

     have contracts with the Department of Defense are notified of 
     the potential penalties associated with failure to comply 
     with these annual reporting requirements (including potential 
     suspension or debarment from federal contracting): Provided 
     further, That within 180 days of enactment of this Act the 
     Secretary of Labor and the Secretary of Defense shall submit 
     a report to Congress which--
       (1) using the most recent reporting data, details the 
     number of reports received from Department of Defense 
     contractors and the estimated number of Department of Defense 
     contractors which are not in compliance with these annual 
     reporting requirements;
       (2) describes the steps taken by the Departments of Labor 
     and Defense in order to ensure compliance with section 
     4212(d) of title 38, United States Code;
       (3) describes any additional measures taken or planned to 
     be taken by the Departments of Labor and Defense to improve 
     compliance with section 4212(d) of title 38, United States 
     Code pursuant to this section; and
       (4) any further recommendations regarding additional action 
     (including changes in existing law) which may be necessary to 
     improve compliance with section 4212(d) of title 38, United 
     States Code.
       Sec. 8119. Funds appropriated in title II of this Act for 
     supervision and administration costs for facilities 
     maintenance and repair, minor construction, or design 
     projects may be obligated at the time the reimbursable order 
     is accepted by the performing activity: Provided, That for 
     the purpose of this section, supervision and administration 
     costs includes all in-house Government cost.
       Sec. 8120. (a) Limitation on Advance Billing.--During 
     fiscal year 1997, advance billing for services provided or 
     work performed by the Defense Business Operations Fund 
     activities of the Department of the Navy in excess of 
     $1,000,000,000 is prohibited.
       (b) Revised Rates; Additional Surcharges.--In conjunction 
     with the Under Secretary of Defense (Comptroller), the 
     Secretary of the Navy shall develop a plan to revise fiscal 
     year 1997 customer rates or establish additional surcharges 
     so as to increase revenues to the Defense Business Operations 
     Fund by at least an additional $500,000,000 in executing 
     orders accepted during fiscal year 1997.
       (c) Transfer Authority.--To the extent necessary to comply 
     with any rate increase or new surcharge on rates in fiscal 
     year 1997 established under subsection (b), the Secretary of 
     the Navy shall transfer at least $500,000,000, from funds 
     made available under subsection (d), into customer accounts 
     of the Navy used to reimburse the Defense Business Operations 
     Fund so as to provide customers with sufficient resources to 
     pay the increased customer rates and additional surcharges. 
     The transfer authority provided by this subsection is in 
     addition to other transfer authority provided in this Act. 
     The funds transferred shall be merged with and available for 
     the same purposes, and for the same time period, as the 
     appropriation to which transferred.
       (d) Source of Funds.--To provide funds for transfer under 
     subsection (c), the amounts appropriated elsewhere in this 
     Act for the following appropriation accounts are reduced by 
     2.0 percent: Aircraft Procurement, Navy; Weapons Procurement, 
     Navy; Procurement of Ammunition, Navy and Marine Corps; 
     Shipbuilding and Conversion, Navy; Other Procurement, Navy; 
     and Research, Development, Test and Evaluation, Navy. These 
     reductions shall be applied on a pro-rata basis to each line 
     item, program element, program, project, subproject, and 
     activity within each appropriation account.
       Sec. 8121. The Secretary of Defense may waive reimbursement 
     of the cost of conferences, seminars, courses of instruction, 
     or similar educational activities of the Asia-Pacific Center 
     for Security Studies for military officers and civilian 
     officials of foreign nations if the Secretary determines that 
     attendance by such personnel, without reimbursement, is in 
     the national security interest of the United States: 
     Provided, That costs for which reimbursement is waived 
     pursuant to this subsection shall be paid from appropriations 
     available for the Asia-Pacific Center.
       Sec. 8122. (a) Of the amounts appropriated or otherwise 
     made available by this Act for the Department of the Air 
     Force, $2,000,000 shall be available only for a facility at 
     Lackland Air Force Base, Texas to provide comprehensive care 
     and rehabilitation services to children with disabilities who 
     are dependents of members of the Armed Forces.
       (b) Subject to subsection (c), the Secretary of the Air 
     Force shall grant the funds made available under subsection 
     (a) to the Children's Association for Maximum Potential 
     (CAMP) for use by the association to defray the costs of 
     designing and constructing the facility referred to in 
     subsection (a).
       (c)(1) The Secretary may not make a grant of funds under 
     subsection (b) until the Secretary and the association enter 
     into an agreement under which the Secretary leases to the 
     association the facility to be constructed using the funds.
       (2) The term of the lease under subsection (c)(1) may not 
     be less than 25 years.
       (3) The Secretary may require such additional terms and 
     conditions in connection with the lease as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
       Sec. 8123. None of the funds appropriated by this Act may 
     be obligated or expended--
       (1) to reduce the number of units of special operations 
     forces of the Army National Guard during fiscal year 1997;
       (2) to reduce the authorized strength of any such unit 
     below the strength authorized for the unit as of September 
     30, 1996; or
       (3) to apply any administratively imposed limitation on the 
     assigned strength of any such unit at less than the strength 
     authorized for that unit as of September 30, 1996.
       Sec. 8124. (a) The Secretary of the Army shall ensure that 
     solicitations for contracts for unrestricted procurement to 
     be entered into using funds appropriated for the Army by this 
     Act include, where appropriate, specific goals for 
     subcontracts with small businesses, small disadvantaged 
     businesses, and women owned small businesses.
       (b) The Secretary shall ensure that any subcontract entered 
     into pursuant to a solicitation referred to in subsection (a) 
     that meets a specific goal referred to in that subsection is 
     credited toward the overall goal of the Army for subcontracts 
     with the businesses referred to in that subsection.
       Sec. 8125. (a) The Secretary of the Air Force and the 
     Director of the Office of Personnel Management shall submit a 
     joint report describing in detail the benefits, allowances, 
     services, and any other forms of assistance which may or 
     shall be provided to any civilian employee of the Federal 
     Government or to any private citizen, or to the family of 
     such an individual, who is injured or killed while traveling 
     on an aircraft owned, leased, chartered, or operated by the 
     Government of the United States.
       (b) The report required by subsection (a) above shall be 
     submitted to the congressional defense committees and to the 
     Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform and Oversight of the House of 
     Representatives not later than December 15, 1996.
       Sec. 8126. (a) Not later than March 1, 1997, the Deputy 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on Department of Defense 
     procurements of propellant raw materials.
       (b) The report shall include the following:
       (1) The projected future requirements of the Department of 
     Defense for propellant raw materials, such as nitrocellulose.
       (2) The capacity, ability, and production cost rates of the 
     national technology and industrial base, including 
     Government-owned, contractor-operated facilities, contractor-
     owned and operated facilities, and Government-owned, 
     Government-operated facilities, for meeting such 
     requirements.
       (3) The national security benefits of preserving in the 
     national technology and industrial base contractor-owned and 
     operated facilities for producing propellant raw materials, 
     including nitrocellulose.
       (4) The extent to which the cost rates for production of 
     nitrocellulous in Government-owned, contractor-operated 
     facilities is lower because of the relationship of those 
     facilities with the Department of Defense than such rates 
     would be without that relationship.
       (5) The advantages and disadvantages of permitting 
     commercial facilities to compete for award of Department of 
     Defense contracts for procurement of propellant raw 
     materials, such as nitrocellulose.
       Sec. 8127. Not later than six months after the date of the 
     enactment of this Act the Secretary of the Air Force shall 
     submit to Congress a cost-benefit analysis of consolidating 
     the ground station infrastructure of the Air Force that 
     supports polar orbiting satellites.


                     (including transfer of funds)

       Sec. 8128. In addition to the amounts appropriated 
     elsewhere in this Act, $100,000,000 is appropriated for 
     defense against weapons of mass destruction: Provided, That 
     the funds appropriated under this section may be transferred 
     to and merged with funds appropriated elsewhere in this Act 
     and that this transfer authority shall be in addition to any 
     other transfer authority provided under this Act: Provided 
     further, That of the funds made available by this section, 
     $10,000,000 shall be transferred to and merged with funds 
     appropriated in this Act for ``Procurement, Marine Corps'' 
     and shall be available only for the procurement of equipment 
     that enhances the capability of the Chemical-Biological 
     Incident Response Force to respond to incidents of terrorism.
       Sec. 8129. The Secretary of Defense, in consultation with 
     the Secretary of Health and Human Services and the Director 
     of the Office of Personnel Management, shall submit a report 
     to the congressional defense committees by February 1, 1997 
     containing recommendations regarding the establishment of a 
     demonstration program under which covered beneficiaries under 
     chapter 55 of title 10, United States Code, who are entitled 
     to benefits under part A of the medicare program and who do 
     not have access to TRICARE, would be permitted to enroll in a 
     health benefits program offered through the Federal Employees 
     Health Benefits Program under chapter 89 of title 5, United 
     States Code.
       Sec. 8130. (a) Section 203 of H.R. 3230, the National 
     Defense Authorization Act for Fiscal Year 1997, as passed by 
     the Senate on September 10, 1996, is hereby amended by 
     repealing section 203(a), section 203(c), and section 203(e).
       (b) The amendments made by section (a) shall take effect as 
     of the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1997 as if section 203 of 
     such Act had been enacted as so amended.
       Sec. 8131. (a) Section 722(c) of the National Defense 
     Authorization Act for Fiscal Year 1997 is amended--
       (1) by striking out paragraph (2);
       (2) by striking out ``(1)''; and
       (3) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively.
       (b) The amendments made by subsection (a) shall take effect 
     as of the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1997 as if section 722 of 
     such Act had been enacted as so amended.
       Sec. 8132. The Secretary of Defense shall complete a cost/
     benefit analysis on the establishment of a National Missile 
     Defense Joint Program Office: Provided, That the Secretary of

[[Page H11676]]

     Defense shall submit a report on this analysis to the 
     congressional defense committees not later than March 31, 
     1997: Provided further, That the Department of Defense shall 
     take no action to establish any National Missile Defense 
     Joint Program Office, to reassign service National Missile 
     Defense roles and missions under any National Missile Defense 
     Joint Program Office strategy or to relocate people under 
     such a strategy prior to March 31, 1997.
       Sec. 8133. (a) Notwithstanding any other provision of law, 
     the Chief of the National Guard Bureau may permit the use of 
     equipment of the National Guard Distance Learning Project by 
     any person or entity on a space-available, reimbursable 
     basis. The Chief of the National Guard Bureau shall establish 
     the amount of reimbursement for such use on a case-by-case 
     basis.
       (b) Amounts collected under subsection (a) shall be 
     credited to funds available for the National Guard Distance 
     Learning Project and be available to defray the costs 
     associated with the use of equipment of the project under 
     that subsection. Such funds shall be available for such 
     purposes without fiscal year limitation.
       Sec. 8134. Using funds available by this Act or any other 
     Act, the Secretary of the Air Force, pursuant to a 
     determination under section 2690 of title 10, United States 
     Code, may implement cost-effective agreements for required 
     heating facility modernization in the Kaiserslautern Military 
     Community in the Federal Republic of Germany: Provided, That 
     in the City of Kaiserslautern such agreements will include 
     the use of United States anthracite as the base load energy 
     for municipal district heat to the United States Defense 
     installations: Provided further, That at Landstuhl Army 
     Regional Medical Center and Ramstein Air Base, furnished heat 
     may be obtained from private, regional or municipal services, 
     if provisions are included for the consideration of United 
     States coal as an energy source.
       Sec. 8135. (a) Section 2867 of the National Defense 
     Authorization Act for Fiscal Year 1997 is amended--
       (1) by striking out ``Michael O'Callaghan Military 
     Hospital'' both places it appears in the text of such section 
     and inserting in lieu thereof ``Mike O'Callaghan Federal 
     Hospital''; and
       (2) in the section heading, by striking out ``MICHAEL 
     O'CALLAGHAN MILITARY HOSPITAL'' and inserting in lieu thereof 
     ``MIKE O'CALLAGHAN FEDERAL HOSPITAL''.
       (b) The amendments made by subsection (a) shall take effect 
     as of the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 1997 and shall apply as if 
     such amendments had been included insection 2867 of such Act 
     when enacted.
       Sec. 8136. (a) In addition to any other reductions required 
     by this Act, the following funds are hereby reduced from the 
     following accounts in title IV of this Act in the specified 
     amounts:
       ``Research, Development, Test and Evaluation, Army'', 
     $101,257,000;
       ``Research, Development, Test and Evaluation, Navy'', 
     $164,179,000;
       ``Research, Development, Test and Evaluation, Air Force'', 
     $289,992,000;
       ``Research, Development, Test and Evaluation, Defense-
     Wide'', $119,483,000;
       Developmental Test and Evaluation, Defense'', $5,641,000.
       (b) The reductions taken pursuant to subsection (a) shall 
     be applied on a pro-rata basis by subproject within each R-1 
     program element as modified by this Act, except that no 
     reduction may be taken against the funds made available to 
     the Department of Defense for Ballistic Missile Defense.
       (c) Unless expressly exempted by subsection (b), each 
     program element, program, project, subproject, and activity 
     funded by title IV of this Act shall be allocated a pro-rata 
     share of any of the reductions made by this section.
       (d) Not later than 60 days after enactment of this Act, the 
     Secretary of Defense shall submit to the Congressional 
     defense committees a report listing the specific funding 
     reductions allocated to each category listed in subsection 
     (c) above pursuant to this section.
       Sec. 8137. In addition to amounts appropriated or otherwise 
     made available in this Act, $230,680,000 is hereby 
     appropriated to the Department of Defense for anti-terrorism, 
     counter-terrorism, and security enhancement programs and 
     activities, as follows:
       ``Operation and Maintenance, Army'', $15,249,000;
       ``Operation and Maintenance, Navy'', $23,956,000;
       ``Operation and Maintenance, Marine Corps'', $600,000;
       ``Operation and Maintenance, Air Force'', $10,750,000;
       ``Operation and Maintenance, Defense-Wide'', $29,534,000;
       ``Operation and Maintenance, Navy Reserve'', $517,000;
       ``Other Procurement, Army'', $5,252,000;
       ``Other Procurement, Air Force'', $101,472,000;
       ``Procurement, Defense-Wide'', $35,350,000;
       ``Research, Development, Test and Evaluation, Defense-
     Wide'', $8,000,000:

     Provided, That such amounts in their entirety are designated 
     by Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended: Provided further, That funds 
     appropriated in this section, or made available by transfer 
     of such funds, for programs and activities of the Central 
     Intelligence Agency shall remain available until September 
     30, 1997: Provided further, That funds appropriated in this 
     section, or made available by transfer of such funds, to any 
     intelligence agency or activity of the United States 
     Government shall be deemed to be specifically authorized by 
     the Congress for purposes of section 504 of the National 
     Security Act of 1947 (50 U.S.C. 414).
       Sec. 8138. Of the amounts provided in Titles I though VIII 
     of this Act, $230,680,000 are permanently canceled: Provided, 
     That the Secretary of Defense shall allocate the amount of 
     budgetary resources canceled by this section on a pro-rata 
     basis among each budget activity, activity group and 
     subactivity group and each program, project or activity 
     within each appropriations account.
       Titles I through VIII of this Act may be cited as the 
     ``Department of Defense Appropriations Act, 1997''

TITLE IX--FISCAL YEAR 1996 SUPPLEMENTAL APPROPRIATIONS AND RESCISSIONS 
    FOR ANTI-TERRORISM, COUNTER-TERRORISM, AND SECURITY ENHANCEMENT 
                               ACTIVITIES

       The following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, to provide emergency 
     supplemental appropriations for the Department of Defense for 
     the fiscal year ending September 30, 1996, namely:

                    DEPARTMENT OF DEFENSE--MILITARY

                           Military Personnel


                        military personnel, army

       For an additional amount for ``Military Personnel, Army'', 
     $4,800,000: Provided, That such amount is designated by 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.


                     military personnel, air force

       For an additional amount for ``Military Personnel, Air 
     Force'', $4,000,000: Provided, That such amount is designated 
     by Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.

                       Operation and Maintenance


                    operation and maintenance, army

       For an additional amount for ``Operation and Maintenance, 
     Army'', $21,200,000, to remain available until September 30, 
     1997: Provided, That such amount is designated by Congress as 
     an emergency requirement pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.


                  operation and maintenance, air force

       For an additional amount for ``Operation and Maintenance, 
     Air Force'', $67,400,000, to remain available until September 
     30, 1997: Provided, That such amount is designated by 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended: Provided further, That these 
     funds may be used to liquidate obligations incurred by the 
     Air Force during fiscal year 1996 for costs incurred under 
     the authority of the Feed and Forage Act (41 U.S.C. 11).

                              Procurement


                        other procurement, army

       For an additional amount for ``Other Procurement, Army'', 
     $11,600,000, to remain available until September 30, 1998: 
     Provided, That such amount is designated by Congress as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.


                      other procurement, air force

       For an additional amount for ``Other Procurement, Air 
     Force'', $13,600,000, to remain available until September 30, 
     1998: Provided, That such amount is designated by Congress as 
     an emergency requirement pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.

                           General Provisions


                             (rescissions)

       Sec. 9001. Of the funds provided in Department of Defense 
     Appropriations Acts, the following funds are hereby 
     rescinded, as of the date of enactment of this Act, from the 
     following accounts in the specified amounts:
      ``Procurement of Ammunition, Army, 1994/1996'', $1,000,000;
      ``Other Procurement, Army, 1994/1996'', $6,000,000;
      ``Research, Development, Test and Evaluation, Army, 1995/
     1996'', $2,055,000;
      ``Aircraft Procurement, Navy, 1994/1996'', $10,157,000;
      ``Weapons Procurement, Navy 1994/1996'', $10,688,000;
      ``Other Procurement, Navy, 1994/1996'', $4,000,000;
      ``Research, Development, Test and Evaluation, Navy, 1995/
     1996'', $6,909,000;
      ``Aircraft Procurement, Air Force, 1994/1996'', $18,771,000;
      ``Missile Procurement, Air Force, 1994/1996'', $10,156,000;
      ``Other Procurement, Air Force, 1994/1996'', $14,395,000;
      ``Research, Development, Test and Evaluation, Air Force, 
     1995/1996'', $4,918,000;
      ``Procurement, Defense-Wide, 1994/1996'', $9,954,000;
      ``Research, Development, Test and Evaluation, Defense-Wide, 
     1995/1996'', $23,597,000.
       Sec. 9002. Funds appropriated by this title, or made 
     available by transfer of such funds, for programs and 
     activities of the Central Intelligence Agency shall remain 
     available until September 30, 1997: Provided, That funds 
     appropriated by this title, or made available by transfer of 
     such funds, to any intelligence agency, or intelligence 
     activity of the United States Government shall be deemed to 
     be specifically authorized by the Congress for purposes of 
     section 504 of the National Security Act of 1947 (50 U.S.C. 
     414).

[[Page H11677]]

       (c) For programs, projects or activities in the Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act, 1997, provided as follows, to be 
     effective as if it had been enacted into law as the regular 
     appropriations Act:
     AN ACT making appropriations for the foreign operations, 
     export financing, and related programs for the fiscal year 
     ending September 30, 1997, and for other purposes

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE


                export-import bank of the united states

       The Export-Import Bank of the United States is authorized 
     to make such expenditures within the limits of funds and 
     borrowing authority available to such corporation, and in 
     accordance with law, and to make such contracts and 
     commitments without regard to fiscal year limitations, as 
     provided by section 104 of the Government Corporation Control 
     Act, as may be necessary in carrying out the program for the 
     current fiscal year for such corporation: Provided, That none 
     of the funds available during the current fiscal year may be 
     used to make expenditures, contracts, or commitments for the 
     export of nuclear equipment, fuel, or technology to any 
     country other than a nuclear-weapon State as defined in 
     Article IX of the Treaty on the Non-Proliferation of Nuclear 
     Weapons eligible to receive economic or military assistance 
     under this Act that has detonated a nuclear explosive after 
     the date of enactment of this Act.


                         subsidy appropriation

       For the cost of direct loans, loan guarantees, insurance, 
     and tied-aid grants as authorized by section 10 of the 
     Export-Import Bank Act of 1945, as amended, $726,000,000 to 
     remain available until September 30, 1998: Provided, That 
     such costs, including the cost of modifying such loans, shall 
     be as defined in section 502 of the Congressional Budget Act 
     of 1974: Provided further, That such sums shall remain 
     available until 2012 for the disbursement of direct loans, 
     loan guarantees, insurance and tied-aid grants obligated in 
     fiscal years 1997 and 1998: Provided further, That up to 
     $50,000,000 of funds appropriated by this paragraph shall 
     remain available until expended and may be used for tied-aid 
     grant purposes; Provided further, That none of the funds 
     appropriated by this paragraph may be used for tied-aid 
     credits or grants except through the regular notification 
     procedures of the Committees on Appropriations: Provided 
     further, That funds appropriated by this paragraph are made 
     available notwithstanding section 2(b)(2) of the Export-
     Import Bank Act of 1945, in connection with the purchase or 
     lease of any product by any East European country, any Baltic 
     State, or any agency or national thereof.


                        administrative expenses

       For administrative expenses to carry out the direct and 
     guaranteed loan and insurance programs (to be computed on an 
     accrual basis), including hire of passenger motor vehicles 
     and services as authorized by 5 U.S.C. 3109, and not to 
     exceed $20,000 for official reception and representation 
     expenses for members of the Board of Directors, $46,614,000: 
     Provided, That necessary expenses (including special services 
     performed on a contract or fee basis, but not including other 
     personal services) in connection with the collection of 
     moneys owed the Export-Import Bank, repossession or sale of 
     pledged collateral or other assets acquired by the Export-
     Import Bank in satisfaction of moneys owed the Export-Import 
     Bank, or the investigation or appraisal of any property, or 
     the evaluation of the legal or technical aspects of any 
     transaction for which an application for a loan, guarantee or 
     insurance commitment has been made, shall be considered 
     nonadministrative expenses for the purposes of this heading: 
     Provided further, That, effective July 21, 1997, 
     notwithstanding any other provision of law, none of the funds 
     made available by this or any other Act may be made available 
     to compensate the incumbent Chairman and President of the 
     Export-Import Bank: Provided further, That, notwithstanding 
     subsection (b) of section 117 of the Export Enhancement Act 
     of 1992, subsection (a) thereof shall remain in effect until 
     October 1, 1997.


       overseas private investment corporation noncredit account

       The Overseas Private Investment Corporation is authorized 
     to make, without regard to fiscal year limitations, as 
     provided by 31 U.S.C. 9104, such expenditures and commitments 
     within the limits of funds available to it and in accordance 
     with law as may be necessary: Provided, That the amount 
     available for administrative expenses to carry out the credit 
     and insurance programs (including an amount for official 
     reception and representation expenses which shall not exceed 
     $35,000) shall not exceed $32,000,000: Provided further, That 
     project-specific transaction costs, including direct and 
     indirect costs incurred in claims settlements, and other 
     direct costs associated with services provided to specific 
     investors or potential investors pursuant to section 234 of 
     the Foreign Assistance Act of 1961, shall not be considered 
     administrative expenses for the purposes of this heading.


                            program account

       For the cost of direct and guaranteed loans, $72,000,000, 
     as authorized by section 234 of the Foreign Assistance Act of 
     1961: Provided, That such costs, including the cost of 
     modifying such loans, shall be as defined in section 502 of 
     the Congressional Budget Act of 1974: Provided further, That 
     such sums shall be available for direct loan obligations and 
     loan guaranty commitments incurred or made during fiscal 
     years 1997 and 1998: Provided further, That such sums shall 
     remain available through fiscal year 2005 for the 
     disbursement of direct and guaranteed loans obligated in 
     fiscal year 1997, and through fiscal year 2006 for the 
     disbursement of direct and guaranteed loans obligated in 
     fiscal year 1998: Provided further, That section 235(a)(3) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)(3)) is 
     amended by striking out ``1996'' and inserting in lieu 
     thereof ``1997'' and, notwithstanding section 235(a)(1) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)(1)), 
     the maximum contingent liability of issuing authority for 
     insurance and financing shall not in the aggregate exceed the 
     amounts provided in section 235(a)(1) and (2) of that Act. In 
     addition, such sums as may be necessary for administrative 
     expenses to carry out the credit program may be derived from 
     amounts available for administrative expenses to carry out 
     the credit and insurance programs in the Overseas Private 
     Investment Corporation Noncredit Account and merged with said 
     account.

                  Funds Appropriated to the President


                      trade and development agency

       For necessary expenses to carry out the provisions of 
     section 661 of the Foreign Assistance Act of 1961, 
     $40,000,000: Provided, That the Trade and Development Agency 
     may receive reimbursements from corporations and other 
     entities for the costs of grants for feasibility studies and 
     other project planning services, to be deposited as an 
     offsetting collection to this account and to be available for 
     obligation until September 30, 1998, for necessary expenses 
     under this paragraph: Provided further, That such 
     reimbursements shall not cover, or be allocated against, 
     direct or indirect administrative costs of the agency.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President

       For expenses necessary to enable the President to carry out 
     the provisions of the Foreign Assistance Act of 1961, and for 
     other purposes, to remain available until September 30, 1997, 
     unless otherwise specified herein, as follows:


    agency for international development child survival and disease 
                             programs fund

       For necessary expenses to carry out the provisions of part 
     I and chapter 4 of part II of the Foreign Assistance Act of 
     1961, for child survival, basic education, assistance to 
     combat tropical and other diseases, and related activities, 
     in addition to funds otherwise available for such purposes, 
     $600,000,000, to remain available until expended: Provided, 
     That this amount shall be made available for such activities 
     as (1) immunization programs, (2) oral rehydration programs, 
     (3) health and nutrition programs, and related education 
     programs, which address the needs of mothers and children, 
     (4) water and sanitation programs, (5) assistance for 
     displaced and orphaned children, (6) programs for the 
     prevention, treatment, and control of, and research on, 
     tuberculosis, HIV/AIDS, polio, malaria and other diseases, 
     (7) not to exceed $98,000,000 for basic education programs 
     for children, and (8) a contribution on a grant basis to the 
     United Nations Children's Fund (UNICEF) pursuant to section 
     301 of the Foreign Assistance Act of 1961.


                         development assistance

                     (including transfer of funds)

       For necessary expenses to carry out the provisions of 
     sections 103 through 106 and chapter 10 of part I of the 
     Foreign Assistance Act of 1961, title V of the International 
     Security and Development Cooperation Act of 1980 (Public Law 
     96-533) and the provisions of section 401 of the Foreign 
     Assistance Act of 1969, $1,181,500,000, to remain available 
     until September 30, 1998: Provided, That of the amount 
     appropriated under this heading, up to $20,000,000 may be 
     made available for the Inter-American Foundation and shall be 
     apportioned directly to that Agency: Provided further, That 
     of the amount appropriated under this heading, up to 
     $11,500,000 may be made available for the African Development 
     Foundation and shall be apportioned directly to that agency: 
     Provided further, That of the funds appropriated under title 
     II of this Act that are administered by the Agency for 
     International Development and made available for family 
     planning assistance, not less than 65 percent shall be made 
     available directly to the agency's central Office of 
     Population and shall be programmed by that office for family 
     planning activities: Provided further, That of the funds 
     appropriated under this heading and under the heading ``Child 
     Survival and Disease Programs Fund'' that are made available 
     by the Agency for International Development for development 
     assistance activities, the amount made available to carry out 
     chapter 10 of part I of the Foreign Assistance Act of 1961 
     (relating to the Development Fund for Africa) and the amount 
     made available for activities in the Latin America and 
     Caribbean region should be in at least the same proportion as 
     the amount identified in the fiscal year 1997 draft 
     congressional presentation document for development 
     assistance for each such region is to the total amount 
     requested for development assistance for such fiscal year: 
     Provided further, That funds appropriated under this heading 
     may be made available, notwithstanding any other provision of 
     law except section 515 of this Act, to assist Vietnam to 
     reform its trade regime (such as through reform of its 
     commercial and investment legal codes): Provided further, 
     That none of the funds made available in this Act nor any 
     unobligated balances from prior appropriations may be made 
     available to any organization or program which, as determined 
     by the President of the United States, supports or 
     participates in the management of a program of coercive 
     abortion or involuntary sterilization: Provided further, That 
     none of the funds made available under this heading may be 
     used to pay for the performance of abortion as a method of 
     family planning or to motivate or coerce any person to 
     practice abortions; and that in order to reduce reliance on 
     abortion in developing nations, funds shall be

[[Page H11678]]

     available only to voluntary family planning projects which 
     offer, either directly or through referral, to, or 
     information about access to, a broad range of family planning 
     methods and services: Provided further, That in awarding 
     grants for natural family planning under section 104 of the 
     Foreign Assistance Act of 1961 no applicant shall be 
     discriminated against because of such applicant's religious 
     or conscientious commitment to offer only natural family 
     planning; and, additionally, all such applicants shall comply 
     with the requirements of the previous proviso: Provided 
     further, That for purposes of this or any other Act 
     authorizing or appropriating funds for foreign operations, 
     export financing, and related programs, the term 
     ``motivate'', as it relates to family planning assistance, 
     shall not be construed to prohibit the provision, consistent 
     with local law, of information or counseling about all 
     pregnancy options: Provided further, That nothing in this 
     paragraph shall be construed to alter any existing statutory 
     prohibitions against abortion under section 104 of the 
     Foreign Assistance Act of 1961: Provided further, That, 
     notwithstanding section 109 of the Foreign Assistance Act of 
     1961, of the funds appropriated under this heading in this 
     Act, and of the unobligated balances of funds previously 
     appropriated under this heading, up to $17,500,000 may be 
     transferred to ``International Organizations and Programs'' 
     for a contribution to the International Fund for Agricultural 
     Development (IFAD), and that any such transfer of funds shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations: Provided further, That of the 
     funds appropriated under this heading that are made available 
     for assistance programs for displace and orphaned children 
     and victims of war, not to exceed $25,000, in addition to 
     funds otherwise available for such purposes, may be used to 
     monitor and provide oversight of such programs: Provided 
     further, That not less than $500,000 of the funds made 
     available under this heading shall be available only for 
     support of the United States Telecommunications Training 
     Institute.


                                 cyprus

       Of the funds appropriated under the headings ``Development 
     Assistance'' and ``Economic Support Fund'', not less than 
     $15,000,000 shall be made available for Cyprus to be used 
     only for scholarships, administrative support of the 
     scholarship program, bicommunal projects, and measures aimed 
     at reunification of the island and designed to reduce 
     tensions and promote peace and cooperation between the two 
     communities on Cyprus.


                                 burma

       Of the funds appropriated by this Act to carry out the 
     provisions of chapter 4 of part II of the Foreign Assistance 
     Act of 1961, not less than $2,500,000 shall be made available 
     to support activities in Burma, along the Burma-Thailand 
     border, and for activities of Burmese student groups and 
     other organizations located outside Burma, for the purposes 
     of fostering democracy in Burma, supporting the provision of 
     medical supplies and other humanitarian assistant to Burmese 
     located in Burma or displaced Burmese along the borders, and 
     for other purposes: Provided, That of this amount, not less 
     than $200,000 shall be made available to support newspapers, 
     publications, and other media activities promoting democracy 
     inside Burma: Provided further, That funds made available 
     under this heading may be made available notwithstanding any 
     other provision of law: Provided further, That provision of 
     such funds shall be made available subject to the regular 
     notification procedures of the Committees on Appropriations.


                  private and voluntary organizations

       None of the funds appropriated or otherwise made available 
     by this Act for development assistance may be made available 
     to any United States private and voluntary organization, 
     except any cooperative development organization, which 
     obtains less than 20 per centum of its total annual funding 
     for international activities from sources other than the 
     United States Government: Provided, That the requirements of 
     the provisions of section 123(g) of the Foreign Assistance 
     Act of 1961 and the provisions on private and voluntary 
     organizations in title II of the ``Foreign Assistance and 
     Related Programs Appropriations Act, 1985'' (as enacted in 
     Public Law 98-473) shall be superseded by the provisions of 
     this section, except that the authority contained in the last 
     sentence of section 123(g) may be exercised by the 
     Administrator with regard to the requirements of this 
     paragraph.
       Funds appropriated or otherwise made available under title 
     II of this Act should be made available to private and 
     voluntary organizations at a level which is equivalent to the 
     level provided in fiscal year 1995. Such private and 
     voluntary organizations shall include those which operate on 
     a not-for-profit basis, receive contributions from private 
     sources, receive voluntary support from the public and are 
     deemed to be among the most cost-effective and successful 
     providers of development assistance.


                   international disaster assistance

       For necessary expenses for international disaster relief, 
     rehabilitation, and reconstruction assistance pursuant to 
     section 491 of the Foreign Assistance Act of 1961, as 
     amended, $190,000,000, to remain available until expended.


                           debt restructuring

       For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of modifying direct loans 
     and loan guarantees, as the President may determine, for 
     which funds have been appropriated or otherwise made 
     available for programs within the International Affairs 
     Budget Function 150, including the cost of selling, reducing, 
     or canceling amounts, through debt buybacks and swaps, owed 
     to the United States as a result of concessional loans 
     made to eligible Latin American and Caribbean countries, 
     pursuant to part IV of the Foreign Assistance Act of 1961, 
     and of modifying concessional loans authorized under title 
     I of the Agricultural Trade Development and Assistance Act 
     of 1954, as amended, as authorized under subsection (a) 
     under the heading ``Debt Reduction for Jordan'' in title 
     VI of Public Law 103-306; $27,000,000, to remain available 
     until expended: Provided, That none of the funds 
     appropriated under this heading shall be obligated except 
     as provided through the regular notification procedures of 
     the Committees on Appropriations.


         micro and small enterprise development program account

       For the cost of direct loans and loan guarantees, 
     $1,500,000, as authorized by section 108 of the Foreign 
     Assistance Act of 1961, as amended: Provided, That such costs 
     shall be as defined in section 502 of the Congressional 
     Budget Act of 1974: Provided further, That guarantees of 
     loans made under this heading in support of microenterprise 
     activities may guarantee up to 70 percent of the principal 
     amount of any such loans notwithstanding section 108 of the 
     Foreign Assistance Act of 1961. In addition, for 
     administrative expenses to carry out programs under this 
     heading, $500,000, all of which may be transferred to and 
     merged with the appropriation for Operating Expenses of the 
     Agency for International Development: Provided further, That 
     funds made available under this heading shall remain 
     available until September 30, 1998.


                    housing guaranty program account

       For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of guaranteed loans 
     authorized by sections 221 and 222 of the Foreign Assistance 
     Act of 1961, $3,500,000, to remain available until September 
     30, 1998: Provided, That these funds are available to 
     subsidize loan principal, 100 percent of which shall be 
     guaranteed, pursuant to the authority of such sections. In 
     addition, for administrative expenses to carry out guaranteed 
     loan programs, $6,000,000, all of which may be transferred to 
     and merged with the appropriation for Operating Expenses of 
     the Agency for International Development: Provided further, 
     That commitments to guarantee loans under this heading may be 
     entered into notwithstanding the second and third sentences 
     of section 222(a) and, with regard to programs for Central 
     and Eastern Europe and programs for the benefit of South 
     Africans disadvantaged by apartheid, section 223(j) of the 
     Foreign Assistance Act of 1961.


     payment to the foreign service retirement and disability fund

       For payment to the ``Foreign Service Retirement and 
     Disability Fund'', as authorized by the Foreign Service Act 
     of 1980, $43,826,000.


     operating expenses of the agency for international development

       For necessary expenses to carry out the provisions of 
     section 667, $470,750,000: Provided, That none of the funds 
     appropriated by this Act for programs administered by the 
     Agency for International Development may be used to finance 
     printing costs of any report or study (except feasibility, 
     design, or evaluation reports or studies) in excess of 
     $25,000 without the approval of the Administrator of the 
     Agency or the Administrator's designee.


 operating expenses of the agency for international development office 
                          of inspector general

       For necessary expenses to carry out the provisions of 
     section 667, $30,000,000, to remain available until September 
     30, 1998, which sum shall be available for the Office of the 
     Inspector General of the Agency for International 
     Development.

                  Other Bilateral Economic Assistance


                         economic support fund

       For necessary expenses to carry out the provisions of 
     chapter 4 of part II, $2,343,000,000, to remain available 
     until September 30, 1998: Provided, That of the funds 
     appropriated under this heading, not less than $1,200,000,000 
     shall be available only for Israel, which sum shall be 
     available on a grant basis as a cash transfer and shall be 
     disbursed within thirty days of enactment of this Act or by 
     October 31, 1996, whichever is later: Provided further, That 
     not less than $815,000,000 shall be available only for Egypt, 
     which sums shall be provided on a grant basis, and of which 
     sum cash transfer assistance may be provided, with the 
     understanding that Egypt will undertake significant economic 
     reforms which are additional to those which were undertaken 
     in previous fiscal years, and of which not less than 
     $200,000,000 shall be provided as Commodity Import Program 
     assistance: Provided further, That in exercising the 
     authority to provide cash transfer assistance for Israel and 
     Egypt, the President shall ensure that the level of such 
     assistance does not cause an adverse impact on the total 
     level of nonmilitary exports from the United States to each 
     such country: Provided further, That it is the sense of the 
     Congress that the recommended levels of assistance for Egypt 
     and Israel are based in great measure upon their continued 
     participation in the Camp David Accords and upon the 
     Egyptian-Israeli peace treaty: Provided further, That none of 
     the funds appropriated under this heading shall be made 
     available for Zaire.


                     international fund for Ireland

       For necessary expenses to carry out the provisions of 
     chapter 4 of part II of the Foreign Assistance Act of 1961, 
     $19,600,000, which shall be available for the United States 
     contribution to the International Fund for Ireland and shall 
     be made available in accordance with the provisions of the 
     Anglo-Irish Agreement Support Act of 1986 (Public Law 99-
     415): Provided, That such amount shall be expended at the 
     minimum rate necessary to make timely payment for projects 
     and activities: Provided further, That funds made available 
     under this heading shall remain available until September 30, 
     1998.

[[Page H11679]]

          assistance for eastern europe and the baltic states

       (a) For necessary expenses to carry out the provisions of 
     the Foreign Assistance Act of 1961 and the Support for East 
     European Democracy (SEED) Act of 1989, $475,000,000, to 
     remain available until September 30, 1998, which shall be 
     available, notwithstanding any other provision of law, for 
     economic assistance and for related programs for Eastern 
     Europe and the Baltic States.
       (b) Funds appropriated under this heading or in prior 
     appropriations Acts that are or have been made available for 
     an Enterprise Fund may be deposited by such Fund in interest-
     bearing accounts prior to the Fund's disbursement of such 
     funds for program purposes. The Fund may retain for such 
     program purposes any interest earned on such deposits without 
     returning such interest to the Treasury of the United States 
     and without further appropriation by the Congress. Funds made 
     available for Enterprise Funds shall be expended at the 
     minimum rate necessary to make timely payment for projects 
     and activities.
       (c) Funds appropriated under this heading shall be 
     considered to be economic assistance under the Foreign 
     Assistance Act of 1961 for purposes of making available the 
     administrative authorities contained in that Act for the use 
     of economic assistance.
       (d) None of the funds appropriated under this heading may 
     be made available for new housing construction or repair or 
     reconstruction of existing housing in Bosnia and Herzegovina 
     unless directly related to the efforts of United States 
     troops to promote peace in said country.
       (e) With regard to funds appropriated or otherwise made 
     available under this heading for the economic revitalization 
     program in Bosnia and Herzegovina, and local currencies 
     generated by such funds (including the conversion of funds 
     appropriated under this heading into currency used by Bosnia 
     and Herzegovina as local currency and local currency returned 
     or repaid under such program)--
       (1) the Administrator of the Agency for International 
     Development shall provide written approval for grants and 
     loans prior to the obligation and expenditure of funds for 
     such purposes, and prior to the use of funds that have been 
     returned or repaid to any lending facility or grantee; and
       (2) the provisions of section 531 of this Act shall apply.
       (f) With regard to funds appropriate under this heading 
     that are made available for economic revitalization programs 
     in Bosnia and Herzegovina, 50 percent of such funds shall not 
     be available for obligation unless the President determines 
     and certifies to the Committees on Appropriations that the 
     Federation of Bosnia and Herzegovina has complied with 
     article III of annex 1-A of the General Framework Agreement 
     for Peace in Bosnia and Herzegovina concerning the withdrawal 
     of foreign forces, and that intelligence cooperation on 
     training, investigations, and related activities between 
     Iranian officials and Bosnian officials has been terminated.


  assistance for the new independent states of the former soviet union

       (a) For necessary expenses to carry out the provisions of 
     chapter 11 of part I of the Foreign Assistance Act of 1961 
     and the FREEDOM Support Act, for assistance for the new 
     independent states of the former Soviet Union and for related 
     programs, $625,000,000, to remain available until September 
     30, 1998: Provided, That the provisions of such chapter shall 
     apply to funds appropriated by this paragraph.
       (b) None of the funds appropriated under this heading shall 
     be transferred to the Government of Russia--
       (1) unless that Government is making progress in 
     implementing comprehensive economic reforms based on market 
     principles, private ownership, negotiating repayment of 
     commercial debt, respect for commercial contracts, and 
     equitable treatment of foreign private investment; and
       (2) if that Government applies or transfers United States 
     assistance to any entity for the purpose of expropriating or 
     seizing ownership or control of assets, investments, or 
     ventures.
       (c) Funds may be furnished without regard to subsection (b) 
     if the President determines that to do so is in the national 
     interest.
       (d) None of the funds appropriated under this heading shall 
     be made available to any government of the new independent 
     states of the former Soviet Union if that government directs 
     any action in violation of the territorial integrity or 
     national sovereignty of any other new independent state, such 
     as those violations included in the Helsinki Final Act: 
     Provided, That such funds may be made available without 
     regard to the restriction in this subsection if the President 
     determines that to do so is in the national security interest 
     of the United States: Provided further, That the restriction 
     of this subsection shall not apply to the use of such funds 
     for the provision of assistance for purposes of humanitarian, 
     disaster and refugee relief.
       (e) None of the funds appropriated under this heading for 
     the new independent states of the former Soviet Union shall 
     be made available for any state to enhance its military 
     capability: Provided, That this restriction does not apply to 
     demilitarization or nonproliferation programs.
       (f) Funds appropriated under this heading shall be subject 
     to the regular notification procedures of the Committees on 
     Appropriations.
       (g) Funds made available in this Act for assistance to the 
     new independent states of the former Soviet Union shall be 
     subject to the provisions of section 117 (relating to 
     environment and natural resources) of the Foreign Assistance 
     Act of 1961.
       (h)(1) Of the funds appropriated under title II of this 
     Act, including funds appropriated under this heading, not 
     less than $10,000,000 shall be available only for assistance 
     for Mongolia, of which amount not less than $6,000,000 shall 
     be available only for the Mongolian energy sector.
       (2) Funds made available for assistance for Mongolia may be 
     made available in accordance with the purposes and utilizing 
     the authorities provided in chapter 11 of part I of the 
     Foreign Assistance Act of 1961.
       (i) Funds made available in this Act for assistance to the 
     New Independent States of the former Soviet Union shall be 
     provided to the maximum extent feasible through the private 
     sector, including small- and medium-size business, 
     entrepreneurs, and others with indigenous private enterprises 
     in the region, intermediary development organizations 
     committed to private enterprise, and private voluntary 
     organizations: Provided, That grantees and contractors 
     should, to the maximum extent possible, place in key staff 
     positions specialists with prior on the ground expertise in 
     the region of activity and fluency in one of the local 
     languages.
       (j) In issuing new task orders, entering into contracts, or 
     making grants, with funds appropriated under this heading or 
     in prior appropriations Acts, for projects or activities that 
     have as one of their primary purposes the fostering of 
     private sector development, the Coordinator for United States 
     Assistance to the New Independent States and the implementing 
     agency shall encourage the participation of and give 
     significant weight to contractors and grantees who propose 
     investing a significant amount of their own resources 
     (including volunteer services and in-kind contributions) in 
     such projects and activities.
       (k) Off the funds made available under this heading, not 
     less than $225,000,000 shall be made available for Ukraine, 
     of which funds not less than $25,000,000 shall be made 
     available to carry out United States decommissioning 
     obligations regarding the Chornobyl plant made in the 
     Memorandum of Understanding between the Government of Ukraine 
     and the G-7 Group: Provided, That not less than $35,000,000 
     shall be made available for agricultural projects, including 
     those undertaken through the Food Systems Restructuring 
     Program, which leverage private sector resources with United 
     States Government assistance: Provided further, That 
     $5,000,000 shall be available for a small business incubator 
     project: Provided further, That $5,000,000 shall be made 
     available for screening and treatment of childhood mental and 
     physical illnesses related to Chornobyl radiation: Provided 
     further, That $5,000,000 shall be available only for a land 
     and resource management institute to identify nuclear 
     contamination at Chornobyl: Provided further, That 
     $15,000,000 shall be available for the legal restructuring 
     necessary to support a decentralized market-oriented economic 
     system, including enactment of necessary substantive 
     commercial law, implementation of reforms necessary to 
     establish an independent judiciary and bar, legal education 
     for judges, attorneys, and law students, and education of the 
     public designed to promote understanding of a law-based 
     economy.
       (l) Of the funds made available for Ukraine, under this Act 
     and Public Law 104-107, not less than $50,000,000 shall be 
     made available to improve safety at nuclear reactors: 
     Provided, that of this amount $20,000,000 shall be provided 
     for the purchase and installation of, and training for, 
     safety parameter display or control systems at all 
     operational nuclear reactors: Provided further, That of this 
     amount, $20,000,000 shall be made available for the purchase, 
     construction, installation and training for Full Scope and 
     Analytical/Engineering simulators: Provided further, That of 
     this amount funds shall be made available to conduct Safety 
     Analysis Reports at all operational nuclear reactors.
       (m) Of the funds made available by this Act, not less than 
     $95,000,000 shall be made available for Armenia.
       (n) Funds appropriated under this heading or in prior 
     appropriations Acts that are or have been made available for 
     an Enterprise Fund may be deposited by such Fund in interest-
     bearing accounts prior to the disbursement of such funds by 
     the Fund for program purposes. The Fund may retain for such 
     program proposes any interest earned on such deposits without 
     returning such interest to the Treasury of the United States 
     and without further appropriation by the Congress. Funds made 
     available for Enterprise Funds shall be expended at the 
     minimum rate necessary to make timely payment for projects 
     and activities.
       (o)(1) None of the funds appropriated under this heading 
     may be made available for Russia unless the President 
     determines and certifies in writing to the Committees on 
     Appropriations that the Government of Russia has terminated 
     implementation of arrangements to provide Iraq with technical 
     expertise, training, technology, or equipment necessary to 
     develop a nuclear reactor or related nuclear research 
     facilities or programs.
       (2) Paragraph (1) shall not apply if the President 
     determines that making such funds available is important to 
     the national security interest of the United States. Any such 
     determination shall cease to be effective six months after 
     being made unless the President determines that its 
     continuation is important to the national security interest 
     of the United States.
       (p) Of the funds made available under this heading, not 
     less than $10,000,000 shall be made available for a United 
     States contribution to the Trans-Caucasus Enterprise Fund: 
     Provided, That to further the development of the private 
     sector in the Trans-Caucasus, such amount and amounts 
     appropriated for purposes of subsection (t) under the heading 
     ``Assistance for the New Independent States of the Former 
     Soviet Union'' in Public Law 104-107 may be invested in a

[[Page H11680]]

     Trans-Caucasus Enterprise Fund or, notwithstanding the 
     provisions of such subsection, invested in other funds 
     established by public or private organizations, or 
     transferred to the Overseas Private Investment Corporation to 
     be available, subject to the requirements of the Federal 
     Credit Reform Act, to subsidize the costs of direct and 
     guaranteed loans.
       (q)(1) Funds appropriated under this heading may not be 
     made available for the Government of Ukraine if the President 
     determines and reports to the Committees on Appropriations 
     that the Government of Ukraine is engaged in military 
     cooperation with the Government of Libya.
       (2) Paragraph (1) shall not apply if the President 
     determines that making such funds available is important to 
     the national security interest of the United States. Any such 
     determination shall cease to be effective six months after 
     being made unless the President determines that its 
     continuation is important to the national security interest 
     of the United States.
       (r) Of the funds appropriated under this heading, not less 
     than $15,000,000 should be available only for a family 
     planning program for the New Independent States of the former 
     Soviet Union comparable to the family planning program 
     currently administered by the Agency for International 
     Development in the Central Asian Republics and focusing on 
     population assistance which provides an alternative to 
     abortion.
       (s) Funds made available under this Act or any other Act 
     (other than assistance under title V of the FREEDOM Support 
     Act and section 1424 of the ``National Defense Authorization 
     Act for Fiscal Year 1997'') may not be provided for 
     assistance to the Government of Azerbaijan until the 
     President determines, and so reports to the Congress, that 
     the Government of Azerbaijan is taking demonstrable steps to 
     cease all blockades and other offensive uses of force against 
     Armenia and Nagorno-Karabakh.
       (t) Of the funds appropriated under this heading, not less 
     than $2,500,000 shall be made available for the American-
     Russian Center.

                           Independent Agency


                              peace corps

       For expenses necessary to carry out the provisions of the 
     Peace Corps Act (75 Stat. 612), $208,000,000, including the 
     purchase of not to exceed five passenger motor vehicles for 
     administrative purposes for use outside of the United States: 
     Provided, That none of the funds appropriated under this 
     heading shall be used to pay for abortions: Provided further, 
     That funds appropriated under this heading shall remain 
     available until September 30, 1998.

                          Department of State


                    international narcotics control

       For necessary expenses to carry out section 481 of the 
     Foreign Assistance Act of 1961, $213,000,000: Provided, That 
     during fiscal year 1997, the Department of State may also use 
     the authority of section 608 of the Foreign Assistance Act of 
     1961, without regard to its restrictions, to receive non-
     lethal excess property from an agency of the United States 
     Government for the purpose of providing it to a foreign 
     country under chapter 8 of part I of that Act subject to the 
     regular notification procedures of the Committees on 
     Appropriations: Provided further, That none of the funds made 
     available under this heading may be provided to any unit of 
     the security forces of a foreign country if the Secretary of 
     State has credible evidence to believe such unit has 
     committed gross violations of human rights unless the 
     Secretary determines and reports to the Committees on 
     Appropriations that the government of such country is taking 
     steps to bring the responsible members of the security forces 
     unit to justice.


                    migration and refugee assistance

       For expenses, not otherwise provided for, necessary to 
     enable the Secretary of State to provide, as authorized by 
     law, a contribution to the International Committee of the Red 
     Cross, assistance to refugees, including contributions to the 
     International Organization for Migration and the United 
     Nations High Commissioner for Refugees, and other activities 
     to meet refugee and migration needs; salaries and expenses of 
     personnel and dependents as authorized by the Foreign Service 
     Act of 1980; allowances as authorized by sections 5921 
     through 2955 of title 5, United States Code; purchase and 
     hire of passenger motor vehicles; and services as authorized 
     by section 3109 of title 5, United States Code, $650,000,000: 
     Provided, That not more than $12,000,000 shall be available 
     for administrative expenses: Provided further, That not less 
     than $80,000,000 shall be made available for refugees from 
     the former Soviet Union and Eastern Europe and other refugees 
     resettling in Israel.


                    refugee resettlement assistance

       For necessary expenses for the targeted assistance program 
     authorized by title IV of the Immigration and Nationality Act 
     and section 501 of the Refugee Education Assistance Act of 
     1980 and administered by the Office of Refugee Resettlement 
     of the Department of Health and Human Services, in addition 
     to amounts otherwise available for such purposes, $5,000,000.


     united states emergency refugee and migration assistance fund

       For necessary expenses to carry out the provisions of 
     section 2(c) of the Migration and Refugee Assistance Act of 
     1962, as amended (22 U.S.C. 260(c)), $50,000,000, to remain 
     available until expended: Provided, That the funds made 
     available under this heading are appropriated notwithstanding 
     the provisions contained in section 2(c)(2) of the Migration 
     and Refugee Assistance Act of 1962 which would limit the 
     amount of funds which could be appropriated for this purpose.


    nonproliferation, anti-terrorism, demining and related programs

       For necessary expenses for nonproliferation, anti-terrorism 
     and related programs and activities, $133,000,000, to carry 
     out the provisions of chapter 8 of part II of the Foreign 
     Assistance Act of 1961 for anti-terrorism assistance, section 
     504 of the FREEDOM Support Act for the Nonproliferation and 
     Disarmament Fund, section 23 of the Arms Export Control Act 
     for demining activities, notwithstanding any other provision 
     of law, including activities implemented through 
     nongovernmental and international organizations, section 301 
     of the Foreign Assistance Act of 1961 for a voluntary 
     contribution to the International Atomic Energy Agency (IAEA) 
     and a voluntary contribution to the Korean Peninsula Energy 
     Development Organization (KEDO), and for the acquisition and 
     provision of goods and services, or for grants to Israel 
     necessary to support the eradication of terrorism in and 
     around Israel: Provided, That of this amount not to exceed 
     $15,000,000, to remain available until expended, may be made 
     available for the Nonproliferation and Disarmament Fund, 
     notwithstanding any other provision of law, to promote 
     bilateral and multilateral activities relating to 
     nonproliferation and disarmament: Provided further, That such 
     funds may also be used for such countries other than the new 
     independent states of the former Soviet Union and 
     international organizations when it is in the national 
     security interest of the United States to do so: Provided 
     further, That such funds shall be subject to the regular 
     notification procedures of the Committees on Appropriations: 
     Provided further, That funds appropriated under this heading 
     may be made available for the International Atomic Energy 
     Agency only if the Secretary of State determines (and so 
     reports to the Congress) that Israel is not being denied its 
     right to participate in the activities of that Agency: 
     Provided further, That not to exceed $25,000,000 may be made 
     available to the Korean Peninsula Energy Development 
     Organization (KEDO) only for the administrative expenses and 
     heavy fuel oil costs associated with the Agreed Framework: 
     Provided further, That such funds may be obligated to KEDO 
     only if, prior to such obligation of funds, the President 
     certifies and so reports to Congress that (1)(A) of the 
     United States is taking steps to assure that progress is made 
     on the implementation of the January 1, 1992, Joint 
     Declaration on the Denuclearization of the Korean Peninsula 
     and the implementation of the North-South dialogue, and (B) 
     North Korea is complying with the other provisions of the 
     Agreed Framework between North Korea and the United States 
     and with the Confidential Minute; (2) North Korea is 
     cooperating fully in the canning and safe storage of all 
     spent fuel from its graphite-moderated nuclear reactors and 
     that such canning and safe storage is scheduled to be 
     completed by the end of fiscal year 1997; and (3) North Korea 
     has not significantly diverted assistance provided by the 
     United States for purposes for which it was not intended: 
     Provided further, That the President may waive the 
     certification requirements of the preceding proviso if the 
     President determines that it is vital to the national 
     security interests of the United States: Provided further, 
     That no funds may be obligated for KEDO until 30 calendar 
     days after submission to Congress of the waiver permitted 
     under the preceding proviso: Provided further, That before 
     obligating any funds for KEDO, the President shall report to 
     Congress on (1) the cooperation of North Korea in the process 
     of returning to the United States the remains of United 
     States military personnel who are listed as missing in action 
     as a result of the Korean conflict (including conducting 
     joint field activities with the United States); (2) 
     violations of the military armistice agreement of 1953; (3) 
     the actions which the United States is taking to assure that 
     North Korea is consistently taking steps to implement the 
     Joint Declaration on Denuclearization of the Korean Peninsula 
     and engage in North-South dialogue; and (4) all instances of 
     non-compliance with the Agreed Framework between North Korea 
     and the United States and the Confidential Minute, including 
     diversion of heavy fuel oil: Provided further, That the 
     obligation of such funds shall be subject to the regular 
     notification procedures of the Committees on Appropriations: 
     Provided further, That the Secretary of State shall submit to 
     the appropriate congressional committees an annual report (to 
     be submitted with the annual presentation for appropriations) 
     providing a full and detailed accounting of the fiscal year 
     request for the United States contribution to KEDO, the 
     expected operating budget of the Korean Peninsula Energy 
     Development Organization, to include proposed annual costs 
     associated with heavy fuel oil purchases and other related 
     activities, and the amount of funds pledged by other donor 
     nations and organizations to support KEDO activities on a per 
     country basis.

                     TITLE III--MILITARY ASSISTANCE

                  Funds Appropriated to the President


             international military education and training

       For necessary expenses to carry out the provisions of 
     section 541 of the Foreign Assistance Act of 1961, 
     $43,475,000: Provided, That none of the funds appropriated 
     under this heading shall be available for Zaire and 
     Guatemala: Provided further, That funds appropriated under 
     this heading for grant financed military education and 
     training for Indonesia may only be available for expanded 
     international military education and training.


                   foreign military financing program

       For expenses necessary for grants to enable the President 
     to carry out the provisions of section 23 of the Arms Export 
     Control Act, $3,164,000,000: Provided, That of the funds 
     appropriated by this paragraph not less than $1,800,000,000 
     shall be available for grants only for Israel, and not less 
     than $1,300,000,000 shall be available for grants only for 
     Egypt: Provided

[[Page H11681]]

     further, That the funds appropriated by this paragraph for 
     Israel shall be disbursed within thirty days of enactment of 
     this Act or by October 31, 1996, whichever is later: Provided 
     further, That to the extent that the Government of Israel 
     requests that funds be used for such purposes, grants made 
     available for Israel by this paragraph shall, as agreed by 
     Israel and the United States, be available for advanced 
     weapons systems, of which not less than $475,000,000 shall be 
     available for the procurement in Israel of defense articles 
     and defense services, including research and development: 
     Provided further, That of the funds made available under this 
     paragraph, $30,000,000 shall be available for assistance on a 
     grant basis for Poland, Hungary, and the Czech Republic to 
     carry out title II of Public Law 103-477 and section 585 of 
     Public Law 104-107: Provided further, That funds made 
     available under this paragraph shall be nonrepayable 
     notwithstanding any requirement in section 23 of the Arms 
     Export Control Act: Provided further, That, for the purpose 
     only of providing support for NATO expansion and the Warsaw 
     Initiative Program, of the funds appropriated by this Act 
     under the headings ``Assistance for Eastern Europe and the 
     Baltic States'' and ``Assistance for the New Independent 
     States of the Former Soviet Union'', up to a total of 
     $7,000,000 may be transferred, notwithstanding any other 
     provision of law, the funds appropriated under this 
     paragraph: Provided further, That none of the funds made 
     available under this heading shall be available for any non-
     NATO country participating in the Partnership for Peace 
     Program except through the regular notification procedures of 
     the Committees on Appropriations.
       For the cost, as defined in section 502 of the 
     Congressional Budget Act of 1974, of direct loans authorized 
     by section 23 of the Arms Export Control Act as follows: cost 
     of direct loans, $60,000,000: Provided, That these funds are 
     available to subsidize gross obligations for the principal 
     amount of direct loans of not to exceed $540,000,000: 
     Provided further, That the rate of interest charged on such 
     loans shall be not less than the current average market yield 
     on outstanding marketable obligations of the United States of 
     comparable maturities: Provided further, That of the funds 
     appropriated under this paragraph $20,000,000 shall be made 
     available to Poland, Hungary, and the Czech Republic: 
     Provided further, That funds appropriated under this heading 
     shall be made available for Greece and Turkey only on a loan 
     basis, and the principal amount of direct loans for each 
     country shall not exceed the following: $122,500,000 only for 
     Greece and $175,000,000 only for Turkey.
       None of the funds made available under this heading shall 
     be available to finance the procurement of defense articles, 
     defense services, or design and construction services that 
     are not sold by the United States Government under the Arms 
     Export Control Act unless the foreign country proposing to 
     make such procurements has first signed an agreement with the 
     United States Government specifying the conditions under 
     which such procurements may be financed with such funds: 
     Provided, That all country and funding level increases in 
     allocations shall be submitted through the regular 
     notification procedures of section 515 of this Act: Provided 
     further, That funds made available under this heading shall 
     be obligated upon apportionment in accordance with paragraph 
     (5)(C) of title 31, United States Code, section 1501(a): 
     Provided further, That none of the funds appropriated under 
     this heading shall be available for Zaire, Sudan, Liberia, 
     and Guatemala: Provided further, That funds made available 
     under this heading may be used, notwithstanding any other 
     provision of law, for activities related to the clearance of 
     landmines and unexploded ordnance, and may include activities 
     implemented through nongovernmental and international 
     organizations: Provided further, That only those countries 
     for which assistance was justified for the ``Foreign Military 
     Sales Financing Program'' in the fiscal year 1989 
     congressional presentation for security assistance programs 
     may utilize funds made available under this heading for 
     procurement of defense articles, defense services or design 
     and construction services that are not sold by the United 
     States Government under the Arms Export Control Act: Provided 
     further, That, subject to the regular notification procedures 
     of the Committees on Appropriations, funds made available 
     under this heading for the cost of direct loans may also be 
     used to supplement the funds available under this heading for 
     grants, and funds made available under this heading for 
     grants may also be used to supplement the funds available 
     under this heading for the cost of direct loans: Provided 
     further, That funds appropriated under this heading shall be 
     expended at the minimum rate necessary to make timely payment 
     for defense articles and services: Provided further, That not 
     more than $23,250,000 of the funds appropriated under this 
     heading may be obligated for necessary expenses, including 
     the purchase of passenger motor vehicles for replacement only 
     for use outside of the United States, for the general costs 
     of administering military assistance and sales: Provided 
     further, That not more than $355,000,000 of funds realized 
     pursuant to section 21(e)(1)(A) of the Arms Export Control 
     Act may be obligated for expenses incurred by the Department 
     of Defense during Fiscal year 1997 pursuant to section 43(b) 
     of the Arms Export Control Act, except that this limitation 
     may be exceeded only through the regular notification 
     procedures of the Committees on Appropriations.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE


                  funds appropriated to the president

                  international financial institutions

     contribution to the international bank for reconstruction and 
                              development

       For payment to the International Bank for Reconstruction 
     and Development by the Secretary of the Treasury, for the 
     United States contribution to the Global Environment Facility 
     (GEF), $35,000,000, to remain available until September 30, 
     1998.


       contribution to the international development association

       For payment to the International Development Association by 
     the Secretary of the Treasury, $700,000,000, for the United 
     States contribution to the tenth replenishment, to remain 
     available until expended: Provided, That none of the funds 
     may be obligated before March 1, 1997: Provided further, That 
     not less than twenty days before such funds are obligated, 
     the Secretary of the Treasury shall submit a report to the 
     Committees on Appropriations on his efforts to reach 
     agreement with the other IDA-11 donors, including at the 
     February 1997 IDA-11 donors review meeting, that the 
     procurement restrictions in the Interim Trust Fund will be 
     lifted.


         contribution to the international finance corporation

       For payment to the International Finance Corporation by the 
     Secretary of the Treasury, $6,656,000, for the United States 
     share of the increase in subscriptions to capital stock, to 
     remain available until expended.


          contribution to the inter-american development bank

       For payment to the Inter-American Development Bank by the 
     Secretary of the Treasury, for the United States share of the 
     paid-in share portion of the increase in capital stock, 
     $25,610,667, and for the United States share of the increase 
     in the resources of the Fund for Special Operations, 
     $10,000,000, to remain available until expended.


              limitation on callable capital subscriptions

       The United States Governor of the Inter-American 
     Development Bank may subscribe without fiscal year limitation 
     to the callable capital portion of the United States share of 
     such capital stock in an amount not to exceed $1,503,718,910.


contribution to the enterprise for the americas multilateral investment 
                                  fund

       For payment to the Enterprise for the Americas Multilateral 
     Investment Fund by the Secretary of the Treasury, for the 
     United States contribution to the Fund to be administered by 
     the Inter-American Development Bank, $27,500,000 to remain 
     available until expended.


               contribution to the asian development bank

       For payment to the Asian Development Bank by the Secretary 
     of the Treasury for the United States share of the paid-in 
     portion of the increase in capital stock, $13,221,596, to 
     remain available until expended.


              limitation on callable capital subscriptions

       The United States Governor of the Asian Development Bank 
     may subscribe without fiscal year limitation to the callable 
     capital portion of the United States share of such capital 
     stock in an amount not to exceed $647,858,204.


               contribution to the asian development fund

       For the United States contribution by the Secretary of the 
     Treasury to the increases in resources of the Asian 
     Development Fund, as authorized by the Asian Development Bank 
     Act, as amended (Public Law 89-369), $100,000,000, to remain 
     available until expended.


  contribution to the european bank for reconstruction and development

       For payment to the European Bank for Reconstruction and 
     Development by the Secretary of the Treasury, $11,916,447, 
     for the United States share of the paid-in share portion of 
     the initial capital subscription, to remain available until 
     expended.


              limitation on callable capital subscriptions

       The United States Governor of the European Bank for 
     Reconstruction and Development may subscribe without fiscal 
     year limitation to the callable capital portion of the United 
     States share of such capital stock in an amount not to exceed 
     $27,805,043.

                    North American Development Bank

       For payment to the North American Development Bank by the 
     Secretary of the Treasury, for the United States share of the 
     paid-in portion of the capital stock, $56,000,000, to remain 
     available until expended.


              limitation on callable capital subscriptions

       The United States Governor of the North American 
     Development Bank may subscribe without fiscal year limitation 
     to the callable capital portion of the United States share of 
     the capital stock of the North American Development Bank in 
     an account not to exceed $318,750,000.


                international organizations and programs

       For necessary expenses to carry out the provisions of 
     section 301 of the Foreign Assistance Act of 1961, and of 
     section 2 of the United Nations Environment Program 
     Participation Act of 1973, $169,950,000: Provided, That none 
     of the funds appropriated under this heading shall be made 
     available for the United Nations Fund for Science and 
     Technology: Provided further, That none of the funds 
     appropriated under this heading that are made available to 
     the United Nations Population Fund (UNFPA) shall be made 
     available for activities in the People's Republic of China: 
     Provided further, That not more than $25,000,000 of the funds 
     appropriated under this heading may be made available to the 
     UNFPA: Provided further, That not more than one-half of this 
     amount may be provided to UNFPA before March 1, 1997, and 
     that no later than February 15, 1997, the Secretary of State 
     shall submit a report to the Committees on Appropriations 
     indicating the amount UNFPA is budgeting for the People's 
     Republic of China in 1997:

[[Page H11682]]

     Provided further, That any amount UNFPA plans to spend in the 
     People's Republic of China in 1997 shall be deducted from the 
     amount of funds provided to UNFPA after March 1, 1997, 
     pursuant to the previous provisos: Provided further, That 
     with respect to any funds appropriated under this heading 
     that are made available to UNFPA, UNFPA shall be required to 
     maintain such funds in a separate account and not commingle 
     them with any other fund: Provided further, That none of the 
     funds appropriated under this heading may be made available 
     to the Korean Peninsula Energy Development Organization 
     (KEDO) or the International Atomic Energy Agency (IAEA).

                      TITLE V--GENERAL PROVISIONS


             obligations during last month of availability

       Sec. 501. Except for the appropriations entitled 
     ``International Disaster Assistance'', and ``United States 
     Emergency Refugee and Migration Assistance Fund'', not more 
     than 15 per centum of any appropriation item made available 
     by this Act shall be obligated during the last month of 
     availability.


     prohibition of bilateral funding for international financial 
                              institutions

       Sec. 502. None of the funds contained in title II of this 
     Act may be used to carry out the provisions of section 209(d) 
     of the Foreign Assistance Act of 1961.


                    limitation on residence expenses

       Sec. 503. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $126,500 shall be for 
     official residence expenses of the Agency for International 
     Development during the current fiscal year: Provided, That 
     appropriate steps shall be taken to assure that, the maximum 
     extent possible, United States-owned foreign currencies are 
     utilized in lieu of dollars.


                         limitation on expenses

       Sec. 504. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $5,000 shall be for 
     entertainment expenses of the Agency for International 
     Development during the current fiscal year.


               limitation on representational allowances

       Sec. 505. Of the funds appropriated or made available 
     pursuant to this Act, not to exceed $95,000 shall be 
     available for representation allowances for the Agency for 
     International Development during the current fiscal year: 
     Provided, That appropriate steps shall be taken to assure 
     that, to the maximum extent possible, United States-owned 
     foreign currencies are utilized in lieu of dollars: Provided 
     further, That of the funds made available by this Act for 
     general costs of administering military assistance and sales 
     under the heading ``Foreign Military Financing Program'', not 
     to exceed $2,000 shall be available for entertainment 
     expenses and not to exceed $50,000 shall be available for 
     representation allowances: Provided further, That of the 
     funds made available by this Act under the heading 
     ``International Military Education and Training'', not to 
     exceed $50,000 shall be available for entertainment 
     allowances: Provided further, That of the funds made 
     available by this Act for the Inter-American Foundation, not 
     to exceed $2,000 shall be available for entertainment and 
     representation allowances: Provided further, That of the 
     funds made available by this Act for the Peace Corps, not to 
     exceed a total of $4,000 shall be available for entertainment 
     expenses: Provided further, That of the funds made available 
     by this Act under the heading ``Trade and Development 
     Agency'', not to exceed $2,000 shall be available for 
     representation and entertainment allowances.


                 prohibition on financing nuclear goods

       Sec. 506. None of the funds appropriated or made available 
     (other than funds for ``Nonproliferation, Antiterrorism, 
     Demining and Related Programs'') pursuant to this Act, for 
     carrying out the Foreign Assistance Act of 1961, may be used, 
     except for purposes of nuclear safety, to finance the export 
     of nuclear equipment, fuel, or technology.


        Prohibition Against Direct Funding for Certain Countries

       Sec. 507. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated or expended 
     to finance directly any assistance or reparations to Cuba, 
     Iraq, Libya, North Korea, Iran, Sudan, or Syria: Provided, 
     That for purposes of this section, the prohibition on 
     obligations or expenditures shall include direct loans, 
     credits, insurance and guarantees of the Export-Import Bank 
     or its agents.


                             Military Coups

       Sec. 508. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated or expended 
     to finance directly any assistance to any country whose duly 
     elected Head of Government is deposed by military coup or 
     decree: Provided, That assistance may be resumed to such 
     country if the President determines and reports to the 
     Committees on Appropriations that subsequent to the 
     termination of assistance a democratically elected government 
     has taken office.


                       Transfers Between Accounts

       Sec. 509. None of the funds made available by this Act may 
     be obligated under an appropriation account to which they 
     were not appropriated, except for transfers specifically 
     provided for in this Act, unless the President, prior to the 
     exercise of any authority contained in the Foreign Assistance 
     Act of 1961 to transfer funds, consults with and provides a 
     written policy justification to the Committees on 
     Appropriations of the House of Representatives and the 
     Senate.


                  Deobligation/Reobligation Authority

       Sec. 510. (a) Amounts certified pursuant to section 1311 of 
     the Supplemental Appropriations Act, 1955, as having been 
     obligated against appropriations heretofore made under the 
     authority of the Foreign Assistance Act of 1961 for the same 
     general purpose as any of the headings under title II of this 
     Act are, if deobligated, hereby continued available for the 
     same period as the respective appropriations under such 
     headings or until September 30, 1997, whichever is later, and 
     for the same general purpose, and for countries within the 
     same region as originally obligated: Provided, That the 
     Appropriations Committees of both Houses of the Congress are 
     notified fifteen days in advance of the reobligation of such 
     funds in accordance with regular notification procedures of 
     the Committees on Appropriations.
       (b) Obligated balances of funds appropriated to carry out 
     section 23 of the Arms Export Control Act as of the end of 
     the fiscal year immediately preceding the current fiscal year 
     are, if deobligated, hereby continued available during the 
     current fiscal year for the same purpose under any authority 
     applicable to such appropriations under this Act: Provided, 
     That the authority of this subsection may not be used in 
     fiscal year 1997.


                         Availability of Funds

       Sec. 511. No part of any appropriation contained in this 
     Act shall remain available for obligation after the 
     expiration of the current fiscal year unless expressly so 
     provided in this Act: Provided, That funds appropriated for 
     the purposes of chapters 1, 8, and 11 of part I, section 667, 
     and chapter 4 of part II of the Foreign Assistance Act of 
     1961, as amended, and funds provided under the heading 
     ``Assistance for Eastern Europe and the Baltic States'', 
     shall remain available until expended if such funds are 
     initially obligated before the expiration of their respective 
     periods of availability contained in this Act: Provided 
     further, That, notwithstanding any other provision of this 
     Act, any funds made available for the purposes of chapter 1 
     of part I and chapter 4 of part II of the Foreign Assistance 
     Act of 1961 which are allocated or obligated for cash 
     disbursements in order to address balance of payments or 
     economic policy reform objectives, shall remain available 
     until expended: Provided further, That the report required by 
     section 653(a) of the Foreign Assistance Act of 1961 shall 
     designate for each country, to the extent known at the time 
     of submission of such report, those funds allocated for cash 
     disbursement for balance of payment and economic policy 
     reform purposes.


            limitation on assistance to countries in default

       Sec. 512. No part of any appropriation contained in this 
     Act shall be used to furnish assistance to any country which 
     is in default during a period in excess of one calendar year 
     in payment to the United States of principal or interest on 
     any loan made to such country by the United States pursuant 
     to a program for which funds are appropriated under this Act: 
     Provided, That this section and section 620(q) of the Foreign 
     Assistance Act of 1961 shall not apply to funds made 
     available in this Act or during the current fiscal year for 
     Nicaragua, and for any narcotics-related assistance for 
     Colombia, Bolivia, and Peru authorized by the Foreign 
     Assistance Act of 1961 or the Arms Export Control Act.


                           commerce and trade

       Sec. 513. (a) None of the funds appropriated or made 
     available pursuant to this Act for direct assistance and none 
     of the funds otherwise made available pursuant to this Act to 
     the Export-Import Bank and the Overseas Private Investment 
     Corporation shall be obligated or expended to finance any 
     loan, any assistance or any other financial commitments for 
     establishing or expanding production of any commodity for 
     export by any country other than the United States, if the 
     commodity is likely to be in surplus on world markets at the 
     time the resulting productive capacity is expected to become 
     operative and if the assistance will cause substantial injury 
     to United States producers of the same, similar, or competing 
     commodity: Provided, That such prohibition shall not apply to 
     the Export-Import Bank if in the judgment of its Board of 
     Directors the benefits to industry and employment in the 
     United States are likely to outweigh the injury to United 
     States producers of the same, similar, or competing 
     commodity, and the Chairman of the Board so notifies the 
     Committee on Appropriations.
       (b) None of the funds appropriated by this or any other Act 
     to carry out chapter 1 of part I of the Foreign Assistance 
     Act of 1961 shall be available for any testing or breeding 
     feasibility study, variety improvement or introduction, 
     consultancy, publication, conference, or training in 
     connection with the growth or production in a foreign country 
     of an agricultural commodity for export which would compete 
     with a similar commodity grown or produced in the United 
     States: Provided, That this subsection shall not prohibit--
       (1) activities designed to increase food security in 
     developing countries where such activities will not have a 
     significant impact in the export of agricultural commodities 
     of the United States; or
       (2) research activities intended primarily to benefit 
     American producers.


                          surplus commodities

       Sec. 514. The Secretary of the Treasury shall instruct the 
     United States Executive Directors of the International Bank 
     for Reconstruction and Development, the International 
     Development Association, the International Finance 
     Corporation, the Inter-American Development Bank, the 
     International Monetary Fund, the Asian Development Bank, the 
     Inter-American Investment Corporation, the North American 
     Development Bank, the European Bank for Reconstruction and 
     Development, the African Development Bank, and the African 
     Development Fund to use the voice and vote of the United 
     States to oppose any assistance by these institutions,

[[Page H11683]]

     using funds appropriated or made available pursuant to this 
     Act, for the production or extraction of any commodity or 
     mineral for export, if it is in surplus on world markets and 
     if the assistance will cause substantial injury to United 
     States producers of the same, similar, or competing 
     commodity.


                       notification requirements

       Sec. 515. For the purpose of providing the Executive Branch 
     with the necessary administrative flexibility, none of the 
     funds made available under this Act for ``Child Survival and 
     Disease Programs Fund'', ``Development Assistance'', ``Debt 
     restructuring'', ``International organizations and 
     programs'', ``Trade and Development Agency'', ``International 
     narcotics control'', ``Assistance for Eastern Europe and the 
     Baltic States'', ``Assistance for the New Independent State 
     of the Former Soviet Union'', ``Economic Support Fund'', 
     ``Peacekeeping operations'', ``Operating expenses of the 
     Agency for International Development'', ``Operating expenses 
     of the Agency for International Development Office of 
     Inspector General'', ``Nonprofiferation, anti-terrorism, 
     demining and related programs'', ``Foreign Military Financing 
     Program'', ``International military education and training'', 
     ``Inter-American Foundation'', ``African Development 
     Foundation'', ``Peace Corps'', ``Migration and refugee 
     assistance'', shall be available for obligation for 
     activities, programs, projects, type of materiel assistance, 
     countries, or other operations not justified or in excess of 
     the amount justified to the Appropriations Committee for 
     obligation under any of these specific heading unless the 
     Appropriations Committee of both Houses of Congress are 
     previously notified fifteen days in advance: Provided, That 
     the President shall not enter into any commitment of funds 
     appropriated for the purposes of section 23 of the Arms 
     Export Control Act for the provision of major defense 
     equipment, other than conventional ammunition, or other major 
     defense items defined to be aircraft, ships, missiles, or 
     combat vehicles, not previously justified to Congress or 20 
     per centum in excess of the quantities justified to Congress 
     unless the Committees on Appropriations are notified fifteen 
     days in advance of such commitment: Provided further, That 
     this section shall not apply to any reprogramming for an 
     activity, program, or project under chapter 1 of part I of 
     the Foreign Assistance Act of 1961 of less than 10 per centum 
     of the amount previously justified to the Congress for 
     obligation for such activity, program, or project for the 
     current fiscal year: Provided further, That the requirements 
     of this section or any similar provision of this Act or any 
     other Act, including any prior Act requiring notification in 
     accordance with the regular notification procedures of the 
     Committees on Appropriations, may be waived if failure to do 
     so would pose a substantial risk of human health or welfare: 
     Provided further, That in case of any such waiver, 
     notification to the Congress, or the appropriate 
     congressional committees, shall be provided as early as 
     practicable, but in no event later than three days after 
     taking the action to which such notification requirement was 
     applicable, in the context of the circumstances necessitating 
     such waiver: Provided further, That any notification provided 
     pursuant to such a waiver shall contain an explanation of the 
     emergency circumstances.
       Drawdowns made pursuant to section 506(a)(2) of the Foreign 
     Assistance Act of 1961 shall be subject to the regular 
     notification procedures of the Committees on Appropriations.


limitation on availability of funds for international organizations and 
                                programs

       Sec. 516. Notwithstanding any other provision of law or of 
     this Act, none of the funds provided for ``International 
     Organizations and Programs'' shall be available for the 
     United States proportionate share, in accordance with section 
     307(c) of the Foreign Assistance Act of 1961, for any 
     programs identified in section 307, or for Libya, Iran, or, 
     at the discretion of the President, Communist countries 
     listed in section 620(f) of the Foreign Assistance Act of 
     1961, as amended: Provided, That, subject to the regular 
     notification procedures of the Committees on Appropriations, 
     funds appropriated under this Act or any previously enacted 
     Act making appropriations for foreign operations, export 
     financing, and related programs, which are returned or not 
     made available for organizations and programs because of the 
     implementation of this section or any similar provision of 
     law, shall remain available for obligation through September 
     30, 1998.


              economic support fund assistance for israel

       Sec. 517. The Congress finds that progress on the peace 
     process in the Middle East is vitally important to United 
     States security interests in the region. The Congress 
     recognizes that, in fulfilling its obligations under the 
     Treaty of Peace Between the Arab Republic of Egypt and the 
     State of Israel, done at Washington on March 26, 1979, Israel 
     incurred severe economic burdens. Furthermore, the Congress 
     recognizes that an economically and militarily secure Israel 
     serves the security interests of the United States, for a 
     secure Israel is an Israel which has the incentive and 
     confidence to continue pursuing the peace process. Therefore, 
     the Congress declares that, subject to the availability of 
     appropriations, it is the policy and the intention of the 
     United States that the funds provided in annual 
     appropriations for the Economic Support Fund which are 
     allocated to Israel shall not be less than the annual debt 
     repayment (interest and principal) from Israel to the United 
     States Government in recognition that such a principle serves 
     United States interests in the region.


   prohibition on funding for abortions and involuntary sterilization

       Sec. 518. None of the funds made available to carry out 
     part I of the Foreign Assistance Act of 1961, as amended, may 
     be used to pay for the performance of abortions as a method 
     of family planning or to motivate or coerce any person to 
     practice abortions. None of the funds made available to carry 
     out part I of the Foreign Assistance Act of 1961, as amended, 
     may be used to pay for the performance of involuntary 
     sterilization as a method of family planning or to coerce or 
     provide any financial incentive to any person to undergo 
     sterilizations. None of the funds made available to carry out 
     part I of the Foreign Assistance Act of 1961, as amended, may 
     be used to pay for any biomedical research which relates in 
     whole or in part, to methods of, or the performance of, 
     abortions or involuntary sterilization as a means of family 
     planning. None of the funds made available to carry out part 
     I of the Foreign Assistance Act of 1961, as amended, may be 
     obligated or expended for any country or organization if the 
     President certifies that the use of these funds by any such 
     country or organization would violate any of the above 
     provisions related to abortions and involuntary 
     sterilizations: Provided, That none of the funds made 
     available under this Act may be used to lobby for or against 
     abortion


                 authorization for population planning

       Sec. 518A. (a) None of the funds made available in title II 
     of this Act for population planning activities or other 
     population assistance pursuant to section 104(b) of the 
     Foreign Assistance Act or any other provision of law may be 
     obligated or expended prior to July 1, 1997.
       (b) Not to exceed $385,000,000 of the funds appropriated in 
     title II of this Act may be made available for population 
     planning activities or other population assistance.
       (c) Such funds may be apportioned only on a monthly basis, 
     and such monthly apportionments may not exceed 8 percent of 
     the total available for such activities.
       (d) Not later than February 1, 1997, the President shall 
     submit a finding to the Congress regarding the impact of the 
     limitation on obligations imposed by subsection (a) of this 
     section on the proper functioning of the population planning 
     program. If such Presidential finding indicates that the 
     limitation is having a negative impact on the proper 
     functioning of the population planning program, funds for 
     population planning activities and other population 
     assistance referred to in subsection (a) may be made 
     available beginning March 1, 1997, notwithstanding the July 
     1, 1997, limitation set forth in subsection (a), if the 
     Congress approves such finding by adoption of a joint 
     resolution of approval not later than February 28, 1997, in 
     accordance with subsection (e).
       (e) Congressional Review Procedure.--
       (1) This subsection is enacted by Congress--
       (A) as an exercise of the rulemaking power of the House of 
     Representatives and the Senate, respectively, and as such it 
     is deemed a part of the rules of each House, respectively, 
     but applicable only with respect to the procedure to be 
     followed in that House in the case of resolutions described 
     by paragraph (2) of this subsection; and it supersedes other 
     rules only to the extent that it is inconsistent therewith; 
     and
       (B) with full recognition of the constitutional right of 
     either House to change the rules (so far as those rules 
     relate to the procedure of that House) at any time, in the 
     same manner, and to the same extent as in the case of any 
     other rule of such House.
       (2) For purposes of this section, the term ``resolution'' 
     means a joint resolution, the text of which is as follows: 
     ``That the House of Representatives and Senate approve the 
     Presidential finding, submitted to the Congress on XXXXX, 
     that the limitation on obligations imposed by section 518A(a) 
     of the Foreign Operations, Export Financing, and Related 
     Programs Appropriations Act, 1997, is having a negative 
     impact on the proper functioning of the population planning 
     program.''. The blank space therein shall be filled with the 
     date on which the President submits his finding to the House 
     of Representatives and the Senate.
       (3) On the day on which the President submits a finding 
     under this section to the Congress, a joint resolution 
     described in paragraph (2) shall be introduced (by request) 
     in the House by the majority leader of the House, for himself 
     and the minority leader of the House, or by Members of the 
     House designated by the majority leader and minority leader 
     of the House; and shall be introduced (by request) in the 
     Senate by the majority leader of the Senate, for himself and 
     the minority leader of the Senate, or by Members of the 
     Senate designated by the majority leader and minority leader 
     of the Senate. If either House is not in session on the day 
     on which the President submits such finding, the resolution 
     shall be introduced in that House, as provided in the 
     preceding sentence, on the first day thereafter on which that 
     House is in session. A resolution once introduced in the 
     House with respect to a Presidential finding under this 
     section shall be referred to 1 or more committees (and all 
     resolutions with respect to the same Presidential finding 
     shall be referred to the same committee or committees) by the 
     Speaker of the House of Representatives. A resolution once 
     introduced in the Senate with respect to a Presidential 
     finding under this section shall be referred to the 
     appropriate committee (and all resolutions with respect to 
     the same Presidential finding shall be referred to the same 
     committee) by the President of the Senate.
       (4) No amendment to a resolution introduced under this 
     section shall be in order in either the House of 
     Representatives or the Senate; and no motion to suspend the 
     application of this subsection shall be in order in either 
     House, nor shall it be in order in either House for the 
     presiding officer to entertain a request to suspend the 
     application of this subsection by unanimous consent.
       (5)(A) If any committee to which a resolution with respect 
     to a Presidential finding under this section has been 
     referred has not reported it at

[[Page H11684]]

     the end of 5 calendar days after its introduction, such 
     committee shall be automatically discharged from further 
     consideration of the resolution and it shall be placed on the 
     appropriate calendar. A vote on final passage of the 
     resolution, shall be taken in each House on or before 
     February 28, 1997. If prior to the passage by 1 House of a 
     resolution of that House under this section, that House 
     receives the same resolution from the other House, then--
       (i) the procedure in that House shall be the same as if no 
     resolution had been received from the other House, but
       (ii) the vote on final passage shall be on the resolution 
     of the other House.
       (6)(A) A motion in the House of Representatives to proceed 
     to the consideration of a resolution under this section shall 
     be highly privileged and not debatable. An amendment to the 
     motion shall not be in order, nor shall it be in order to 
     move to reconsider the vote by which the motion is agreed to 
     or disagreed to.
       (B) Debate in the House of Representatives on the 
     resolution described in paragraph (2) of this subsection 
     shall be limited to not more than 2 hours, which shall be 
     divided equally between those favoring and those opposing 
     such resolution. A motion to further limit debate shall not 
     be debatable. It shall not be in order to move to recommit a 
     resolution or to move to reconsider the vote by which such 
     resolution was agreed to or disagreed to.
       (C) Appeals from the decision of the Chair relating to the 
     application of the rules of the House of Representatives to 
     the procedures relating to a resolution under this section 
     shall be decided without debate.
       (D) Except to the extent specifically provided in preceding 
     provisions of this subsection, consideration in the House of 
     Representatives of a resolution under this subsection shall 
     be governed by the rules of the House of Representatives 
     applicable to other resolutions in similar circumstances.
       (7)(A) A motion in the Senate to proceed to the 
     consideration of a resolution under this section shall not be 
     debatable. It shall not be in order to move to reconsider the 
     vote by which the motion is agreed to or disagreed to.
       (B) Debate in the Senate on the resolution described in 
     paragraph (2) of this subsection, and all debatable motions 
     and appeals in connection therewith, shall be limited to not 
     more than 2 hours. The time shall be equally divided between, 
     and controlled by, the mover and the manager of the 
     resolution, except that in the event the manager of the 
     resolution is in favor of any such motion or appeal, the time 
     in opposition thereto shall be controlled by the minority 
     leader or his designee. Such leaders, or either of them, may, 
     from time under their control on the passage of a resolution, 
     allot additional time to any Senator during the consideration 
     of any debatable motion or appeal.
       (C) A motion in the Senate to further limit debate is not 
     debatable. A motion to recommit a resolution is not in order.


                         reporting requirement

       Sec. 519. The President shall submit to the Committees on 
     Appropriations the reports required by section 25(a)(1) of 
     the Arms Export Control Act.


                   special notification requirements

       Sec. 520. None of the funds appropriated in this Act shall 
     be obligated or expended for Colombia, Guatemala (except that 
     this provision shall not apply to development assistance for 
     Guatemala), Dominican Republic, Haiti, Liberia, Pakistan, 
     Peru, Serbia, Sudan, or Zaire except as provided through the 
     regular notification procedures of the Committee on 
     Appropriations.


              definition of program, project, and activity

       Sec. 521. For the purpose of this Act, ``program, project, 
     and activity'' shall be defined at the Appropriations Act 
     account level and shall include all Appropriations and 
     Authorizations Acts earmarks, ceilings, and limitations with 
     the exception that for the following accounts: Economics 
     Support Fund and Foreign Military Financing Program, 
     ``program, project, and activity'' shall also be considered 
     to include country, regional, and central program level 
     funding within each such account; for the development 
     assistance accounts of the Agency for International 
     Development ``program, project, and activity'' shall also be 
     considered to include central program level funding, either 
     as (1) justified to the Congress, or (2) allocated by the 
     executive branch in accordance with a report, to be provided 
     to the Committees on Appropriations within thirty days of 
     enactment of this Act, as required by section 653(a) of the 
     Foreign Assistance Act of 1961.


                   child survival and aids activities

       Sec. 522. Up to $8,000,000 of the funds made available by 
     this Act for assistance for family planning, health, child 
     survival, and AIDS, may be used to reimburse United States 
     Government agencies, agencies of State governments, 
     institutions of higher learning, and private and voluntary 
     organizations for the full cost of individuals (including for 
     the personal services of such individuals) detailed or 
     assigned to, or contracted by, as the case may be, the Agency 
     for International Development for the purpose of carrying out 
     family planning activities, child survival activities and 
     activities relating to research on, and the treatment and 
     control of acquired immune deficiency syndrome in developing 
     countries: Provided, That funds appropriated by this Act that 
     are made available for child survival activities or 
     activities relating to research on, and the treatment and 
     control of, acquired immune deficiency syndrome may be made 
     available notwithstanding any provision of law that restricts 
     assistance to foreign countries: Provided further, That funds 
     appropriated by this Act that are made available for family 
     planning activities may be made available notwithstanding 
     section 512 of this Act and section 620(q) of the Foreign 
     Assistance Act of 1961.


       prohibition against indirect funding to certain countries

       Sec. 523. None of the funds appropriated or otherwise made 
     available pursuant to this Act shall be obligated to finance 
     indirectly any assistance or reparations to Cuba, Iraq, 
     Libya, Iran, Syria, North Korea, or the People's Republic of 
     China, unless the President of the United States certifies 
     that the withholding of these funds is contrary to the 
     national interest of the Untied States.


                           reciprocal leasing

       Sec. 524. Section 61(a) of the Arms Export Control Act is 
     amended by striking out ``1996'' and inserting in lieu 
     thereof ``1997''.


                NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

       Sec. 525. Prior to providing excess Department of Defense 
     articles in accordance with section 516(a) of the Foreign 
     Assistance Act of 1961, the Department of Defense shall 
     notify the Committee on Appropriations to the same extent and 
     under the same conditions as are other committees pursuant to 
     subsection (c) of that section: Provided, That before issuing 
     a letter of offer to sell excess defense articles under the 
     Arms Export Control Act, the Department of Defense shall 
     notify the Committees on Appropriations in accordance with 
     the regular notification procedures of such Committees: 
     Provided further, That such Committees shall also be informed 
     of the original acquisition cost of such defense articles.


                       AUTHORIZATION REQUIREMENT

       Sec. 526. Funds appropriated by this Act may be obligated 
     and expended notwithstanding section 10 of Public Law 91-672 
     and section 15 of the State Department Basic Authorities Act 
     of 1956.


       PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

       Sec. 527. (a) Notwithstanding any other provision of law, 
     funds appropriated for bilateral assistance under any heading 
     of this Act and funds appropriated under any such heading in 
     a provision of law enacted prior to enactment of this Act, 
     shall not be made available to any country which the 
     President determines--
       (1) grants sanctuary from prosecution to any individual or 
     group which has committed an act of international terrorism, 
     or
       (2) otherwise supports international terrorism.
         (b) The President may waive the application of subsection 
     (a) to a country if the President determines that national 
     security or humanitarian reasons justify such waiver. The 
     President shall publish each waiver in the Federal Register 
     and, at least fifteen days before the waiver takes effect, 
     shall notify the Committees on Appropriations of the waiver 
     (including the justification for the waiver) in accordance 
     with the regular notification procedures of the Committees on 
     Appropriations.


                 COMMERCIAL LEASING OF DEFENSE ARTICLES

       Sec. 528. Notwithstanding any other provision of law, and 
     subject to the regular notification procedures of the 
     Committees on Appropriations, the authority of section 23(a) 
     of the Arms Export Control Act may be used to provide 
     financing to Israel, Egypt and NATO and major non-NATO allies 
     for the procurement by leasing (including leasing with an 
     option to purchase) of defense articles from United States 
     commercial suppliers, not including Major Defense Equipment 
     (other than helicopters and other types of aircraft having 
     possible civilian application), if the President determines 
     that there are compelling foreign policy or national security 
     reasons for those defense articles being provided by 
     commercial lease rather than by government-to-government sale 
     under such Act.


                         COMPETITIVE INSURANCE

       Sec. 528A. All Agency for International Development 
     contracts and solicitations, and subcontracts entered into 
     under such contracts, shall include a clause requiring that 
     United States insurance companies have a fair opportunity to 
     bid for insurance when such insurance is necessary or 
     appropriate.


                  STINGERS IN THE PERSIAN GULF REGION

       Sec. 529. Except as provided in section 581 of the Foreign 
     Operations, Export Financing, and Related Programs 
     Appropriations Act, 1990, the United States may not sell or 
     otherwise make available any Stingers to any country 
     bordering the Persian Gulf under the Arms Export Control Act 
     or chapter 2 of part II of the Foreign Assistance Act of 
     1961.


                          DEBT-FOR-DEVELOPMENT

       Sec. 530. In order to enhance the continued participation 
     of nongovernmental organizations in economic assistance 
     activities under the Foreign Assistance Act of 1961, 
     including endowments, debt-for-development and debt-for-
     nature exchanges, a nongovernmental organization which is a 
     grantee or contractor of the Agency for International 
     Development may place in interest bearing accounts funds made 
     available under this Act or prior Acts or local currencies 
     which accrue to that organization as a result of economic 
     assistance provided under title II of this Act and any 
     interest earned on such investment shall be used for the 
     purpose for which the assistance was provided to that 
     organization.


                           SEPARATE ACCOUNTS

       Sec. 531. (a) Separate Accounts for Local Currencies.--(1) 
     If assistance is furnished to the government of a foreign 
     country under chapters 1 and 10 of part I or chapter 4 of 
     part II of the Foreign Assistance Act of 1961 under 
     agreements which result in the generation of local currencies 
     of that country, the Administrator of the Agency for 
     International Development shall--
       (A) require that local currencies be deposited in a 
     separate account established by that government;
       (B) enter into an agreement with that government which sets 
     forth--

[[Page H11685]]

       (i) the amount of the local currencies to be generated, and
       (ii) the terms and conditions under which the currencies so 
     deposited may be utilized, consistent with this section; and
       (C) establish by agreement with that government the 
     responsibilities of the Agency for International Development 
     and that government to monitor and account for deposits into 
     and disbursements from the separate account.
       (2) Uses of Local Currencies.--As may be agreed upon with 
     the foreign government, local currencies deposited in a 
     separate account pursuant to subsection (a), or an equivalent 
     amount of local currencies, shall be used only--
       (A) to carry out chapters 1 or 10 of part I or chapter 4 of 
     part II (as the case may be), for such purposes as--
       (i) project and sector assistance activities, or
       (ii) debt and deficit financing, or
       (B) for the administrative requirements of the United 
     States Government.
       (3) Programming Accountability.--The Agency for 
     International Development shall take all necessary steps to 
     ensure that the equivalent of the local currencies disbursed 
     pursuant to subsection (a)(2)(A) from the separate account 
     established pursuant to subsection (a)(1) are used for the 
     purposes agreed upon pursuant to subsection (a)(2).
       (4) Termination of Assistance Programs.--Upon termination 
     of assistance to a country under chapters 1 or 10 of part I 
     or chapter 4 of part II (as the case may be), any 
     unencumbered balances of funds which remain in a separate 
     account established pursuant to subsection (a) shall be 
     disposed of for such purposes as may be agreed to by the 
     government of that country and the United States Government.
       (5) Conforming Amendments.--The provisions of this 
     subsection shall supersede the tenth and eleventh provisos 
     contained under the heading ``Sub-Saharan Africa, Development 
     Assistance'' as included in the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1989 and 
     sections 531(d) and 609 of the Foreign Assistance Act of 
     1961.
       (6) Reporting Requirement.--The Administrator of the Agency 
     for International Development shall report on an annual basis 
     as part of the justification documents submitted to the 
     Committees on Appropriations on the use of local currencies 
     for the administrative requirements of the United States 
     Government as authorized in subsection (a)(2)(B), and such 
     report shall include the amount of local currency (and United 
     States dollar equivalent) used and/or to be used for such 
     purpose in each applicable country.
       (b) Separate Accounts for Cash Transfers.--(1) If 
     assistance is made available to the government of a foreign 
     country, under chapters 1 or 10 of part I or chapter 4 of 
     part II of the Foreign Assistance Act of 1961, as cash 
     transfer assistance or as nonproject sector assistance, that 
     country shall be required to maintain such funds in a 
     separate account and not commingle them with any other funds.
       (2) Applicability of Other Provisions of Law.--Such funds 
     may be obligated and expended notwithstanding provisions of 
     law which are inconsistent with the nature of this assistance 
     including provisions which are referenced in the Joint 
     Explanatory Statement of the Committee of Conference 
     accompanying House Joint Resolution 648 (H. Report No. 98-
     1159).
       (3) Notification.--At lest fifteen days prior to obligating 
     any such cash transfer or nonproject sector assistance, the 
     President shall submit a notification through the regular 
     notification procedures of the Committees on Appropriations, 
     which shall include a detailed description of how the funds 
     proposed to be made available will be used, with a discussion 
     of the United States interests that will be served by the 
     assistance (including, as appropriate, a description of the 
     economic policy reforms that will be promoted by such 
     assistance).
       (4) Exemption.--Nonproject sector assistance funds may be 
     exempt from the requirements of subsection (b)(1) only 
     through the notification procedures of the Committees on 
     Appropriations.


  compensation for united states executive directors to international 
                         financing institutions

       Sec. 532. (a) No funds appropriated by this Act may be made 
     as payment to any international financial institution while 
     the United States Executive Director to such institution is 
     compensated by the institution at a rate which, together with 
     whatever compensation such Director receives from the United 
     States, is in excess of the rate provided for an individual 
     occupying a position at level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code, or while 
     any alternate United States Director to such institution is 
     compensated by the institution at a rate in excess of the 
     rate provided for an individual occupying a position at level 
     V of the Executive Schedule under section 5316 of title 5, 
     United States Code.
       (b) For purposes of this section, ``international financial 
     institutions'' are: the International Bank for Reconstruction 
     and Development, the Inter-American Development Bank, the 
     Asian Development Bank, the Asian Development Fund, the 
     African Development Bank, the African Development Fund, the 
     International Monetary Fund, the North American Development 
     Bank, and the European Bank for Reconstruction and 
     Development.


         compliance with united nations sanctions against iraq

       Sec. 533. (a) Denial of Assistance.--None of the funds 
     appropriated or otherwise made available pursuant to this Act 
     to carry out the Foreign Assistance Act of 1961 (including 
     title IV of chapter 2 of part I, relating to the Overseas 
     Private Investment Corporation) or the Arms Export Control 
     Act may be used to provide assistance to any country that is 
     not in compliance with the United Nations Security Council 
     sanctions against Iraq, Serbia or Montenegro unless the 
     President determines and so certifies to the Congress that--
       (1) such assistance is in the national interest of the 
     United States;
       (2) such assistance will directly benefit the needy people 
     in that country; or
       (3) the assistance to be provided will be humanitarian 
     assistance for foreign national who have fled Iraq and 
     Kuwait.
       (b) Import Sanctions.--If the President considers that the 
     taking of such action would promote the effectiveness of the 
     economic sanctions of the United Nations and the United 
     States imposed with respect to Iraq, Serbia, or Montenegro, 
     as the case may be, and is consistent with the national 
     interest, the President may prohibit, for such a period of 
     time as he considers appropriate, the importation into the 
     United States of any or all products of any foreign country 
     that has not prohibited--
       (1) the importation of products of Iraq, Serbia, or 
     Montenegro into its customs territory, and
       (2) the export of its products to Iraq, Serbia, or 
     Montenegro, as the case may be.


           competitive pricing for sales of defense articles

       Sec. 533A. Direct costs associated with meeting a foreign 
     customer's additional or unique requirements will continue to 
     be allowable under contracts under section 22(d) of the Arms 
     Export Control Act. Loadings applicable to such direct costs 
     shall be permitted at the same rates applicable to 
     procurement of like items purchased by the Department of 
     Defense for its own use.


                       pow/mia military drawdown

       Sec. 534. (a) Notwithstanding any other provision of law, 
     the President may direct the drawdown, without reimbursement 
     by the recipient, of defense articles from the stocks of the 
     Department of Defense, defense services of the Department of 
     Defense, and military education and training, of an aggregate 
     value not to exceed $15,000,000 in fiscal year 1997, as may 
     be necessary to carry out subsection (b).
       (b) Such defense articles, services and training may be 
     provided to Vietnam, Cambodia and Laos, under subsection (a) 
     as the President determines are necessary to support efforts 
     to locate and repatriate members of the United States Armed 
     Forces and civilians employed directly or indirectly by the 
     United States Government who remain unaccounted for from the 
     Vietnam War, and to ensure the safety of United States 
     Government personnel engaged in such cooperative efforts and 
     to support United States Department of defense-sponsored 
     humanitarian projects associated with the POW/MIA efforts. 
     Any aircraft shall be provided under this section only to 
     Laos and only on a lease or loan basis, but may be provided 
     at no cost notwithstanding section 61 of the Arms Export 
     Control Act and may be maintained with defense articles, 
     services and training provided under this section.
       (c) The President shall, within sixty days of the end of 
     any fiscal year in which the authority of subsection (a) is 
     exercised, submit a report to the Congress which identifies 
     the articles, services, and training drawn down under this 
     section.


                 mediterranean excess defense articles

       Sec. 535. For the four-year period beginning on October 1, 
     1996, the President shall ensure that excess defense articles 
     will be made available under section 516 and 519 of the 
     Foreign Assistance Act of 1961 consistent with the manner in 
     which the President made available excess defense articles 
     under those sections during the four-year period that began 
     on October 1, 1992, pursuant to section 573(e) of the Foreign 
     Operations, Export Financing, Related Programs Appropriations 
     Act, 1990.


                          cash flow financing

       Sec. 536. For each country that has been approved for cash 
     flow financing (as defined in section 25(d) of the Arms 
     Export Control Act, as added by section 112(b) of Public Law 
     99-83) under the Foreign Military Financing Program, any 
     Letter of Offer and Acceptance or other purchase agreement, 
     or any amendment thereto, for a procurement in excess of 
     $100,000,000 that is to be financed in whole or in part with 
     funds made available under this Act shall be submitted 
     through the regular notification procedures to the Committees 
     on Appropriations.


authorities for the peace corps, the inter-american foundation and the 
                     african development foundation

       Sec. 537. Unless expressly provided to the contrary, 
     provisions of this or any other Act, including provisions 
     contained in prior Acts authorizing or making appropriations 
     for foreign operations, export financing, and related 
     programs, shall not be construed to prohibit activities 
     authorized by or conducted under the Peace Corp Act, the 
     Inter-American Foundation Act, or the African Development 
     Foundation Act. The appropriate agency shall promptly report 
     to the Committees on Appropriations whenever it is conducting 
     activities or is proposing to conduct activities in a country 
     for which assistance is prohibited.


                  impact on jobs in the united states

       Sec. 538. None of the funds appropriated by this Act may be 
     obligated or expended to provide--
       (a) any financial incentive to a business enterprise 
     currently located in the United States for the purpose of 
     inducing such an enterprise to relocate outside the United 
     States if such incentive or inducement is likely to reduce 
     the number of employees of such business enterprise in the 
     United States because United States production is being 
     replaced by such enterprise outside the United States;

[[Page H11686]]

       (b) assistance for the purpose of establishing or 
     developing in a foreign country any export processing zone or 
     designated area in which the tax, tariff, labor, environment, 
     and safety laws of that country do not apply, in part or in 
     whole, to activities carried out within that zone or area, 
     unless the President determines and certifies that such 
     assistance is not likely to cause a loss of jobs within the 
     United States; or
       (c) assistance for any project or activity that contributes 
     to the violation of internationally recognized workers 
     rights, as defined in section 502(a)(4) of the Trade Act of 
     1974, of workers in the recipient country, including any 
     designated zone or area in that country: Provided, That in 
     recognition that the application of this subsection should be 
     commensurate with the level of development of the recipient 
     country and sector, the provisions of this subsection shall 
     not preclude assistance for the informal sector in such 
     country, micro and small-scale enterprise, and smallholder 
     agriculture.


               authority to assist bosnia and herzegovina

       Sec. 539. (a) The President is authorized to direct the 
     transfer, subject to prior notification of the Committees on 
     Appropriations, to the Government of Bosnia and Herzegovina, 
     without reimbursement of defense articles from the stocks of 
     the Department of Defense and defense services of the 
     Department of Defense of an aggregate value of not to exceed 
     $100,000,000 in fiscal years 1996 and 1997: Provided, That 
     the President certifies in a timely fashion to the Congress 
     that the transfer of such articles would assist that nation 
     in self-defense and thereby promote the security and 
     stability of the region.
       (b) Within 60 days of any transfer under the authority 
     provided in subsection (a), and every 60 days thereafter, the 
     President shall report in writing to the Speaker of the House 
     of Representatives and the President pro tempore of the 
     Senate concerning the articles transferred and the 
     disposition thereof.
       (c) There are authorized to be appropriated to the 
     President such sums as may be necessary to reimburse the 
     applicable appropriation, fund, or account for defense 
     articles provided under this section.


    restrictions on the termination of sanctions against serbia and 
                               montenegro

       Sec. 540. (a) Restrictions.--Notwithstanding any other 
     provision of law, no sanction, prohibition, or requirement 
     described in section 1511 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160), 
     with respect to Serbia or Montenegro, may cease to be 
     effective, unless--
       (1) the President first submits to the Congress a 
     certification described in subsection (b); and
       (2) the requirements of section 1511 of that Act are met.
       (b) Certification.--A certification described in this 
     subsection is a certification that--
       (1) there is substantial progress toward--
       (A) the realization of a separate identity for Kosova and 
     the right of the people of Kosova to govern themselves; or
       (B) the creation of an international protectorate for 
     Kosova;
       (2) there is substantial improvement in the human rights 
     situation in Kosova;
       (3) international human rights observers are allowed to 
     return to Kosova; and
       (4) the elected government of Kosova is permitted to meet 
     and carry out its legitimate mandate as elected 
     representatives of the people of Kosova.
       (c) Waiver Authority.--The President may waive the 
     application in whole or in part, of subsection (a) if the 
     President certifies to the Congress that the President has 
     determined that the waiver is necessary to meet emergency 
     humanitarian needs or to achieve a negotiated settlement of 
     the conflict in Bosnia and Herzegovina that is acceptable to 
     the parties.


                          special authorities

       Sec. 541. (a) Funds appropriated in title II of this Act 
     that are made available for Afghanistan, Lebanon, and 
     Cambodia, and for victims of war, displaced children, 
     displaced Burmese, humanitarian assistance for Romania, and 
     humanitarian assistance for the peoples of Bosnia and 
     Herzegovina, Croatia, and Kosova, may be made available 
     notwithstanding any other provision of law: Provided, That 
     any such funds that are made available for Cambodia shall be 
     subject to the provisions of section 531(c) of the Foreign 
     Assistance Act of 1961 and section 906 of the International 
     Security and Development Cooperation Act of 1985: Provided 
     further, That none of the funds appropriated by this Act may 
     be made available for assistance for any country or 
     organization that the Secretary of State determines is 
     cooperating, tactically or strategically, with the Khmer 
     Rouge in their military operations, or to the military of any 
     country that is not acting vigorously to prevent its members 
     from facilitating the export of timber from Cambodia by the 
     Khmer Rouge: Provided further, That the Secretary of State 
     shall submit a report to the Committees on Appropriations by 
     February 1, 1997, on whether there are any countries, 
     organizations, or militaries for which assistance is 
     prohibited under the previous proviso, the basis for such 
     conclusions and, if appropriate, the steps being taken to 
     terminate assistance: Provided further, That the prohibition 
     on assistance to the military of any country that is not 
     acting vigorously to prevent its members from facilitating 
     the export of timber from Cambodia by the Khmer Rouge may be 
     waived by the President if he determines and reports to the 
     Committees on Appropriations that is is important to the 
     national security interest of the United States to do so.
       (b) Funds appropriated by this Act to carry out the 
     provisions of sections 103 through 106 of the Foreign 
     Assistance Act of 1961 may be used, notwithstanding any other 
     provision of law, for the purpose of supporting tropical 
     forestry and energy programs aimed at reducing emissions of 
     greenhouse gases, and for the purpose of supporting 
     biodiversity conservation activities: Provided, that such 
     assistance shall be subject to sections 116, 502B, and 620A 
     of the Foreign Assistance Act of 1961.
       (c) During fiscal year 1997, the President may use up to 
     $40,000,000 under the authority of section 451 of the Foreign 
     Assistance Act of 1961, notwithstanding the funding ceiling 
     contained in subsection (a) of that section.
       (d) The Agency for International Development may employ 
     personal services contractors, notwithstanding any other 
     provision of law, for the purpose of administering programs 
     for the West Bank and Gaza.


        policy on terminating the arab league boycott of israel

       Sec. 542. It is the sense of the Congress that--
       (1) the Arab League countries should immediately and 
     publicly renounce the primary boycott of Israel and the 
     secondary and tertiary boycott of American firms that have 
     commercial ties with Israel; and
       (2) the President should--
       (A) take more concrete steps to encourage vigorously Arab 
     League countries to renounce publicly the primary boycotts of 
     Israel and the secondary and tertiary boycotts of American 
     firms that have commercial relations with Israel as a 
     confidence-building measure;
       (B) take into consideration the participation of any 
     recipient country in the primary boycott of Israel and the 
     secondary and tertiary boycotts of American firms that have 
     commercial relations with Israel when determining whether to 
     sell weapons to said county;
       (C) report to Congress on the specific steps being taken by 
     the President to bring about a public renunciation of the 
     Arab primary boycott of Israel and the secondary and tertiary 
     boycotts of American firms that have commercial relations 
     with Israel; and
       (D) encourage the allies and trading partners of the United 
     States to enact laws prohibiting businesses from complying 
     with the boycott and penalizing businesses that do comply.


                       anti-narcotics activities

       Sec. 543. (a) Of the funds appropriated or otherwise made 
     available by this Act for ``Economic Support Fund'', 
     assistance may be provided to strengthen the administration 
     of justice in countries in Latin America and the Caribbean 
     and in other regions consistent with the provisions of 
     section 534(b) of the Foreign Assistance Act of 1961, except 
     that programs to enhance protection of participants in 
     judicial cases may be conducted notwithstanding section 660 
     of that Act.
       (b) Funds made available pursuant to this section may be 
     made available notwithstanding section 534(c) and the second 
     and third sentences of section 534(e) of the Foreign 
     Assistance Act of 1961. Funds made available pursuant to 
     subsection (a) for Bolivia, Colombia and Peru may be made 
     available notwithstanding section 534(c) and the second 
     sentence of section 534(e) of the Foreign Assistance Act of 
     1961.


                       eligibility for assistance

       Sec. 544. (a) Assistance Through Nongovernmental 
     Organizations.--Restrictions contained in this or any other 
     Act with respect to assistance for a country shall not be 
     construed to restrict assistance in support of programs of 
     nongovernmental organizations from funds appropriated by this 
     Act to carry out the provisions of chapters 1 and 10 of part 
     I of the Foreign Assistance Act of 1961: Provided, That the 
     President shall take into consideration, in any case in which 
     a restriction on assistance would be applicable but for this 
     subsection, whether assistance in support of programs of 
     nongovernmental organizations is in the national interest of 
     the United States: Provided further, That before using the 
     authority of this subsection to furnish assistance in support 
     of programs of nongovernmental organizations, the President 
     shall notify the Committees on Appropriations under the 
     regular notification procedures of those committees, 
     including a description of the program to be assisted, the 
     assistance to be provided, and the reasons for furnishing 
     such assistance: Provided further, That nothing in this 
     subsection shall be construed to alter any existing statutory 
     prohibitions against abortion or involuntary sterilizations 
     contained in this or any other Act.
       (b) Public Law 480.--During fiscal year 1997, restrictions 
     contained in this or any other Act with respect to assistance 
     for a country shall not be construed to restrict assistance 
     under the Agricultural Trade Development and Assistance Act 
     of 1954: Provided, That none of the funds appropriated to 
     carry out title I of such Act and made available pursuant to 
     this subsection may be obligated or expended except as 
     provided through the regular notification procedures of the 
     Committees on Appropriations.
       (c) Exception.--This section shall not apply--
       (1) with respect to section 620A of the Foreign Assistance 
     Act or any comparable provision of law prohibiting assistance 
     to countries that support international terrorism; or
       (2) with respect to section 116 of the Foreign Assistance 
     Act of 1961 or any comparable provision of law prohibiting 
     assistance to countries that violate internationally 
     recognized human rights.


                                earmarks

       Sec. 544A. (a) Funds appropriated by this Act which are 
     earmarked may be reprogrammed for other programs within the 
     same account notwithstanding the earmark if compliance with 
     the earmark is made impossible by operation of any provision 
     of this or any other Act or, with respect to a country with 
     which the United States has an agreement providing the United 
     States with base rights or base access in that

[[Page H11687]]

     country, if the President determines that the recipient for 
     which funds are earmarked has significantly reduced its 
     military or economic cooperation with the United States since 
     enactment of the Foreign Operations, Export Financing, and 
     Related Programs Appropriations Act, 1991; however, before 
     exercising the authority of this subsection with regard to a 
     base rights or base access country which has significantly 
     reduced its military or economic cooperation with the United 
     States, the President shall consult with, and shall provide a 
     written policy justification to the Committees on 
     Appropriations: Provided, That any such reprogramming shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations: Provided further, That 
     assistance that is reprogrammed pursuant to this subsection 
     shall be made available under the same terms and conditions 
     as originally provided.
       (b) In addition to the authority contained in subsection 
     (a), the original period of availability of funds 
     appropriated by this Act and administered by the Agency for 
     International Development that are earmarked for particular 
     programs or activities by this or any other Act shall be 
     extended for an additional fiscal year if the Administrator 
     of such agency determines and reports promptly to the 
     Committees on Appropriations that the termination of 
     assistance to a country or a significant change in 
     circumstances makes it unlikely that such earmarked funds can 
     be obligated during the original period of availability: 
     Provided, That such earmarked funds that are continued 
     available for an additional fiscal year shall be obligated 
     only for the purpose of such earmark.


                         ceilings and earmarks

       Sec. 545. Ceilings and earmarks contained in this Act shall 
     not be applicable to funds or authorities appropriated or 
     otherwise made available by any subsequent Act unless such 
     Act specifically so directs.


                 prohibition on publicity or propaganda

       Sec. 546. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes within 
     the United States not authorized before the date of enactment 
     of this Act by the Congress: Provided, That not to exceed 
     $750,000 may be made available to carry out the provisions of 
     section 316 of Public Law 96-533.


                       use of american resources

       Sec. 547. To the maximum extent possible, assistance 
     provided under this Act should make full use of American 
     resources, including commodities, products, and services.


           prohibition of payments to united nations members

       Sec. 548. None of the funds appropriated or made available 
     pursuant to this Act for carrying out the Foreign Assistance 
     Act of 1961, may be used to pay in whole or in part any 
     assessments, arrearages, or dues of any member of the United 
     Nations.


                          consulting services

       Sec. 549. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to section 3109 of title 5, United States Code, 
     shall be limited to those contracts where such expenditures 
     are a matter of public record and available for public 
     inspection, except where otherwise provided under existing 
     law, or under existing Executive order pursuant to existing 
     law.


             private voluntary organizations--documentation

       Sec. 550. None of the funds appropriated or made available 
     pursuant to this Act shall be available to a private 
     voluntary organization which fails to provide upon timely 
     request any document, file, or record necessary to the 
     auditing requirements of the Agency for International 
     Development.


  Prohibition on Assistance to Foreign Governments that Export Lethal 
   Military Equipment to Countries Supporting International Terrorism

       Sec. 551. (a) None of the funds appropriated or otherwise 
     made available by this Act may be available to any foreign 
     government which provides lethal military equipment to a 
     country the government of which the Secretary of State has 
     determined is a terrorist government for purposes of section 
     40(d) of the Arms Export Control Act. The prohibition under 
     this section with respect to a foreign government shall 
     terminate 12 months after that government ceases to provide 
     such military equipment. This section applies with respect to 
     lethal military equipment provided under a contract entered 
     into after the date of enactment of this Act.
       (b) Assistance restricted by subsection (a) or any other 
     similar provision of law, may be furnished if the President 
     determines that furnishing such assistance is important to 
     the national interests of the United States.
       (c) Whenever the waiver of subsection (b) is exercised, the 
     President shall submit to the appropriate congressional 
     committees a report with respect to the furnishing of such 
     assistance. Any such report shall include a detailed 
     explanation of the assistance to be provided, including the 
     estimated dollar amount of such assistance, and an 
     explanation of how the assistance furthers United States 
     national interests.


 Withholding of Assistance for Parking Fines Owed by Foreign Countries

       Sec. 552. (a) In General.--Of the funds made available for 
     a foreign country under part I of the Foreign Assistance Act 
     of 1961, an amount equivalent to 110 percent of the total 
     unpaid fully adjudicated parking fines and penalties owed to 
     the District of Columbia by such country as of the date of 
     enactment of this Act shall be withheld from obligation for 
     such country until the Secretary of State certifies and 
     reports in writing to the appropriate congressional 
     committees that such fines and penalties are fully paid to 
     the government of the District of Columbia.
       (b) Definition.--For purposes of this section, the term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations and the Committee on Appropriations of 
     the Senate and the Committee on International Relations and 
     the Committee on Appropriations of the House of 
     Representatives.


    Limitation on Assistance for the PLO for the West Bank and Gaza

       Sec. 553. None of the funds appropriated by this Act may be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza unless the President 
     has exercised the authority under section 604(a) of the 
     Middle East Peace Facilitation Act of 1995 (title VI of 
     Public Law 104-107) or any other legislation to suspend or 
     maker inapplicable section 307 of the Foreign Assistance Act 
     of 1961 and that suspension is still in effect: Provided, 
     That if the President fails to make the certification under 
     section 604(b)(2) of the Middle East Peace Facilitation Act 
     of 1995 or to suspend the prohibition under other 
     legislation, funds appropriated by this Act may not be 
     obligated for assistance for the Palestine Liberation 
     Organization for the West Bank and Gaza.


                 Export Financing Transfer Authorities

       Sec. 554. Not to exceed 5 percent of any appropriation 
     other than for administrative expenses made available for 
     fiscal year 1997 for programs under title I of this Act may 
     be transferred between such appropriations for use for any of 
     the purposes, programs and activities for which the funds in 
     such receiving account may be used, but no such 
     appropriation, except as otherwise specifically provided, 
     shall be increased by more than 25 percent by any such 
     transfer: Provided, That the exercise of such authority shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations.


                          war crimes tribunals

       Sec. 555. If the President determines that doing so will 
     contribute to a just resolution of charges regarding genocide 
     or other violations of international humanitarian law, the 
     President may direct a drawdown pursuant to section 552(c) of 
     the Foreign Assistance Act of 1961, as amended, of up to 
     $25,000,000 of commodities and services for the United 
     Nations War Crimes Tribunal established with regard to the 
     former Yugoslavia by the United Nations Security Council or 
     such other tribunals or commissions as the Council may 
     establish to deal with such violations, without regard to the 
     ceiling limitation contained in paragraph (2) thereof: 
     Provided, That the determination required under this section 
     shall be in lieu of any determinations otherwise required 
     under section 552(c): Provided further, That 60 days after 
     the date of enactment of this Act, and every 180 days 
     thereafter, the Secretary of State shall submit a report to 
     the Committees on Appropriations describing the steps the 
     United States Government is taking to collect information 
     regarding allegations of genocide or other violations of 
     international law in the former Yugoslavia and to furnish 
     that information to the United Nations War Crimes Tribunal 
     for the former Yugoslavia.


                               landmines

       Sec. 556. Notwithstanding any other provision of law, 
     demining equipment available to the Agency for International 
     Development and the Department of State and used in support 
     of the clearing of landmines and unexploded ordnance for 
     humanitarian purposes may be disposed of on a grant basis in 
     foreign countries, subject to such terms and conditions as 
     the President may prescribe: Provided, That section 1365(c) 
     of the National Defense Authorization Act for Fiscal Year 
     1993 (Public Law 102-484; 22 U.S.C., 2778 note) is amended by 
     striking out ``During the five-year period beginning on 
     October 23, 1992'' and inserting in lieu thereof ``During the 
     eight-year period beginning on October 23, 1992''.


           restrictions concerning the palestinian authority

       Sec. 557. None of the funds appropriated by this Act may be 
     obligated or expended to create in any part of Jerusalem a 
     new office of any department or agency of the United States 
     Government for the purpose of conducting official United 
     States Government business with the Palestinian Authority 
     over Gaza and Jericho or any successor Palestinian governing 
     entity provided for in the Israel-PLO Declaration of 
     Principles: Provided, That this restrictions shall not apply 
     to the acquisition of additional space for the existing 
     Consulate General in Jerusalem: Provided further, That 
     meetings between officers and employees of the United States 
     and officials of the Palestinian Authority, or any successor 
     Palestinian governing entity provided for in the Israel-PLO 
     Declaration of Principles, for the purpose of conducting 
     official United States Government business with such 
     authority should continue to take place in locations other 
     than Jerusalem. As has been true in the past, officers and 
     employees of the United States Government may continue to 
     meet in Jerusalem on other subjects with Palestinians 
     (including those who now occupy positions in the Palestinian 
     Authority), have social contacts, and have incidental 
     discussions.


               prohibition of payment of certain expenses

       Sec. 558. None of the funds appropriated or otherwise made 
     available by this Act under the heading ``international 
     military education and training'' or ``foreign military 
     financing program'' for Informational Program activities may 
     be obligated or expended to pay for--
       (1) alcoholic beverages;
       (2) food (other than food provided at a military 
     installation) not provided in conjunction with Informational 
     Program tips where students do not stay at a military 
     installation; or

[[Page H11688]]

       (3) entertainment expenses for activities that are 
     substantially of a recreational character, including entrance 
     fees at sporting events and amusement parks.


                         humanitarian corridors

       Sec. 559. The Foreign Assistance Act of 1961 is amended by 
     adding immediately after section 620H the following new 
     section:
       Sec. 6201. Prohibition on Assistance to Countries That 
     Restrict United States Humanitarian Assistance.--
       ``(a) In general.--No assistance shall be furnished under 
     this Act or the Arms Export Control Act to any country when 
     it is made known to the President that the government of such 
     country prohibits or otherwise restricts, directly or 
     indirectly, the transport or delivery of United States 
     humanitarian assistance.
       ``(b) Exception.--Assistance may be furnished without 
     regard to the restriction in subsection (a) if the President 
     determines that to do so is in the national security interest 
     of the United States.
       ``(c) Notice.--Prior to making any determination under 
     subsection (b), the President shall notify the Committee on 
     International Relations, the Committee on Foreign Relations, 
     and the Committees on Appropriations of the Senate and House 
     of Representatives of his intention to make such a 
     determination, the effective date of the determination, and 
     the reasons for making the determination.''.


                     equitable allocation of funds

       Sec. 560. Not more than 20 percent of the funds 
     appropriated by this Act to carry out the provisions of 
     sections 103 through 106 and chapter 4 of part II of the 
     Foreign Assistance Act of 1961, that are made available for 
     Latin America and the Caribbean region may be made available, 
     through bilateral and Latin America and the Caribbean 
     regional programs, to provide assistance for any country in 
     such region.


            purchase of american-made equipment and products

       Sec. 561. (a) Sense of Congress.--It is the sense of the 
     Congress that, to the greatest extent practicable, all 
     equipment and products purchased with funds made available in 
     this Act should be American-made.
       (b) Notice Requirements.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     funds made available in this Act, the head of each Federal 
     agency, to the greatest extent practicable, shall provide to 
     such entity a notice describing the statement made in 
     subsection (a) by the Congress.


        limitation of funds for north american development bank

       Sec. 562. None of the Funds appropriated in this Act under 
     the heading ``North American Development Bank'' and made 
     available for the Community Adjustment and Investment Program 
     shall be used for purposes other than those set out in the 
     binational agreement establishing the Bank.


                 international development association

       Sec. 563. In order to pay for the United States 
     contribution to the tenth replenishment of the resources of 
     the International Development Association authorized in 
     section 526 of Public Law 103-87, there is authorized to be 
     appropriated, without fiscal year limitation, $700,000,000 
     for payment by the Secretary of the Treasury.


                  special debt relief for the poorest

       Sec. 564. (a) Authority To Reduce Debt.--The President may 
     reduce amounts owned to the United States (or any agency of 
     the United States) by an eligible country as a result of--
       (1) guarantees issued under sections 221 and 222 of the 
     Foreign Assistance Act of 1961; or
       (2) credits extended or guarantees issued under the Arms 
     Export Control Act.
       (b) Limitations.--
       (1) The authority provided by subsection (a) may be 
     exercised only to implement multilateral official debt relief 
     and referendum agreements, commonly referred to as ``Paris 
     Club Agreed Minutes''.
       (2) The authority provided by subsection (a) may be 
     exercised only in such amounts or to such extent as is 
     provide in advance by appropriations Acts.
       (3) The authority provided by subsection (a) may be 
     exercised only with respect to countries with heavy debt 
     burdens that are eligible to borrow from the International 
     Development Association, but not from the International Bank 
     for Reconstruction and Development, commonly referred to as 
     ``IDA-only'' countries.
       (c) Conditions.--The authority provided by subsection (a) 
     may be exercised only with respect to a country whose 
     government--
       (1) does not have an excessive level of military 
     expenditures;
       (2) has not repeatedly provided support for acts of 
     international terrorism;
       (3) is not failing to cooperate on international narcotics 
     control matters;
       (4) (including its military or other security forces) does 
     not engage in a consistent pattern of gross violations of 
     internationally recognized human rights; and
       (5) is not ineligible for assistance because of the 
     application of section 527 of the Foreign Relations 
     Authorization Act, fiscal years 1994 and 1995.
       (d) availability of Funds.--The authority provided by 
     subsection (a) may be used only with regard to funds 
     appropriated by this Act under the heading ``Debt 
     restructuring''.
       (c) Certain Prohibitions Inapplicable.--A reduction of debt 
     pursuant to subsection (a) shall not be considered assistance 
     for purposes of any provision of law limiting assistance to a 
     country. The authority provided by subsection (a) may be 
     exercised notwithstanding section 620(r) of the Foreign 
     Assistance Act of 1961.


             authority to engage in debt buybacks or sales

       Sec. 565. (a) Loans Eligible for Sale, Reduction, or 
     Cancellation.--
       (1) Authority to sell, reduce, or cancel certain loans.--
     Notwithstanding any other provision of law, the President 
     may, in accordance with this section, sell to any eligible 
     purchaser any concessional loan or portion thereof made 
     before January 1, 1995, pursuant to the Foreign Assistance 
     Act of 1961, to the government of any eligible country as 
     define in section 702(6) of that Act or on receipt of payment 
     from an eligible purchaser, reduce or cancel such loan or 
     portion thereof, only for the purpose of facilitating--
       (A) debt-for-equity swaps, debt-for-development swaps, or 
     debt-for-nature swaps; or
       (B) a debt buyback by an eligible country of its own 
     qualified debt, only if the eligible country uses an 
     additional amount of the local currency of the eligible 
     country, equal to not less than 40 percent of the price paid 
     for such debt by such eligible country, or the difference 
     between the price paid for such debt and the face value of 
     such debt, to support activities that link conservation and 
     sustainable use of natural resources with local community 
     development, and child survival and other child development, 
     in a manner consistent with sections 707 through 710 of the 
     foreign Assistance Act of 1961, if the sale, reduction, or 
     cancellation would not contravene any term or condition of 
     any prior agreement relating to such loan.
       (2) Terms and conditions--Notwithstanding any other 
     provision of law, the President shall, in accordance with 
     this section, establish the terms and conditions under which 
     loans may be sold, reduced, or canceled pursuant to this 
     section.
       (3) Administration.--The Facility, as defined in section 
     702(8) of the Foreign Assistance Act of 1961, shall notify 
     the administrator of the agency primarily responsible for 
     administering part I of the Foreign Assistance Act of 1961 of 
     purchasers that the President has determined to be eligible, 
     and shall direct such agency to carry out the sale, 
     reduction, or cancellation of a loan pursuant to this 
     section. Such agency shall make an adjustment in its accounts 
     to reflect the sale, reduction, or cancellation.
       (4) Limitation.--The authorities of this subsection shall 
     be available only to the extent that appropriations for the 
     cost of the modification, as defined in section 502 of the 
     Congressional Budget Act of 1974, are made in advance.
       (b) Deposit of Proceeds.--The proceeds from the sale, 
     reduction, or cancellation of any loan sold, reduced, or 
     canceled pursuant to this section shall be deposited in the 
     United States Government account or accounts established for 
     the repayment of such loan.
       (c) Eligible Purchasers.--A loan may be sold pursuant to 
     subsection (a)(1)(A) only to a purchaser who presents plans 
     satisfactory to the President for using the loan for the 
     purpose of engaging in debt-for-equity swaps, debt-for-
     development swaps, or debt-for-nature swaps.
       (d) Debtor Consultations.--Before the sale to any eligible 
     purchaser, or any reduction or cancellation pursuant to this 
     section, of any loan made to an eligible country, the 
     President should consult with the country concerning the 
     amount of loans to be sold, reduced, or canceled and their 
     uses for debt-for-equity swaps, debt-for-development swaps, 
     or debt-for-nature swaps.
       (c) Availability of Funds.--The authority provided by 
     subsection (a) may be used only with regard to funds 
     appropriated by this Act under the heading ``Debt 
     restructuring''.


                                liberia

       Sec. 566. Funds appropriated by this Act may be made 
     available for assistance for Liberia notwithstanding section 
     620(q) of the Foreign Assistance Act of 1961 and section 512 
     of this Act.


                               guatemala

       Sec. 567. (a) Funds provided in this Act may be made 
     available for the Guatemalan military forces, and the 
     restrictions on Guatemala under the headings ``International 
     Military Education and Training'' and ``Foreign Military 
     Financing Program'' shall not apply, only if the President 
     determines and certifies to the Congress that the Guatemalan 
     military is cooperating fully with efforts to resolve human 
     rights abuses which elements of the Guatemalan military 
     forces are alleged to have committed, ordered or attempted to 
     thwart the investigation of, and with efforts to negotiate a 
     peace settlement.
       (b) The prohibition contained in subsection (a) shall not 
     apply to funds made available to implement a ceasefire or 
     peace agreement.
       (c) Any funds made available pursuant to subsections (a) or 
     (b) shall be subject to the regular notification procedures 
     of the Committees on Appropriations.
       (d) Any funds made available pursuant to subsections (a) 
     and (b) for international military education and training may 
     only be for expanded international military education and 
     training.


          sanctions against countries harboring war criminals

       Sec. 568. (a) Bilateral Assistance.--The President is 
     authorized to withhold funds appropriated by this Act under 
     the Foreign Assistance Act of 1961 or the Arms Export Control 
     Act for any country described in subsection (c).
       (b) Multilateral Assistance.--The Secretary of the Treasury 
     should instruct the United States executive directors of the 
     international financial institutions to work in opposition 
     to, and vote against, any extension by such institutions of 
     financing or financial or technical assistance to any country 
     described in subsection (c).
       (c) Sanctioned Countries.--A country described in this 
     subsection is a country the government of which knowingly 
     grants sanctuary to persons in its territory for the purpose 
     of evading prosecution, where such persons--

[[Page H11689]]

       (1) have been indicted by the International Criminal 
     Tribunal for the former Yugoslavia, the International 
     Criminal Tribunal for Rwanda, or any other international 
     tribunal with similar standing under international law, or
       (2) have been indicted for war crimes or crimes against 
     humanity committed during the period beginning March 23, 1933 
     and ending on May 8, 1945 under the direction of, or in 
     association with--
       (A) the Nazi government of Germany;
       (B) any government in any area occupied by the military 
     forces of the Nazi government of Germany;
       (C) any government which was established with the 
     assistance or cooperation of the Nazi government; or
       (D) any government which was an ally of the Nazi government 
     of Germany.


                   limitation on assistance for haiti

       Sec. 569. (a) Limitation.--None of the funds appropriated 
     or otherwise made available by this Act, may be provided to 
     the Government of Haiti until the President reports to 
     Congress that--
       (1) the Government is conducting thorough investigations of 
     extrajudicial and political killings; and
       (2) the Government is cooperating with United States 
     authorities in the investigations of political and 
     extrajudicial killings.
       (b) Nothing in this section shall be construed to restrict 
     the provision of humanitarian, development, or electoral 
     assistance.
       (c) The President may waive the requirements of this 
     section on a semiannual basis if he determines and certifies 
     to the appropriate committees of Congress that it is in the 
     national interest of the United States.


                          policy toward burma

       Sec. 570. (a) Until such time as the President determines 
     and certifies to Congress that Burma has made measurable and 
     substantial progress in improving human rights practices and 
     implementing democratic government, the following sanctions 
     shall be imposed on Burma:
       (1) Bilateral assistance.--There will be no United States 
     assistance to the Government of Burma, other than:
       (A) humanitarian assistance,
       (B) subject to the regular notification procedures of the 
     Committees on Appropriations, counter-narcotics assistance 
     under chapter 8 of part I of the Foreign Assistance Act of 
     1961, or crop substitution assistance, if the Secretary of 
     State certifies to the appropriate congressional committees 
     that--
       (i) the Government of Burma is fully cooperating with 
     United States counter narcotics efforts, and
       (ii) the programs are fully consistent with United States 
     human rights concerns in Burma and serve the United States 
     national interest, and
       (C) assistance promoting human rights and democratic 
     values.
       (2) Multilateral assistance.--The Secretary of the Treasury 
     shall instruct the United States executive director of each 
     international financial institution to vote against any loan 
     or other utilization of funds of the respective bank to or 
     for Burma.
       (3) Visas.--Except as required by treaty obligations or to 
     staff the Burmese mission to the United States, the United 
     States should not grant entry visas to any Burmese government 
     official.
       (b) Conditional Sanctions.--The President is hereby 
     authorized to prohibit, and shall prohibit United States 
     persons from new investment in Burma, if the President 
     determines and certifies to Congress that, after the date of 
     enactment of this Act, the Government of Burma has physically 
     harmed, rearrested for political acts, or exiled Daw Aung San 
     Suu Kyi or has committed large-scale repression of or 
     violence against the Democratic opposition.
       (c) Multilateral Strategy.--The President shall seek to 
     develop, in coordination with members of ASEAN and other 
     countries having major trading and investment interests in 
     Burma, a comprehensive, multilateral strategy to bring 
     democracy to and improve human rights practices and the 
     quality of life in Burma, including the development of a 
     dialogue between the State Law and Order Restoration Council 
     (SLORC) and democratic opposition groups within Burma.
       (d) Presidential Reports.--Every six months following the 
     enactment of this Act, the President shall report to the 
     Chairmen of the Committee on Foreign Relations, the Committee 
     on International Relations and the House and Senate 
     Appropriations Committees on the following:
       (1) progress toward democratization in Burma;
       (2) progress on improving the quality of life of the 
     Burmese people, including progress on market reforms, living 
     standards, labor standards, use of forced labor in the 
     tourism industry, and environmental quality; and
       (3) progress made in developing the strategy referred to in 
     subsection (c).
       (e) Waiver Authority.--The President shall have the 
     authority to waive, temporarily or permanently, any sanction 
     referred to in subsection (a) or subsection (b) if he 
     determines and certifies to Congress that the application of 
     such sanction would be contrary to the national security 
     interests of the United States.
       (e) Definitions.--
       (1) The term ``international financial institutions'' shall 
     include the International Bank for Reconstruction and 
     Development, the International Development Association, the 
     International Finance Corporation, the Multilateral 
     Investment Guarantee Agency, the Asian Development Bank, and 
     the International Monetary Fund.
       (2) The term ``new investment'' shall mean any of the 
     following activities if such an activity is undertaken 
     pursuant to an agreement, or pursuant to the exercise of 
     rights under such an agreement, that is entered into with the 
     Government of Burma or a nongovernmental entity in Burma, on 
     or after the date of the certification under subsection (b):
       (A) the entry into a contract that includes the economical 
     development of resources located in Burma, or the entry into 
     a contract providing for the general supervision and 
     guarantee of another person's performance of such a contract;
       (B) the purchase of a share of ownership, including an 
     equity interest, in that development;
       (C) the entry into a contract providing for the 
     participation in royalties, earnings, or profits in that 
     development, without regard to the form of the participation:

     Provided, That the term ``new investment'' does not include 
     the entry into, performance of, or financing of a contract to 
     sell or purchase goods, services, or technology.


                       report regarding hong kong

       Sec. 571. In light of the deficiencies in reports submitted 
     to the Congress pursuant to section 301 of the United States-
     Hong Kong Policy Act (22 U.S.C. 5731), the Congress directs 
     that the additional report required to be submitted during 
     1997 under such section include detailed information on the 
     status of, and other developments affecting, implementation 
     of the Sino-British Joint Declaration on the Question of Hong 
     King, including--
       (1) the Basic Law and its consistency with the Joint 
     Declaration;
       (2) Beijing's plans to replace the elected legislature with 
     an appointed body;
       (3) the openness and fairness of the election of the chief 
     executive and the executive's accountability to the 
     legislature;
       (4) the treatment of political parties;
       (5) the independence of the Judiciary and its ability to 
     exercise the power of final judgment over Hong Kong law; and
       (6) the Bill of Rights.


       use of funds for purchase of products not made in america

       Sec. 572. The Administrator of the Agency for International 
     Development shall provide a report to the appropriate 
     committees of the Congress on the ability of the United 
     States Government to implement a provision of law (and on the 
     foreign policy implications of such a provision of law) which 
     would require that United States funds could be made 
     available to the government of a foreign country for the 
     purchase of any equipment or products only if such purchases 
     were to occur in such foreign country or the United States, 
     and substantially similar equipment and products were made in 
     the United States and available for purchase at a price that 
     is not more than 10 percent higher than that in other 
     countries.


                          conflict in chechnya

       Sec. 573. The Secretary of State shall provide to the 
     Committees on Appropriations no later than 30 days from the 
     date of enactment of this Act a detailed report on actions 
     undertaken by the United States Government to resolve the 
     conflict in Chechnya.


              extension of certain adjudication provisions

       Sec. 575. The Foreign Operations, Export Financing, and 
     Related Programs Appropriations Act, 1990 (Public Law 101-
     167) is amended--
       (1) in section 599D (8 U.S.C. 1157 note)--
       (A) in subsection (b)(3), by striking ``and 1996'' and 
     inserting ``1996, and 1997''; and
       (B) in subsection (e), by striking out ``October 1, 1996'' 
     each place it appears and inserting ``October 1, 1997''; and
       (2) in section 599E (8 U.S.C. 1255 note) in subsection 
     (b)(2), by striking out ``September 30, 1996'' and inserting 
     ``September 30, 1997''.


                        transparency of budgets

       Sec. 576. (a) Limitation.--Beginning three years after the 
     date of the enactment of this Act, the Secretary of the 
     Treasury shall instruct the United States Executive Director 
     of each international financial institution to use the voice 
     and vote of the United States to oppose any loan or other 
     utilization of the funds of their respective institution, 
     other than to address basic human needs, for the government 
     of any country which the Secretary of the Treasury 
     determines--
       (1) does not have in place a functioning system for a 
     civilian audit of all receipts and expenditures that fund 
     activities of the armed forces and security forces;
       (2) has not provided a summary of a current audit to the 
     institution.
       (b) Definition.--For purposes of this section, the term 
     ``internation financial institution'' shall include the 
     institutions identified in section 532(b) of this Act.


                               guarantees

       Sec. 577. Section 251(b)(2)(G) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended by striking 
     ``fiscal year 1994 and 1995'' and inserting in lieu thereof 
     ``fiscal years 1994, 1995, and 1997'' in both places that 
     this appears.


information on cooperation with United States anti-terrorism efforts in 
                  annual country reports on terrorism

       Sec. 578. Section 140 of the Foreign Relations 
     Authorization Act, fiscal years 1988 and 1989 (22 U.S.C. 
     2656f) is amended--
       (1) in subsection (a)--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(3) with respect to each foreign country from which the 
     United States Government has sought cooperation during the 
     previous five years in the investigation or prosecution of an 
     act of international terrorism against United States citizens 
     or interests, information on--

[[Page H11690]]

       ``(A) the extent to which the government of the foreign 
     country is cooperating with the United States Government in 
     apprehending, convicting, and punishing and individual or 
     individuals responsible for the act; and
       ``(B) the extent to which the government of the foreign 
     country is cooperating in preventing further acts of 
     terrorism against United States citizens in the foreign 
     country; and
       ``(4) with respect to each foreign country from which the 
     United States Government has sought cooperation during the 
     previous five years in the prevention of an act of 
     international terrorism against such citizens or interests, 
     the information described in paragraph (3)(B).''; and
       (2) in subsection (c)--
       (A) by striking ``The report'' and inserting ``(1) Except 
     as provided in paragraph (2), the report'';
       (B) by indenting the margin of paragraph (1) as so 
     designated, 2 ems; and
       (C) by adding at the end the following:
       ``(2) If the Secretary of State determines that the 
     transmittal of the information with respect to a foreign 
     country under paragraph (3) of (4) of subsection (a) in 
     classified form would make more likely the cooperation of the 
     government of the foreign country as specified in such 
     paragraph, the Secretary may transmit the information under 
     such paragraph in classified form.''.


                       female genital mutilation

       Sec. 579. (a) Limitation.--Beginning 1 year after the date 
     of the enactment of this Act, the Secretary of the Treasury 
     shall instruct the United States Executive Director of each 
     international financial institution to use the voice and vote 
     of the United States to oppose any loan or other utilization 
     of the funds of their respective institution, other than to 
     address basic human needs, for the government of any country 
     which the Secretary of the Treasury determines--
       (1) has, as a cultural custom, a known history of the 
     practice of female genital mutilation; and
       (2) has not taken steps to implement educational programs 
     designed to prevent the practice of female genital 
     mutilation.
       (B) Definition.--For purposes of this section, the term 
     ``international financial'' shall include the institutions 
     identified in section 532(b) of this Act.


  REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN REPORT OF SECRETARY OF 
                                 STATE

       Sec. 580. (a) Foreign Aid Reporting Requirement.--In 
     addition to the voting practices of a foreign country, the 
     report required to be submitted to Congress under section 
     406(a) of the Foreign Relations Authorization Act fiscal 
     years 1990 and 1991 (22 U.S.C. 2414a), shall include a side-
     by-side comparison of individual countries' overall support 
     for the United States at the United Nations and the amount of 
     United States assistance provided to such country in fiscal 
     year 1996.
       (b) United States Assistance.--For purposes of this 
     section, the term ``United States assistance'' has the 
     meaning given the term in section 481(e)(4) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).


   RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO UNITED NATIONS AGENCIES

       Sec. 581. (a)  Prohibition on Voluntary Contributions for 
     the United Nations.--None of the funds appropriated or 
     otherwise made available by this Act may be made available to 
     pay any voluntary contribution of the United States to the 
     United Nations (including the United Nations Development 
     Program) if the United Nations implements or imposes any 
     taxation on any United States persons.
       (b) Certification Required for Disbursement of Funds.--None 
     of the funds appropriated or otherwise made available under 
     this Act may be made available to pay any voluntary 
     contribution of the United States to the United Nations 
     (including the United Nations Development Program) unless the 
     President certifies to the Congress 15 days in advance of 
     such payment that the United Nations is not engaged in any 
     effort to implement or impose any taxation on United States 
     persons in order to raise revenue for the United Nations or 
     any of its specialized agencies.
       (c) Definitions.--As used in this section the term ``United 
     States person'' refers to--
       (1) a natural person who is a citizen or national of the 
     United States; or
       (2) a corporation, partnership, or other legal entity 
     organized under the United States or any State, territory, 
     possession, or district of the United States.


                                 HAITI

       Sec. 582. The Government of Haiti shall be eligible to 
     purchase defense articles and services under the Arms Export 
     Control Act (22 U.S.C. 2751 et seq.), for the civilian-led 
     Haitian National Police and Coast Guard: Provided, That the 
     authority provided by this section shall be subject to the 
     regular notification procedures of the Committees on 
     Appropriations.


refugee status for adult children of former vietnamese reeducation camp 
        internees resettled under the orderly departure program

       Sec. 584. (a) Eligibility for Orderly Departure Program.--
     For purposes of eligibility for the Orderly Departure Program 
     for nationals of Vietnam, during fiscal year 1997, an alien 
     described in subsection (b) shall be considered to be a 
     refugee of special humanitarian concern to the United States 
     within the meaning of section 207 of the Immigration and 
     Nationality Act (8 U.S.C. 1157) and shall be admitted to the 
     United States for resettlement if the alien would be 
     admissible as an immigrant under the Immigration and 
     Nationality Act (except as provided in section 207(c)(3) of 
     that Act).
       (b) Aliens Covered.--An alien described in this subsection 
     is an alien who--
       (1) is the son or daughter of a national of Vietnam who--
       (A) was formerly interned in a reeducation camp in Vietnam 
     by the Government of the Socialist Republic of Vietnam; and
       (B) has been accepted for resettlement as a refugee under 
     the Orderly Departure Program on or after April 1, 1995;
       (2) is 21 years of age or older; and
       (3) was unmarried as of the date of acceptance of the 
     alien's parent for resettlement under the Orderly Departure 
     Program.
       (c) Supersedes Existing Law.--This section supersedes any 
     other provision of law.


                              north korea

       Sec. 585. Ninety days after the date of enactment of this 
     Act, and every 180 days thereafter, the Secretary of State, 
     in consultation with the Secretary of Defense, shall provide 
     a report in a classified or unclassified form to the 
     Committee on Appropriations including the following 
     information:
       (a) a best estimate on fuel used by the military forces of 
     the Democratic People's Republic of Korea (DPRK);
       (b) the deployment position and military training and 
     activities of the DPRK forces and best estimate of the 
     associated costs of these activities;
       (c) steps taken to reduce the DPRK level of forces; and
       (d) cooperation, training, or exchanges of information, 
     technology or personnel between the DPRK and any other nation 
     supporting the development or deployment of a ballistic 
     missile capability.


                   limitation on assistance to mexico

       Sec. 587. Not less than $2,500,000 of the funds 
     appropriated or otherwise made available by this Act for the 
     Government of Mexico shall be withheld from obligation until 
     the President has determined and reported to Congress that--
       (1) the Government of Mexico is taking actions to reduce 
     the amount of illegal drugs entering the United States from 
     Mexico; and
       (2) the Government of Mexico--
       (A) is taking effective actions to apply vigorously all law 
     enforcement resources to investigate, track, capture, 
     incarcerate, and prosecute individuals controlling, 
     supervising, or managing international narcotics cartels or 
     other similar entities and the accomplices of such 
     individuals, individuals responsible for, or otherwise 
     involved in, corruption, and individuals involved in money-
     laundering;
       (B) is pursuing international anti-drug trafficking 
     initiatives;
       (C) is cooperating fully with international efforts at 
     narcotics interdiction; and
       (D) is cooperating fully with requests by the United States 
     for assistance in investigations of money-laundering 
     violations and is making progress toward implementation of 
     effective laws to prohibit money-laundering.


                   limitation of assistance to turkey

       Sec. 588. Not more than $22,000,000 of the funds 
     appropriated in this Act under the heading ``Economic Support 
     Fund'' may be made available to the Government of Turkey.


         civil liability for acts of state sponsored terrorism

       Sec. 589. (a) an official, employee, or agent of a foreign 
     state designated as a state sponsor of terrorism designated 
     under section 6(j) of the Export Administration Act of 1979 
     while acting within the scope of his or her office, 
     employment, or agency shall be liable to a United States 
     national or the national's legal representative for personal 
     injury or death caused by acts of that official, employee, or 
     agent for which the courts of the United States may maintain 
     jurisdiction under section 1605(a)(7) of title 28, United 
     States Code, for money damages which may include economic 
     damages, solatium, pain, and suffering, and punitive damages 
     if the acts were among those described in section 1605(a)(7).
       (b) Provisions related to statute of limitations and 
     limitations on discovery that would apply to an action 
     brought under 28 U.S.C. 1605(f) and (g) shall also apply to 
     actions brought under this section. No action shall be 
     maintained under this action if an official, employee, or 
     agent of the United States, while acting within the scope of 
     his or her office, employment, or agency would not be liable 
     for such acts if carried out within the United States.
       Titles I through V of this Act may be cited as the 
     ``Foreign Operations, Export Financing, and Related Programs 
     Appropriations Act, 1997''.

                                TITLE VI

               NATO ENLARGEMENT FACILITATION ACT OF 1996

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``NATO Enlargement 
     Facilitation Act of 1996''.

     SEC. 602. FINDINGS.

       The Congress makes the following findings:
       (1) Since 1949, the North Atlantic Treaty Organization 
     (NATO) has played an essential role in guaranteeing the 
     security, freedom, and prosperity of the United States and 
     its partners in the Alliance.
       (2) The NATO Alliance is, and has been since its inception, 
     purely defensive in character, and it poses no threat to any 
     nation. The enlargement of the NATO Alliance to include as 
     full and equal members emerging democracies in Central And 
     Eastern Europe will serve to reinforce stability and security 
     in Europe by fostering their integration into the structures 
     which have created and sustained peace in Europe since 1945. 
     Their admission into NATO will not threaten any nation. 
     America's security, freedom, and prosperity remain linked to 
     the security of the countries of Europe.
       (3) The sustained commitment of the member countries of 
     NATO to a mutual defense has made possible the democratic 
     transformation of Central and Eastern Europe. Members of the 
     Alliance can and should play a critical role in addressing 
     the security challenges of the post-Cold

[[Page H11691]]

     War era and in creating the stable environment needed for 
     those emerging democracies in Central and Eastern Europe to 
     successfully complete political and economic transformation.
       (4) The United States continues to regard the political 
     independence and territorial integrity of all emerging 
     democracies in Central and Eastern Europe as vital to 
     European peace and security.
       (5) The active involvement by the countries of Central and 
     Eastern Europe has made the Partnership for Peace program an 
     important forum to foster cooperation between NATO and those 
     countries seeking NATO membership.
       (6) NATO has enlarged its membership on 3 different 
     occasions since 1949.
       (7) Congress supports the admission of qualified new 
     members to NATO and the European Union at an early date and 
     has sought to facilitate the admission of qualified new 
     members into NATO.
       (8) Lasting security and stability in Europe requires not 
     only the military integration of emerging democracies in 
     Central and Eastern Europe into existing European structures, 
     but also the eventual economic and political integration of 
     these countries into existing European structures.
       (9) As new members of NATO assume the responsibilities of 
     Alliance membership, the costs of maintaining stability in 
     Europe should be shared more widely. Facilitation of the 
     enlargement process will require current members of NATO, and 
     the United States in particular, to demonstrate the political 
     will needed to build on successful ongoing programs such as 
     the Warsaw Initiative and the Partnership for Peace by making 
     available the resources necessary to supplement efforts 
     prospective new members are themselves undertaking.
       (10) New members will be full members of the Alliance, 
     enjoying all rights and assuming all the obligations under 
     the North Atlantic Treaty, signed at Washington on April 4, 
     1949 (hereafter in this Act referred to as the ``Washington 
     Treaty'').
       (11) In order to assist emerging democracies in Central and 
     Eastern Europe that have expressed interest in joining NATO 
     to be prepared to assume the responsibilities of NATO 
     membership, the United States should encourage and support 
     efforts by such countries to develop force structure and 
     force modernization priorities that will enable such 
     countries to contribute to the full range of NATO missions, 
     including, most importantly, territorial defense of the 
     Alliance.
       (12) Cooperative regional peacekeeping initiatives 
     involving emerging democracies in Central and Eastern Europe 
     that have expressed interest in joining NATO, such as the 
     Baltic Peacekeeping Battalion, the Polish-Lithuanian Joint 
     Peacekeeping Force, and the Polish-Ukrainian Peacekeeping 
     Force, can make an important contribution to European peace 
     and security and international peacekeeping efforts, can 
     assist those countries preparing to assume the 
     responsibilities of possible NATO membership, and accordingly 
     should receive appropriate support from the United States.
       (13) NATO remains the only multilateral security 
     organization capable of conducting effective military 
     operations and preserving security and stability of the Euro-
     Atlantic region.
       (14) NATO is an important diplomatic forum and has played a 
     positive role in defusing tensions between members of the 
     Alliance and, as a result, no military action has occurred 
     between two Alliance member states since the inception of 
     NATO in 1949.
       (15) The admission to NATO of emerging democracies in 
     Central and Eastern Europe which are found to be in a 
     position to further the principles of the Washington Treaty 
     would contribute to international peace and enhance the 
     security of the region. Countries which have become 
     democracies and established market economies, which practice 
     good neighborly relations, and which have established 
     effective democratic civilian control over their defense 
     establishments and attained a degree of interoperability with 
     NATO, should be evaluated for their potential to further the 
     principles of the Washington Treaty.
       (16) Democratic civilian control of defense forces is an 
     essential element in the process of preparation for those 
     states interested in possible NATO membership.
       (17) Protection and promotion of fundamental freedoms and 
     human rights is an integral aspect of genuine security, and 
     in evaluating requests for membership in NATO, the human 
     rights records of the emerging democracies in Central and 
     Eastern Europe should be evaluated according to their 
     commitments to fulfill in good faith the human rights 
     obligations of the Charter of the United Nations, the 
     principles of the Universal Declaration on Human Rights, and 
     the Helsinki Final Act.
       (18( A number of Central and Eastern European countries 
     have expressed interest in NATO membership, and have taken 
     concrete steps to demonstrate this commitment, including 
     their participation in Partnership for Peace activities.
       (19) The Caucasus region remains important geographically 
     and politically to the future security of Central Europe. As 
     NATO proceeds with the process of enlargement, the United 
     States and NATO should continue to examine means to 
     strengthen the sovereignty and enhance the security of 
     United Nations recognized countries in that region.
       (20) In recognition that not all countries which have 
     requested membership in NATO will necessarily qualify at the 
     same pace, the accession date for each new member will vary.
       (21) The provision of additional NATO transition assistance 
     should include those emerging democracies most ready for 
     closer ties with NATO and should be designed to assist other 
     countries meeting specified criteria of eligibility to move 
     forward toward eventual NATO membership.
       (22) The Congress of the united States finds in particular 
     that Poland, Hungary, and the Czech Republic have made 
     significant progress toward achieving the criteria set forth 
     in section 203(d)(3) of the NATO Participation Act of 1994 
     and should be eligible for the additional assistance 
     described in this Act.
       (23) The evaluation of future membership in NATO for 
     emerging democracies in Central and Eastern Europe should be 
     based on the progress of those nations in meeting criteria 
     for NATO membership, which require enhancement of NATO's 
     security and the approval of all NATO members.
       (24) The process of NATO enlargement entails the consensus 
     agreement of the governments of all 16 NATO members and 
     ratification in accordance with their constitutional 
     procedures.
       (25) Some NATO members, such as Spain and Norway, do not 
     allow the deployment of nuclear weapons on their territory 
     although they are accorded the full collective security 
     guarantees provided by Article 5 of the Washington Treaty. 
     There is no a priori requirement for the stationing of 
     nuclear weapons on the territory of new NATO members, 
     particularly in the current security climate. However, NATO 
     retains the right to alter its security posture at any time 
     as circumstances warrant.

     SEC. 603. UNITED STATES POLICY.

       It is the policy of the United States--
       (1) to join with the NATO allies of the United States to 
     adapt the role of the NATO Alliance in the post-Cold War 
     world;
       (2) to actively assist the emerging democracies in Central 
     and Eastern Europe in their transition so that such countries 
     may eventually qualify for NATO membership;
       (3) to support the enlargement of NATO in recognition that 
     enlargement will benefit the interests of the United States 
     and the Alliance and to consider these benefits in any 
     analysis of the costs of NATO enlargement;
       (4) to ensure that all countries in Central and Eastern 
     Europe are fully aware of and capable of assuming the costs 
     and responsibilities of NATO membership, including the 
     obligation set forth in Article 10 of the Washington Treaty 
     that new members be able to contribute to the security of the 
     North Atlantic area; and
       (5) to work to define a constructive and cooperative 
     political and security relationship between an enlarged NATO 
     and the Russian Federation.

     SEC. 604. SENSE OF THE CONGRESS REGARDING FURTHER ENLARGEMENT 
                   OF NATO.

       It is the sense of the Congress that in order to promote 
     economic stability and security in Slovakia, Estonia, Latvia, 
     Lithuania, Romania, Bulgaria, Albania, Moldova, and Ukraine--
       (1) the United States should continue and expand its 
     support for the full and active participation of these 
     countries in activities appropriate for qualifying for NATO 
     membership;
       (2) the United States Government should use all diplomatic 
     means available to press the European Union to admit as soon 
     as possible any country which qualifies for membership;
       (3) the United States Government and the North Atlantic 
     Treaty Organization should continue and expand their support 
     for military exercises and peacekeeping initiatives between 
     and among these nations, nations of the North Atlantic Treaty 
     Organization, and Russia; and
       (4) the process of enlarging NATO to include emerging 
     democracies in Central and Eastern Europe should not be 
     limited to consideration of admitting Poland, Hungary, the 
     Czech Republic, and Slovenia as full members of the NATO 
     Alliance.

     SEC. 605. SENSE OF THE CONGRESS REGARDING ESTONIA, LATVIA AND 
                   LITHUANIA.

       In view of the forcible incorporation of Estonia, Latvia, 
     Lithuania into the Soviet Union in 1940 under the Molotov-
     Ribbentrop Pact and the refusal of the United States and 
     other countries to recognize that incorporation of over 50 
     years, it is the sense of the Congress that--
       (1) Estonia, Latvia, and Lithuania have valid historical 
     security concerns that must be taken into account by the 
     United States; and
       (2) Estonia, Latvia, and Lithuania should not be 
     disadvantaged in seeking to join NATO by virtue of their 
     forcible incorporation into the Soviet Union.

     SEC. 606. DESIGNATION OF COUNTRIES ELIGIBLE FOR NATO 
                   ENLARGEMENT ASSISTANCE.

       (a) In General.--The following countries are designated as 
     eligible to receive assistance under the program established 
     under section 203(a) of the NATO Participation Act of 1994 
     and shall be deemed to have been so designated pursuant to 
     section 203(d)(1) of such Act: Poland, Hungary, and the Czech 
     Republic.
       (b) Designation of Slovenia.--Effective 90 days after the 
     date of enactment of this Act, Slovenia is designated as 
     eligible to receive assistance under the program established 
     under section 203(a) of the NATO Participation Act of 1994, 
     and shall be deemed to have been so designated pursuant to 
     section 203(d) of such Act, unless the President certifies 
     the Congress prior to such effective date that Slovenia fails 
     to meet the criteria under section 203(d)(3) of such Act.
       (c) Designation of Other Countries.--The President shall 
     designate other emerging democracies in Central and Eastern 
     Europe a eligible to receive assistance under the program 
     established under section 203(a) of such Act if such 
     countries--
       (1) have expressed a clear desire to join NATO;
       (2) have begun an individualized dialogue with NATO in 
     preparation for accession;
       (3) are strategically significant to an effective NATO 
     defense; and
       (4) meet the other criteria outlined in section 203(d)(3) 
     of the NATO Participation Act of 1994 (title II of Public Law 
     103-447; 22 U.S.C. 1928 note).

[[Page H11692]]

       (d) Rule of Construction.--Nothing in this section 
     precludes the designation by the President of Estonia, 
     Latvia, Lithuania, Romania, Slovakia, Bulgaria, Albania, 
     Moldova, Ukraine, or any other emerging democracy in Central 
     and Eastern Europe pursuant to section 203(d) of the NATO 
     Participation Act of 1994 as eligible to receive assistance 
     under the program established under section 203(a) of such 
     Act.

     SEC. 607. AUTHORIZATION OF APPROPRIATIONS FOR NATO 
                   ENLARGEMENT ASSISTANCE.

       (a) In General.--There are authorized to be appropriated 
     $60,000,000 for fiscal year 1997 for the program established 
     under section 203(a) of the NATO Participation Act of 1994.
       (b) Availability.--Of the funds authorized to be 
     appropriated by subsection (a)--
       (1) not less than $20,000,000 shall be available for the 
     cost, as defined in section 502(5) of the Credit Reform Act 
     of 1990, of direct loans pursuant to the authority of section 
     203(c)(4) of the NATO Participation Act of 1994 (relating to 
     the ``Foreign Military Financing Program'');
       (2) not less than $30,000,000 shall be available for 
     assistance on a grant basis pursuant to the authority of 
     section 203(c)(4) of the NATO Participation Act of 1994 
     (relating to the ``Foreign Military Financing Program''); and
       (3) not more than $10,000,000 shall be available for 
     assistance pursuant to the authority of section 203(c)(3) of 
     the NATO Participation Act of 1994 (relating to international 
     military education and training).
       (c) Rule of Construction.--Amounts authorized to be 
     appropriated under this section are authorized to be 
     appropriated in addition to such amounts as otherwise may be 
     available for such purposes.

     SEC. 608. REGIONAL AIRSPACE INITIATIVE AND PARTNERSHIP FOR 
                   PEACE INFORMATION MANAGEMENT SYSTEM.

       (a) In General.--To the extent provided in advance in 
     appropriations acts for such purposes, funds described in 
     subsection (b) are authorized to be made available to support 
     the implementation of the Regional Airspace Initiative and 
     the Partnership for Peace Information Management System, 
     including--
       (1) the procurement of items in support of these programs; 
     and
       (2) the transfer of such items to countries participating 
     in these programs.
       (b) Funds Described.--Funds described in this subsection 
     are funds that are available--
       (1) during any fiscal year under the NATO Participation Act 
     of 1994 with respect to countries eligible for assistance 
     under that Act; or
       (2) during fiscal year 1997 under any Act to carry out the 
     Warsaw Initiative.

     SEC. 609. EXCESS DEFENSE ARTICLES.

       (a) Priority Delivery.--Notwithstanding any other provision 
     of law, the delivery of excess defense articles under the 
     authority of section 203(c) (1) and (2) of the NATO 
     Participation Act of 1994 and section 516 of the Foreign 
     Assistance Act of 1961 shall be given priority to the maximum 
     extent feasible over the delivery of such excess defense 
     articles to all other countries except those countries 
     referred to in section 541 of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1995 
     (Public Law 103-306; 108 Stat. 1640).
       (b) Cooperative Regional Peacekeeping Initiatives.--The 
     Congress encourages the President to provide excess defense 
     articles and other appropriate assistance to cooperative 
     regional peacekeeping initiatives involving emerging 
     democracies in Central and Eastern Europe that have expressed 
     an interest in joining NATO in order to enhance their ability 
     to contribute to European peace and security and 
     international peacekeeping efforts.

     SEC. 610. MODERNIZATION OF DEFENSE CAPABILITY.

       The Congress endorses efforts by the United States to 
     modernize the defense capability of Poland, Hungary, the 
     Czech Republic, Slovenia, and any other countries designated 
     by the President pursuant to section 203(d) of the NATO 
     Participation Act of 1994, by exploring with such countries 
     options for the sale or lease to such countries of weapons 
     systems compatible with those used by NATO members, including 
     air defense systems, advanced fighter aircraft, and 
     telecommunications infrastructure.

     SEC. 611. TERMINATION OF ELIGIBILITY.

       (a) Termination of Eligibility.--The eligibility of a 
     country designated pursuant to subsection (a) or (b) of 
     section 606 or pursuant to section 203(d) of the NATO 
     Participation Act of 1994 may be terminated upon a 
     determination by the President that such country does not 
     meet the criteria set forth in section 203(d)(3) of the NATO 
     Participation Act of 1994.
       (b) Notification.--At least 15 days before terminating the 
     eligibility of any country pursuant to subsection (a), the 
     President shall notify the congressional committees specified 
     in section 634A of the Foreign Assistance Act of 1961 in 
     accordance with the procedures applicable to reprogramming 
     notifications under that section.

     SEC. 612. CONFORMING AMENDMENTS TO THE NATO PARTICIPATION 
                   ACT.

       The NATO Participation Act of 1994 (title II of Public Law 
     103-447; 22 U.S.C. 1928 note) is amended in sections 203(a), 
     203(d)(1), and 203(d)(2) by striking ``countries emerging 
     from communist domination'' each place it appears and 
     inserting ``emerging democracies in Central and Eastern 
     Europe''.

                TITLE VII--MIDDLE EAST DEVELOPMENT BANK

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Bank for Economic 
     Cooperation and Development in the Middle East and North 
     Africa Act''

     SEC. 702. ACCEPTANCE OF MEMBERSHIP.

       The President is hereby authorized to accept membership for 
     the United States in the Bank for Economic Cooperation and 
     Development in the Middle East and North Africa (in this 
     title referred to as the ``Bank'') provided for by the 
     agreement establishing the Bank (in this title referred to as 
     the ``Agreement''), signed on May 31, 1996.

     SEC. 703. GOVERNOR AND ALTERNATIVE GOVERNOR.

       (a) Appointment.--At the inaugural meeting of the Board of 
     Governors of the Bank, the Governor and the alternate for the 
     Governor of the International Bank for Reconstruction and 
     Development, appointed pursuant to section 3 of the Bretton 
     Woods Agreements Act, shall serve ex-officio as a Governor 
     and the alternate for the Governor, respectively, of the 
     Bank. The President, by and with the advice and consent of 
     the Senate, shall appoint a Governor of the Bank and an 
     alternate for the Governor.
       (b) Compensation.--Any person who serves as a Governor of 
     the Bank or as an alternate for the Governor may not receive 
     any salary or other compensation from the United States by 
     reason of such service.

     SEC. 704. APPLICABILITY OF CERTAIN PROVISIONS OF THE BRETTON 
                   WOODS AGREEMENTS ACT.

       Section 4 of the Bretton Woods Agreements Act shall apply 
     to the Bank in the same manner in which such section applies 
     to the International Bank for Reconstruction and Development 
     and the International Monetary Fund.

     SEC. 705. FEDERAL RESERVE BANKS AS DEPOSITORIES.

       Any Federal Reserve Bank which is requested to do so by the 
     Bank may act as its depository, or as its fiscal agent, and 
     the Board of Governors of the Federal Reserve System shall 
     exercise general supervision over the carrying out of these 
     functions.

     SEC. 706. SUBSCRIPTION OF STOCK.

       (a) Subscription Authority.--
       (1) In General.--The Secretary of the Treasury may 
     subscribe on behalf of the United States to not more than 
     7,011,270 shares of the capital stock of the Bank.
       (2) Effectiveness of subscription commitment.--Any 
     commitment to make such subscription shall be effective only 
     to such extent or in such amounts as are provided for in 
     advance by appropriations Acts.
       (b) Limitations on Authorization of Appropriations.--For 
     payment by the Secretary of the Treasury of the subscription 
     of the United States for shares described in subsection (a), 
     there are authorized to be appropriated $1,050,007,800 
     without fiscal year limitation.
       (c) Limitations on Obligation of Appropriated Amounts for 
     Shares of Capital Stock.--
       (1) Paid-in capital stock.--
       (A) In general.--Not more than $105,000,000 of the amounts 
     appropriated pursuant to subsection (b) may be obligated for 
     subscription to shares of paid-in capital stock.
       (B) Fiscal year 1997. Not more than $52,500,000 of the 
     amounts appropriated pursuant to subsection (b) for fiscal 
     year 1997 may be obligated for subscription to shares of 
     paid-in capital stock.
       (2) Callable capital stock.--Not more than $787,505,852 of 
     the amounts appropriated pursuant to subsection (b) may be 
     obligated for subscription to shares of callable capital 
     stock.
       (d) Disposition of Net Income Distributions by the Bank.--
     Any payment made to the United States by the Bank as a 
     distribution of net income shall be covered into the Treasury 
     as a miscellaneous receipt.

     SEC. 707. JURISDICTION AND VENUE OF CIVIL ACTIONS BY OR 
                   AGAINST THE BANK.

       (a) Jurisdiction.--The United States district courts shall 
     have original and exclusive jurisdiction of any civil action 
     brought in the United States by or against the Bank.
       (b) Venue.--For purposes of section 1391(b) of title 28, 
     United States Code, the Bank shall be deemed to be a resident 
     of the judicial district in which the principal office of the 
     Bank in the United States, or its agent appointed for the 
     purpose of accepting service or notice of service, is 
     located.

     SEC. 708. EFFECTIVENESS OF AGREEMENT.

       The Agreement shall have full force and effect in the 
     United States, its territories and possessions, and the 
     Commonwealth of Puerto Rico, upon acceptance of membership by 
     the United States in the Bank and the entry into force of the 
     Agreement.

     SEC. 709. EXEMPTION FROM SECURITIES LAWS FOR CERTAIN 
                   SECURITIES ISSUED BY THE BANK; REPORTS 
                   REQUIRED.

       (a) Exemption from Securities Laws; Reports to Securities 
     and Exchange Commission.--Any securities issued by the Bank 
     (including any guaranty by the Bank, whether or not limited 
     in scope) in connection with borrowing of funds, or the 
     guarantee of securities as to both principal and interest, 
     shall be deemed to be exempted securities within the meaning 
     of section 3(a)(2) of the Securities Act of 1933 and section 
     3(a)(12) of the Securities Exchange Act of 1934. The Bank 
     shall file with the Securities and Exchange Commission such 
     annual and other reports with regard to such securities as 
     the Commission shall determine to be appropriate in view of 
     the special character of the Bank and its operations and 
     necessary in the public interest or for the protection of 
     investors.
       (b) Authority of Securities and Exchange Commission to 
     Suspend Exemption; Reports to the Congress.--The  Securities  
     and  Exchange  Commission,  acting  in  consultation  with  
     such  agency  or  officer  as  the  President  shall  
     designate,  may  suspend  the  provisions  of  subsection  
     (a)  at  any  time  as  any  or  all  securities  issued  or  
     guaranteed  by 

[[Page H11693]]

     the Bank during the period of such suspension. The Commission 
     shall include in its annual reports to the Congess such 
     information as it shall deem advisable with regard to the 
     operations and effect of this section.

     SEC. 710. TECHNICAL AMENDMENTS.

       (a) Annual Report Required on Participation of the United 
     States in the Bank.--Section 1701(c)(2) of the International 
     Financial Institutions Act (22 U.S.C. 262r(c)(2)) is amended 
     by inserting ``Bank for Economic Cooperation and Development 
     in the Middle East and North Africa,'' after ``Inter-American 
     Development Bank''.
       (b) Exemption from Limitations and Restrictions on Power of 
     National, Banking Associations To Deal in and Underwrite 
     Investment Securities of the Bank.--The seventh sentence of 
     paragraph 7 of section 5136 of the Revised Statutes of the 
     United States (12 U.S.C. 24) is amended by inserting ``Bank 
     for Economic Cooperation and Development in the Middle East 
     and North Africa,'' after ``the Inter-American Development 
     Bank''.
       (c) Benefits for United States Citizen-Representatives to 
     the Bank.--Section 51 of Public Law 91-599 (22 U.S.C. 276c-2) 
     is amended by inserting ``the Bank for Economic Cooperation 
     and Development in the Middle East and North Africa,'' after 
     ``the Inter-American Development Bank,''.
       (d) For programs, projects or activities in the Department 
     of the Interior and Related Agencies Appropriations Act, 
     1997, provided as follows, to be effective as if it had been 
     enacted into law as the regular appropriations Act:
     AN ACT Making appropriations for the Department of the 
     Interior, and related agencies for the fiscal year ending 
     September 30, 1997, and for other purposes.

                  TITLE I--DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management

                   management of lands and resources

       For expenses necessary for protection, use, improvement, 
     development, disposal, cadastral surveying, classification, 
     acquisition of easements and other interests in lands, and 
     performance of other functions, including maintenance of 
     facilities, as authorized by law, in the management of lands 
     and their resources under the jurisdiction of the Bureau of 
     Land Management, including the general administration of the 
     Bureau, and assessment of mineral potential of public lands 
     pursuant to Public Law 96-487 (16 U.S.C. 3150(a)), 
     $572,164,000, to remain available until expended, of which 
     $2,010,000 shall be available for assessment of the mineral 
     potential of public lands in Alaska pursuant to section 1010 
     of Public Law 96-487 (16 U.S.C. 3150); and of which 
     $3,000,000 shall be derived from the special receipt account 
     established by the Land and Water Conservation Act of 1965, 
     as amended (16 U.S.C. 460l-6a(i)); and of which $1,000,000 
     shall be available in fiscal year 1997 subject to a match by 
     at least an equal amount by the National Fish and Wildlife 
     Foundation, to such Foundation for challenge cost share 
     projects supporting fish and wildlife conservation affecting 
     Bureau lands; in addition, $27,300,000 for Mining Law 
     Administration program operations, to remain available until 
     expended, to be reduced by amounts collected by the Bureau 
     and credited to this appropriation from annual mining claim 
     fees so as to result in a final appropriation estimated at 
     not more than $572,164,000; and in addition, not to exceed 
     $5,000,000, to remain available until expended, from annual 
     mining claim fees; which shall be credited to this account 
     for the costs of administering the mining claim fee program, 
     and $2,000,000 from communication site rental fees 
     established by the Bureau for the cost of administering 
     communication site activities: Provided, That appropriations 
     herein made shall not be available for the destruction of 
     healthy, unadopted, wild horses and burros in the care of the 
     Bureau or its contractors: Provided further, That in fiscal 
     year 1997 and thereafter, all fees, excluding mining claim 
     fees, in excess of the fiscal year 1996 collections 
     established by the Secretary of the Interior under the 
     authority of 43 U.S.C. 1734 for processing, recording, or 
     documenting authorizations to use public lands or public land 
     natural resources (including cultural, historical, and 
     mineral) and for providing specific services to public land 
     users, and which are not presently being covered into any 
     Bureau of Land Management appropriation accounts, and not 
     otherwise dedicated by law for a specific distribution, shall 
     be made immediately available for program operations in this 
     account and remain available until expended.

                        wildland fire management

       For necessary expenses for fire use and management, fire 
     preparedness, suppression operations, and emergency 
     rehabilitation by the Department of the Interior, 
     $252,042,000, to remain available until expended, of which 
     not to exceed $5,025,000 shall be for the renovation or 
     construction of fire facilities: Provided, That such funds 
     are also available for repayment of advances to other 
     appropriation accounts from which funds were previously 
     transferred for such purposes: Provided further, That persons 
     hired pursuant to 43 U.S.C. 1469 may be furnished subsistence 
     and lodging without costs from funds available from this 
     appropriation: Provided further, That unobligated balances of 
     amounts previously appropriated to the ``Fire Protection'' 
     and ``Emergency Department of the Interior Firefighting 
     Fund'' may be transferred to this appropriation.

                    central hazardous materials fund

       For necessary expenses of the Department of the Interior 
     and any of its component offices and bureaus for the remedial 
     action, including associated activities, of hazardous waste 
     substances, pollutants, or contaminants pursuant to the 
     Comprehensive Environmental Response, Compensation and 
     Liability Act, as amended (42 U.S.C. 9601 et seq.), 
     $12,000,000, to remain available until expended: Provided, 
     That notwithstanding 31 U.S.C. 3302, sums recovered from or 
     paid by a party in advance of or as reimbursement for 
     remedial action or response activities conducted by the 
     Department pursuant to sections 107 or 113(f) of such Act, 
     shall be credited to this account to be available until 
     expended without further appropriation: Provided further, 
     That such sums recovered from or paid by any party are not 
     limited to monetary payments and may include stocks, bonds or 
     other personal or real property, which may be retained, 
     liquidated, or otherwise disposed of by the Secretary and 
     which shall be credited to this account.

                              construction

       For construction of buildings, recreation facilities, 
     roads, trails, and appurtenant facilities, $4,333,000, to 
     remain available until expended.

                       payments in lieu of taxes

       For expenses necessary to implement the Act of October 20, 
     1976, as amended (31 U.S.C. 6901-07), $113,500,000, of which 
     not to exceed $400,000 shall be available for administrative 
     expenses.

                            land acquisition

       For expenses necessary to carry out sections 205, 206, and 
     318(d) of Public Law 94-579 including administrative expenses 
     and acquisition of lands or waters, or interests therein, 
     $10,410,000, to be derived from the Land and Water 
     Conservation Fund, to remain available until expended.

                   oregon and california grant lands

       For expenses necessary for management, protection, and 
     development of resources and for construction, operation, and 
     maintenance of access roads, reforestation, and other 
     improvements on the revested Oregon and California Railroad 
     grant lands, on other Federal lands in the Oregon and 
     California land-grant counties of Oregon, and on adjacent 
     rights-of-way; and acquisition of lands or interests therein 
     including existing connecting roads on or adjacent to such 
     grant lands; $100,515,000, to remain available until 
     expended: Provided, That 25 per centum of the aggregate of 
     all receipts during the current fiscal year from the revested 
     Oregon and California Railroad grant lands is hereby made a 
     charge against the Oregon and California land-grant fund and 
     shall be transferred to the General Fund in the Treasury in 
     accordance with the second paragraph of subsection (b) of 
     title II of the Act of August 28, 1937 (50 Stat. 876).

                           range improvements

       For rehabilitation, protection, and acquisition of lands 
     and interests therein, and improvement of Federal rangelands 
     pursuant to section 401 of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1701), notwithstanding any 
     other Act, sums equal to 50 per centum of all moneys received 
     during the prior fiscal year under sections 3 and 15 of the 
     Taylor Grazing Act (43 U.S.C. 315 et seq.) and the amount 
     designated for range improvements from grazing fees and 
     mineral leasing receipts from Bankhead-Jones lands 
     transferred to the Department of the Interior pursuant to 
     law, but not less than $9,113,000, to remain available until 
     expended: Provided, That not to exceed $600,000 shall be 
     available for administrative expenses.

               service charges, deposits, and forfeitures

       For administrative expenses and other costs related to 
     processing application documents and other authorizations for 
     use and disposal of public lands and resources, for costs of 
     providing copies of official public land documents, for 
     monitoring construction, operation, and termination of 
     facilities in conjunction with use authorizations, and for 
     rehabilitation of damaged property, such amounts as may be 
     collected under Public Law 94-579, as amended, and Public Law 
     93-153, to remain available until expended: Provided, That 
     notwithstanding any provision to the contrary of section 
     305(a) of Public Law 94-579 (43 U.S.C. 1735(a)), any moneys 
     that have been or will be received pursuant to that section, 
     whether as a result of forfeiture, compromise, or settlement, 
     if not appropriate for refund pursuant to section 305(c) of 
     that Act (43 U.S.C. 1735(c)), shall be available and may be 
     expended under the authority of this Act by the Secretary to 
     improve, protect, or rehabilitate any public lands 
     administered through the Bureau of Land Management which have 
     been damaged by the action of a resource developer, 
     purchaser, permittee, or any unauthorized person, without 
     regard to whether all moneys collected from each such action 
     are used on the exact lands damaged which led to the action: 
     Provided further, That any such moneys that are in excess of 
     amounts needed to repair damage to the exact land for which 
     funds were collected may be used to repair other damaged 
     public lands.

                       miscellaneous trust funds

       In addition to amounts authorized to be expended under 
     existing laws, there is hereby appropriated such amounts as 
     may be contributed under section 307 of the Act of October 
     21, 1976 (43 U.S.C. 1701), and such amounts as may be 
     advanced for administrative costs, surveys, appraisals, and 
     costs of making conveyances of omitted lands under section 
     211(b) of that Act, to remain available until expended.

                       administrative provisions

       Appropriations for the Bureau of Land Management shall be 
     available for purchase, erection, and dismantlement of 
     temporary structures, and alteration and maintenance of 
     necessary buildings and appurtenant facilities to which the 
     United States has title; up to $100,000 for payments, at the 
     discretion of the Secretary,

[[Page H11694]]

     for information or evidence concerning violations of laws 
     administered by the Bureau; miscellaneous and emergency 
     expenses of enforcement activities authorized or approved by 
     the Secretary and to be accounted for solely on his 
     certificate, not to exceed $10,000: Provided, That 
     notwithstanding 44 U.S.C. 501, the Bureau may, under 
     cooperative cost-sharing and partnership arrangements 
     authorized by law, procure printing services from cooperators 
     in connection with jointly-produced publications for which 
     the cooperators share the cost of printing either in cash or 
     in services, and the Bureau determines the cooperator is 
     capable of meeting accepted quality standards.
       The Bureau of Land Management's Visitor Center in Rand, 
     Oregon is hereby named the ``William B. Smullin Visitor 
     Center''.

                United States Fish and Wildlife Service

                          resource management

       For expenses necessary for scientific and economic studies, 
     conservation, management, investigations, protection, and 
     utilization of fishery and wildlife resources, except whales, 
     seals, and sea lions, and for the performance of other 
     authorized functions related to such resources; for the 
     general administration of the United States Fish and Wildlife 
     Service; for maintenance of the herd of long-horned cattle on 
     the Wichita Mountains Wildlife Refuge; and not less than 
     $1,000,000 for high priority projects within the scope of the 
     approved budget which shall be carried out by the Youth 
     Conservation Corps as authorized by the Act of August 13, 
     1970, as amended, $523,947,000, to remain available until 
     September 30, 1998, of which $11,557,000 shall remain 
     available until expended for operation and maintenance of 
     fishery mitigation facilities constructed by the Corps of 
     Engineers under the Lower Snake River Compensation Plan, 
     authorized by the Water Resources Development Act of 1976, to 
     compensate for loss of fishery resources from water 
     development projects on the Lower Snake River, and of which 
     $2,000,000 shall be provided to local governments in southern 
     California for planning associated with the Natural 
     Communities Conservation Planning (NCCP) program and shall 
     remain available until expended Provided, That hereafter, 
     pursuant to 31 U.S.C. 9701, the Secretary shall charge 
     reasonable fees for the full costs of providing training by 
     the National Education and Training Center, to be credited to 
     this account, notwithstanding 31 U.S.C. 3302, for the direct 
     costs of providing such training.

                              construction

       For construction and acquisition of buildings and other 
     facilities required in the conservation, management, 
     investigation, protection, and utilization of fishery and 
     wildlife resources, and the acquisition of lands and 
     interests therein; $43,365,000 to remain available until 
     expended.

                natural resource damage assessment fund

       To conduct natural resource damage assessment activities by 
     the Department of the Interior necessary to carry out the 
     provisions of the Comprehensive Environmental Response, 
     Compensation, and Liability Act, as amended (42 U.S.C. 9601, 
     et seq.), Federal Water Pollution Control Act, as amended (33 
     U.S.C. 1251, et seq.), the Oil Pollution Act of 1990 (Public 
     Law 101-380), and Public Law 101-337; $4,000,000, to remain 
     available until expended.

                            land acquisition

       For expenses necessary to carry out the Land and Water 
     Conservation Fund Act of 1965, as amended (16 U.S.C. 460l-4-
     11), including administrative expenses, and for acquisition 
     of land or waters, or interest therein, in accordance with 
     statutory authority applicable to the United States Fish and 
     Wildlife Service, $44,479,000, of which $3,000,000 is 
     authorized to be appropriated and shall be used to establish 
     the Clarks River National Wildlife Refuge in Kentucky, to be 
     derived from the Land and Water Conservation Fund, to remain 
     available until expended.

            cooperative endangered species conservation fund

       For expenses necessary to carry out the provisions of the 
     Endangered Species Act of 1973 (16 U.S.C. 1531-1543), as 
     amended, $14,085,000, for grants to States, to be derived 
     from the Cooperative Endangered Species Conservation Fund, 
     and to remain available until expended.

                     national wildlife refuge fund

       For expenses necessary to implement the Act of October 17, 
     1978 (16 U.S.C. 715s), $10,779,000.

                         rewards and operations

       For expenses necessary to carry out the provisions of the 
     African Elephant Conservation Act (16 U.S.C. 4201-4203, 4211-
     4213, 4221-4225, 4241-4245, and 1538), $1,000,000, to remain 
     available until expended.

               north american wetlands conservation fund

       For expenses necessary to carry out the provisions of the 
     North American Wetlands Conservation Act, Public Law 101-233, 
     as amended, $9,750,000, to remain available until expended.

                 rhinoceros and tiger conservation fund

       For deposit to the Rhinoceros and Tiger Conservation Fund, 
     $400,000, to remain available until expended, to carry out 
     the Rhinoceros and Tiger Conservation Act of 1994 (Public Law 
     103-391).

              wildlife conservation and appreciation fund

       For deposit to the Wildlife Conservation and Appreciation 
     Fund, $800,000, to remain available until expended.

                       administrative provisions

       Appropriations and funds available to the United States 
     Fish and Wildlife Service shall be available for purchase of 
     not to exceed 83 passenger motor vehicles of which 73 are for 
     replacement only (including 43 for police-type use); not to 
     exceed $400,000 for payment, at the discretion of the 
     Secretary, for information, rewards, or evidence concerning 
     violations of laws administered by the Service, and 
     miscellaneous and emergency expenses of enforcement 
     activities, authorized or approved by the Secretary and to be 
     accounted for solely on his certificate; repair of damage to 
     public roads within and adjacent to reservation areas caused 
     by operations of the Service; options for the purchase of 
     land at not to exceed $1 for each option; facilities incident 
     to such public recreational uses on conservation areas as are 
     consistent with their primary purpose; and the maintenance 
     and improvement of aquaria, buildings, and other facilities 
     under the jurisdiction of the Service and to which the United 
     States has title, and which are utilized pursuant to law in 
     connection with management and investigation of fish and 
     wildlife resources: Provided, That notwithstanding 44 U.S.C. 
     501, the Service may, under cooperative cost sharing and 
     partnership arrangements authorized by law, procure printing 
     services from cooperators in connection with jointly-produced 
     publications for which the cooperators share at least one-
     half the cost of printing either in cash or services and the 
     Service determines the cooperator is capable of meeting 
     accepted quality standards: Provided further, That the 
     Service may accept donated aircraft as replacements for 
     existing aircraft: Provided further, That notwithstanding any 
     other provision of law, the Secretary of the Interior may not 
     spend any of the funds appropriated in this Act for the 
     purchase of lands or interests in lands to be used in the 
     establishment of any new unit of the National Wildlife Refuge 
     System unless the purchase is approved in advance by the 
     House and Senate Committees on Appropriations in compliance 
     with the reprogramming procedures contained in House Report 
     103-551: Provided further, That section 101(c) of the Omnibus 
     Consolidated Rescissions and Appropriations Act of 1996 is 
     amended in section 315(c)(1)(E) (110 Stat. 1321-201; 16 
     U.S.C. 460l-6a note) by striking ``distributed in accordance 
     with section 201(c) of the Emergency Wetlands Resources Act'' 
     and inserting ``available to the Secretary of the Interior 
     until expended to be used in accordance with clauses (i), 
     (ii), and (iii) of section 201(c)(A) of the Emergency 
     Wetlands Resources Act of 1986 (16 U.S.C. 3911(c)(A))''.

                         National Park Service


                 operation of the national park system

       For expenses necessary for the management, operation, and 
     maintenance of areas and facilities administered by the 
     National Park Service (including special road maintenance 
     service to trucking permittees on a reimbursable basis), and 
     for the general administration of the National Park Service, 
     including not to exceed $1,593,000 for the Volunteers-in-
     Parks program, and not less than $1,000,000 for high priority 
     projects within the scope of the approved budget which shall 
     be carried out by the Youth Conservation Corps as authorized 
     by 16 U.S.C. 1706, $1,152,311,000 without regard to 16 U.S.C. 
     451, of which $800,000,000 for research, planning and 
     interagency coordination in support of land acquisition for 
     Everglades restoration shall remain available until expended, 
     and of which not to exceed $72,000,000, to remain available 
     until expended is to be derived from the special fee account 
     established pursuant to title V, section 5201, of Public Law 
     100-203.

                  national recreation and preservation

       For expenses necessary to carry out recreation programs, 
     natural programs, cultural programs, environmental compliance 
     and review, international park affairs, statutory or 
     contractual aid for other activities, and grant 
     administration, not otherwise provided for, $37,976,000

                       historic preservation fund

       For expenses necessary in carrying out the Historic 
     Preservation Act of 1966, as amended (16 U.S.C. 470), 
     $36,612,000 to be derived from the Historic Preservation 
     Fund, to remain available until September 30, 1998.

                              construction

       For construction, improvements, repair or replacement of 
     physical facilities including the modifications authorized by 
     section 104 of the Everglades National Park Protection and 
     Expansion Act of 1989, $163,444,000 to remain available until 
     expended, of which $270,000 shall be used for appropriate 
     fish restoration projects not related to dam removal 
     including reimbursement to the State of Washington for 
     emergency actions taken to protect the 1996 run of fall 
     chinook salmon on the Elwha River: Provided, That funds 
     previously provided under this heading that had been made 
     available to the City of Hot Springs, Arkansas, to be used 
     for a flood protection feasibility study, are now made 
     available to the City of Hot Springs for the rehabilitation 
     of the Federally-constructed Hot Springs Creek Arch, 
     including the portion within Hot Springs National Park.

                    LAND AND WATER CONSERVATION FUND


                              (rescission)

       The contract authority provided for fiscal year 1997 by 16 
     U.S.C. 460l-10a is rescinded.

                 land acquisition and state assistance

       For expenses necessary to carry out the Land and Water 
     Conservation Fund Act of 1965, as amended (16 U.S.C. 460l-4-
     11), including administrative expenses, and for acquisition 
     of lands or waters, or interest therein, in accordance with 
     statutory authority applicable to the National Park Service, 
     $53,915,000, to be derived from the Land and Water 
     Conservation Fund, to remain available until expended, of 
     which $1,500,000 is to administer the State assistance 
     program: Provided, That any funds made available for the 
     purpose of acquisition of the Elwha and Glines dams shall be 
     used solely for acquisition, and shall not be expended until 
     the full purchase amount has been appropriated by the 
     Congress; Provided further, That of the funds

[[Page H11695]]

     provided herein, $9,000,000 is available for acquisition of 
     the Sterling Forest, subject to authorization.

                       administrative provisions

       Appropriations for the National Park Service shall be 
     available for the purchase of not to exceed 404 passenger 
     motor vehicles, of which 287 shall be for replacement only, 
     including not to exceed 320 for police-type use, 13 buses, 
     and 6 ambulances: Provided, That none of the funds 
     appropriated to the National Park Service may be used to 
     process any grant or contract documents which do not include 
     the text of 18 U.S.C. 1913: Provided further, That none of 
     the funds appropriated to the National Park Service may be 
     used to implement an agreement for the redevelopment of the 
     southern end of Ellis Island until such agreement has 
     been submitted to the Congress and shall not be 
     implemented prior to the expiration of 30 calendar days 
     (not including any day in which either House of Congress 
     is not in session because of adjournment of more than 
     three calendar days to a day certain) from the receipt by 
     the Speaker of the House of Representatives and the 
     President of the Senate of a full and comprehensive report 
     on the development of the southern end of Ellis Island, 
     including the facts and circumstances relied upon in 
     support of the proposed project.
       None of the funds in this Act may be spent by the National 
     Park Service for activities taken in direct response to the 
     United Nations Biodiversity Convention.
       The National Park Service may in fiscal year 1997 and 
     thereafter enter into cooperative agreements that involve the 
     transfer of National Park Service appropriated funds to 
     State, local and tribal governments, other public entities, 
     educational institutions, and private nonprofit organizations 
     for the public purpose of carrying out National Park Service 
     programs pursuant to 31 U.S.C. 6305 to carry out public 
     purposes of National Park Service programs.
       Nothwithstanding any other provision of law, remaining 
     balances, including interest, from funds granted to the 
     National Park Foundation pursuant to the National Park System 
     Visitor Facilities Fund Act of 1983 (Public Law 97-433, 96 
     Stat. 2277) shall be available to the National Park 
     Foundation for expenditure in units of the National Park 
     System for the purpose of improving visitor facilities.

                    United States Geological Survey

                 surveys, investigations, and research

       For expenses necessary for the United States Geological 
     Survey to perform surveys, investigations, and research 
     covering topography, geology, hydrology, and the mineral and 
     water resources of the United States, its Territories and 
     possessions, and other areas as authorized by 43 U.S.C. 31, 
     1332 and 1340; classify lands as to their mineral and water 
     resources; give engineering supervision to power permittees 
     and Federal Energy Regulatory Commission licensees; 
     administer the minerals exploration program (30 U.S.C. 641); 
     and publish and disseminate data relative to the foregoing 
     activities; and to conduct inquiries into the economic 
     conditions affecting mining and materials processing 
     industries (30 U.S.C. 3, 21a, and 1603; 50 U.S.C. 98g(1)) and 
     related purposes as authorized by law and to publish and 
     disseminate data; $738,913,000 of which $64,559,000 shall be 
     available only for cooperation with States or municipalities 
     for water resources investigations; and of which $16,000,000 
     shall remain available until expended for conducting 
     inquiries into the economic conditions affecting mining and 
     materials processing industries; and of which $137,500,000 
     shall be available until September 30, 1998 for the 
     biological research activity and the operation of the 
     Cooperative Research Units: Provided, That none of these 
     funds provided for the biological research activity shall be 
     used to conduct new surveys on private property, unless 
     specifically authorized in writing by the property owner: 
     Provided further, That beginning in fiscal year 1998 and once 
     every five years thereafter, the National Academy of Sciences 
     shall review and report on the biological research activity 
     of the Survey: Provided further, That no part of this 
     appropriation shall be used to pay more than one-half the 
     cost of topographic mapping or water resources data 
     collection and investigations carried on in cooperation with 
     States and municipalities.

                       administrative provisions

       The amount appropriated for the United States Geological 
     Survey shall be available for the purchase of not to exceed 
     53 passenger motor vehicles, of which 48 are for replacement 
     only; reimbursement to the General Services Administration 
     for security guard services; contracting for the furnishing 
     of topographic maps and for the making of geophysical or 
     other specialized surveys when it is administratively 
     determined that such procedures are in the public interest; 
     construction and maintenance of necessary buildings and 
     appurtenant facilities; acquisition of lands for gauging 
     stations and observation wells; expenses of the United States 
     National Committee on Geology; and payment of compensation 
     and expenses of persons on the rolls of the Survey duly 
     appointed to represent the United States in the negotiation 
     and administration of interstate compacts: Provided, That 
     activities funded by appropriations herein made may be 
     accomplished through the use of contracts, grants, or 
     cooperative agreements as defined in 31 U.S.C. 6302, et seq.

                      Minerals Management Service

                royalty and offshore minerals management

       For expenses necessary for minerals leasing and 
     environmental studies, regulation of industry operations, and 
     collection of royalties, as authorized by law; for enforcing 
     laws and regulations applicable to oil, gas, and other 
     minerals leases, permits, licenses and operating contracts; 
     and for matching grants or cooperative agreements; including 
     the purchase of not to exceed eight passenger motor vehicles 
     for replacement only; $156,955,000, of which not less than 
     $70,063,000 shall be available for royalty management 
     activities; and an amount not to exceed $41,000,000 for the 
     Technical Information Management System and activities of the 
     Outer Continental Shelf (OCS) Lands Activity, to be credited 
     to this appropriation and to remain available until 
     expended, from additions to receipts resulting from 
     increases to rates in effect on August 5, 1993, from rate 
     increases to fee collections for OCS administrative 
     activities performed by the Minerals Management Service 
     over and above the rates in effect on September 30, 1993, 
     and from additional fees for OCS administrative activities 
     established after September 30, 1993: Provided, That 
     $1,500,000 for computer acquisitions shall remain 
     available until September 30, 1998: Provided further, That 
     funds appropriated under this Act shall be available for 
     the payment of interest in accordance with 30 U.S.C. 1721 
     (b) and (d): Provided further, That not to exceed $3,000 
     shall be available for reasonable expenses related to 
     promoting volunteer beach and marine cleanup activities: 
     Provided further, That notwithstanding any other provision 
     of law, $15,000 under this head shall be available for 
     refunds of overpayments in connection with certain Indian 
     leases in which the Director of the Minerals Management 
     Service concurred with the claimed refund due, to pay 
     amounts owed to Indian allottees or Tribes, or to correct 
     prior unrecoverable erroneous payments.

                           oil spill research

       For necessary expenses to carry out title I, section 1016, 
     title IV, sections 4202 and 4303, title VII, and title VIII, 
     section 8201 of the Oil Pollution Act of 1990, $6,440,000, 
     which shall be derived from the Oil Spill Liability Trust 
     Fund, to remain available until expended.

          Office of Surface Mining Reclamation and Enforcement

                       regulation and technology

       For necessary expenses to carry out the provisions of the 
     Surface Mining Control and Reclamation Act of 1977, Public 
     Law 95-87, as amended, including the purchase of not to 
     exceed 10 passenger motor vehicles, for replacement only; 
     $94,172,000, and notwithstanding 31 U.S.C. 3302, an 
     additional amount shall be credited to this account, to 
     remain available until expended, from performance bond 
     forfeitures in fiscal year 1997: Provided, That the Secretary 
     of the Interior, pursuant to regulations, may utilize 
     directly or through grants to States, moneys collected in 
     fiscal year 1997 for civil penalties assessed under section 
     518 of the Surface Mining Control and Reclamation Act of 1977 
     (30 U.S.C. 1268), to reclaim lands adversely affected by coal 
     mining practices after August 3, 1977, to remain available 
     until expended: Provided further, That appropriations for the 
     Office of Surface Mining Reclamation and Enforcement may 
     provide for the travel and per diem expenses of State and 
     tribal personnel attending Office of Surface Mining 
     Reclamation and Enforcement sponsored training.

                    abandoned mine reclamation fund

       For necessary expenses to carry out title IV of the Surface 
     Mining Control and Reclamation Act of 1977, Public Law 95-87, 
     as amended, including the purchase of not more than 10 
     passenger motor vehicles for replacement only, $177,085,000, 
     to be derived from receipts of the Abandoned Mine Reclamation 
     Fund and to remain available until expended; of which up to 
     $4,000,000 shall be for supplemental grants to States for the 
     reclamation of abandoned sites with acid mine rock drainage 
     from coal mines through the Appalachian Clean Streams 
     Initiative: Provided, That grants to minimum program States 
     will be $1,500,000 per State in fiscal year 1997: Provided 
     further, That of the funds herein provided up to $18,000,000 
     may be used for the emergency program authorized by section 
     410 of Public Law 95-87, as amended, of which no more than 25 
     per centum shall be used for emergency reclamation projects 
     in any one State and funds for federally-administered 
     emergency reclamation projects under this proviso shall not 
     exceed $11,000,000: Provided further, That prior year 
     unobligated funds appropriated for the emergency reclamation 
     program shall not be subject to the 25 per centum limitation 
     per State and may be used without fiscal year limitation for 
     emergency projects: Provided further, That pursuant to Public 
     Law 97-365, the Department of the Interior is authorized to 
     use up to 20 per centum from the recovery of the delinquent 
     debt owed to the United States Government to pay for 
     contracts to collect these debts: Provided further, That 
     funds made available to States under title IV of Public Law 
     95-87 may be used, at their discretion, for any required non-
     Federal share of the cost of projects funded by the Federal 
     Government for the purpose of environmental restoration 
     related to treatment or abatement of acid mine drainage from 
     abandoned mines: Provided further, That such projects must be 
     consistent with the purposes and priorities of the Surface 
     Mining Control and Reclamation Act: Provided further, That 
     the State of Maryland may set aside the greater of 
     $1,000,000 or 10 percent of the total of the grants made 
     available to the State under title IV of the Surface 
     Mining Control and Reclamation Act of 1977, as amended (30 
     U.S.C. 1231 et seq.), if the amount set aside is deposited 
     in an acid mine drainage abatement and treatment fund 
     established under a State law, pursuant to which law the 
     amount (together with all interest earned on the amount) 
     is expended by the State to undertake acid mine drainage 
     abatement and treatment projects, except that before any 
     amounts greater than 10 percent of its title IV grants are 
     deposited in an acid mine drainage abatement and treatment 
     fund, the State of Maryland must

[[Page H11696]]

     first complete all Surface Mining Control and Reclamation 
     Act priority one projects.

                        Bureau of Indian Affairs

                      operation of indian programs

       For operation of Indian programs by direct expenditure, 
     contracts, cooperative agreements, compacts, and grants 
     including expenses necessary to provide education and welfare 
     services for Indians, either directly or in cooperation with 
     States and other organizations, including payment of care, 
     tuition, assistance, and other expenses of Indians in 
     boarding homes, or institutions, or schools; grants and other 
     assistance to needy Indians; maintenance of law and order; 
     management, development, improvement, and protection of 
     resources and appurtenant facilities under the jurisdiction 
     of the Bureau, including payment of irrigation assessments 
     and charges; acquisition of water rights; advances for Indian 
     industrial and business enterprises; operation of Indian arts 
     and crafts shops and museums; development of Indian arts and 
     crafts, as authorized by law; for the general administration 
     of the Bureau, including such expenses in field offices; 
     maintaining of Indian reservation roads as defined in 23 
     U.S.C. 101; and construction, repair, and improvement of 
     Indian housing, $1,436,902,000 of which not to exceed 
     $86,520,000 shall be for welfare assistance payments and not 
     to exceed $90,829,000 shall be for payments to tribes and 
     tribal organizations for contract support costs associated 
     with ongoing contracts or grants or compacts entered into 
     with the Bureau prior to fiscal year 1997, as authorized by 
     the Indian Self-Determination Act of 1975, as amended, and up 
     to $5,000,000 shall be for the Indian Self-Determination 
     Fund, which shall be available for the transitional cost of 
     initial or expanded tribal contracts, grants, compacts, or 
     cooperative agreements with the Bureau under such Act; and of 
     which not to exceed $365,124,000 for school operations costs 
     of Bureau-funded schools and other education programs shall 
     become available on July 1, 1997, and shall remain available 
     until September 30, 1998; and of which not to exceed 
     $53,805,000 for higher education scholarships, adult 
     vocational training, and assistance to public schools under 
     25 U.S.C. 452 et seq., shall remain available until September 
     30, 1998; and of which not to exceed $54,973,000 shall remain 
     available until expended for housing improvement, road 
     maintenance, attorney fees, litigation support, self-
     governance grants, the Indian Self-Determination Fund, and 
     the Navajo-Hopi Settlement Program: Provided, That tribes and 
     tribal contractors may use their tribal priority allocations 
     for unmet indirect costs of ongoing contracts, grants or 
     compact agreements and for unmet welfare assistance costs: 
     Provided further, That funds made available to tribes and 
     tribal organizations through contracts or grants obligated 
     during fiscal year 1997, as authorized by the Indian Self-
     Determination Act of 1975, or grants authorized by the Indian 
     Education Amendments of 1988 (25 U.S.C. 2001 and 2008A) shall 
     remain available until expended by the contractor or grantee: 
     Provided further, That to provide funding uniformity within a 
     Self-Governance Compact, any funds provided in this Act with 
     availability for more than one year may be reprogrammed to 
     one year availability but shall remain available within the 
     Compact until expended: Provided further, That 
     notwithstanding any other provision of law, Indian tribal 
     governments may, by appropriate changes in eligibility 
     criteria or by other means, change eligibility for general 
     assistance or change the amount of general assistance 
     payments for individuals within the service area of such 
     tribe who are otherwise deemed eligible for general 
     assistance payments so long as such changes are applied in a 
     consistent manner to individuals similarly situated: Provided 
     further, That any savings realized by such changes shall be 
     available for use in meeting other priorities of the tribes: 
     Provided further, That any net increase in costs to the 
     Federal Government which result solely from tribally 
     increased payment levels for general assistance shall be met 
     exclusively from funds available to the tribe from within its 
     tribal priority allocation: Provided further, That any 
     forestry funds allocated to a tribe which remain unobligated 
     as of September 30, 1997, may be transferred during fiscal 
     year 1998 to an Indian forest land assistance account 
     established for the benefit of such tribe within the tribe's 
     trust fund account: Provided further, That any 
     such unobligated balances not so transferred shall expire 
     on September 30, 1998: Provided further, That 
     notwithstanding any other provision of law, no funds 
     available to the Bureau, other than the amounts provided 
     herein for assistance to public schools under 25 U.S.C. 
     452 et seq., shall be available to support the operation 
     of any elementary or secondary school in the State of 
     Alaska in fiscal year 1997: Provided further, That funds 
     made available in this or any other Act for expenditure 
     through September 30, 1998 for schools funded by the 
     Bureau shall be available only to the schools in the 
     Bureau school system as of September 1, 1995: Provided 
     further, That no funds available to the Bureau shall be 
     used to support expanded grades for any school or 
     dormitory beyond the grade structure in place or approved 
     by the Secretary of the Interior at each school in the 
     Bureau school system as of October 1, 1995: Provided 
     further, That in fiscal year 1997 and thereafter, 
     notwithstanding the provisions of 25 U.S.C. 2012(h)(1) (A) 
     and (B), upon the recommendation of either (i) a local 
     school board and school supervisor for an education 
     position in a Bureau of Indian Affairs operated school, or 
     (ii) an Agency school board and education line officer for 
     an Agency education position, the Secretary shall 
     establish adjustments to the rates of basic compensation 
     or annual salary rates established under 25 U.S.C. 
     2012(h)(1) (A) and (B) for education positions at the 
     school or the Agency, at a level not less than that for 
     comparable positions in the nearest public school 
     district, and the adjustment shall be deemed to be a 
     change to basic pay and shall not be subject to collective 
     bargaining: Provided further, That any reduction to rates 
     of basic compensation or annual salary rates below the 
     rates established under 25 U.S.C. 2012(h)(1) (A) and (B) 
     shall apply only to educators appointed after June 30, 
     1997, and shall not affect the right of an individual 
     employed on June 30, 1997, in an education position, to 
     receive the compensation attached to such position under 
     25 U.S.C. 2012(h)(1) (A) and (B) so long as the individual 
     remains in the same position at the same school: Provided 
     further, That notwithstanding 25 U.S.C. 2012(h)(1)(B), 
     when the rates of basic compensation for teachers and 
     counselors at Bureau-operated schools are established at 
     the rates of basic compensation applicable to comparable 
     positions in overseas schools under the Defense Department 
     Overseas Teachers Pay and Personnel Practices Act, such 
     rates shall become effective with the start of the next 
     academic year following the issuance of the Department of 
     Defense salary schedule and shall not be effected 
     retroactively.

                              construction

       For construction, major repair, and improvement of 
     irrigation and power systems, buildings, utilities, and other 
     facilities, including architectural and engineering services 
     by contract; acquisition of lands, and interests in lands; 
     and preparation of lands for farming, and for construction of 
     the Navajo Indian Irrigation Project pursuant to Public Law 
     87-483 $94,531,000, to remain available until expended: 
     Provided, That such amounts as may be available for the 
     construction of the Navajo Indian Irrigation Project may be 
     transferred to the Bureau of Reclamation: Provided further, 
     That not to exceed 6 per centum of contract authority 
     available to the Bureau of Indian Affairs from the Federal 
     Highway Trust Fund may be used to cover the road program 
     management costs of the Bureau: Provided further, That any 
     funds provided for the Safety of Dams program pursuant to 25 
     U.S.C. 13 shall be made available on a non-reimbursable 
     basis: Provided further, That for fiscal year 1997, in 
     implementing new construction or facilities improvement and 
     repair project grants in excess of $100,000 that are provided 
     to tribally controlled grant schools under Public Law 100-
     297, as amended, the Secretary of the Interior shall use the 
     Administrative and Audit Requirements and Cost Principles for 
     Assistance Programs contained in 43 CFR part 12 as the 
     regulatory requirements: Provided further, That such 
     grants shall not be subject to section 12.61 of 43 CFR; 
     the Secretary and the grantee shall negotiate and 
     determine a schedule of payments for the work to be 
     performed: Provided further, That in considering 
     applications, the Secretary shall consider whether the 
     Indian tribe or tribal organization would be deficient in 
     assuring that the construction projects conform to 
     applicable building standards and codes and Federal, 
     tribal, or State health and safety standards as required 
     by 25 U.S.C. 2005(a), with respect to organizational and 
     financial management capabilities: Provided further, That 
     if the Secretary declines an application, the Secretary 
     shall follow the requirements contained in 25 U.S.C. 
     2505(f): Provided further, That any disputes between the 
     Secretary and any grantee concerning a grant shall be 
     subject to the disputes provision in 25 U.S.C. 2508(e).

 indian land and water claim settlements and miscellaneous payments to 
                                indians

       For miscellaneous payments to Indian tribes and individuals 
     and for necessary administrative expenses, $69,241,000, to 
     remain available until expended; of which $68,400,000 shall 
     be available for implementation of enacted Indian land and 
     water claim settlements pursuant to Public Laws 101-618, 102-
     374, 102-575, and for implementation of other enacted water 
     rights settlements, including not to exceed $8,000,000, which 
     shall be for the Federal share of the Catawba Indian Tribe of 
     South Carolina Claims Settlement, as authorized by section 
     5(a) of Public Law 103-116; and of which $841,000 shall be 
     available pursuant to Public Laws 98-500, 99-264, and 100-
     580.

                 indian guaranteed loan program account

       For the cost of guaranteed loans, $4,500,000, as authorized 
     by the Indian Financing Act of 1974, as amended: Provided, 
     That such costs, including the cost of modifying such loans, 
     shall be as defined in section 502 of the Congressional 
     Budget Act of 1974: Provided further, That these funds are 
     available to subsidize total loan principal, any part of 
     which is to be guaranteed, not to exceed $34,615,000.
       In addition, for administrative expenses to carry out the 
     guaranteed loan programs, $500,000.

                       administrative provisions

       Appropriations for the Bureau of Indian Affairs (except the 
     revolving fund for loans, the Indian loan guarantee and 
     insurance fund, the Technical Assistance of Indian 
     Enterprises account, the Indian Direct Loan Program account, 
     and the Indian Guaranteed Loan Program account) shall be 
     available for expenses of exhibits, and purchase of not to 
     exceed 229 passenger motor vehicles, of which not to exceed 
     187 shall be for replacement only.
       Notwithstanding any other provision of law, no funds 
     available to the Bureau of Indian Affairs for central office 
     operations or pooled overhead general administration shall be 
     available for tribal contracts, grants, compacts, or 
     cooperative agreements with the Bureau of Indian Affairs 
     under the provisions of the Indian Self-Determination Act or 
     the Tribal Self-Governance Act of 1994 (Public Law 103-413).

[[Page H11697]]

                          Departmental Offices

                            Insular Affairs

                       assistance to territories

       For expenses necessary for assistance to territories under 
     the jurisdiction of the Department of the Interior, 
     $65,188,000, of which (1) $61,339,000 shall be available 
     until expended for technical assistance, including 
     maintenance assistance, disaster assistance, insular 
     management controls, and brown tree snake control and 
     research; grants to the judiciary in American Samoa for 
     compensation and expenses, as authorized by law (48 U.S.C. 
     1661(c)); grants to the Government of American Samoa, in 
     addition to current local revenues, for construction and 
     support of governmental functions; grants to the Government 
     of the Virgin Islands as authorized by law; grants to the 
     Government of Guam, as authorized by law; and grants to the 
     Government of the Northern Mariana Islands as authorized by 
     law (Public Law 94-241; 90 Stat. 272); and (2) $3,849,000 
     shall be available for salaries and expenses of the Office of 
     Insular Affairs: Provided, That all financial transactions of 
     the territorial and local governments herein provided for, 
     including such transactions of all agencies or 
     instrumentalities established or utilized by such 
     governments, may be audited by the General Accounting Office, 
     at its discretion, in accordance with chapter 35 of title 31, 
     United States Code: Provided further, That Northern Mariana 
     Islands Covenant grant funding shall be provided according to 
     those terms of the Agreement of the Special Representatives 
     on Future United States Financial Assistance for the Northern 
     Mariana Islands approved by Public Law 99-396, or any 
     subsequent legislation related to Commonwealth of the 
     Northern Mariana Islands grant funding: Provided further, 
     That section 703(a) of Public Law 94-241, as amended, is 
     hereby amended by striking ``of the Government of the 
     Northern Mariana Islands'': Provided further, That of the 
     amounts provided for technical assistance, sufficient funding 
     shall be made available for a grant to the Close Up 
     Foundation: Provided further, That the funds for the program 
     of operations and maintenance improvement are appropriated to 
     institutionalize routine operations and maintenance 
     improvement of capital infrastructure in American Samoa, 
     Guam, the Virgin Islands, the Commonwealth of the Northern 
     Mariana Islands, the Republic of Palau, the Republic of the 
     Marshall Islands, and the Federated States of Micronesia 
     through assessments of long-range operations maintenance 
     needs, improved capability of local operations and 
     maintenance institutions and agencies (including management 
     and vocational education training), and project-specific 
     maintenance (with territorial participation and cost sharing 
     to be determined by the Secretary based on the individual 
     territory's commitment to timely maintenance of its capital 
     assets): Provided further, That any appropriation for 
     disaster assistance under this head in this Act or previous 
     appropriations Acts may be used as non-Federal matching funds 
     for the purpose of hazard mitigation grants provided pursuant 
     to section 404 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5170c).


                      compact of free association

       For economic assistance and necessary expenses for the 
     Federated States of Micronesia and the Republic of the 
     Marshall Islands as provided for in sections 122, 221, 223, 
     232, and 233 of the Compacts of Free Association, and for 
     economic assistance and necessary expenses for the Republic 
     of Palau as provided for in sections 122, 221, 223, 232, and 
     233 of the Compact of Free Association, $23,538,000, to 
     remain available until expended, as authorized by Public Law 
     99-239 and Public Law 99-658.

                        Departmental Management

                         salaries and expenses

       For necessary expenses for management of the Department of 
     the Interior, $58,286,000, of which not to exceed $7,500 may 
     be for official reception and representation expenses, and of 
     which up to $2,000,000 shall be available for workers 
     compensation payments and unemployment compensation payments 
     associated with the orderly closure of the United States 
     Bureau of Mines.

                        Office of the Solicitor

                         salaries and expenses

       For necessary expenses of the Office of the Solicitor, 
     $35,443,000.

                      Office of Inspector General

                         salaries and expenses

       For necessary expenses of the Office of Inspector General, 
     $24,439,000, together with any funds or property transferred 
     to the Office of Inspector General through forfeiture 
     proceedings or from the Department of Justice Assets 
     Forfeiture Fund or the Department of the Treasury Assets 
     Forfeiture Fund, that represent an equitable share from the 
     forfeiture of property in investigations in which the Office 
     of Inspector General participated, with such transferred 
     funds to remain available until expended.

                   National Indian Gaming Commission

                         salaries and expenses

       For necessary expenses of the National Indian Gaming 
     Commission, pursuant to Public Law 100-497, $1,000,000.

             Office of Special Trustee for American Indians

                         federal trust programs

       For operation of trust programs for Indians by direct 
     expenditure, contracts, cooperative agreements, compacts, and 
     grants, $32,126,000, to remain available until expended for 
     trust funds management: Provided, That funds made available 
     to tribes and tribal organizations through contracts or 
     grants obligated during fiscal year 1997, as authorized by 
     the Indian Self-Determination Act of 1975 (25 U.S.C. 450 et 
     seq.), shall remain available until expended by the 
     contractor or grantee: Provided further, That notwithstanding 
     any other provision of law, the statute of limitations shall 
     not commence to run on any claim, including any claim in 
     litigation pending on the date of this Act, concerning losses 
     to or mismanagement of trust funds, until the affected tribe 
     or individual Indian has been furnished with an accounting of 
     such funds from which the beneficiary can determine whether 
     there has been a loss: Provided further, That unobligated 
     balances previously made available (1) to liquidate 
     obligations owed tribal and individual Indian payees of any 
     checks canceled pursuant to section 1003 of the Competitive 
     Equality Banking Act of 1987 (Public Law 100-86; 31 U.S.C. 
     3334(b)), (2) to restore Individual Indian Monies trust 
     funds, Indian Irrigation Systems, and Indian Power Systems 
     accounts amounts invested in credit unions or defaulted 
     savings and loan associations and which where not Federally 
     insured, including any interest on these amounts that may 
     have been earned, but was not because of the default, and (3) 
     to reimburse Indian trust fund account holders for losses to 
     their respective accounts where the claim for said loss has 
     been reduced to a judgement or settlement agreement approved 
     by the Department of Justice, under the heading ``Indian Land 
     and Water Claim Settlements and Miscellaneous Payments to 
     Indians'', Bureau of Indian Affairs in fiscal years 1995 and 
     1996, are hereby transferred to and merged with this 
     appropriation and may only be used for the operation of trust 
     programs, in accordance with this appropriation.

                       Administrative Provisions

       There is hereby authorized for acquisition from available 
     resources within the Working Capital Fund, 15 aircraft, 10 of 
     which shall be for replacement and which may be obtained by 
     donation, purchase or through available excess surplus 
     property: Provided, That notwithstanding any other provision 
     of law, existing aircraft being replaced may be sold, with 
     proceeds derived or trade-in value used to offset the 
     purchase price for the replacement aircraft: Provided 
     further, That no programs funded with appropriated funds in 
     ``Departmental Management'', ``Office of the Solicitor'', and 
     ``Office of Inspector General'' may be augmented through the 
     Working Capital Fund or the Consolidated Working Fund.

             GENERAL PROVISIONS, DEPARTMENT OF THE INTERIOR

       Sec. 101. Appropriations made in this title shall be 
     available for expenditure or transfer (within each bureau or 
     office), with the approval of the Secretary, for the 
     emergency reconstruction, replacement, or repair of aircraft, 
     buildings, utilities, or other facilities or equipment 
     damaged or destroyed by fire, flood, storm, or other 
     unavoidable causes: Provided, That no funds shall be made 
     available under this authority until funds specifically made 
     available to the Department of the Interior for emergencies 
     shall have been exhausted: Provided further, That all funds 
     used pursuant to this section are hereby designated by 
     Congress to be ``emergency requirements'' pursuant to section 
     251(b)(2)(D) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, and must be replenished by a 
     supplemental appropriation which must be requested as 
     promptly as possible.
       Sec. 102. The Secretary may authorize the expenditure or 
     transfer of any no year appropriation in this title, in 
     addition to the amounts included in the budget programs of 
     the several agencies, for the suppression or emergency 
     prevention of forest or range fires on or threatening 
     lands under the jurisdiction of the Department of the 
     Interior; for the emergency rehabilitation of burned-over 
     lands under its jurisdiction; for emergency actions 
     related to potential or actual earthquakes, floods, 
     volcanoes, storms, or other unavoidable causes; for 
     contingency planning subsequent to actual oilspills; 
     response and natural resource damage assessment activities 
     related to actual oilspills; for the prevention, 
     suppression, and control of actual or potential 
     grasshopper and Mormon cricket outbreaks on lands under 
     the jurisdiction of the Secretary, pursuant to the 
     authority in section 1773(b) of Public Law 99-198 (99 
     Stat. 1658); for emergency reclamation projects under 
     section 410 of Public Law 95-87; and shall transfer, from 
     any no year funds available to the Office of Surface 
     Mining Reclamation and Enforcement, such funds as may be 
     necessary to permit assumption of regulatory authority in 
     the event a primacy State is not carrying out the 
     regulatory provisions of the Surface Mining Act: Provided, 
     That appropriations made in this title for fire 
     suppression purposes shall be available for the payment of 
     obligations incurred during the preceding fiscal year, and 
     for reimbursement to other Federal agencies for 
     destruction of vehicles, aircraft, or other equipment in 
     connection with their use for fire suppression purposes, 
     such reimbursement to be credited to appropriations 
     currently available at the time of receipt thereof: 
     Provided further, That for emergency rehabilitation and 
     wildfire suppression activities, no funds shall be made 
     available under this authority until funds appropriated to 
     ``Wildland Fire Management'' shall have been exhausted: 
     Provided further, That all funds used pursuant to this 
     section are hereby designated by Congress to be 
     ``emergency requirements'' pursuant to section 
     251(b)(2)(D) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, and must be replenished by a 
     supplemental appropriation which must be requested as 
     promptly as possible: Provided further, That such 
     replenishment funds shall be used to reimburse, on a pro 
     rata basis, accounts from which emergency funds were 
     transferred.
       Sec. 103. Appropriations made in this title shall be 
     available for operation of warehouses, garages, shops, and 
     similar facilities, wherever consolidation of activities will 
     contribute to efficiency or economy, and said appropriations

[[Page H11698]]

     shall be reimbursed for services rendered to any other 
     activity in the same manner as authorized by sections 1535 
     and 1536 of title 31, United States Code: Provided, That 
     reimbursements for costs and supplies, materials, equipment, 
     and for services rendered may be credited to the 
     appropriation current at the time such reimbursements are 
     received.
       Sec. 104. Appropriations made to the Department of the 
     Interior in this title shall be available for services as 
     authorized by 5 U.S.C. 3109, when authorized by the 
     Secretary, in total amount not to exceed $500,000; hire, 
     maintenance, and operation of aircraft; hire of passenger 
     motor vehicles; purchase of reprints; payment for telephone 
     service in private residences in the field, when authorized 
     under regulations approved by the Secretary; and the payment 
     of dues, when authorized by the Secretary, for library 
     membership in societies or associations which issue 
     publications to members only or at a price to members lower 
     than to subscribers who are not members.
       Sec. 105. Appropriations available to the Department of the 
     Interior for salaries and expenses shall be available for 
     uniforms or allowances therefor, as authorized by law (5 
     U.S.C. 5901-5902 and D.C. Code 4-204).
       Sec. 106. Appropriations made in this title shall be 
     available for obligation in connection with contracts issued 
     for services or rentals for periods not in excess of twelve 
     months beginning at any time during the fiscal year.
       Sec.  107. Prior to the transfer of Presidio properties to 
     the Presidio Trust, when authorized, the Secretary may not 
     obligate in any calendar month more than \1/12\ of the fiscal 
     year 1997 appropriation for operation of the Presidio: 
     Provided, That prior to the transfer of any Presidio property 
     to the Presidio Trust, the Secretary shall transfer such 
     funds as the Trust deems necessary to initiate leasing and 
     other authorized activities of the Trust: Provided further, 
     That this section shall expire on December 31, 1996.
       Sec. 108. No final rule or regulation of any agency of the 
     Federal Government pertaining to the recognition, management, 
     or validity of a right-of-way pursuant to Revised Statute 
     2477 (43 U.S.C. 932) shall take effect unless expressly 
     authorized by an Act of Congress subsequent to the date of 
     enactment of this Act.
       Sec. 109. No funds provided in this title may be expended 
     by the Department of the Interior for the conduct of offshore 
     leasing and related activities placed under restriction in 
     the President's moratorium statement of June 26, 1990, in the 
     areas of Northern, Central, and Southern California; the 
     North Atlantic; Washington and Oregon; and the Eastern Gulf 
     of Mexico south of 26 degrees north latitude and east of 86 
     degrees west longitude.
       Sec. 110. No funds provided in this title may be expended 
     by the Department of the Interior for the conduct of leasing, 
     or the approval or permitting of any drilling or other 
     exploration activity, on lands within the North Aleutian 
     Basin planning area.
       Sec. 111. No funds provided in this title may be expended 
     by the Department of the Interior for the conduct of 
     preleasing and leasing activities in the Eastern Gulf of 
     Mexico for Outer Continental Shelf Lease Sale 151 in the 
     Outer Continental Shelf Natural Gas and Oil Resource 
     Management Comprehensive Program, 1992-1997.
       Sec. 112. No funds provided in this title may be expended 
     by the Department of the Interior for the conduct of 
     preleasing and leasing activities in the Atlantic for Outer 
     Continental Shelf Lease Sale 164 in the Outer Continental 
     Shelf Natural Gas and Oil Resource Management Comprehensive 
     Program, 1992-1997.
       Sec. 113. There is hereby established in the Treasury a 
     franchise fund pilot, as authorized by section 403 of Public 
     Law 103-356, to be available as provided in such section for 
     costs of capitalizing and operating administrative services 
     as the Secretary determines may be performed more 
     advantageously as central services: Provided, That any 
     inventories, equipment, and other assets pertaining to the 
     services to be provided by such fund, either on hand or on 
     order, less the related liabilities or unpaid obligations, 
     and any appropriations made prior to the current year for the 
     purpose of providing capital shall be used to capitalize such 
     fund: Provided further, That such fund shall be paid in 
     advance from funds available to the Department and other 
     Federal agencies for which such centralized services are 
     performed, at rates which will return in full all expenses of 
     operation, including accrued leave, depreciation of fund 
     plant and equipment, amortization of automatic data 
     processing (ADP) software and systems (either acquired or 
     donated) and an amount necessary to maintain a reasonable 
     operating reserve, as determined by the Secretary: Provided 
     further, That such fund shall provide services on a 
     competitive basis: Provided further, That an amount not to 
     exceed four percent of the total annual income to such fund 
     may be retained in the fund for fiscal year 1997 and each 
     fiscal year thereafter, to remain available until expended, 
     to be used for the acquisition of capital equipment, and for 
     the improvement and implementation of Department financial 
     management, ADP, and other support systems: Provided further, 
     That no later than thirty days after the end of each fiscal 
     year amounts in excess of this reserve limitation shall be 
     transferred to the Treasury: Provided further, That such 
     franchise fund pilot shall terminate pursuant to section 
     403(f) of Public Law 103-356.
       Sec. 114. Public Law 102-495 is amended by adding the 
     following new section:
       ``Sec. 10. Washington State Removal Option.
       ``(a) Upon appropriation of $29,500,000 for the Federal 
     Government to acquire the projects in the State of Washington 
     pursuant to this Act, the State of Washington may, upon the 
     submission to Congress of a binding agreement to remove the 
     projects within a reasonable period of time, purchase the 
     projects from the Federal Government for $2. Such a binding 
     agreement shall provide for the full restoration of the Elwha 
     River ecosystem and native anadromous fisheries, for 
     protection of the existing quality and availability of water 
     from the Elwha River for municipal and industrial uses from 
     possible adverse impacts of dame removal, and for fulfillment 
     by the State of each of the other obligations of the 
     Secretary under this Act.
       ``(b) Upon receipt of the payment pursuant to subsection 
     (a), the Federal Government shall relinquish ownership and 
     title of the projects to the State of Washington.
       ``(c) Upon the purchase of the projects by the State of 
     Washington, section 3 (a), (c), and (d), and sections 4, 7, 
     and 9 of this Act are hereby repealed, and the remaining 
     sections renumbered accordingly.''.
       Sec. 115. Section 7 of Public Law 99-647 (16 U.S.C. 461 
     note) is amended to read as follows:

     ``SEC. 7. TERMINATION OF COMMISSION.

       ``The Commission shall terminate on November 10, 1997.''.
       Sec. 116. The Congress of the United States hereby 
     designates and ratifies the assignment to the University of 
     Utah as successor to, and beneficiary of, all the existing 
     assets, revenues, funds and rights granted to the State of 
     Utah under the Miners Hospital Grant (February 20, 1929, 45 
     Stat. 1252) and the School of Mines Grant (July 26, 1894, 28 
     Stat. 110). Further, the Secretary of the Interior is 
     authorized and directed to accept such relinquishment of all 
     remaining and unconveyed entitlement for quantity grants owed 
     the State of Utah for the Miners Hospital Grant (February 20, 
     1929, 45 Stat. 1252) and any unconveyed entitlement that may 
     remain for the University of Utah School of Mines Grant (July 
     26, 1894, 28 Stat. 110).
       Sec. 117. Section 402(b)(1) of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 458bb) 
     is amended to read as follows: ``(1) In addition to those 
     Indian tribes participating in self-governance under 
     subsection (a) of this section, the Secretary, acting through 
     the Director of the Office of Self-Governance, may select up 
     to 50 new tribes per year from the applicant pool described 
     in subsection (c) of this section to participate in self-
     governance.''.
       Sec. 118. In fiscal year 1997 and thereafter, the Indian 
     Arts and Crafts Board may charge admission fees at its 
     museums; charge rent and/or franchise fees for shops located 
     in its museums; publish and sell publications; sell or rent 
     or license use of photographs or other images in hard copy or 
     other forms; license the use of designs, in whole or in part, 
     by others; charge for consulting services provided to others; 
     and may accept the services of volunteers to carry out its 
     mission: Provided, That all revenue derived from such 
     activities is covered into the special fund established by 
     section 4 of Public Law 74-355 (25 U.S.C. 305c).
       Sec. 119. Transfer of Certain Bureau of Land Management 
     Facilities.--
       (a) Battle mountain, nevada.--Not later than 30 days after 
     the date of enactment of this Act, the Secretary of the 
     Interior, acting through the Director of the Bureau of Land 
     Management, shall transfer to Lander County, Nevada, without 
     consideration, title to the former Bureau of Land Management 
     administrative site and associated buildings in Battle 
     Mountain, Nevada.
       (b) Winnemucca, nevada.--
       (1) Transfer.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary of the Interior, acting 
     through the Director of the Bureau of Land Management, shall 
     transfer to the State of Nevada, without consideration, title 
     to the surplus Bureau of Land Management District Office 
     building in Winnemucca, Nevada.
       (2) Use.--The transfer under paragraph (1) is made with the 
     intent that the building shall be available to meet the needs 
     of the Department of Conservation and Natural Resources of 
     the State of Nevada.
       Sec. 120. Alaska Aviation Heritage.--
       (a) Findings.--The Congress finds that--
       (1) the Department of the Interior's Grumman Goose G21-A 
     aircraft number N789 is to be retired from several decades of 
     active service in the State of Alaska in 1996; and
       (2) the aircraft is of significant historic value to the 
     people of the State of Alaska.
       (b) Donation of aircraft.--The Secretary of the Interior 
     shall transfer the Grumman Goose G21-A aircraft number N789 
     to the Alaska Aviation Heritage Museum in Anchorage, Alaska, 
     at no cost to the museum, for permanent display.
       Sec. 121. The Mesquite Lands Act of 1988 is amended by 
     adding the following at the end of section 3:
       ``(d) Fourth Area.--(1) No later than ten years after the 
     date of enactment of this Act, the City of Mesquite shall 
     notify the Secretary as to which if any of the public lands 
     identified in paragraph (2) of this subsection the city 
     wishes to purchase.
       ``(2) For a period of twelve years after the date of 
     enactment of this Act, the city shall have exclusive right to 
     purchase the following parcels of public lands:
       ``Parcel A--East \1/2\ Sec. 6, T. 13 S., R. 71 E., Mount 
     Diablo Meridian; Sec. 5, T. 13 S., R. 71 E., Mount Diablo 
     Meridian; West \1/2\ Sec. 4, T. 13 S., R. 71 E., Mount Diablo 
     Meridian; East \1/2\, West \1/2\ Sec. 4, T. 13 S., R. 71 E., 
     Mount Diablo Meridian.
       ``Parcel B--North \1/2\ Sec. 7, T. 13 S., R. 71 E., Mount 
     Diablo Meridian; South East \1/4\ Sec. 12, T. 13 S., R. 70 
     E., Mount Diablo Meridian; East \1/2\, North East \1/4\ Sec. 
     12, T. 13 S., R. 70 E., Mount Diablo Meridian; East \1/2\, 
     West \1/2\ North East \1/4\ Sec. 12, T. 13 S., R. 70 E., 
     Mount Diablo Meridian.
       ``Parcel C--West \1/2\ Sec. 6, T. 13 S., R. 71 E., Mount 
     Diablo Meridian; Sec. 1, T. 13 S., R. 70

[[Page H11699]]

     E., Mount Diablo Meridian; West \1/2\, West \1/2\, North East 
     \1/4\ Sec. 12, T. 13 S., R. 70 E., Mount Diablo Meridian; 
     North West \1/4\ Sec. 13, S., R. 70 E., Mount Diablo 
     Meridian; West \1/2\ Sec. 12, T. 13 S., R. 70 E., Mount 
     Diablo Meridian; East \1/2\, South East \1/4\, Sec. 11, T. 13 
     S., R. 70 E., Mount Diablo Meridian; East \1/2\ North East 
     \1/4\, Sec. 14, T. 13 S., R. 70 E., Mount Diablo Meridian.
       ``Parcel D--South \1/2\ Sec. 14, T. 13 S., R. 70 E., Mount 
     Diablo Meridian; South West \1/4\, Sec. 13, T. 13 S., R. 70 
     E., Mount Diablo Meridian; Portion of section 23, North of 
     Interstate 15, T. 13 S., R. 70 E., Mount Diablo Meridian; 
     Portion of section 24, North of Interstate 15, T. 13 S., R. 
     70 E., Mount Diablo Meridian; Portion of section 26, North of 
     Interstate 15, T. 13 S., R. 70 E., Mount Diablo Meridian.''

     SEC. 122. FATHER AULL SITE TRANSFER.

       (a) This section may be cited as the ``Father Aull Site 
     Transfer Act of 1996''.
       (b) Findings.--Congress finds that--
       (1) the buildings and grounds developed by Father Roger 
     Aull located on public domain land near Silver City, New 
     Mexico, are historically significant to the citizens of the 
     community;
       (2) vandalism at the site has become increasingly 
     destructive and frequent in recent years;
       (3) because of the isolated location and the distance from 
     other significant resources and agency facilities, the Bureau 
     of Land Management has been unable to devote sufficient 
     resources to restore and protect the site from further 
     damage; and
       (4) St. Vincent DePaul Parish in Silver City, New Mexico, 
     has indicated an interest in, and developed a sound proposal 
     for the restoration of, the site, such that the site could be 
     permanently occupied and used by the community.
       (c) Conveyance of Property.--Subject to valid existing 
     rights, all right, title and interest of the United States in 
     and to the land (including improvements on the land), 
     consisting of approximately 43.06 acres, located 
     approximately 10 miles east of Silver City, New Mexico, and 
     described as follows: T. 17 S., R. 12 W., Section 30: Lot 13, 
     and Section 31: Lot 27 (as generally depicted on the map 
     dated July 1995) is hereby conveyed by operation of law to 
     St. Vincent DePaul Parish in Silver City, New Mexico, without 
     consideration.
       (d) Release.--Upon the conveyance of any land or interest 
     in land identified in this section of St. Vincent DePaul 
     Parish, St. Vincent DePaul Parish shall assume any liability 
     for any claim relating to the land or interest in the land 
     arising after the date of the conveyance.
       (e) Map.--The map referred to in this section shall be on 
     file and available for public inspection in--
       (1) the State of New Mexico Office of the Bureau of Land 
     Management, Santa Fe, New Mexico; and
       (2) the Las Cruces District Office of the Bureau of Land 
     Management, Las Cruces, New Mexico.
       Sec. 123. The second proviso under the heading ``Bureau of 
     Mines, Administrative Provisions'' of Public Law 104-134 is 
     amended by inserting after the word ``authorized'' the word 
     ``hereafter''.
       Sec. 124. Watershed Restoration and Enhancement 
     Agreements.--
       (a) In General.--For fiscal year 1997 and each fiscal year 
     thereafter, appropriations made for the Bureau of Land 
     Management may be used by the Secretary of the Interior for 
     the purpose of entering into cooperative agreements with 
     willing private landowners for restoration and enhancement of 
     fish, wildlife, and other biotic resources on public or 
     private land or both that benefit these resources on public 
     lands within the watershed.
       (b) Direct and Indirect Watershed Agreements.--The 
     Secretary of the Interior may enter into a watershed 
     restoration and enhancement agreement--
       (1) directly with a willing private landowner; or
       (2) indirectly through an agreement with a state, local, or 
     tribal government or other public entity, educational 
     institution, or private nonprofit organization.
       (c) Terms and Conditions.--In order for the Secretary to 
     enter into a watershed restoration and enhancement 
     agreement--
       (1) the agreement shall--
       (A) include such terms and conditions mutually agreed to by 
     the Secretary and the landowner;
       (B) improve the viability of and otherwise benefit the 
     fish, wildlife, and other biotic resources on public land in 
     the watershed;
       (C) authorize the provision of technical assistance by the 
     Secretary in the planning of management activities that will 
     further the purposes of the agreement;
       (D) provide for the sharing of costs of implementing the 
     agreement among the Federal government, the landowner, and 
     other entities, as mutually agreed on by the affected 
     interests; and
       (E) ensure that any expenditure by the Secretary pursuant 
     to the agreement is determined by the Secretary to be in the 
     public interest; and
       (2) the Secretary may require such other terms and 
     conditions as are necessary to protect the public investment 
     on private lands, provided such terms and conditions are 
     mutually agreed to by the Secretary and the landowner.
       Sec. 125. Visitor Center Designation at Channel Islands 
     National Park.
       (a) The visitor center at Channel Islands National Park, 
     California, is hereby designated as the ``Robert J. 
     Lagomarsino Visitor Center''.
       (b) Any reference in law, regulation, paper, record, map, 
     or any other document in the United States to the visitor 
     center referred to in subsection (a) shall be deemed to be a 
     reference to the ``Robert J. Lagomarsino Visitor Center''.

                       TITLE II--RELATED AGENCIES

                       Department of Agriculture


                             Forest Service

                     forest and rangeland research

       For necessary expenses of forest and rangeland research as 
     authorized by law, $179,786,000, to remain available until 
     expended.

                       state and private forestry

       For necessary expenses of cooperating with, and providing 
     technical and financial assistance to States, Territories, 
     possessions, and others and for forest pest management 
     activities, cooperative forestry and education and land 
     conservation activities, $155,461,000, to remain available 
     until expended, as authorized by law: Provided, That of funds 
     available under this heading for Pacific Northwest Assistance 
     in this or prior appropriations Acts. $750,000 shall be 
     provided to the World Forestry Center for purposes of 
     continuing scientific research and other authorized efforts 
     regarding the land exchange efforts in the Umpqua River Basin 
     region.

                         national forest system

       For necessary expenses of the Forest Service, not otherwise 
     provided for, for management, protection, improvement, and 
     utilization of the National Forest System, for ecosystem 
     planning, inventory, and monitoring, and for administrative 
     expenses associated with the management of funds provided 
     under the heads ``Forest and Rangeland Research,'' ``State 
     and Private Forestry,'' ``National Forest System,'' 
     ``Wildland Fire Management,'' ``Reconstruction and 
     Construction,'' and ``Land Acquisition,'' $1,274,781,000, to 
     remain available until expended, and including 50 per centum 
     of all monies received during the prior fiscal year as fees 
     collected under the Land and Water Conservation Fund Act of 
     1965, as amended, in accordance with section 4 of the Act (16 
     U.S.C. 4601-6a(i)): Provided, That up to $5,000,000 of the 
     funds provided herein for road maintenance shall be available 
     for the planned obliteration of roads which are no longer 
     needed.

                        wildland fire management

       For necessary expenses for forest fire presuppression 
     activities on National Forest System lands, for emergency 
     fire suppression on or adjacent to such lands or other lands 
     under fire protection agreement, and for emergency 
     rehabilitation of burned over National Forest System lands, 
     $530,016,000 to remain available until expended: Provided, 
     That unexpended balances of amounts previously appropriated 
     under any other headings for Forest Service fire activities 
     are transferred to and merged with this appropriation and 
     subject to the same terms and conditions: Provided further, 
     That such funds are available for repayment of advances from 
     other appropriations accounts previously transferred for such 
     purposes.


                    reconstruction and construction

       For necessary expenses of the Forest Service, not otherwise 
     provided for, $174,974,000, to remain available until 
     expended for construction, reconstruction and acquisition of 
     buildings and other facilities, and for construction, 
     reconstruction and repair of forest roads and trails by the 
     Forest Service as authorized by 16 U.S.C. 532-538 and 23 
     U.S.C. 101 and 205: Provided, That not to exceed $50,000,000, 
     to remain available until expended, may be obligated for the 
     construction of forest roads by timber purchasers: Provided 
     further, That funds appropriated under this head for the 
     construction of the Wayne National Forest Supervisor's Office 
     may be granted to the Ohio State Highway Patrol as the 
     federal share of the cost of construction of a new facility 
     to be occupied jointly by the Forest Service and the Ohio 
     State Highway Patrol: Provided further, That an agreed upon 
     lease of space in the new facility shall be provided to the 
     Forest Service without charge for the life of the building.

                            land acquisition

       For expenses necessary to carry out the provisions of the 
     Land and Water Conservation Fund Act of 1965, as amended (16 
     U.S.C. 4601-4-11), including administrative expenses, and for 
     acquisition of land or waters, or interest therein, in 
     accordance with statutory authority applicable to the Forest 
     Service, $40,575,000, to be derived from the Land and Water 
     Conservation Fund, to remain available until expended.

         acquisition of lands for national forests special acts

       For acquisition of lands within the exterior boundaries of 
     the Cache, Uinta, and Wasatch National Forests, Utah; the 
     Toiyabe National Forest, Nevada; and the Angeles, San 
     Bernardino, Sequoia, and Cleveland National Forests, 
     California, as authorized by law, $1,069,000, to be derived 
     from forest receipts.

            acquisition of lands to complete land exchanges

       For acquisition of lands, such sums, to be derived from 
     funds deposited by State, county, or municipal governments, 
     public school districts, or other public school authorities 
     pursuant to the Act of December 4, 1967, as amended (16 
     U.S.C. 484a), to remain available until expended.

                         range betterment fund

       For necessary expenses of range rehabilitation, protection, 
     and improvement, 50 per centum of all moneys received during 
     the prior fiscal year, as fees for grazing domestic livestock 
     on lands in National Forests in the sixteen Western States, 
     pursuant to section 401(b)(1) of Public Law 94-579, as 
     amended, to remain available until expended, of which not to 
     exceed 6 per centum shall be available for administrative 
     expenses associated with on-the-ground range rehabilitation, 
     protection, and improvements.

    gifts, donations and bequests for forest and rangeland research

       For expenses authorized by 16 U.S.C. 1643(b), $92,000, to 
     remain available until expended, to

[[Page H11700]]

     be derived from the fund established pursuant to the above 
     Act.

               administrative provisions, forest service

       Appropriations to the Forest Service for the current fiscal 
     year shall be available for: (a) purchase of not to exceed 
     159 passenger motor vehicles of which 14 will be used 
     primarily for law enforcement purposes and of which 149 shall 
     be for replacement; acquisition of 10 passenger motor 
     vehicles from excess sources, and hire of such vehicles; 
     operation and maintenance of aircraft, the purchase of not to 
     exceed two for replacement only, and acquisition of 20 
     aircraft from excess sources; notwithstanding other 
     provisions of law, existing aircraft being replaced may be 
     sold, with proceeds derived or trade-in value used to offset 
     the purchase price for the replacement aircraft; (b) services 
     pursuant to 7 U.S.C. 2225, and not to exceed $100,000 for 
     employment under 5 U.S.C. 3109; (c) purchase, erection, and 
     alteration of buildings and other public improvements (7 
     U.S.C. 2250); (d) acquisition of land, waters, and interests 
     therein, pursuant to 7 U.S.C. 428a; (e) for expenses pursuant 
     to the Volunteers in the National Forest Act of 1972 (16 
     U.S.C. 558a, 558d, 558a note); and (f) for debt collection 
     contracts in accordance with 31 U.S.C. 3718(c).
       None of the funds made available under this Act shall be 
     obligated or expended to change the boundaries of any region, 
     to abolish any region, to move or close any regional office 
     for research, State and private forestry, or National Forest 
     System administration of the Forest Service, Department of 
     Agriculture, or to implement any reorganization, 
     ``reinvention'' or other type of organizational restructuring 
     of the Forest Service, other than the relocation of the 
     Regional Office for Region 5 of the Forest Service from San 
     Francisco to excess military property at Mare Island, 
     Vallejo, California, without the consent of the House and 
     Senate Committees on Appropriations.
       Any funds available to the Forest Service may be used for 
     retrofitting Mare Island facilities to accommodate the 
     relocation: Provided, That funds for the move must come from 
     funds otherwise available to Region 5: Provided further, That 
     any funds to be provided for such purposes shall only be 
     available upon approval of the House and Senate Committees on 
     Appropriations.
       Any appropriations or funds available to the Forest Service 
     may be advanced to the Wildland Fire Management appropriation 
     and may be used for forest firefighting and the emergency 
     rehabilitation of burned-over lands under its jurisdiction.
       Funds appropriated to the Forest Service shall be available 
     for assistance to or through the Agency for International 
     Development and the Foreign Agricultural Service in 
     connection with forest and rangeland research, technical 
     information, and assistance in foreign countries, and shall 
     be available to support forestry and related natural resource 
     activities outside the United States and its territories and 
     possessions, including technical assistance, education and 
     training, and cooperation with United States and 
     international organizations.
       None of the funds made available to the Forest Service 
     under this Act shall be subject to transfer under the 
     provisions of section 702(b) of the Department of Agriculture 
     Organic Act of 1944 (7 U.S.C. 2257) or 7 U.S.C. 147b unless 
     the proposed transfer is approved in advance by the House and 
     Senate Committees on Appropriations in compliance with the 
     reprogramming procedures contained in House Report 103-551.
       None of the funds available to the Forest Service may be 
     reprogrammed without the advance approval of the House and 
     Senate Committees on Appropriations in accordance with the 
     procedures contained in House Report 103-551.
       No funds appropriated to the Forest Service shall be 
     transferred to the Working Capital Fund of the Department of 
     Agriculture without the approval of the Chief of the Forest 
     Service.
       Notwithstanding any other provision of the law, any 
     appropriations or funds available to the Forest Service may 
     be used to disseminate program information to private and 
     public individuals and organizations through the use of 
     nonmonetary items of nominal value and to provide nonmonetary 
     awards of nominal value and to incur necessary expenses for 
     the nonmonetary recognition of private individuals and 
     organizations that make contributions to Forest Service 
     programs.
       Notwithstanding any other provision of law, money 
     collected, in advance or otherwise, by the Forest Service 
     under authority of section 101 of Public Law 93-153 (30 
     U.S.C. 185(1)) as reimbursement of administrative and other 
     costs incurred in processing pipeline right-of-way or permit 
     applications and for costs incurred in monitoring the 
     construction, operation, maintenance, and termination of any 
     pipeline and related facilities, may be used to reimburse the 
     applicable appropriation to which such costs were originally 
     charged.
       Funds available to the Forest Service shall be available to 
     conduct a program of not less than $1,000,000 for high 
     priority projects within the scope of the approved budget 
     which shall be carried out by the Youth Conservation Corps as 
     authorized by the Act of August 13, 1970, as amended by 
     Public Law 93-408.
       None of the funds available in this Act shall be used for 
     timber sale preparation using clearcutting in hardwood stands 
     in excess of 25 percent of the fiscal year 1989 harvested 
     volume in the Wayne National Forest, Ohio: Provided, That 
     this limitation shall not apply to hardwood stands damaged by 
     natural disaster: Provided further, That landscape architects 
     shall be used to maintain a visually pleasing forest.
       Any money collected from the States for fire suppression 
     assistance rendered by the Forest Service on non-Federal 
     lands not in the vicinity of National Forest System lands 
     shall be used to reimburse the applicable appropriation and 
     shall remain available until expended as the Secretary may 
     direct in conducting activities authorized by 16 U.S.C. 2101 
     (note), 2101-2110, 1606, and 2111.
       Of the funds available to the Forest Service, $1,500 is 
     available to the Chief of the Forest Service for official 
     reception and representation expenses.
       Notwithstanding any other provision of law, the Forest 
     Service is authorized to employ or otherwise contract with 
     persons at regular rates of pay, as determined by the 
     Service, to perform work occasioned by emergencies such as 
     fires, storms, floods, earthquakes or any other unavoidable 
     cause without regard to Sundays, Federal holidays, and the 
     regular workweek.
       To the greatest extent possible, and in accordance with the 
     Final Amendment to the Shawnee National Forest Plan, none of 
     the funds available in this Act shall be used for preparation 
     of timber sales using clearcutting or other forms of even 
     aged management in hardwood stands in the Shawnee National 
     Forest, Illinois.
       Pursuant to sections 405(b) and 410(b) of Public Law 101-
     593, funds up to $1,000,000 for matching funds shall be 
     available for the National Forest Foundation on a one-for-one 
     basis to match private contributions for projects on or 
     benefitting National Forest System lands or related to Forest 
     Service programs.
       Pursuant to section 2(b)(2) of Public Law 98-244, up to 
     $1,000,000 of the funds available to the Forest Service shall 
     be available for matching funds, as authorized in 16 U.S.C. 
     3701-3709, on a one-for-one basis to match private 
     contributions for projects on or benefitting National Forest 
     System lands or related to Forest Service programs.
       Funds appropriated to the Forest Service shall be available 
     for interactions with and providing technical assistance to 
     rural communities for sustainable rural development purposes.
       Notwithstanding any other provision of law, 80 percent of 
     the funds appropriated to the Forest Service in the National 
     Forest System and Construction accounts and planned to be 
     allocated to activities under the ``Jobs in the Woods'' 
     program for projects on National Forest land in the State of 
     Washington may be granted directly to the Washington State 
     Department of Fish and Wildlife for accomplishment of planned 
     projects. Twenty percent of said funds shall be retained by 
     the Forest Service for planning and administering projects. 
     Project selection and prioritization shall be accomplished by 
     the Forest Service with such consultation with the State of 
     Washington as the Forest Service deems appropriate.
       Funds appropriated to the Forest Service shall be available 
     for payments to counties within the Columbia River Gorge 
     National Scenic Area, pursuant to sections 14(c)(1) and (2), 
     and section 16(a)(2) of Public Law 99-663.
       The Secretary of Agriculture shall by March 31, 1997 report 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate on the status and disposition 
     of all salvage timber sales started under the authority of 
     Section 2001 of Public Law 104-19 and subsequently withdrawn 
     or delayed and completed under different authorities as a 
     consequence of the July 2, 1996 directive on the 
     implementation of Section 2001 issued by the Secretary.
       The Pacific Northwest Research Station Silviculture 
     Laboratory in Bend, Oregon is hereby named the ``Robert W. 
     Chandler Building''.
       For purposes of the Southeast Alaska Economic Disaster Fund 
     as set forth in section 101(c) of Public Law 104-134, the 
     direct grants provided in subsection (c) shall be considered 
     direct payments for purposes of all applicable law except 
     that these direct grants may not be used for lobbying 
     activities.
       No employee of the Department of Agriculture may be 
     detailed or assigned from an agency or office funded by this 
     Act to any other agency or office of the Department for more 
     than 30 days unless the individual's employing agency or 
     office is fully reimbursed by the receiving agency or office 
     for the salary and expenses of the employee for the period of 
     assignment.

                          DEPARTMENT OF ENERGY


                         clean coal technology

                              (rescission)

       Of the funds made available under this heading for 
     obligation in fiscal year 1997 or prior years, $123,000,000 
     are rescinded: Provided, That funds made available in 
     previous appropriations Acts shall be available for any 
     ongoing project regardless of the separate request for 
     proposal under which the project was selected.

                 fossil energy research and development

       For necessary expenses in carrying out fossil energy 
     research and development activities, under the authority of 
     the Department of Energy Organization Act (Public Law 95-91), 
     including the acquisition of interest, including defeasible 
     and equitable interests in any real property or any facility 
     or for plant or facility acquisition or expansion, and for 
     conducting inquiries, technological investigations and 
     research concerning the extraction, processing, use, and 
     disposal of mineral substances without objectionable social 
     and environmental costs (30 U.S.C. 3, 1602, and 1603), 
     performed under the minerals and materials science programs 
     at the Albany Research Center in Oregon, $364,704,000, to 
     remain available until expended: Provided, That no part of 
     the sum herein made available shall be used for the field 
     testing of nuclear explosives in the recovery of oil and gas.

                      alternative fuels production


              (including transfer and rescission of funds)

       Monies received as investment income on the principal 
     amount in the Great Plains Project Trust at the Norwest Bank 
     of North Dakota, in such sums as are earned as of October 1, 
     1996, shall be deposited in this account and immediately 
     transferred to the General Fund of the

[[Page H11701]]

     Treasury. Monies received as revenue sharing from the 
     operation of the Great Plains Gasification Plant shall be 
     immediately transferred to the General Fund of the Treasury. 
     Funds are hereby rescinded in the amount of $2,500,000 from 
     unobligated balances under this head.

                 naval petroleum and oil shale reserves

       For necessary expenses in carrying out naval petroleum and 
     oil shale reserve activities, $143,786,000, to remain 
     available until expended: Provided, That the requirements of 
     10 U.S.C. 7430(b)(2)(B) shall not apply to fiscal year 1997.

                          energy conservation

       For necessary expenses in carrying out energy conservation 
     activities, $569,762,000, to remain available until expended, 
     including, notwithstanding any other provision of law, the 
     excess amount for fiscal year 1997 determined under the 
     provisions of section 3003(d) of Public Law 99-509 (15 U.S.C. 
     4502): Provided, That $149,845,000 shall be for use in energy 
     conservation programs as defined in section 3008(3) of Public 
     Law 99-509 (15 U.S.C. 4507) and shall not be available until 
     excess amounts are determined under the provisions of section 
     3003(d) of Public Law 99-509 (15 U.S.C. 4502): Provided 
     further, That notwithstanding section 3003(d)(2) of Public 
     Law 99-509 such sums shall be allocated to the eligible 
     programs as follows: $120,845,000 for weatherization 
     assistance grants and $29,000,000 for State energy 
     conservation grants.

                          economic regulation

       For necessary expenses in carrying out the activities of 
     the Office of Hearing and Appeals, $2,725,000, to remain 
     available until expended.

                      strategic petroleum reserve

                     (including transfer of funds)

       For necessary expenses for Strategic Petroleum Reserve 
     facility development and operations and program management 
     activities pursuant to the Energy Policy and Conservation Act 
     of 1975, as amended (42 U.S.C. 6201 et seq.), $220,000,000, 
     to remain available until expended,  of which $220,000,000 
     shall be repaid from the ``SPR Operating Fund'' from amounts 
     made available from the sale of oil from the Reserve: 
     Provided, That notwithstanding section 161 of the Energy 
     Policy and Conservation Act, the Secretary shall draw down 
     and sell in fiscal year 1997 $220,000,000 worth of oil from 
     the Strategic Petroleum Reserve: Provided further, That the 
     proceeds from the sale shall be deposited into a special 
     account in the Treasury, to be established and known as the 
     ``SPR Operating Fund'', and shall, upon receipt, be 
     transferred to the Strategic Petroleum Reserve account for 
     operations of the Strategic Petroleum Reserve.

                         spr petroleum account

       Notwithstanding 42 U.S.C. 6240(d) the United States share 
     of crude oil in Naval Petroleum Reserve Numbered 1 (Elk 
     Hills) may be sold or otherwise disposed of to other than the 
     Strategic Petroleum Reserve: Provided, That outlays in fiscal 
     year 1997 resulting from the use of funds in this account 
     shall not exceed $5,000,000.

                   energy information administration

       For necessary expenses in carrying out the activities of 
     the Energy Information Administration, $66,120,000 to remain 
     available until expended.

            administrative provisions, department of energy

       Appropriations under this Act for the current fiscal year 
     shall be available for hire of passenger motor vehicles; 
     hire, maintenance, and operation of aircraft; purchase, 
     repair, and cleaning of uniforms; and reimbursement to the 
     General Services Administration for security guard services.
       From appropriations under this Act, transfers of sums may 
     be made to other agencies of the Government for the 
     performance of work for which the appropriation is made.
       None of the funds made available to the Department of 
     Energy under this Act shall be used to implement or finance 
     authorized price support or loan guarantee programs unless 
     specific provision is made for such programs in an 
     appropriations Act.
       The Secretary is authorized to accept lands, buildings, 
     equipment, and other contributions from public and private 
     sources and to prosecute projects in cooperation with other 
     agencies, Federal, State, private or foreign: Provided, That 
     revenues and other moneys received by or for the account of 
     the Department of Energy or otherwise generated by sale of 
     products in connection with projects of the Department 
     appropriated under this Act may be retained by the Secretary 
     of Energy, to be available until expended, and used only for 
     plant construction, operation, costs, and payments to cost-
     sharing entities as provided in appropriate cost-sharing 
     contracts or agreements: Provided further, That the remainder 
     of revenues after the making of such payments shall be 
     covered into the Treasury as miscellaneous receipts: Provided 
     further, That any contract, agreement, or provision thereof 
     entered into by the Secretary pursuant to this authority 
     shall not be executed prior to the expiration of 30 calendar 
     days (not including any day in which either House of Congress 
     is not in session because of adjournment of more than three 
     calendar days to a day certain) from the receipt by the 
     Speaker of the House of Representatives and the President of 
     the Senate of a full comprehensive report on such project, 
     including the facts and circumstances relied upon in support 
     of the proposed project.
       No funds provided in this Act may be expended by the 
     Department of Energy to prepare, issue, or process 
     procurement documents for programs or projects for which 
     appropriations have not been made.
       In addition to other authorities set forth in this Act, the 
     Secretary may accept fees and contributions from public and 
     private sources, to be deposited in a contributed funds 
     account, and prosecute projects using such fees and 
     contributions in cooperation with other Federal, State or 
     private agencies or concerns.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         Indian Health Service

                         indian health services

       For expenses necessary to carry out the Act of August 5, 
     1954 (68 Stat. 674), the Indian Self-Determination Act, the 
     Indian Health Care Improvement Act, and titles II and III of 
     the Public Health Service Act with respect to the Indian 
     Health Service, $1,806,269,000, together with payments 
     received during the fiscal year pursuant to 42 U.S.C. 238(b) 
     for services furnished by the Indian Health Service: 
     Provided, That funds made available to tribes and tribal 
     organizations through contracts, grant agreements, or any 
     other agreements or compacts authorized by the Indian Self-
     Determination and Education Assistance Act of 1975 (25 U.S.C. 
     450), shall be deemed to be obligated at the time of the 
     grant or contract award and thereafter shall remain available 
     to the tribe or tribal organization without fiscal year 
     limitation: Provided further, That $12,000,000 shall remain 
     available until expended, for the Indian Catastrophic Health 
     Emergency Fund: Provided further, That $356,325,000 for 
     contract medical care shall remain available for obligation 
     until September 30, 1998: Provided further, That of the funds 
     provided, not less than $11,706,000 shall be used to carry 
     out the loan repayment program under section 108 of the 
     Indian Health Care Improvement Act: Provided further, That 
     funds provided in this Act may be used for one-year contracts 
     and grants which are to be performed in two fiscal years, so 
     long as the total obligation is recorded in the year for 
     which the funds are appropriated: Provided further, That the 
     amounts collected by the Secretary of Health and Human 
     Services under the authority of title IV of the Indian Health 
     Care Improvement Act shall remain available until expended 
     for the purpose of achieving compliance with the applicable 
     conditions and requirements of titles XVIII and XIX of the 
     Social Security Act  (exclusive of planning, design, or 
     construction of new facilities): Provided further, That of 
     the funds provided, $7,500,000 shall remain available 
     until expended, for the Indian Self-Determination Fund, 
     which shall be available for the transitional costs of 
     initial or expanded tribal contracts, compacts, grants or 
     cooperative agreements with the Indian Health Service 
     under the provisions of the Indian Self-Determination Act: 
     Provided further, That funding contained herein, and in 
     any earlier appropriations Acts for scholarship programs 
     under the Indian Health Care Improvement Act (25 U.S.C. 
     1613) shall remain available for obligation until 
     September 30, 1998: Provided further, That amounts 
     received by tribes and tribal organizations under title IV 
     of the Indian Health Care Improvement Act shall be 
     reported and accounted for and available to the receiving 
     tribes and tribal organizations until expended.

                        indian health facilities

       For construction, repair, maintenance, improvement, and 
     equipment of health and related auxiliary facilities, 
     including quarters for personnel; preparation of plans, 
     specifications, and drawings; acquisition of sites, purchase 
     and erection of modular buildings, and purchases of trailers; 
     and for provision of domestic and community sanitation 
     facilities for Indians, as authorized by section 7 of the Act 
     of August 5, 1954 (42 U.S.C. 2004a), the Indian Self-
     Determination Act, and the Indian Health Care Improvement 
     Act, and for expenses necessary to carry out such Acts and 
     titles II and III of the Public Health Service Act with 
     respect to environmental health and facilities support 
     activities of the Indian Health Service, $247,731,000, to 
     remain available until expended: Provided, That 
     notwithstanding any other provision of law, funds 
     appropriated for the planning, design, construction or 
     renovation of health facilities for the benefit of an Indian 
     tribe or tribes may be used to purchase land for sites to 
     construct, improve, or enlarge health or related facilities.

            administrative provisions, indian health service

       Appropriations in this Act to the Indian Health Service 
     shall be available for services as authorized by 5 U.S.C. 
     3109 but at rates not to exceed the per diem rate equivalent 
     to the maximum rate payable for senior-level positions under 
     5 U.S.C. 5376; hire of passenger motor vehicles and aircraft; 
     purchase of medical equipment; purchase of reprints; 
     purchase, renovation and erection of modular buildings and 
     renovation of existing facilities; payments for telephone 
     service in private residences in the field, when authorized 
     under regulations approved by the Secretary; and for uniforms 
     or allowances therefore as authorized by 5 U.S.C. 5901-5902; 
     and for expenses of attendance at meetings which are 
     concerned with the functions or activities for which the 
     appropriation is made or which will contribute to improved 
     conduct, supervision, or management of those functions or 
     activities: Provided, That in accordance with the provisions 
     of the Indian Health Care Improvement Act, non-Indian 
     patients may be extended health care at all tribally 
     administered or Indian Health Service facilities, subject to 
     charges, and the proceeds along with funds recovered under 
     the Federal Medical Care Recovery Act (42 U.S.C. 2651-53) 
     shall be credited to the account of the facility providing 
     the service and shall be available without fiscal year 
     limitation: Provided further, That notwithstanding any other 
     law or regulation, funds transferred from the Department of 
     Housing and Urban Development to the Indian Health Service 
     shall be administered under Public Law 86-121 (the Indian 
     Sanitation Facilities Act) and Public Law 93-638, as amended: 
     Provided further, That

[[Page H11702]]

     funds appropriated to the Indian Health Service in this Act, 
     except those used for administrative and program direction 
     purposes, shall not be subject to limitations directed at 
     curtailing Federal travel and transportation: Provided 
     further, That notwithstanding any other provision of law, 
     funds previously or herein made available to a tribe or 
     tribal organization through a contract, grant, or agreement 
     authorized by title I or title III of the Indian Self-
     Determination and Education Assistance Act of 1975 (25 U.S.C. 
     450), may be deobligated and reobligated to a self-
     determination contract under title I, or a self-governance 
     agreement under title III of such Act and thereafter shall 
     remain available to the tribe or tribal organization without 
     fiscal year limitation: Provided further, That none of the 
     funds made available to the Indian Health Service in this Act 
     shall be used to implement the final rule published in the 
     Federal Register on September 16, 1987, by the Department of 
     Health and Human Services, relating to the eligibility for 
     the health care services of the Indian Health Service until 
     the Indian Health Service has submitted a budget request 
     reflecting the increased costs associated with the proposed 
     final rule, and such request has been included in an 
     appropriations Act and enacted into law: Provided further, 
     That funds made available in this Act are to be apportioned 
     to the Indian Health Service as appropriated in this Act, and 
     accounted for in the appropriation structure set forth in 
     this Act: Provided further, That funds received from any 
     source, including tribal contractors and compactors for 
     previously transferred functions which tribal contractors and 
     compactors no longer wish to retain, for services, goods, or 
     training and technical assistance, shall be retained by the 
     Indian Health Service and shall remain available until 
     expended by the Indian Health Service: Provided further, That 
     reimbursements for training, technical assistance, or 
     services provided by the Indian Health Service will contain 
     total costs, including direct, administrative, and overhead 
     associated with the provision of goods, services, or 
     technical assistance: Provided further, That the 
     appropriation structure for the Indian Health Service may not 
     be altered without advance approval of the House and Senate 
     Committees on Appropriations.

                        DEPARTMENT OF EDUCATION

              Office of Elementary and Secondary Education

                            indian education

       For necessary expenses to carry out, to the extent not 
     otherwise provided, title IX, part A of the Elementary and 
     Secondary Education Act of 1965, as amended, and section 215 
     of the Department of Education Organization Act, $61,000,000.

                         OTHER RELATED AGENCIES

              Office of Navajo and Hopi Indian Relocation

                         salaries and expenses

       For necessary expenses of the Office of Navajo and Hopi 
     Indian Relocation as authorized by Public Law 93-531, 
     $19,345,000, to remain available until expended: Provided, 
     That funds provided in this or any other appropriations Act 
     are to be used to relocate eligible individuals and groups 
     including evictees from District 6, Hopi-partitioned lands 
     residents, those in significantly substandard housing, and 
     all others certified as eligible and not included in the 
     preceding categories: Provided further, That none of the 
     funds contained in this or any other Act may be used by the 
     Office of Navajo and Hopi Indian Relocation to evict any 
     single Navajo or Navajo family who, as of November 30, 1985, 
     was physically domiciled on the lands partitioned to the Hopi 
     Tribe unless a new or replacement home is provided for such 
     household: Provided further, That no relocatee will be 
     provided with more than one new or replacement home: Provided 
     further, That the Office shall relocate any certified 
     eligible relocatees who have selected and received an 
     approved homesite on the Navajo reservation or selected a 
     replacement residence off the Navajo reservation or on the 
     land acquired pursuant to 25 U.S.C. 640d-10.

    Institute of American Indian and Alaska Native Culture and Arts 
                              Development

                        payment to the institute

       For payment to the Institute of American Indian and Alaska 
     Native Culture and Arts Development, as authorized by title 
     XV of Public Law 99-498, as amended (20 U.S.C. 56, part A), 
     $5,500,000.

                        Smithsonian Institution

                         salaries and expenses

       For necessary expenses of the Smithsonian Institution, as 
     authorized by law, including research in the fields of art, 
     science, and history; development, preservation, and 
     documentation of the National Collections; presentation of 
     public exhibits and performances; collection, preparation, 
     dissemination, and exchange of information and publications; 
     conduct of education, training, and museum assistance 
     programs; maintenance, alteration, operation, lease (for 
     terms not to exceed thirty years), and protection of 
     buildings, facilities, and approaches; not to exceed $100,000 
     for services as authorized by 5 U.S.C. 3109; up to 5 
     replacement passenger vehicles; purchase, rental, repair, and 
     cleaning of uniforms for employees; $317,557,000 of which not 
     to exceed $30,665,000 for the instrumentation program, 
     collections acquisition, Museum Support Center equipment and 
     move, exhibition reinstallation, the National Museum of the 
     American Indian, the repatriation of skeletal remains 
     program, research equipment, information management, and 
     Latino programming shall remain available until expended, and 
     including such funds as may be necessary to support American 
     overseas research centers and a total of $125,000 for the 
     Council of American Overseas Research Centers: Provided, That 
     funds appropriated herein are available for advance payments 
     to independent contractors performing research services or 
     participating in official Smithsonian presentations.

        construction and improvements, national zoological park

       For necessary expenses of planning, construction, 
     remodeling, and equipping of buildings and facilities at the 
     National Zoological Park, by contract or otherwise, 
     $3,850,000, to remain available until expended.

                  repair and restoration of buildings

       For necessary expenses of repair and restoration of 
     buildings owned or occupied by the Smithsonian Institution, 
     by contract or otherwise, as authorized by section 2 of the 
     Act of August 22, 1949 (63 Stat. 623), including not to 
     exceed $10,000 for services as authorized by 5 U.S.C. 3109, 
     $39,000,000, to remain available until expended: Provided, 
     That contracts awarded for environmental systems, protection 
     systems, and exterior repair or restoration of buildings of 
     the Smithsonian Institution may be negotiated with selected 
     contractors and awarded on the basis of contractor 
     qualifications as well as price.

                              construction

       For necessary expenses for construction, $10,000,000, to 
     remain available until expended.

                        National Gallery of Art


                         salaries and expenses

       For the upkeep and operations of the National Gallery of 
     Art, the protection and care of the works of art therein, and 
     administrative expenses incident thereto, as authorized by 
     the Act of March 24, 1937 (50 Stat. 51), as amended by the 
     public resolution of April 13, 1939 (Public Resolution 9, 
     Seventy-sixth Congress), including services as authorized 
     by 5 U.S.C. 3109; payment in advance when authorized by 
     the treasurer of the Gallery for membership in library, 
     museum, and art associations or societies whose 
     publications or services are available to members only, or 
     to members at a price lower than to the general public; 
     purchase, repair, and cleaning of uniforms for guards, and 
     uniforms, or allowances therefor, for other employees as 
     authorized by law (5 U.S.C. 5901-5902); purchase or rental 
     of devices and services for protecting buildings and 
     contents thereof, and maintenance, alteration, 
     improvement, and repair of buildings, approaches, and 
     grounds; and purchase of services for restoration and 
     repair of works of art for the National Gallery of Art by 
     contracts made, without advertising, with individuals, 
     firms, or organizations at such rates or prices and under 
     such terms and conditions as the Gallery may deem proper, 
     $53,899,000, of which not to exceed $3,026,000 for the 
     special exhibition program shall remain available until 
     expended.

            repair, restoration and renovation of buildings

       For necessary expenses of repair, restoration and 
     renovation of buildings, grounds and facilities owned or 
     occupied by the National Gallery of Art, by contract or 
     otherwise, as authorized, $5,942,000, to remain available 
     until expended: Provided, That contracts awarded for 
     environmental systems, protection systems, and exterior 
     repair or renovation of buildings of the National Gallery of 
     Art may be negotiated with selected contractors and awarded 
     on the basis of contractor qualifications as well as price.

             John F. Kennedy Center for the Performing Arts


                       operations and maintenance

       For necessary expenses for the operation, maintenance and 
     security of the John F. Kennedy Center for the Performing 
     Arts, $10,875,000.

                              construction

       For necessary expenses of capital repair and rehabilitation 
     of the existing features of the building and site of the John 
     F. Kennedy Center for the Performing Arts, $9,000,000, to 
     remain available until expended.

            Woodrow Wilson International Center for Scholars


                         salaries and expenses

       For expenses necessary in carrying out the provisions of 
     the Woodrow Wilson Memorial Act of 1968 (82 Stat. 1356) 
     including hire of passenger vehicles and services as 
     authorized by 5 U.S.C. 3109, $5,840,000.

           National Foundation on the Arts and the Humanities

                    National Endowment for the Arts

                       grants and administration

       For necessary expenses to carry out the National Foundation 
     on the Arts and the Humanities Act of 1965, as amended, 
     $82,734,000, shall be available to the National Endowment for 
     the Arts for the support of projects and productions in the 
     arts through assistance to organizations and individuals 
     pursuant to section 5(c) of the Act, and for administering 
     the functions of the Act, to remain available until expended.


                            matching grants

       To carry out the provisions of section 10(a)(2) of the 
     National Foundation on the Arts and the Humanities Act of 
     1965, as amended, $16,760,000, to remain available until 
     expended, to the National Endowment for the Arts: Provided, 
     That this appropriation shall be available for obligation 
     only in such amounts as may be equal to the total amounts of 
     gifts, bequests, and devises of money, and other property 
     accepted by the Chairman or by grantees of the Endowment 
     under the provisions of section 10(a)(2), subsections 
     11(a)(2)(A) and 11(a)(3)(A) during the current and preceding 
     fiscal years for which equal amounts have not previously been 
     appropriated.

[[Page H11703]]

                 National Endowment for the Humanities


                       grants and administration

       For necessary expenses to carry out the National Foundation 
     on the Arts and the Humanities Act of 1965, as amended, 
     $96,100,000 shall be available to the National Endowment for 
     the Humanities for support of activities in the humanities, 
     pursuant to section 7(c) of the Act, and for administering 
     the functions of the Act, to remain available until expended.


                            matching grants

       To carry out the provisions of section 10(a)(2) of the 
     National Foundation on the Arts and the Humanities Act of 
     1965, as amended, $13,900,000, to remain available until 
     expended, of which $8,000,000 shall be available to the 
     National Endowment for the Humanities for the purposes of 
     section 7(h): Provided, That this appropriation shall be 
     available for obligation only in such amounts as may be equal 
     to the total amounts of gifts, bequests, and devises of 
     money, and other property accepted by the Chairman or by 
     grantees of the Endowment under the provisions of subsections 
     11(a)(2)(B) and 11(a)(3)(B) during the current and preceding 
     fiscal years for which equal amounts have not previously been 
     appropriated.

                      Institute of Museum Services

                       grants and administration

       For carrying out title II of the Arts, Humanities, and 
     Cultural Affairs Act of 1976, as amended, $22,000,000, to 
     remain available until expended.

                       administrative provisions

       None of the funds appropriated to the National Foundation 
     on the Arts and the Humanities may be used to process any 
     grant or contract documents which do not include the text of 
     18 U.S.C. 1913: Provided, That none of the funds appropriated 
     to the National Foundation on the Arts and the Humanities may 
     be used for official reception and representation expenses.

                        Commission of Fine Arts

                         salaries and expenses

       For expenses made necessary by the Act establishing a 
     Commission of Fine Arts (40 U.S.C. 104), $867,000.

               national capital arts and cultural affairs

       For necessary expenses as authorized by Public Law 99-190 
     (20 U.S.C. 956(a)), as amended, $6,000,000.

               Advisory Council on Historic Preservation

                         salaries and expenses

       For necessary expenses of the Advisory Council on Historic 
     Preservation (Public Law 89-665, as amended), $2,500,000: 
     Provided, That none of these funds shall be available for the 
     compensation of Executive Level V or higher position.

                  National Capital Planning Commission

                         salaries and expenses

       For necessary expenses, as authorized by the National 
     Capital Planning Act of 1952 (40 U.S.C. 71-71i), including 
     services as authorized by 5 U.S.C. 3109, $5,390,000: 
     Provided, That all appointed members will be compensated at a 
     rate not to exceed the rate for Executive Schedule Level IV.

             Franklin Delano Roosevelt Memorial Commission

                         salaries and expenses

       For necessary expenses of the Franklin Delano Roosevelt 
     Memorial Commission, established by the Act of August 11, 
     1955 (69 Stat. 694), as amended by Public Law 92-332 (86 
     Stat. 401), $500,000 to remain available until expended.

                United States Holocaust Memorial Council

                       holocaust memorial council

       For expenses of the Holocaust Memorial Council, as 
     authorized by Public Law 96-388 (36 U.S.C. 1401), as amended, 
     $30,707,000, of which $1,575,000 for the Museum's repair and 
     rehabilitation program and $1,264,000 for the Museum's 
     exhibitions program shall remain available until expended.

                     TITLE III--GENERAL PROVISIONS

       Sec. 301. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to 5 U.S.C. 3109, shall be limited to those 
     contracts where such expenditures are a matter of public 
     record and available for public inspection, except where 
     otherwise provided under existing law, or under existing 
     Executive Order issued pursuant to existing law.
       Sec. 302. No part of any appropriation under this Act shall 
     be available to the Secretary of the Interior or the 
     Secretary of Agriculture for the leasing of oil and natural 
     gas by noncompetitive bidding on publicly owned lands within 
     the boundaries of the Shawnee National Forest, Illinois: 
     Provided, That nothing herein is intended to inhibit or 
     otherwise affect the sale, lease, or right to access to 
     minerals owned by private individuals.
       Sec. 303. No part of any appropriation contained in this 
     Act shall be available for any activity or the publication or 
     distribution of literature that in any way tends to promote 
     public support or opposition to any legislative proposal on 
     which congressional action is not complete.
       Sec. 304. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 305. None of the funds provided in this Act to any 
     department or agency shall be obligated or expended to 
     provide a personal cook, chauffeur, or other personal 
     servants to any officer or employee of such department or 
     agency except as otherwise provided by law.
       Sec. 306. No assessments may be levied against any program, 
     budget activity, subactivity, or project funded by this Act 
     unless advance notice of such assessments and the basis 
     therefor are presented to the Committees on Appropriations 
     and are approved by such Committees.
       Sec. 307. (a) Compliance With Buy American Act.--None of 
     the funds made available in this Act may be expended by an 
     entity unless the entity agrees that in expending the funds 
     the entity will comply with sections 2 through 4 of the Act 
     of March 3, 1933 (41 U.S.C. 10a-10c; popularly known as the 
     ``Buy American Act'').
       (b) Sense of Congress; Requirement Regarding Notice.--
       (1) Purchase of american-made equipment and products.--In 
     the case of any equipment or product that may be authorized 
     to be purchased with financial assistance provided using 
     funds made available in this Act, it is the sense of the 
     Congress that entities receiving the assistance should, in 
     expending the assistance, purchase only American-made 
     equipment and products.
       (2) Notice to recipients of assistance.--In providing 
     financial assistance using funds made available in this Act, 
     the head of each Federal agency shall provide to each 
     recipient of the assistance a notice describing the statement 
     made in paragraph (1) by the Congress.
        (c) Prohibition of Contracts With Persons Falsely Labeling 
     Products as Made in America.--If it has been finally 
     determined by a court or Federal agency that any person 
     intentionally affixed a label bearing a ``Made in America'' 
     inscription, or any inscription with the same meaning, to any 
     product sold in or shipped to the United States that is not 
     made in the United States, the person shall be ineligible to 
     receive any contract or subcontract made with funds made 
     available in this Act, pursuant to the debarment, suspension, 
     and ineligibility procedures described in sections 9.400 
     through 9.409 of title 48, Code of Federal Regulations.
       Sec. 308. None of the funds in this Act may be used to 
     plan, prepare, or offer for sale timber from trees classified 
     as giant sequoia (Sequoiadendron giganteum) which are located 
     on National Forest System or Bureau of Land Management lands 
     in a manner different than such sales were conducted in 
     fiscal year 1995.
       Sec. 309. None of the funds made available by this Act may 
     be obligated or expended by the National Park Service to 
     enter into or implement a concession contract which permits 
     or requires the removal of the underground lunchroom at the 
     Carlsbad Caverns National Park.
       Sec. 310. Where the actual costs of construction projects 
     under self-determination contracts, compacts, or grants, 
     pursuant to Public Laws 93-638, 103-413, or 100-297, are less 
     than the estimated costs thereof, use of the resulting excess 
     funds shall be determined by the appropriate Secretary after 
     consultation with the tribes.
       Sec. 311. Notwithstanding Public Law 103-413, quarterly 
     payments of funds to tribes and tribal organizations under 
     annual funding agreements pursuant to section 108 of Public 
     Law 93-638, as amended, may be made on the first business day 
     following the first day of a fiscal quarter.
       Sec. 312. None of the funds appropriated or otherwise made 
     available by this Act may be used for the AmeriCorps program, 
     unless the relevant agencies of the Department of the 
     Interior and/or Agriculture follow appropriate reprogramming 
     guidelines: Provided, That if no funds are provided for the 
     AmeriCorps program by the VA-HUD and Independent Agencies 
     fiscal year 1997 appropriations bill, then none of the funds 
     appropriated or otherwise made available by this Act may be 
     used for the AmeriCorps programs.
       Sec. 313. None of the funds made available in this Act may 
     be used (1) to demolish the bridge between Jersey City, New 
     Jersey, and Ellis Island; or (2) to prevent pedestrian use of 
     such bridge, when it is made known to the Federal official 
     having authority to obligate or expend such funds that such 
     pedestrian use is consistent with generally accepted safety 
     standards.
       Sec. 314. (a) None of the funds appropriated or otherwise 
     made available pursuant to this Act shall be obligated or 
     expended to accept or process applications for a patent for 
     any mining or mill site claim located under the general 
     mining laws.
       (b) The provisions of subsection (a) shall not apply if the 
     Secretary of the Interior determines that, for the claim 
     concerned: (1) a patent application was filed with the 
     Secretary on or before September 30, 1994, and (2) all 
     requirements established under sections 2325 and 2326 of the 
     Revised Statutes (30 U.S.C. 29 and 30) for vein or lode 
     claims and sections 2329, 2330, 2331, and 2333 of the Revised 
     Statutes (30 U.S.C. 35, 36, and 37) for placer claims, and 
     section 2337 of the Revised Statutes (30 U.S.C. 42) for mill 
     site claims, as the case may be, were fully complied with by 
     the applicant by that date.
       (c) Processing Schedule.--For those applications for 
     patents pursuant to subsection (b) which were filed with the 
     Secretary of the Interior, prior to September 30, 1994, the 
     Secretary of the Interior shall--
       (1) Within three months of the enactment of this Act, file 
     with the House and Senate Committees on Appropriations and 
     the Committee on Resources of the House of Representatives 
     and the Committee on Energy and Natural Resources of the 
     United States Senate a plan which details how the Department 
     of the Interior will make a final determination as to whether 
     or not an applicant is entitled to a patent under the general 
     mining laws on at least 90 percent of such applications 
     within five years of the enactment of this Act and file 
     reports annually thereafter with the same committees 
     detailing actions taken by the Department of the Interior to 
     carry out such plan; and
       (2) Take such actions as may be necessary to carry out such 
     plan.
       (d) Mineral Examinations.--In order to process patent 
     applications in a timely and responsible manner, upon the 
     request of a patent applicant, the Secretary of the Interior 
     shall allow the applicant to fund a qualified third-party 
     contractor to be selected by the Bureau of

[[Page H11704]]

     Land Management to conduct a mineral examination of the 
     mining claims or mill sites contained in a patent application 
     as set forth in subsection (b). The Bureau of Land Management 
     shall have the sole responsibility to choose and pay the 
     third-party contractor in accordance with the standard 
     procedures employed by the Bureau of Land Management in the 
     retention of third-party contractors.
       Sec. 315. None of the funds appropriated or otherwise made 
     available by this Act may be used for the purposes of 
     acquiring lands in the counties of Gallia, Lawrence, Monroe, 
     or Washington, Ohio, for the Wayne National Forest.
       Sec. 316. Of the funds provided to the National Endowment 
     for the Arts:
       (a) The Chairperson shall only award a grant to an 
     individual if such grant is awarded to such individual for a 
     literature fellowship, National Heritage Fellowship, or 
     American Jazz Masters Fellowship.
       (b) The Chairperson shall establish procedures to ensure 
     that no funding provided through a grant, except a grant made 
     to a State or local arts agency, or regional group, may be 
     used to make a grant to any other organization or individual 
     to conduct activity independent of the direct grant 
     recipient. Nothing in this subsection shall prohibit payments 
     made in exchange for goods and services.
       (c) No grant shall be used for seasonal support to a group, 
     unless the application is specific to the contents of the 
     season, including identified programs and/or projects.
       Sec. 317. None of the funds available to the Department of 
     the Interior or the Department of Agriculture by this or any 
     other Act may be used to prepare, promulgate, implement, or 
     enforce any interim or final rule or regulation pursuant to 
     Title VII of the Alaska National Interest Lands Conservation 
     Act to assert jurisdiction, management, or control over any 
     waters (other than non-navigable waters on Federal lands), 
     non-Federal lands, or lands selected by, but not conveyed to, 
     the State of Alaska pursuant to the Submerged Lands Act of 
     1953 or the Alaska Statehood Act, or an Alaska Native 
     Corporation pursuant to the Alaska Native Claims Settlement 
     Act.
       Sec. 318. No funds appropriated under this or any other Act 
     shall be used to review or modify sourcing areas previously 
     approved under section 490(c)(3) of the Forest Resources 
     Conservation and Shortage Relief Act of 1990 (Public Law 101-
     382) or to enforce or implement Federal regulations 36 CFR 
     part 223 promulgated on September 8, 1995. The regulations 
     and interim rules in effect prior to September 8, 1995 (36 
     CFR 223.48, 36 CFR 223.87,, 36 CFR 261.6) shall remain in 
     effect. The Secretary of Agriculture or the Secretary of the 
     Interior shall not adopt any policies concerning Public Law 
     101-382 or existing regulations that would restrain domestic 
     transportation or processing of timber from private lands or 
     impose additional accountability requirements on any timber. 
     The Secretary of Commerce shall extend until September 30, 
     1997, the order issued under section 491(b)(2)(A) of Public 
     Law 101-382 and shall issue an order under section 
     491(b)(2)(B) of such law that will be effective October 1, 
     1997.
       Sec. 319. Section 101(c) of Public Law 104-134 is amended 
     as follows: Under the heading ``Title III--General 
     Provisions'' amend section 315(b) by striking ``50, areas,'' 
     and inserting in lieu thereof ``100, areas,'' and amend 
     section 315(f) by striking ``September 30, 1998'' and 
     inserting in lieu thereof ``September 30, 1999'' and by 
     striking ``September 30, 2001'' and inserting in lieu thereof 
     ``September 30, 2002''.
       Sec. 320. None of the amounts made available by this Act 
     may be used for design, planning, implementation, 
     engineering, construction, or any other activity in 
     connection with a scenic shoreline drive in Pictured Rocks 
     National Lakeshore.
       Sec. 321. Land transfer, Bend Silviculture Lab, Deschutes 
     National Forest, Oregon.--
       (a) Transfer of real property and all improvements located 
     thereon.--Notwithstanding any other provisions of law, there 
     is hereby transferred, without consideration and subject to 
     existing valid rights, all right, title and interest of the 
     United States in and to approximately 5.73 acres of land as 
     described by plat dated July 7, 1977, (which is on file and 
     available for public inspection in the Office of the Chief, 
     USDA Forest Service, Washington, D.C.), as well as all 
     improvements, including the Bend Silviculture Lab located 
     thereon, to the Central Oregon Community College, Bend, 
     Oregon; this being a portion of the same tract acquired by 
     donation from the City of Bend on August 10, 1960, through a 
     Bargain and Sale deed to the USDA Forest Service for use as a 
     research lab, and recorded in volume 125, page 508 of the 
     Deschutes County, Oregon, Deed Records.
       (b) Conditions of transfer.--The transfer effected by 
     subsection (a) is made subject to no special terms or 
     conditions.
       Sec. 322. No part of any appropriation contained in this 
     Act or any other Act shall be expended or obligated to fund 
     the activities of the Office of Forestry and Economic 
     Assistance, or any successor office after December 31, 1996.
       Sec. 323. (a) The Secretary of the Interior is authorized 
     to accept title to approximately 84 acres of land located in 
     Prince Georges County, Maryland, adjacent to Oxon Cove Park, 
     and bordered generally by the Potomac River, Interstate 295 
     and the Woodrow Wilson Bridge, or any interest therein, and 
     in exchange therefor may convey to the Corrections 
     Corporation of America approximately 50 acres of land located 
     in Oxon Cove Park in the District of Columbia and bordered 
     generally by Oxon Cove, Interstate 295 and the District of 
     Columbia Impound Lot, or any interest therein.
       (b) Before proceeding with an exchange, the Secretary shall 
     determine if the federal property is suitable for exchange 
     under the criteria normally used by the National Park 
     Service. The exchange shall comply with applicable 
     regulations and National Park Service policies for land 
     exchanges.
       (c)(1) The Secretary shall not acquire any lands under this 
     section if the Secretary determines that the lands or any 
     portion thereof have become contaminated with hazardous 
     substances (as defined in the Comprehensive Environmental 
     Response, Compensation, and Liability Act (42 U.S.C. 960l)).
       (2) Notwithstanding any other provision of law, the United 
     States shall have no responsibility or liability with respect 
     to any hazardous wastes or other substances placed on any of 
     the lands covered by this section after their transfer to the 
     ownership of any party, but nothing in this section shall be 
     construed as either diminishing or increasing any 
     responsibility or liability of the United States based on the 
     condition of such lands on the date of their transfer to the 
     ownership of another party: Provided, That the Corrections 
     Corporation of America shall indemnify the United States for 
     liabilities arising under the Comprehensive Environmental 
     Response, Compensation, and Liability Act (42 U.S.C. 960l) 
     and the Resource Conservation Recovery Act (42 U.S.C. 690l, 
     et seq.).
       (d) The properties so exchanged either shall be 
     approximately equal in fair market value or if they are not 
     approximately equal, shall be equalized by the payment of 
     cash to the Corporation or to the Secretary as required or in 
     the event the value of the Corporation's lands is greater, 
     the acreage may be reduced so that the fair market value is 
     approximately equal: Provided, That the Secretary shall order 
     appraisals made of the fair market value for improvements 
     thereon: Provided further, That any such cash payment 
     received by the Secretary shall be deposited to 
     ``Miscellaneous Trust Funds, National Park Service'' and 
     shall be available without further appropriation until 
     expended for the acquisition of land within the National Park 
     System.
       (e) Costs of conducting necessary land surveys, preparing 
     the legal descriptions of the lands to be conveyed, 
     performing the appraisals, and administrative costs incurred 
     in completing the exchange shall be borne by the Corporation.
       (f) Following any exchange authorized by this provision, 
     the boundaries of Oxon Cove Park shall be expanded to include 
     the land acquired by the United States.
       Sec. 324. Section 1. Land Exchange.--
       (a) Exchange.--Subject to subsection (c), the Secretary of 
     Agriculture (referred to in this section as the 
     ``Secretary'') shall convey all right, title, and interest of 
     the United States in and to the National Forest System lands 
     described in subsection (b)(1) to Public Utility District No. 
     1 of Chelan County, Washington (referred to in this section 
     as the ``Public Utility District''), in exchange for the 
     conveyance to the Department of Agriculture by the Public 
     Utility District of all right, title, and interest of the 
     Public Utility District in and to the lands described in 
     subsection (b)(2).
       (b) Description of lands.--
       (1) National Forest System Lands.--The National Forest 
     System lands referred to in subsection (a) are 122 acres, 
     more or less, that are partially occupied by a wastewater 
     treatment facility referred to in subsection (c)(4)(A) with 
     the following legal description:
       (A) The NE\1/4\ of SW\1/4\ of section 27 of township 27 
     north, range 17 east, Willamette Meridian, Chelan County, 
     Washington.
       (B) The N\1/2\ of SE\1/4\ of SW\1/4\ of such section 27.
       (C) The W\1/2\ of NW\1/4\ of SE\1/4\ of such section 27.
       (D) The NW\1/4\ of SW\1/4\ of SE\1/4\ of such section 27.
       (E) The E\1/2\ of NW\1/4\ of the SE\1/4\ of such section 
     27.
       (F) That portion of the S\1/2\ of SE\1/4\ of SW\1/4\ lying 
     north of the northerly edge of Highway 209 right-of-way of 
     such section 27.
       (2) Public utility district lands.--The lands owned by the 
     Public Utility District are 109.15 acres, more or less, with 
     the following legal description:
       (A) S\1/2\ of SW\1/4\ of section 35 of township 26 north, 
     range 17 east, Willamette Meridian, Chelan County, 
     Washington.
       (B) The area specified by Public Utility District No. 1 as 
     Government Lot 5 in such section 35.
       (c) Requirements for exchange.--
       (1) Title acceptance and conveyance.--Upon offer by the 
     Public Utility District of all right, title and interest in 
     and to the lands described in subsection (b)(2), if the title 
     is found acceptable by the Secretary, the Secretary shall 
     accept title to such lands and interests therein and shall 
     convey to the Public Utility District all right, title, and 
     interest of the United States in and to the lands described 
     in subsection (b)(1).
       (2) Appraisals required.--Before making an exchange 
     pursuant to subsection (a), the Secretary shall conduct 
     appraisals of the lands that are subject to the exchange to 
     determine the fair market value of the lands. Such appraisals 
     shall not include the value of the wastewater treatment 
     facility referred to in paragraph (4)(A).
       (3) Additional consideration.--If, on the basis of the 
     appraisals made under paragraph (1), the Secretary determines 
     that the fair market value of the lands to be conveyed by one 
     party under subsection (a) is less than the fair market value 
     of the lands to be conveyed by the other party under 
     subsection (a), then, as a condition of making the exchange 
     under subsection (a), the party conveying the lands with the 
     lesser value shall pay the other party the amount by which 
     the fair market value of the lands of greater value exceeds 
     the fair market value of the lands of lesser value.
       (4) Conveyance of wastewater treatment facility.--(A) As 
     part of an exchange made under subsection (a), the Secretary 
     shall convey

[[Page H11705]]

     to the Public Utility District of Chelan County, Washington, 
     all right, title and interest of the United States in and to 
     the wastewater treatment facility (including the wastewater 
     treatment plant and associated lagoons) located on the lands 
     described in subsection (b)(1) that is in existence on the 
     date of the exchange.
       (B) As a condition for the exchange under subsection (a), 
     the Public Utility District shall provide for a credit equal 
     to the fair market value of the wastewater treatment facility 
     conveyed pursuant to subparagraph (A) (determined as of 
     November 4, 1991), that shall be applied to the United 
     States' share of any new wastewater treatment facility 
     constructed by the Public Utility District after such 
     date.
       (d) Additional terms and conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the exchange under this section as the Secretary 
     determines appropriate to protect the interests of the United 
     States.
       Sec. 325. ``Snoqualmie National Forest Boundary Adjustment 
     Act of 1996.''
       (a) In general.--The Secretary of Agriculture is hereby 
     directed to modify the boundary of the Snoqualmie National 
     Forest to include and encompass 10,589.47 acres, more or 
     less, as generally depicted on a map entitled ``Snoqualmie 
     National Forest Proposed 1996 Boundary Modification'' dated 
     July, 1996. Such map, together with a legal description of 
     all lands included in the boundary adjustment, shall be on 
     file and available for public inspection in the Office of the 
     Chief of the Forest Service in Washington, District of 
     Columbia.
       (b) Rule for land and water conservation fund.--For the 
     purposes of section 7 of the Land and Water Conservation Fund 
     Act of 1965 (16 U.S.C. 460l-9), the boundary of the 
     Snoqualmie National Forest, as modified pursuant to 
     subsection (a), shall be considered to be the boundary of 
     that National Forest as of January 1, 1965.
       Sec. 326. Sugarbush Land Exchange Act of 1996.
       (a) Exchange or sale of land.--
       (1) If Sugarbush Resort Holdings, Inc. conveys to the 
     United States land acceptable to the Secretary of Agriculture 
     that is at least equal in value to the value of the land 
     described in subsection (a)(2), makes a payment of cash at 
     least equal to that value, or conveys land and makes a 
     payment of cash that in combination are at least equal to 
     that value, the Secretary, subject to valid existing rights, 
     shall, under such terms and conditions as the Secretary may 
     prescribe, convey all right, title, and interest of the 
     United States in and to the land described in subsection 
     (a)(2).
       (2) Federal land to be exchanged.--The Federal land to be 
     exchanged is approximately 57 acres of federally owned land 
     in the Green Mountain National Forest depicted on the map 
     entitled ``Green Mountain National Forest, Sugarbush 
     Exchange,'' dated December 1995.
       (3) Lands acquired from Sugarbush Resort Holdings, Inc.--
     Any land conveyed to the United States in an exchange under 
     subsection (a)(1) shall be subject to such valid existing 
     rights of record as may be acceptable to the Secretary, and 
     the title to the parcel shall conform with the title approval 
     standards applicable to federal land acquisitions.
       (b) Administration of land.--
       (1) Addition to green mountain national forest.--On 
     approval and acceptance of title by the Secretary, the land 
     acquired by the United States through an exchange or with 
     proceeds from a sale under subsection (a) shall become part 
     of the Green Mountain National Forest, and the boundaries of 
     the National Forest shall be adjusted to include the land.
       (2) Administration.--Land acquired under this Act shall be 
     administered by the Secretary in accordance with the laws 
     (including regulations) pertaining to the National Forest 
     System.
       (3) Authority of the secretary.--This section does not 
     limit the authority of the Secretary to adjust the boundaries 
     of the Green Mountain National Forest pursuant to section 11 
     of the Act of March 1, 1911 (36 Stat. 963, chapter 186; 16 
     U.S.C. 521) (commonly known as the ``Weeks Law'').
       (4) For the purposes of section 7 of the Land and Water 
     Conservation Fund Act of 1965 (16 U.S.C. 460l-9), the 
     boundaries of the Green Mountain National Forest, as adjusted 
     under this Act, shall be considered to be the boundaries of 
     the Green Mountain National Forest as of January 1, 1965.
       Sec. 327. Snowbird Wilderness Study Area.
       (a) In General.--Section 6(a)(4) of the North Carolina 
     Wilderness Act of 1984 (Public Law 98-324) is amended--
       (1) by striking ``eight thousand four hundred and ninety 
     acres'' and inserting ``8,390 acres''; and
       (b) by striking ``July 1983'' and inserting ``July 1996''.
       (B) Management.--The Secretary of Agriculture shall manage 
     the area removed from wilderness study status by the 
     amendments made by subsection (a) in accordance with the 
     provision of law applicable to adjacent areas outside the 
     wilderness study area.
       Sec. 328. Renaming of Wilderness Area.
       (a) The Columbia Wilderness, created by the Oregon 
     Wilderness Act of 1984, Public Law 98-328, located in the Mt. 
     Hood National Forest, Oregon, shall be known and designated 
     as the ``Mark O. Hatfield Wilderness''.
       (b) Any references in a law, map, regulation, document, 
     paper, or other record of the United States to the Columbia 
     Wilderness shall be deemed to be a reference to the ``Mark O. 
     Hatfield Wilderness''.
       Sec. 329. Notwithstanding any other provision of law, for 
     fiscal year 1997 the Secretaries of Agriculture and Interior 
     are authorized to limit competition for watershed restoration 
     project contracts as part of the ``Jobs in the Woods'' 
     component of the President's Forest Plan for the Pacific 
     Northwest to individuals and entities in historically timber-
     dependent areas in the States of Washington, Oregon, and 
     northern California that have been affected by reduced timber 
     harvesting on Federal lands.
       Sec. 330. Section 9 of the Rhode Island Indian Claims 
     Settlement Act (25 U.S.C. 1708) is amended--
       (1) by striking ``Sec. 9. Except as''; and inserting the 
     following:
       ``(a) In General.--Except as'';
       (2) by striking the section heading and inserting the 
     following:

     ``SEC. 9. APPLICABILITY OF STATE LAW; TREATMENT OF SETTLEMENT 
                   LANDS UNDER THE INDIAN GAMING REGULATORY 
                   ACT.'';

     and
       (3) by adding at the end the following new subsection:
       ``(b) Treatment of Settlement Lands Under the Indian Gaming 
     Regulatory Act.--For purposes of the Indian Gaming Regulatory 
     Act (25 U.S.C. 2701 et seq.), settlement lands shall not be 
     treated as Indian lands.''.

                   TITLE IV--EMERGENCY APPROPRIATIONS

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                   management of lands and resources

       For an additional amount for management of lands and 
     resources, $3,500,000, to remain available until expended, to 
     restore public lands damaged by fire: Provided, That Congress 
     hereby designates this amount as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That this amount shall be available only to 
     the extent that an official budget request for a specific 
     dollar amount, that includes designation of the entire amount 
     as an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.


                        wildland fire management

       For an additional amount for wildland fire management, 
     $100,000,000, to remain available until expended, for 
     emergency rehabilitation and wildfire suppression activities 
     of the Department of the Interior: Provided, That Congress 
     hereby designates this amount as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That this amount shall be available only to 
     the extent that an official budget request for a specific 
     dollar amount, that includes designation of the entire amount 
     as an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.


                   oregon and california grant lands

       For an additional amount for Oregon and California grant 
     lands, $2,500,000, to remain available until expended, to 
     restore public lands damaged by fire: Provided, That Congress 
     hereby designates this amount as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That this amount shall be available only to 
     the extent that an official budget request for a specific 
     dollar amount, that includes designation of the entire amount 
     as an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.

                United States Fish and Wildlife Service


                          resource management

       For an additional amount for resource management, 
     $2,100,000, to remain available until expended, of which 
     $600,000 is to restore public lands damaged by fire and 
     $1,500,000 is to address anti-terrorism requirements: 
     Provided, That Congress hereby designates this amount as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended: Provided further, That this amount shall be 
     available only to the extent that an official budget request 
     for a specific dollar amount, that includes designation of 
     the entire amount as an emergency requirement as defined in 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, is transmitted by the President to the 
     Congress.


                              construction

       For an additional amount for construction, $15,891,000, to 
     remain available until expended, to repair damage caused by 
     hurricanes, floods and other acts of nature: Provided, That 
     Congress hereby designates this amount as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended: Provided further, That this amount shall be 
     available only to the extent that an official budget request 
     for a specific dollar amount, that includes designation of 
     the entire amount as an emergency requirement as defined in 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, is transmitted by the President to the 
     Congress.

                         National Park Service


                 operation of the national park system

       For an additional amount for operation of the National park 
     system, $2,300,000, to remain available until expended, to 
     address anti-terrorism requirements: Provided, That Congress 
     hereby designates this amount as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That this amount shall be available only to 
     the extent that an official budget request for

[[Page H11706]]

     a specific dollar amount, that includes designation of the 
     entire amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended, is transmitted by the President to the Congress.


                              construction

       For an additional amount for construction, $9,300,000, to 
     remain available until expended, of which $3,000,000 is to 
     repair damage caused by hurricanes and $6,300,000 is to 
     address anti-terrorism requirements: Provided, That Congress 
     hereby designates this amount as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That this amount shall be available only to 
     the extent that an official budget request for a specific 
     dollar amount, that includes designation of the entire amount 
     as an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.

                    United States Geological Survey


                 surveys, investigations, and research

       For an additional amount for surveys, investigations, and 
     research, $1,138,000, to remain available until expended, to 
     address damage caused by hurricanes and floods: Provided, 
     That Congress hereby designates this amount as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended: Provided further, That this amount shall be 
     available only to the extent that an official budget request 
     for a specific dollar amount, that includes designation of 
     the entire amount as an emergency requirement as defined in 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, is transmitted by the President to the 
     Congress.

                        Bureau of Indian Affairs


                      operation of indian programs

       For an additional amount for operation of Indian programs, 
     $6,600,000, to remain available until expended, to repair 
     damage caused by floods and to restore Indian lands damaged 
     by fire: Provided, That Congress hereby designates this 
     amount as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended: Provided further, That this 
     amount shall be available only to the extent that an official 
     budget request for a specific dollar amount, that includes 
     designation of the entire amount as an emergency requirement 
     as defined in the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended, is transmitted by the 
     President to the Congress.


                              construction

       For an additional amount for construction, $6,000,000, to 
     remain available until expended, to repair damage caused by 
     floods: Provided, That Congress hereby designates this amount 
     as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended: Provided further, That this 
     amount shall be available only to the extent that an official 
     budget request for a specific dollar amount, that includes 
     designation of the entire amount as an emergency requirement 
     as defined in the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended, is transmitted by the 
     President to the Congress.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                         national forest system

       For an additional amount for the National Forest System, 
     $3,395,000 to remain available until expended, to repair 
     damage caused by hurricanes: Provided, That Congress hereby 
     designates this amount as an emergency requirement pursuant 
     to section 251(d)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control act of 1985, as amended; Provided 
     further, That this amount shall be available only to the 
     extent that an official budget request for a specific dollar 
     amount, that includes designation of the entire amount as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.


                        wildland fire management

       For an additional amount for wildland fire management, 
     $550,000,000, to remain available until expended, for 
     presuppression due to emergencies for emergency fire 
     suppression on or adjacent to National Forest System lands or 
     other lands under fire protection agreement and for emergency 
     rehabilitation of burned over National Forest System lands: 
     Provided, That such funds are available for repayment of 
     advances from other appropriations accounts previously 
     transferred for such purposes: Provided further, That 
     Congress hereby designates this amount as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended: Provided further, That this amount shall be 
     available only to the extent that an official budget request 
     for a specific dollar amount, that includes designation of 
     the entire amount as an emergency requirement as defined in 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, is transmitted by the President to the 
     Congress.


                    reconstruction and construction

       For an additional amount for reconstruction and 
     construction, $5,210,000, to remain available until expended, 
     top repair damage caused by hurricanes: Provided, That 
     Congress hereby designates this amount as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended: Provided further, That this amount shall be 
     available only to the extent that an official budget request 
     for a specific dollar amount, that includes designation of 
     the entire amount as an emergency requirement as defined in 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, is transmitted by the president to the 
     Congress.

                         OTHER RELATED AGENCIES

                        Smithsonian Institution


                         salaries and expenses

       For an additional amount for salaries and expenses, 
     $935,000, to remain available until expended, to address 
     anti-terrorism requirements: Provided, That Congress hereby 
     designates this amount as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended: Provided 
     further, That this amount shall be available only to the 
     extent that an official budget request for a specific dollar 
     amount, that includes designation of the entire amount as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.

             John F. Kennedy Center for the Performing Arts


                       operations and maintenance

       For an additional amount for operations and maintenance, 
     $1,600,000, to remain available until expended, to address 
     anti-terrorism requirements: Provided, That Congress hereby 
     designates this amount as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended: Provided 
     further, That this amount shall be available only to the 
     extent that an official budget request for a specific dollar 
     amount, that includes designation of the entire amount as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.


                              construction

       For an additional amount for construction, $3,400,000, to 
     remain available until expended, to address anti-terrorism 
     requirements: Provided, That Congress hereby designates this 
     amount as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended: Provided further, That this 
     amount shall be available only to the extent that an official 
     budget request for a specific dollar amount, that includes 
     designation of the entire amount as an emergency requirement 
     as defined in the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended, is transmitted by the 
     President to the Congress.

                        National Gallery of Art


                         salaries and expenses

       For an additional amount for salaries and expenses, 
     $382,000, to remain available until expended, to address 
     anti-terrorism requirements: Provided, That Congress hereby 
     designates this amount as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended: Provided 
     further, That this amount shall be available only to the 
     extent that an official budget request for a specific dollar 
     amount, that includes designation of the entire amount as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.

                United States Holocaust Memorial Council


                       holocaust memorial council

       For an additional amount for the Holocaust Memorial 
     Council, $1,000,000, to remain available until expended, to 
     address anti-terrorism requirements: Provided, That Congress 
     hereby designates this amount as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That this amount shall be available only to 
     the extent that an official budget request for a specific 
     dollar amount, that includes designation of the entire amount 
     as an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.
       This Act may be cited as the ``Department of the Interior 
     and Related Agencies Appropriations Act, 1997''.
       (e) For programs, projects or activities in the Departments 
     of Labor, Health and Human Services, and Education, and 
     Related Agencies Appropriations Act, 1997, provided as 
     follows, to be effective as if it had been enacted into law 
     as the regular appropriations Act:
     AN ACT Making appropriations for the Departments of Labor, 
     Health and Human Services, and Education, and related 
     agencies for the fiscal year ending September 30, 1997, and 
     for other purposes

                      TITLE I-DEPARTMENT OF LABOR

                 Employment and Training Administration


                    training and employment services

       For expenses necessary to carry into effect the Job 
     Training Partnership Act, as amended, including the purchase 
     and hire of passenger motor vehicles, the construction, 
     alteration, and repair of buildings and other facilities, and 
     the purchase of real property for training centers as 
     authorized by the Job Training Partnership Act; the Women in 
     Apprenticeship and Nontraditional Occupations Act; the 
     National Skill Standards Act of 1994; and the School-to-Work 
     Opportunities Act; $4,719,703,000 plus reimbursements, of 
     which $3,559,408,000 is available for obligation for the 
     period July 1, 1997 through June 30, 1998; of which 
     $88,685,000 is available for the period July 1, 1997 through 
     June 30, 2000 for necessary expenses of construction, 
     rehabilitation, and acquisition of Job Corps centers; and of 
     which $200,000,000 shall be available from

[[Page H11707]]

     July 1, 1997 through September 30, 1998, for carrying out 
     activities of the School-to-Work Opportunities Act: Provided, 
     That $52,502,000 shall be for carrying out section 401 of the 
     Job Training Partnership Act, $69,285,000 shall be for 
     carrying out section 402 of such Act, $7,300,000 shall be for 
     carrying out section 441 of such Act, $8,000,000 shall be for 
     all activities conducted by and through the National 
     Occupational Information Coordinating Committee under such 
     Act, $895,000,000 shall be for carrying out title II, part A 
     of such Act, and $126,672,000 shall be for carrying out title 
     II, part C of such Act: Provided further, That no funds from 
     any other appropriation shall be used to provide mean 
     services at or for Job Corps centers: Provided further, That 
     funds provided to carry out title III of the Job Training 
     Partnership Act shall not be subject to the limitation 
     contained in subsection (b) of section 315 of such Act; that 
     the waiver allowing a reduction in the cost limitation 
     relating to retraining services described in subsection 
     (a)(2) of such section 315 may be granted with respect to 
     funds from this Act if a substate grantee demonstrates to the 
     Governor that such waiver is appropriate due to the 
     availability of low-cost retraining services, is necessary to 
     facilitate the provision of needs-related payments to 
     accompany long-term training, or is necessary to facilitate 
     the provision of appropriate basic readjustment services; and 
     that funds provided to carry out the Secretary's 
     discretionary grants under part B of such title III may be 
     used to provide needs-related payments to participants who, 
     in lieu of meeting the requirements relating to enrollment in 
     training under section 314(e) of such Act, are enrolled in 
     training by the end of the sixth week after grant funds have 
     been awarded: Provided further, That service delivery areas 
     may transfer funding provided herein under authority of 
     titles II-B and II-C of the Job Training Partnership Act 
     between the programs authorized by those titles of that Act, 
     if such transfer is approved by the Governor: Provided 
     further, That service delivery areas and substate areas may 
     transfer up to 20 percent of the funding provided herein 
     under authority of title II-A and title III of the Job 
     Training Partnership Act between the programs authorized by 
     those titles of the Act, if such transfer is approved by the 
     Governor: Provided further, That, notwithstanding any other 
     provision of law, any proceeds from the sale of Job Corps 
     center facilities shall be retained by the Secretary of Labor 
     to carry out the Job Corps program: Provided further, That 
     notwithstanding any other provision of law, the Secretary of 
     Labor may waive any of the statutory or regulatory 
     requirements of titles I-III of the Job Training 
     Partnership Act (except for requirements relating to wage 
     and labor standards, worker rights, participation and 
     protection, grievance procedures and judicial review, 
     nondiscrimination, allocation of funds to local areas, 
     eligibility, review and approval of plans, the 
     establishment and functions of service delivery areas and 
     private industry councils, and the basic purposes of the 
     Act), and any of the statutory or regulatory requirements 
     of sections 8-10 of the Wagner-Peyser Act (except for 
     requirements relating to the provision of services to 
     unemployment insurance claimants and veterans, and to 
     universal access to basic labor exchange services without 
     cost to job seekers), only for funds available for 
     expenditure in program year 1997, pursuant to a request 
     submitted by a State which identifies the statutory or 
     regulatory requirements that are requested to be waived 
     and the goals which the State or local service delivery 
     areas intend to achieve, describes the actions that the 
     State or local service delivery areas have undertaken to 
     remove State or local statutory or regulatory barriers, 
     describes the goals of the waiver and the expected 
     programmatic outcomes if the request is granted, describes 
     the individuals impacted by the waiver, and describes the 
     process used to monitor the progress in implementing a 
     waiver, and for which notice and an opportunity to comment 
     on such request has been provided to the organizations 
     identified in section 105(a)(1) of the Job Training 
     Partnership Act, if and only to the extent that the 
     Secretary determines that such requirements impede the 
     ability of the State to implement a plan to improve the 
     workforce development system and the State has executed a 
     Memorandum of Understanding with the Secretary requiring 
     such State to meet agreed upon outcomes and implement 
     other appropriate measures to ensure accountability: 
     Provided further, That the Secretary of Labor shall 
     establish a workforce flexibility (work-flex) partnership 
     demonstration program under which the Secretary shall 
     authorize not more than six States, of which at least 
     three States shall each have populations not in excess of 
     3,500,000, with a preference given to those States that 
     have been designated Ed-Flex Partnership States under 
     section 311(e) of Public Law 103-227, to waive any 
     statutory or regulatory requirement applicable to service 
     delivery areas or substate areas within the State under 
     titles I-III of the Job Training Partnership Act (except 
     for requirements relating to wage and labor standards, 
     grievance procedures and judicial review, 
     nondiscrimination, allotment of funds, and eligibility), 
     and any of the statutory or regulatory requirements of 
     sections 8-10 of the Wagner-Peyser Act (except for 
     requirements relating to the provision of services to 
     unemployment insurance claimants and veterans, and to 
     universal access to basic labor exchange services without 
     cost to job seekers), for a duration not to exceed the 
     waiver period authorized under section 311(e) of Public 
     Law 103-227, pursuant to a plan submitted by such States 
     and approved by the Secretary for the provision of 
     workforce employment and training activities in the 
     States, which includes a description of the process by 
     which service delivery areas and substate areas may apply 
     for and have waivers approved by the State, the 
     requirements of the Wagner-Peyser Act to be waived, the 
     outcomes to be achieved and other measures to be taken to 
     ensure appropriate accountability for federal funds.

            Community Service Employment for Older Americans


                          (transfer of funds)

       To carry out the activities for national grants or 
     contracts with public agencies and public or private 
     nonprofit organizations under paragraph (1)(A) of section 
     506(a) of title V of the Older Americans Act of 1965, as 
     amended, or to carry out older worker activities as 
     subsequently authorized, $361,140,000, including $21,840,000 
     which shall be available for the period ending June 30, 1997.
       To carry out the activities for grants to States under 
     paragraph (3) of section 506(a) of title V of the Older 
     Americans Act of 1965, as amended, or to carry out older 
     worker activities as subsequently authorized, $101,860,000, 
     including $6,160,000 which shall be available for the period 
     ending June 30, 1997.
       The funds appropriated under this heading shall be 
     transferred to the Department of Health and Human Services, 
     ``Aging Services Programs'' following the enactment of 
     legislation authorizing the administration of the program by 
     that Department.


              federal unemployment benefits and allowances

       For payments during the current fiscal year of trade 
     adjustment benefit payments and allowances under part I, and 
     for training, for allowances for job search and relocation, 
     and for related State administrative expenses under part II, 
     subchapters B and D, chapter 2, title II of the Trade Act of 
     1974, as amended, $324,500,000, together with such amounts as 
     may be necessary to be charged to the subsequent 
     appropriation for payments for any period subsequent to 
     September 15 of the current year.


     state unemployment insurance and employment service operations

       For authorized administrative expenses, $173,452,000, 
     together with not to exceed $3,146,826,000 (including not to 
     exceed $1,653,000 which may be used for amortization payments 
     to States which had independent retirement plans in their 
     State employment service agencies prior to 1980, and 
     including not to exceed $2,000,000 which may be obligated in 
     contracts with non-State entities for activities such as 
     occupational and test research activities which benefit the 
     Federal-State Employment Service System), which may be 
     expended from the Employment Security Administration account 
     in the Unemployment Trust Fund including the cost of 
     administering section 1201 of the Small Business Job 
     Protection Act of 1996, section 7(d) of the Wagner-Peyser 
     Act, as amended, the Trade Act of 1974, as amended, the 
     Immigration Act of 1990, and the Immigration and Nationality 
     Act, as amended, and of which the sums available in the 
     allocation for activities authorized by title III of the 
     Social Security Act, as amended (42 U.S.C. 502-504), and the 
     sums available in the allocation for necessary administrative 
     expenses for carrying out 5 U.S.C. 8501-8523, shall be 
     available for obligation by the States through December 31, 
     1997, except that funds used for automation acquisitions 
     shall be available for obligation by States through September 
     30, 1999; and of which $23,452,000, together with not to 
     exceed $738,283,000 of the amount which may be expended from 
     said trust fund, shall be available for obligation for the 
     period July 1, 1997 through June 30, 1998, to fund activities 
     under the Act of June 6, 1933, as amended, including the cost 
     of penalty mail authorized under 39 U.S.C. 3202(a)(1)(E) made 
     available to States in lieu of allotments for such purpose, 
     and of which $216,333,000 shall be available only to the 
     extent necessary for additional State allocations to 
     administer unemployment compensation laws to finance 
     increases in the number of unemployment insurance claims 
     filed and claims paid or changes in a State law: Provided, 
     That to the extent that the Average Weekly Insured 
     Unemployment (AWIU) for fiscal year 1997 is projected by the 
     Department of Labor to exceed 2,828,000 an additional 
     $28,600,000 shall be available for obligation for every 
     100,000 increase in the AWIU level (including a pro rata 
     amount for any increment less than 100,000) from the 
     Employment Security Administration Account of the 
     Unemployment Trust Fund: Provided further, That funds 
     appropriated in this Act which are used to establish a 
     national one-stop career center network may be obligated 
     in contracts, grants or agreements with non-State 
     entities: Provided further, That funds appropriated under 
     this Act for activities authorized under the Wagner-Peyser 
     Act, as amended, and title III of the Social Security Act, 
     may be used by the States to fund integrated Employment 
     Service and Unemployment Insurance automation efforts, 
     notwithstanding cost allocation principles prescribed 
     under Office of Management and Budget Circular A-87.


        advances to the unemployment trust fund and other funds

       For repayable advances to the Unemployment Trust Fund as 
     authorized by sections 905(d) and 1203 of the Social Security 
     Act, as amended, and to the Black Lung Disability Trust Fund 
     as authorized by section 9501(c)(1) of the Internal Revenue 
     Code of 1954, as amended; and for nonrepayable advances to 
     the Unemployment Trust Fund as authorized by section 8509 of 
     title 5, United States Code, section 104(d) of Public Law 
     102-164, and section 5 of Public Law 103-6, and to the 
     ``Federal unemployment benefits and allowances'' account, to 
     remain available until September 30, 1998, $373,000,000.
       In addition, for making repayable advances to the Black 
     Lung Disability Trust Fund in the current fiscal year after 
     September 15, 1997, for costs incurred by the Black Lung 
     Disability

[[Page H11708]]

     Trust Fund in the current fiscal year, such sums as may be 
     necessary.


                         program administration

       For expenses of administering employment and training 
     programs and for carrying out section 908 of the Social 
     Security Act, $81,393,000, together with not to exceed 
     $39,977,000, which may be expended from the Employment 
     Security Administration account in the Unemployment Trust 
     Fund.

              Pension and Welfare Benefits Administration


                         salaries and expenses

       For necessary expenses for Pension and Welfare Benefits 
     Administration, $77,083,000, of which $6,000,000 shall remain 
     available through September 30, 1998 for expenses of revising 
     the processing of employee benefit plan returns.

                  Pension Benefit Guaranty Corporation


               pension benefit guaranty corporation fund

       The Pension Benefit Guaranty Corporation is authorized to 
     make such expenditures, including financial assistance 
     authorized by section 104 of Public Law 96-364, within limits 
     of funds and borrowing authority available to such 
     Corporation, and in accord with law, and to make such 
     contracts and commitments without regard to fiscal year 
     limitations as provided by section 104 of the Government 
     Corporation Control Act, as amended (31 U.S.C. 9104), as may 
     be necessary in carrying out the program through September 
     30, 1997, for such Corporation: Provided, That not to exceed 
     $10,345,000 shall be available for administrative expenses of 
     the Corporation: Provided further, That expenses of such 
     Corporation in connection with the termination of pension 
     plans, for the acquisition, protection or management, and 
     investment of trust assets, and for benefits administration 
     services shall be considered as non-administrative 
     expenses for the purposes hereof, and excluded from the 
     above limitation.

                  Employment Standards Administration


                         salaries and expenses

       For necessary expenses for the Employment Standards 
     Administration, including reimbursement to State, Federal, 
     and local agencies and their employees for inspection 
     services rendered, $290,422,000, together with $983,000 which 
     may be expended from the Special Fund in accordance with 
     section 39(c) and 44 (j) of the Longshore and Harbor Workers' 
     Compensation Act: Provided, That the Secretary of Labor is 
     authorized to accept, retain, and spend, until expended, in 
     the name of the Department of Labor, all sums of money 
     ordered to be paid to the Secretary of Labor, in accordance 
     with the terms of the Consent Judgment in Civil Action No. 
     91-0027 of the United States District Court for the District 
     of the Northern Mariana Islands (May 21, 1992): Provided 
     further, That the Secretary of Labor is authorized to 
     establish and, in accordance with 31 U.S.C. 3302, collect and 
     deposit in the Treasury fees for processing applications and 
     issuing certificates under sections 11(d) and 14 of the Fair 
     Labor Standards Act of 1938, as amended (29 U.S.C. 2119d) and 
     214) and for processing applications and issuing 
     registrations under Title I of the Migrant and Seasonal 
     Agricultural Worker Protection Act, 29 U.S.C. 1801 et seq.


                            special benefits

                     (including transfer of funds)

       For the payment of compensation, benefits, and expenses 
     (except administrative expenses) accruing during the current 
     or any prior fiscal year authorized by title 5, chapter 81 of 
     the United States Code; continuation of benefits as provided 
     for under the head ``Civilian War Benefits'' in the Federal 
     Security Agency Appropriation Act, 1947; the Employees' 
     Compensation Commission Appropriation Act, 1944; and sections 
     4(c) and 5(f) of the War Claims Act of 1948 (50 U.S.C. App. 
     2012); and 50 per centum of the addition compensation and 
     benefits required by section 10(h) of the Longshore and 
     Harbor Workers' Compensation Act, as amended, $213,000,000 
     together with such amounts as may be necessary to be charged 
     to the subsequent year appropriation for the payment of 
     compensation and other benefits for any period subsequent to 
     August 15 of the current year: Provided, That such sums as 
     are necessary may be used under section 8104 of title 5, 
     United States Code, by the Secretary to reimburse an 
     employer, who is not the employer at the time of injury, for 
     portions of the salary of a reemployed, disabled beneficiary: 
     Provided further, That balances of reimbursements unobligated 
     on September 30, 1996, shall remain available until expended 
     for the payment of compensation, benefits, and expenses: 
     Provided further, That in addition there shall be transferred 
     to this appropriation from the Postal Service and from any 
     other corporation or instrumentality required under section 
     8147(c) of title 5, United States Code, to pay an amount for 
     its fair share of the cost of administration, such sums as 
     the Secretary of Labor determines to be the cost of 
     administration for employees of such fair share entities 
     through September 30, 1997: Provided further, That of those 
     funds transferred to this account from the fair share 
     entities to pay the cost of administration, $11,390,000 shall 
     be made available to the Secretary of Labor for expenditures 
     relating to capital improvements in support of Federal 
     Employees' Compensation Act administration, and the balance 
     of such funds shall be paid into the Treasury as 
     miscellaneous receipts: Provided further, That the Secretary 
     may require that any person filing a notice of injury or a 
     claim for benefits under Subchapter 5, U.S.C., chapter 81, or 
     under subchapter 33, U.S.C. 901, et seq. (the Longshore 
     and Harbor Workers' Compensation Act, as amended), provide 
     as part of such notice and claim, such identifying 
     information (including Social Security account number) as 
     such regulations may prescribe.


                    black lung disability trust fund

                     (including transfer of funds)

       For payments from the Black Lung Disability Trust Fund, 
     $1,007,644,000, of which $961,665,000 shall be available 
     until September 30, 1998, for payment of all benefits as 
     authorized by section 9501(d) (1), (2), (4), and (7) of the 
     Internal Revenue Code of 1954, as amended, and interest on 
     advances as authorized by section 9501(c)(2) of that Act, and 
     of which $26,071,000 shall be available for transfer to 
     Employment Standards Administration, Salaries and Expenses, 
     $19,621,000 for transfer to Departmental Management, Salaries 
     and Expenses, and $287,000 for transfer to Departmental 
     Management, Office of Inspector General, for expenses of 
     operation and administration of the Black Lung Benefits 
     program as authorized by section 9501(d)(5)(A) of that Act: 
     Provided, That, in addition, such amounts as may be necessary 
     may be charged to the subsequent year appropriation for the 
     payment of compensation, interest, or other benefits for any 
     period subsequent to August 15 of the current year: Provided 
     further, That in addition such amounts shall be paid from 
     this fund into miscellaneous receipts as the Secretary of the 
     Treasury determines to be the administrative expenses of the 
     Department of the Treasury for administering the fund during 
     the current fiscal year, as authorized by section 
     9501(d)(5)(B) of that Act.

             Occupational Safety and Health Administration


                         salaries and expenses

       For necessary expenses for the Occupational Safety and 
     Health Administration, $325,734,000, including not to exceed 
     $77,354,000 which shall be the maximum amount available for 
     grants to States under section 23(g) of the Occupational 
     Safety and Health Act, which grants shall be no less than 
     fifty percent of the costs of State occupational safety and 
     health programs required to be incurred under plans approved 
     by the Secretary under section 18 of the Occupational Safety 
     and Health Act of 1970; and, in addition, notwithstanding 31 
     U.S.C. 3302, the Occupational Safety and Health 
     Administration may retain up to $750,000 per fiscal year of 
     training institute course tuition fees, otherwise authorized 
     by law to be collected, and may utilize such sums for 
     occupational safety and health training and education grants: 
     Provided, That, notwithstanding 31 U.S.C. 3302, the Secretary 
     of Labor is authorized, during the fiscal year ending 
     September 30, 1997, to collect and retain fees for services 
     provided to Nationally Recognized Testing Laboratories, and 
     may utilize such sums, in accordance with the provisions of 
     29 U.S.C. 9a, to administer national and international 
     laboratory recognition programs that ensure the safety of 
     equipment and products used by workers in the workplace: 
     Provided further, That none of the funds appropriated under 
     this paragraph shall be obligated or expended to prescribe, 
     issue, administer, or enforce any standard, rule, regulation, 
     or order under the Occupational Safety and Health Act of 1970 
     which is applicable to any person who is engaged in a farming 
     operation which does not maintain a temporary labor camp and 
     employs ten or fewer employees: Provided further, That no 
     funds appropriated under this paragraph shall be obligated or 
     expended to administer or enforce any standard, rule, 
     regulation, or order under the Occupational Safety and Health 
     Act of 1970 with respect to any employer of ten or fewer 
     employees who is included within a category having an 
     occupational injury lost workday case rate, at the most 
     precise Standard Industrial Classification Code for which 
     such data are published, less than the national average 
     rate as such rates are most recently published by the 
     Secretary, acting through the Bureau of Labor Statistics, 
     in accordance with section 24 of that Act (29 U.S.C. 673), 
     except--
       (1) to provide, as authorized by such Act, consultation, 
     technical assistance, educational and training services, and 
     to conduct surveys and studies;
       (2) to conduct an inspection or investigation in response 
     to an employee complaint, to issue a citation for violations 
     found during such inspection, and to assess a penalty for 
     violations which are not corrected within a reasonable 
     abatement period and for any willful violations found;
       (3) to take any action authorized by such Act with respect 
     to imminent dangers;
       (4) to take any action authorized by such Act with respect 
     to health hazards;
       (5) to take any action authorized by such Act with respect 
     to a report of an employment accident which is fatal to one 
     or more employees or which results in hospitalization of two 
     or more employees, and to take any action pursuant to such 
     investigation authorized by such Act; and
       (6) to take any action authorized by such Act with respect 
     to complaints of discrimination against employees for 
     exercising rights under such Act: Provided further, That the 
     foregoing proviso shall not apply to any person who is 
     engaged in a farming operation which does not maintain a 
     temporary labor camp and employs ten or fewer employees.

                 Mine Safety and Health Administration


                         salaries and expenses

       For necessary expenses for the Mine Safety and Health 
     Administration, $197,810,000, including purchase and bestowal 
     of certificates and trophies in connection with mine rescue 
     and first-aid work, and the hire of passenger motor vehicles; 
     the Secretary is authorized to accept lands, buildings, 
     equipment, and other contributions from public and private 
     sources and to prosecute projects in cooperation with other 
     agencies, Federal, State, or private; the Mine Safety and 
     Health Administration is authorized to promote health and 
     safety education and training in the mining community through 
     cooperative programs with States, industry, and

[[Page H11709]]

     safety associations; and any funds available to the 
     Department may be used, with the approval of the Secretary, 
     to provide for the costs of mine rescue and survival 
     operations in the event of a major disaster: Provided, That 
     none of the funds appropriated under this paragraph shall be 
     obligated or expended to carry out section 115 of the Federal 
     Mine Safety and Health Act of 1977 or to carry out that 
     portion of section 104(g)(1) of such Act relating to the 
     enforcement of any training requirements, with respect to 
     shall dredging, or with respect to any sand, gravel, surface 
     stone, surface clay, colloidal phosphate, or surface 
     limestone mine.

                       Bureau of Labor Statistics


                         salaries and expenses

       For necessary expenses for the Bureau of Labor Statistics, 
     including advances or reimbursements to State, Federal, and 
     local agencies and their employees for services rendered, 
     $309,647,000, of which $16,145,000 shall be for expenses 
     of revising the Consumer Price Index and shall remain 
     available until September 30, 1998, together with not to 
     exceed $52,053,000, which may be expended from the 
     Employment Security Administration account in the 
     Unemployment Trust Fund.

                        Departmental Management


                         salaries and expenses

       For necessary expenses for Department Management, including 
     the hire of three sedans, and including up to $4,358,000 for 
     the President's Committee on Employment of People With 
     Disabilities, $144,211,000; together with not to exceed 
     $297,000, which may be expended from the Employment Security 
     Administration account in the Unemployment Trust Fund: 
     Provided, That no funds made available by this Act may be 
     used by the Solicitor of Labor to participate in a review in 
     any United States court of appeals of any decision made by 
     the Benefits Review board under section 21 of the Longshore 
     and Harbor Workers' Compensation Act (33 U.S.C. 921) where 
     such participation is precluded by the decision of the United 
     States Supreme Court in Director, Office of Workers' 
     Compensation Programs v. Newport News Shipbuilding, 115 S. 
     Ct. 1278 (1995): Provided further, That no funds made 
     available by this Act may be used by the Secretary of Labor 
     to review a decision under the Longshore and Harbor Workers' 
     Compensation Act (33 U.S.C. 901 et seq.) that has been 
     appealed and that has been pending before the Benefits Review 
     Board for more than 12 months: Provided further, That any 
     such decision pending a review by the Benefits Review Board 
     for more than one year shall be considered affirmed by the 
     Benefits Review Board on that date, and shall be considered 
     the final order of the Board for purposes of obtaining a 
     review in the United States courts of appeals: Provided 
     further, That these provisions shall not be applicable to the 
     review of any decision issued under the Black Lung Benefits 
     Act (30 U.S.C. 901 et seq.).


        assistant secretary for veterans employment and training

       Not to exceed $181,949,000 may be derived from the 
     Employment Security Administration account in the 
     Unemployment Trust Fund to carry out the provisions of 38 
     U.S.C. 4100-4110A and 4321-4327, and Public Law 103-353, and 
     which shall be available for obligation by the States through 
     December 31, 1997.


                      office of inspector general

       For salaries and expenses of the Office of Inspector 
     General in carrying out the provisions of the Inspector 
     General Act of 1978, as amended, $42,938,000, together with 
     not to exceed $3,543,000, which may be expended from the 
     Employment Security Administration account in the 
     Unemployment Trust Fund.


                           GENERAL PROVISIONS

       Sec. 101. None of the funds appropriated in this title for 
     the Job Corps shall be used to pay the compensation of an 
     individual, either as direct costs or any proration as an 
     indirect cost, at a rate in excess of $125,000.


                          (transfer of funds)

       Sec. 102. Not to exceed 1 percent of any discretionary 
     funds (pursuant to the Balanced Budget and Emergency Deficit 
     Control Act, as amended) which are appropriated for the 
     current fiscal year for the Department of Labor in this Act 
     may be transferred between appropriations, but no such 
     appropriation shall be increased by more than 3 percent by 
     any such transfer: Provided, That the Appropriations  
     Committees of both Houses of Congress are notified at 
     least fifteen days in advance of any transfer.
       Sec. 103. Funds shall be available for carrying out title 
     IV-B of the Job Training Partnership Act, notwithstanding 
     section 427(c) of that Act, if a Job Corps center fails to 
     meet national performance standards established by the 
     Secretary.
       Sec. 104. Effective January 1, 1997, no funds appropriated 
     or otherwise made available to the Department of Labor in 
     this title shall be disbursed without the approval of the 
     Department's Chief Financial Officer or his delegatee.
       Sec. 105. Notwithstanding any other provision of law, the 
     Secretary of Labor may waive any of the requirements 
     contained in sections 4, 104, 105, 107, 108, 121, 164, 204, 
     253, 254, 264, 301, 311, 313, 314, and 315 of the Job 
     Training Partnership Act in order to assist States in 
     improving State workforce development systems, pursuant to a 
     request submitted by a State that has prior to the date of 
     enactment of this Act executed a Memorandum of Understanding 
     with the United States requiring such State to meet agreed 
     upon outcomes.
       This title may be cited as the ``Department of Labor 
     Appropriations Act, 1997''.

           TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration


                     health resources and services

       For carrying out titles II, III, VII, VIII, X, XII, XVI, 
     XIX, and XXVI of the Public Health Service Act, section 
     427(a) of the Federal Coal Mine Health and Safety Act, title 
     V of the Social Security Act, the Health Care Quality 
     Improvement Act of 1986, as amended, and the Native Hawaiian 
     Health Care Act of 1988, as amended, $3,405,019,000, of which 
     $297,000 shall remain available until expended for interest 
     subsidies on loan guarantees made prior to fiscal year 1981 
     under part B of title VII of the Public Health Service Act: 
     Provided, That the Division of Federal Occupational Health 
     may utilize personal services contracting to employ 
     professional management/administrative and occupational 
     health professionals: Provided further, That of the funds 
     made available under this heading, $828,000 shall be 
     available until expended for facilities renovations at the 
     Gillis W. Long Hansen's Disease Center: Provided further, 
     That in addition to fees authorized by section 427(b) of the 
     Health Care Quality Improvement Act of 1986, fees shall be 
     collected for the full disclosure of information under the 
     Act sufficient to recover the full costs of operating the 
     National Practitioner Data Bank, and shall remain available 
     until expended to carry out that Act: Provided further, That 
     no more than $5,000,000 is available for carrying out the 
     provisions of Public Law 104-73: Provided further, That of 
     the funds made available under this heading, $198,452,000 
     shall be for the program under title X of the Public Health 
     Service Act to provide for voluntary family planning 
     projects: Provided further, That amounts provided to said 
     projects under such title shall not be expended for 
     abortions, that all pregnancy counseling shall be 
     nondirective, and that such amounts shall not be expended for 
     any activity (including the publication or distribution of 
     literature) that in any way tends to promote public support 
     or opposition to any legislative proposal or candidate for 
     public office: Provided further, That $167,000,000 shall be 
     for State AIDS Drug Assistance Programs authorized by section 
     2616 of the Public Health Service Act and shall be 
     distributed to States as authorized by section 2618(b)(2) of 
     such Act: Provided further, That notwithstanding any other 
     provision of law, funds made available under this heading may 
     be used to continue operating the Council on Graduate Medical 
     Education established by section 301 of Public law 102-408: 
     Provided further, That, of the funds made available under 
     this heading, not more than $8,000,000 shall be made 
     available and shall remain available until expended for 
     loan guarantees for loans made by non-Federal lenders for 
     the construction, renovation, and modernization of medical 
     facilities that are owned and operated by health centers 
     funded under part A of title XVI of the Public Health 
     Service Act as amended, and, subject to authorization, for 
     loans made to health centers for the costs of developing 
     and operating managed care networks or plans, and that 
     such funds be available to subsidize guarantees of total 
     loan principal in an amount not to exceed $80,000,000: 
     Provided further, That notwithstanding section 502(a)(1) 
     of the Social Security Act, not to exceed $103,609,000 is 
     available for carrying out special projects of regional 
     and national significance pursuant to section 501(a)(2) of 
     such Act.


               medical facilities guarantee and loan fund

           federal interest subsidies for medical facilities

       For carrying out subsections (d) and (e) of section 1602 of 
     the Public Health Service Act, $7,000,000, together with any 
     amounts received by the Secretary in connection with loans 
     and loan guarantees under title VI of the Public Health 
     Service Act, to be available without fiscal year limitation 
     for the payment of interest subsidies. During the fiscal 
     year, no commitments for direct loans or loan guarantees 
     shall be made.


               health education assistance loans program

       For the cost of guaranteed loans, such sums as may be 
     necessary to carry out the purpose of the program, as 
     authorized by title VII of the Public Health Service Act, as 
     amended: Provided, That such costs, including the cost of 
     modifying such loans, shall be as defined in section 502 of 
     the Congressional Budget Act of 1974: Provided further, That 
     these funds are available to subsidize gross obligations for 
     the total loan principal any part of which is to be 
     guaranteed at not to exceed $140,000,000. In addition, for 
     administrative expenses to carry out the guaranteed loan 
     program, $2,688,000.


             vaccine injury compensation program trust fund

       For payments from the Vaccine Injury Compensation Program 
     Trust Fund, such sums as may be necessary for claims 
     associated with vaccine-related injury or death with respect 
     to vaccines administered after September 30, 1988, pursuant 
     to subtitle 2 of title XXI of the Public Health Service Act, 
     to remain available until expended: Provided, That for 
     necessary administrative expenses, not to exceed $3,000,000 
     shall be available from the Trust Fund to the Secretary of 
     Health and Human Services.


                      vaccine injury compensation

       For payment of claims resolved by the United States Court 
     of Federal Claims related to the administration of vaccines 
     before October 1, 1988, $110,000,000 to remain available 
     until expended.

               Centers for Disease Control and Prevention


                disease control, research, and training

       To carry out titles II, III, VII, XI, XV, XVII, and XIX of 
     the Public Health Service Act, sections 101, 102, 103, 201, 
     202, 203, 301, and 501 of the Federal Mine Safety and Health 
     Act of 1977, and sections 20, 21 and 22 of the Occupational 
     Safety and Health Act of 1970, title IV of the Immigration 
     and Nationality Act and section 501 of the Refugee Education 
     Assistance Act of

[[Page H11710]]

     1980; including insurance of official motor vehicles in 
     foreign countries; and hire, maintenance, and operation of 
     aircraft, $2,262,698,000, of which $30,553,000 shall remain 
     available until expended for equipment and construction and 
     renovation of facilities, and of which $32,000,000 shall 
     remain available until September 30, 1998 for mine safety and 
     health activities, and in addition, such sums as may be 
     derived from authorized user fees, which shall be credited 
     to this account: Provided, That in addition to amounts 
     provided herein, up to $48,400,000 shall be available from 
     amounts available under section 241 of the Public Health 
     Service Act, to carry out the National Center for Health 
     Statistics surveys: Provided further, That none of the 
     funds made available for injury prevention and control at 
     the Centers for Disease Control and Prevention may be used 
     to advocate or promote gun control: Provided further, That 
     the Director may redirect the total amount made available 
     under authority of Public Law 101-502, section 3, dated 
     November 3, 1990, to activities the Director may so 
     designate: Provided further, That the Congress is to be 
     notified promptly of any such transfer: Provided further, 
     That the functions described in clause (1) of the first 
     proviso under the subheading ``mines and minerals'' under 
     the heading ``Bureau of Mines'' in the text of title I of 
     the Department of the Interior and Related Agencies 
     Appropriations Act, 1996, as enacted by section 101 (c) of 
     the Omnibus Consolidated Rescissions and Appropriations 
     Act of 1996 (Public Law 104-134), are hereby transferred 
     to, and vested in, the Secretary of Health and human 
     Services, subject to section 1531 of title 31, United 
     States Code: Provided further, That of the amount 
     provided, $23,000,000 is designated by Congress as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act 
     of 1985, as amended.
       In addition, $41,000,000, to be derived from the Violent 
     Crime Reduction Trust Fund, for carrying out sections 40151 
     and 40261 of Public Law 103-322.

                     National Institutes of Health


                       national cancer institute

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to cancer, $2,382,532,000.


               national heart, lung, and blood institute

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to cardiovascular, lung, and 
     blood diseases, and blood and blood products, $1,433,001,000.


                 national institute of dental research

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to dental disease, 
     $195,997,000.


    national institute of diabetes and digestive and kidney diseases

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to diabetes and digestive and 
     kidney disease, $815,982,000.


        national institute of neurological disorders and stroke

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to neurological disorders and 
     stroke, $726,746,000.


         national institute of allergy and infectious diseases

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to allergy and infectious 
     diseases, $1,257,234,000.


             national institute of general medical sciences

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to general medical sciences, 
     $998,470,000.


        national institute of child health and human development

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to child health and human 
     development, $631,703,000.


                         national eye institute

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to eye diseases and visual 
     disorders, $332,735,000.


          national institute of environmental health sciences

       For carrying out sections 301 and 311 and title IV of the 
     Public Health Service Act with respect to environmental 
     health sciences, $309,819,000.


                      national institute on aging

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to aging, $486,047,000.


 national institute of arthritis and musculoskeletal and skin diseases

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to arthritis and 
     musculoskeletal and skin diseases, $257,111,000.


    national institute on deafness and other communication disorders

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to deafness and other 
     communication disorders, $188,422,000.


                 national institute of nursing research

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to nursing research, 
     $59,743,000.


           national institute on alcohol abuse and alcoholism

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to alcohol abuse and 
     alcoholism, $212,004,000.


                    national institute on drug abuse

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to drug abuse, $489,375,000.


                  national institute of mental health

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to mental health, 
     $701,585,000.


                 national center for research resources

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to research resources and 
     general research support grants, $415,145,000: Provided, That 
     none of these funds shall be used to pay recipients of the 
     general research support grants program any amount for 
     indirect expenses in connection with such grants: Provided 
     further, That $20,000,000 shall be for extramural facilities 
     construction grants.


               national center for human genome research

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to human genome research, 
     $189,657,000.


                  john e. fogarty international center

       For carrying out the activities at the John E. Fogarty 
     International Center, $26,586,000.


                      national library of medicine

       For carrying out section 301 and title IV of the Public 
     Health Service Act with respect to health information 
     communications, $151,103,000, of which $4,000,000 shall be 
     available until expended for improvement of information 
     systems: Provided, That in fiscal year 1997, the Library may 
     enter into personal services contract for the provision 
     of services in facilities owned, operated, or constructed 
     under the jurisdiction of the National Institutes of 
     Health.


                         office of the director

                     (including transfer of funds)

       For carrying out the responsibilities of the Office of the 
     Director, National Institutes of Health, $287,206,000, of 
     which $35,589,000 shall be for the Office of AIDS Research: 
     Provided, That funding shall be available for the purchase of 
     not to exceed five passenger motor vehicles for replacement 
     only: Provided further, That the Director may direct up to 1 
     percent of the total amount made available in this Act to all 
     National Institutes of Health appropriations to activities 
     the Director may so designate: Provided further, That no such 
     appropriation shall be increased or decreased by more than 1 
     percent by any such transfers and that the Congress is 
     promptly notified of the transfer: Provided further, That NIH 
     is authorized to collect third party payments for the cost of 
     clinical services that are incurred in National Institutes of 
     Health research facilities and that such payments shall be 
     credited to the National Institutes of Health Management 
     Fund: Provided further, That all funds credited to the NIH 
     Management Fund shall remain available for one fiscal year 
     after the fiscal year in which they are deposited: Provided 
     further, That up to $200,000 shall be available to carry out 
     section 499 of the Public Health Service Act.


                        buildings and facilities

       For the study of, construction of, and acquisition of 
     equipment for, facilities of or used by the National 
     Institutes of Health, including the acquisition of real 
     property, $200,000,000, to remain available until expended, 
     of which $90,000,000 shall be for the clinical research 
     center: Provided, That, notwithstanding any other provision 
     of law, a single contract or related contracts for the 
     development and construction of the clinical research center 
     may be employed which collectively include the full scope of 
     the project: Provided further, That the solicitation and 
     contract shall contain the clause ``availability of funds'' 
     found at 48 CFR 52.232-18.

       Substance Abuse and Mental Health Services Administration


               substance abuse and mental health services

       For carrying out titles V and XIX of the Public Health 
     Service Act with respect to substance abuse and mental health 
     services, the Protection and Advocacy for Mentally Ill 
     Individuals Act of 1896, section 30401 of Public Law 103-322 
     and section 301 of the Public Health Service Act with respect 
     to program management, $2,134,743,000, of which $5,000,000 
     shall be for grants to rural and Native American projects and 
     $12,800,000 shall be for activities authorized by section 
     30401 of Public Law 103-322.


     retirement pay and medical benefits for commissioned officers

       For retirement pay and medical benefits of Public Health 
     Service Commissioned Officers as authorized by law, and for 
     payments under the Retired Serviceman's Family Protection 
     Plan and Survivor Benefit Plan and for medical care of 
     dependents and retired personnel under the Dependents' 
     Medical Care Act (10 U.S.C. ch. 55), and for payments 
     pursuant to section 229(b) of the Social Security Act (42 
     U.S.C. 429(b)), such amounts as may be required during the 
     current fiscal year.

               Agency for Health Care Policy and Research


                    health care policy and research

       For carrying out titles III and IX of the Public Health 
     Service Act, and part A of title XI of the Social 
     Security Act, $96,175,000; in addition, amounts received 
     from Freedom of Information Act fees, reimbursable and 
     interagency agreements, and the sale of data tapes shall 
     be credited to this appropriation and shall remain 
     available until expended: Provided, That the amount made 
     available pursuant to section 926(b) of the Public Health 
     Service Act shall not exceed $47,412,000.

                  Health Care Financing Administration


                     grants to states for medicaid

       For carrying out, except as otherwise provided, titles XI 
     and XIX of the Social Security Act, $75,056,618,000, to 
     remain available until expended.
       For making, after May 31, 1997, payments to States under 
     title XIX of the Social Security Act for the last quarter of 
     fiscal year 1997 for unanticipated costs, incurred for the 
     current fiscal year, such sums as may be necessary.

[[Page H11711]]

       For making payments to States under title XIX of the Social 
     Security Act for the first quarter of fiscal year 1998, 
     $27,988,993,000, to remain available until expended.
       Payment under title XIX may be made for any quarter with 
     respect to a State plan or plan amendment in effect during 
     such quarter, if submitted in or prior to such quarter and 
     approved in that or any subsequent quarter.


                  payments to health care trust funds

       For payment to the Federal Hospital Insurance and the 
     Federal Supplementary Medical Insurance Trust Funds, as 
     provided under sections 217(g) and 1844 of the Social 
     Security Act, sections 103(c) and 111(d) of the Social 
     Security Amendments of 1965, section 278(d) of Public Law 97-
     248, and for administrative expenses incurred pursuant to 
     section 201(g) of the Social Security Act, $60,079,000,000.


                           program management

       For carrying out, except as otherwise provided, titles XI, 
     XVIII, and XIX of the Social Security Act, title XIII of the 
     Public Health Service Act, and the Clinical Laboratory 
     Improvement Amendments of 1988, not to exceed $1,735,125,000 
     to be transferred from the Federal Hospital Insurance and the 
     Federal Supplementary Medical Insurance Trust Funds, as 
     authorized by section 201(g) of the Social Security Act; 
     together with all funds collected in accordance with section 
     353 of the Public Health Service Act, the latter funds to 
     remain available until expended, together with such sums as 
     may be collected from authorized user fees and the sale of 
     data, which shall remain available until expended: Provided, 
     That all funds derived in accordance with 31 U.S.C. 9701 from 
     organizations established under title XIII of the Public 
     Health Service Act are to be credited to and available for 
     carrying out the purposes of this appropriation.


       health maintenance organization loan and loan grantee fund

       For carrying out subsections (d) and (e) of section 1308 of 
     the Public Health Service Act, any amounts received by the 
     Secretary in connection with loans and loan guarantees under 
     title XIII of the Public Health Service Act, to be available 
     without fiscal year limitation for the payment of outstanding 
     obligations. During fiscal year 1997, no commitments for 
     direct loans or loan guarantees shall be made.

                Administration for Children and Families


                   family support payments to states

       For making payments of such sums as necessary to each State 
     for carrying out the program of Aid to Families with 
     Dependent Children under title IV-A of the Social Security 
     Act in fiscal year 1997 before the effective date of the 
     program of Temporary Assistance to Needy Families (TANF) with 
     respect to such State: Provided, That the sum of the amounts 
     available to a State with respect to expenditures under such 
     title IV-A in fiscal year 1997 under this appropriation and 
     under such title IV-A as amended by the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 shall not exceed the limitations under section 116(b) of 
     such Act.
       For making payments to States for carrying out title IV-A 
     (other than section 402(g)(6)) of the Social Security Act in 
     calendar quarters prior to October 1, 1996, such sums as may 
     be necessary.
       For making payments to States or other non-Federal entities 
     under titles I, IV-D, X, XI, XIV, and XVI of the Social 
     Security Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), 
     $2,158,000,000 to remain available until expended.
       For making, after May 31 of the current fiscal year, 
     payments to States or other non-Federal entities under titles 
     I, IV-D, X, XI, XIV, and XVI of the Social Security Act, for 
     the last three months of the current year for unanticipated 
     costs, incurred for the current fiscal year, such sums as may 
     be necessary.
       For making payments to States or other non-Federal entities 
     under titles I, IV-D, X, XI, XIV, and XVI of the Social 
     Security Act and the Act of July 5, 1960 (24 U.S.C. ch. 9) 
     for the first quarter of fiscal year 1998, $607,000,000, to 
     remain available until expended.


                   job opportunities and basic skills

       For carrying out aid to families with dependent children 
     work programs, as authorized by part F of title IV of the 
     Social Security Act, $1,000,000,000.


                   low income home energy assistance

       For making payments under title XXVI of the Omnibus Budget 
     Reconciliation Act of 1981, $1,000,000,000.
       For making payments under title XXVI of the Omnibus Budget 
     Reconciliation Act of 1981, $1,000,000,000, to be available 
     for obligation in the period October 1, 1997 through 
     September 30, 1998.


                     refugee and entrant assistance

       For making payments for refugee and entrant assistance 
     activities authorized by title IV of the Immigration and 
     Nationality Act and section 501 of the Refugee Education 
     Assistance Act of 1980 (Public Law 96-422), $412,076,000: 
     Provided, That funds appropriated pursuant to section 414(a) 
     of the Immigration and Nationality Act under Public Law 103-
     333 for fiscal year 1995 shall be available for the costs of 
     assistance provided and other activities conducted in such 
     year and in fiscal years 1996 and 1997.


                 child care and development block grant

                     (including transfer of funds)

       For carrying out sections 658A through 658R of the Omnibus 
     Budget Reconciliation Act of 1981 (The Child Care and 
     Development Block Grant Act of 1990), $958,120,000, of which 
     $937,000,000 shall become available on October 1, 1997 and 
     shall remain available through September 30, 1998: Provided, 
     That $19,120,000 shall become available for obligation on 
     October 1, 1996 for child care activities, of 
     which $6,120,000 shall be derived from an amount that 
     shall be transferred from the amount appropriated under 
     section 452(j) of the Social Security Act (42 U.S.C. 
     652(j)) for fiscal year 1996 and remaining available for 
     expenditure.


                      social services block grant

       For making grants to States pursuant to section 2002 of the 
     Social Security Act, $2,500,000,000: Provided, That 
     notwithstanding section 2003(c) of such Act, as amended, the 
     amount specified for allocation under such section for fiscal 
     year 1997 shall be $2,500,000,000.


                children and families services programs

                        (including rescissions)

       For carrying out, except as otherwise provided, the Runaway 
     and Homeless Youth Act, the Developmental Disabilities 
     Assistance and Bill of Rights Act, the Head Start Act, the 
     Child Abuse Prevention and Treatment Act, the Temporary Child 
     Care for Children with Disabilities and Crisis Nurseries Act 
     of 1986, section 429A, part B of title IV of the Social 
     Security Act, section 413 of the Social Security Act, the 
     Family Violence Prevention and Services Act, the Native 
     American Programs Act of 1974, title II of Public Law 95-266 
     (adoption opportunities), the Abandoned Infants Assistance 
     Act of 1988, and part B(1) of title IV of the Social Security 
     Act; for making payments under the Community Services Block 
     Grant Act; and for necessary administrative expenses to carry 
     out said Acts and titles I, IV, X, XI, XIV, XVI, and XX of 
     the Social Security Act, the Act of July 5, 1960 (24 U.S.C. 
     ch. 9), the Omnibus Budget Reconciliation Act of 1981, title 
     IV of the Immigration and Nationality Act, section 501 of the 
     Refugee Education Assistance Act of 1980, and section 126 and 
     titles IV and V of Public Law 100-485, 5,363,569,000, of 
     which $536,432,000 shall be for making payments under the 
     Community Services Block Grant Act: Provided, That to the 
     extent Community Services Block Grant funds are distributed 
     as grant funds by a State to an eligible entity as provided 
     under the Act, and have not been expended by such entity, 
     they shall remain with such entity for carryover into the 
     next fiscal year for expenditure by such entity consistent 
     with program purposes: Provided further, That of the amount 
     appropriated for fiscal year 1997 under section 672(a) of the 
     Community Services Block Grant Act, the Secretary shall use 
     up to one percent of the funds available to correct 
     allocation errors that occurred in fiscal year 1995 and 
     fiscal year 1996 to ensure that the minimum allotment to each 
     State for each of fiscal years 1995 and 1996 would be 
     $2,222,460: Provided further, That no more than one-half of 
     one percent of the funds available under section 672(a) shall 
     be used for the purposes of section 674(a) of the Community 
     Services Block Grant Act.
       In addition, $20,000,000, to be derived from the Violent 
     Crime Reduction Trust Fund, for carrying out sections 40155, 
     40211 and 40241 of Public Law 103-322.
       Funds appropriated for fiscal year 1996 and fiscal year 
     1997 under section 429A(e), part B of title IV of the Social 
     Security Act shall be reduced by $6,000,000 in each such 
     year.
       Funds appropriated for fiscal year 1997 under section 
     413(h)(1) of the Social Security Act shall be reduced by 
     $15,000,000.


                    family preservation and support

       For carrying out section 430 of the Social Security Act, 
     $240,000,000.


       payments to states for foster care and adoption assistance

       For making payments to States or other non-Federal 
     entities, under title IV-E of the Social Security Act, 
     $4,445,031,000.
       For making payments to States or other non-Federal 
     entities, under title IV-E of the Social Security Act, for 
     the first quarter of fiscal year 1998, $1,111,000,000.

                        Administration on Aging


                        aging services programs

       For carrying out, to the extent not otherwise provided, the 
     Older Americans Acts of 1965, as amended, $830,168,000: 
     Provided, That notwithstanding section 308(b)(1) of such Act, 
     the amounts available to each State for administration of the 
     State plan under title III of such Act shall be reduced not 
     more than 5 percent below the amount that was available to 
     such State for such purpose for fiscal year 1995: Provided 
     further, That in considering grant applications for nutrition 
     services for elder Indian recipients, the Assistant Secretary 
     shall provide maximum flexibility to applicants who seek to 
     take into account subsistence, local customs and other 
     characteristics that are appropriate to the unique cultural, 
     regional and geographic needs of the American Indian, Alaskan 
     and Hawaiian native communities to be served.

                        Office of the Secretary


                    general departmental management

       For necessary expenses, not otherwise provided, for general 
     departmental management, including hire of six sedans, and 
     for carrying out titles III, XVII, and XX of the Public 
     Health Service Act, $174,523,000, together with $5,851,000, 
     to be transferred and expended as authorized by section 
     201(g)(1) of the Social Security Act from the Hospital 
     Insurance Trust Fund and the Supplemental Medical Insurance 
     Trust Fund: Provided, That of the funds made available under 
     this heading for carrying out title XVII of the Public Health 
     Service Act, $11,5000,000 shall be available until expended 
     for extramural construction: Provided further, That 
     notwithstanding section 2010 (b) and (c) under title XX of 
     the Public Health Service Act, as amended, of the funds made 
     available under this heading, $10,879,000 shall be for 
     activities specified under section 2003(b)(2) of title XX of 
     the Public Health Service Act, as amended, and of which 
     $9,011,000 shall be for prevention grants under section 
     510(b)(2) of title V of the Social Security Act, as amended: 
     Provided further, That of the amount provided, $5,775,000 is

[[Page H11712]]

     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.


                      office of inspector general

       For expenses necessary for the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, $32,999,000, together with any funds, to 
     remain available until expended, that represent the equitable 
     share from the forfeiture of property in investigations in 
     which the Office of Inspector General participated, and which 
     are transferred to the Office of Inspector General by the 
     Department of Justice, the Department of the Treasury, or the 
     United States Postal Service.


                        office for civil rights

       For expenses necessary for the Office for Civil Rights, 
     $16,216,000, together with not to exceed $3,314,000, to be 
     transferred and expended as authorized by section 201(g)(1) 
     of the Social Security Act from the Hospital Insurance Trust 
     Fund and the Supplemental Medical Insurance Trust Fund.


                            policy research

       For carrying out, to the extent not otherwise provided, 
     research studies under section 1110 of the Social Security 
     Act and section 301(l) of Public Law 104-191, $18,500,000: 
     Provided, That $9,500,000, to remain available until 
     September 30, 1998, shall be for carrying out section 301(1) 
     of Public Law 104-191.


                           general provisions

       Sec. 201. Funds appropriated in this title shall be 
     available for not to exceed $37,000 for official reception 
     and representation expenses when specifically approved by the 
     Secretary.
       Sec. 202. The Secretary shall make available through 
     assignment not more than 60 employees of the Public Health 
     Service to assist in child survival activities and to work in 
     AIDS programs through and with funds provided by the Agency 
     for International Development, the United Nations 
     International Children's Emergency Fund or the World Health 
     Organization.
       Sec. 203. None of the funds appropriated under this Act may 
     be used to implement section 399L(b) of the Public Health 
     Service Act or section 1503 of the National Institutes of 
     Health Revitalization Act of 1993, Public Law 103-43.
       Sec. 204. None of the funds made available by this Act may 
     be used to withhold payment to any State under the Child 
     Abuse Prevention and Treatment Act by reason of a 
     determination that the State is not in compliance with 
     section 1340,.2(d)(2)(ii) of title 45 of the Code of Federal 
     Regulations. This provision expires upon the date of 
     enactment of the reauthorization of the Child Abuse 
     Prevention and Treatment Act.
       Sec. 205. None of the funds appropriated in this Act for 
     the National Institutes of Health and the Substance Abuse and 
     Mental Health Services Administration shall be used to pay 
     the salary of an individual, through a grant or other 
     extramural mechanism, at a rate in excess of $125,000 per 
     year.
       Sec. 206. None of the funds appropriated in this Act may be 
     expended pursuant to section 241 of the Public Health Service 
     Act, except for funds specifically provided for in this Act, 
     or for other taps and assessments made by any office located 
     in the Department of Health and Human Services, prior to the 
     Secretary's preparation and submission of a report to the 
     Committee on Appropriations of the Senate and of the House 
     detailing the planned uses of such funds.


                          (transfer of funds)

       Sec. 207. Of the funds appropriated or otherwise made 
     available for the Department of Health and Human Services, 
     General Departmental Management, for fiscal year 1997, the 
     Secretary of Health and Human Services shall transfer to the 
     Office of the Inspector General such sums as may be necessary 
     for any expenses with respect to the provision of security 
     protection for the Secretary of Health And Human Services.
       Sec. 208. None of the funds appropriated in this Act may be 
     obligated or expended for the Federal Council on Aging under 
     the Older Americans Act or the Advisory Board on Child Abuse 
     and Neglect under the Child Abuse Prevention and Treatment 
     Act.


                          (transfer of funds)

       Sec. 209. Not to exceed 1 percent of any discretionary 
     funds (pursuant to the Balanced Budget and Emergency Deficit 
     Control Act, as amended) which are appropriated for the 
     current fiscal year for the Department of Health and Human 
     Service in this Act may be transferred between 
     appropriations, but not such appropriation shall be increased 
     by more than 3 percent by such such transfer: Provided, That 
     the Appropriations Committees of both House of Congress are 
     notified at least fifteen days in advance of any transfer.


                          (transfer of funds)

       Sec. 210. The Director of the National Institutes of Health 
     jointly with the Director of the Office of AIDS Research, may 
     transfer up to 3 percent among institutes, centers, and 
     divisions from the total amounts identified by these two 
     Directors as funding for research pertaining to the human 
     immunodeficiency virus: Provided, That the Congress is 
     promptly notified of the transfer.


                          (transfer of funds)

       Sec. 211. Of the amounts made available in this Act for the 
     National Institutes of Health, the amount for research 
     related to the human immunodeficiency virus, as jointly 
     determined by the Director of HIH and the Director of the 
     Office of AIDS Research, shall be made available to the 
     ``Office of AIDS Resarch'' account. The Director of the 
     Office of AIDS Research shall transfer from such account 
     amounts necessary to carry out section 2353(d)(3) of the 
     Public Health Service Act.
       Sec. 212. Not later than January 1, 1997, the Administrator 
     of the Health Care Financing Administration, with the advice 
     and technical assistance of the Agency for Health care Policy 
     and Research, shall transmit to the appropriate committees of 
     the Congress a report including--
       (1) a review of all available studies and research data on 
     the treatment of end-stage emphysema and chronic obstructive 
     pulmonary disease by both unilateral and bilateral lung 
     volume reduction surgery, involving both invasive and 
     noninvasive surgery and supplemental surgical methods, 
     including laser applications; and
       (2) a recommendation, based on such review, as to the 
     appropriateness of Medicare coverage of such procedures and 
     the conditions, if necessary, that facilities and physicians 
     should be required to meet, to ensure he efficacy of such 
     procedures, as more detailed clinical studies are conducted.
       Sec. 213. Section 304(a)(1) of the Family Violence 
     Prevention and Services Act (42 U.S.C. 10403(a)(1)) amended 
     by striking ``$200,000'' and inserting ``$400,000''.
       Sec. 214. The new clinical research center at the National 
     Institutes of Health is hereby named the Mark O. Hatfield 
     Clinical Research Center.
       Sec. 215. Section 345 of Public Law 104-193 is amended by 
     replacing ``section 457(a)'' wherever it appears with ``a 
     plan approved under this part''. Amounts available under such 
     section shall be calculated as though such section were 
     effective October 1, 1995.
       This title may be cited as the ``Department of Health and 
     Human Services Appropriations Act, 1997''.

                   TITLE III--DEPARTMENT OF EDUCATION


                            education reform

       For carrying out activities authorized by titles III and IV 
     of the Goals 2000: Educate America Act and the School-to-Work 
     Opportunities Act, $691,000,000, of which $476,000,000 for 
     the Goals 2000: Educate America Act and $200,000,000 for the 
     School-to-Work Opportunities Act shall become available on 
     July 1, 1997, and remain available through September 30, 
     1998: Provided, that none of the funds appropriated under 
     this heading shall be obligated or expended to carry out 
     section 304(a)(2)(A) of the Goals 2000: Educate America Act.


                    education for the disadvantaged

       For carrying out title I of the Elementary and Secondary 
     Education Act of 1965, and section 418A of the Higher 
     Education Act, $7,698,469,000, of which $6,380,114,000 shall 
     become available on July 1, 1997, and shall remain available 
     through September 30, 1998, and of which $1,298,386,00 shall 
     become available on October 1, 1997 and shall remain 
     available through September 30, 1998, for academic year 1997-
     1998: Provided, that $6,194,850,000 shall be available for 
     basic grants under section 1124: Provided further, That up to 
     $3,500,000 of these funds shall be available to the Secretary 
     on October 1, 1996, to obtain updated local-educational-
     agency-level census poverty date from the Bureau of the 
     Census: Provided further, That $999,249,000 shall be 
     available for concentration grants under section 1124(A) and 
     $7,000,000 shall be available for evaluations under section 
     1501.


                               impact aid

       For carrying out programs of financial assistance to 
     federally schools authorized by title VIII of the Elementary 
     and Secondary Education Act of 1965, $730,000,000, of which 
     $615,500,000 shall be for basic support payments under 
     section 8003(b), $40,000,000 shall be for payments for 
     children with disabilities under section 8003(d), 
     $52,000,000, to remain available until expended, shall be for 
     payments under section 8003(f), $5,000,000 shall be for 
     construction under section 8007, and $17,500,000 shall be for 
     Federal property payments under section 8002.


                      school improvement programs

       For carrying out school improvement activities authorized 
     by titles II, IV-A-1, V-A and B, VI, IX, X and XIII of the 
     Elementary and Secondary Education Act of 1965; the Stewart 
     B. McKinney Homeless Assistance Act; and the Civil Rights Act 
     of 1964; $1,425,631,000, of which $1,202,478,000 shall become 
     available on July 1, 1997, and remain available through 
     September 30, 1998: Provided, That of the amount 
     appropriated, $310,000,000 shall be for Eisenhower 
     professional development State grants under title II-B and 
     $310,000,000 shall be for innovative education program 
     strategies State grants under title VI-A.


                   bilingual and immigrant education

       For carrying out, to the extent not otherwise provided, 
     bilingual, foreign language and immigrant education 
     activities authorized by parts A and C and section 7203 of 
     title VII of the Elementary and Secondary Education Act, 
     without regard to section 7103(b), $261,700,000, of which 
     $100,000,000 shall be for immigrant education programs 
     authorized by part C: Provided, That State educational 
     agencies may use all, or any part of, their part C allocation 
     for competitive grants to local educational agencies: 
     Provided further, That the Department of Education should 
     only support instructional programs which ensure that 
     students completely master English in a timely fashion (a 
     period of three to five years) while meeting rigorous 
     achievement standards in the academic content areas.


                            special education

       For carrying out parts B, C, D, E, F, G, and H and section 
     610(j)(2)(C) of the Individuals with Disabilities Education 
     Act, $4,036,000,000, of which $3,783,685,000 shall become 
     available for obligation on July 1, 1997, and shall remain 
     available through September 30, 1998: Provided, That the 
     Republic of the Marshall Islands, the Federated States of 
     Micronesia, and the Republic of Palau shall continue to be 
     eligible to receive funds under the Individuals with 
     Disabilities Education Act consistent with the provisions of 
     Public Law 104-134: Provided further,

[[Page H11713]]

     That the entities that received competitive awards for direct 
     services to children under section 611 of the Individuals 
     with Disabilities Education Act in accordance with the 
     competition required in Public Law 104-134 shall continue to 
     be funded, without competition, in the same amounts as under 
     Public Law 104-134.


            rehabilitation services and disability research

       For carrying out, to the extent not otherwise provided, the 
     Rehabilitation Act of 1973, the Technology-Related Assistance 
     for Individuals with Disabilities Act, and the Helen Keller 
     National Center Act, as amended, $2,509,447,000.

           Special Institutions for Persons With Disabilities


                  american printing house for the blind

       For carrying out the Act of March 3, 1879, as amended (20 
     U.S.C. 101 et seq.), $6,680,000.


               National technical institute for the deaf

       For the National Technical Institute for the Deaf under 
     titles I and II of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4301 et seq.), $43,041,000: Provided, That from the 
     amount available, the Institute may at its discretion use 
     funds for the endowment program as authorized under section 
     207.


                          gallaudet university

       For the Kendall Demonstration Elementary School, the Model 
     Secondary School for the Deaf, and the partial support of 
     Gallaudet University under titles I and II of the Education 
     of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.), 
     $79,182,000: Provided, That from the amount available, the 
     University may at its discretion use funds for the endowment 
     program as authorized under section 207.


                     vocational and adult education

       For carrying out, to the extent not otherwise provided, the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act, the Adult Education Act, and the National Literacy Act 
     of 1991, $1,486,531,000, of which $4,500,000 shall be for the 
     National Institute for Literacy; and of which $1,483,612,000 
     shall become available on July 1, 1997 and shall remain 
     available through September 30, 1998: Provided, That, of the 
     amounts made available for title II of the Carl D. Perkins 
     Vocational and Applied Technology Education Act, $4,500,000 
     shall be used by the Secretary for national programs under 
     title IV, without regard to section 451: Provided further, 
     That, in addition, the Secretary may reserve up to 
     $9,000,000 under section 101(a)(1)(A) of the Carl D. 
     Perkins Vocational and Applied Technology Education Act, 
     without regard to section 451: Provided further, That the 
     Secretary may reserve up to $5,000,000 under section 
     313(d) of the Adult Education Act for activities carried 
     out under section 383 of that Act: Provided further, That 
     no funds shall be awarded to a State Council under section 
     112(f) of the Carl D. Perkins Vocational and Applied 
     Technology Education Act, and no State shall be required 
     to operate such a Council.


                      student financial assistance

       For carrying out subparts 1, 3, and 4, of part A, part C 
     and part E of title IV of the Higher Education Act of 1965, 
     as amended, $7,560,407,000, which shall remain available 
     through September 30, 1998.
       The maximum Pell Grants for which a student shall be 
     eligible during award year 1997-1998 shall be $2,700: 
     Provided, That notwithstanding section 401(g) of the Act, if 
     the Secretary determines, prior to publication of the payment 
     schedule for such award year, that the amount included within 
     this appropriation for Pell Grant awards in such award year, 
     and any funds available from the fiscal year 1996 
     appropriation for Pell Grants awards, are insufficient to 
     satisfy fully all such awards for which students are 
     eligible, as calculated under section 401(b) of the Act, the 
     amount paid for each such award shall be reduced by either a 
     fixed or variable percentage, or by a fixed dollar amount, as 
     determined in accordance with a schedule of reductions 
     established by the Secretary for this purpose.


             federal family education loan program account

       For Federal administrative expenses to carry out guaranteed 
     student loans authorized by title IV, part B, of the Higher 
     Education Act, as amended, $46,572,000.


                            higher education

       For carrying out, to the extent not otherwise provided, 
     parts A and B of title III, without regard to section 
     360(a)(1)(B)(ii), titles IV, V, VI, VII, and IX, part A and 
     subpart 1 of part B of title X, and title XI of the Higher 
     Education Act of 1965, as amended, Public Law 102-423 and the 
     Mutual Educational and Cultural Exchange Act of 1961; 
     $879,054,000, of which $15,673,000 for interest subsidies 
     under title VII of the Higher Education Act, as amended, 
     shall remain available until expended: Provided, That funds 
     available for part D of title IX of the Higher Education Act 
     shall be available to fund noncompeting continuation awards 
     for academic year 1997-1998 for fellowships awarded 
     originally under part B of title IX of said Act, under the 
     terms and conditions of part B: Provided further, That 
     $5,931,000 of the funds available for part D of title IX of 
     the Higher Education Act shall be available to fund new and 
     noncompeting continuation awards for academic year 1997-1998 
     for fellowships awarded under part C of title IX of said Act, 
     under the terms and conditions of part C: Provided further, 
     That notwithstanding sections 419D, 419E, and 419H of the 
     Higher Education Act, as amended, scholarships made under 
     title IV, part A, subpart 6 shall be prorated to maintain the 
     same number of new scholarships in fiscal year 1997 as in 
     fiscal year 1996: Provided further, That $3,000,000, to 
     remain available until expended, shall be for the George H.W. 
     Bush fellowship program, if authorized by April 1, 1997: 
     Provided further, That $3,000,000, to remain available until 
     expended, shall be for the Edmund S. Muskie Foundation to 
     establish an endowment fund to provide income to support 
     such foundation on a continuing basis, if authorized by 
     April 1, 1997: Provided further, That $3,000,000, to 
     remain available until expended, shall be for the 
     Claiborne Pell Institute for International Relations and 
     Public Policy at Salve Regina University in Newport, Rhode 
     Island, if authorized by April 1, 1997: Provided further, 
     That $1,000,000, to remain available until expended, shall 
     be for the Calvin Coolidge Memorial Foundation, if 
     authorized by April 1, 1997: Provided further, That, of 
     the amounts made available under title X, part A of the 
     Higher Education Act, $2,000,000 shall be awarded to the 
     Pennsylvania Educational Telecommunications Exchange 
     Network.


                           howard university

       For partial support of Howard University (20 U.S.C. 121 et 
     seq.), $196,000,000: Provided, That from the amount 
     available, the University may at its discretion use funds for 
     the endowment program as authorized under the Howard 
     University Endowment Act (Public Law 98-480).


                   higher education facilities loans

       The Secretary is hereby authorized to make such 
     expenditures, within the limits of funds available under this 
     heading and in accord with law, and to make such contracts 
     and commitments without regard to fiscal year limitation, as 
     provided by section 104 of the Government Corporation Control 
     Act (31 U.S.C. 9104), as may be necessary in carrying out the 
     program for the current fiscal year.


         college housing and academic facilities loans program

       For administrative expenses to carry out the existing 
     direct loan program of college housing and academic 
     facilities loans entered into pursuant to title VII, part C, 
     of the Higher Education Act, as amended, $698,000.


                         college housing loans

       Pursuant to title VII, part C of the Higher Education Act, 
     as amended, for necessary expenses of the college housing 
     loans program, the Secretary shall make expenditures and 
     enter into contracts without regard to fiscal year limitation 
     using loan repayments and other resources available to this 
     account. Any unobligated balances becoming available from 
     fixed fees paid into this account pursuant to 12 U.S.C. 
     1749d, relating to payment of costs for inspections and site 
     visits, shall be available for the operating expenses of this 
     account.


 historically black college and university capital financing, program 
                                account

       The total amount of bonds insured pursuant to section 724 
     of title VII, part B of the Higher Education Act shall not 
     exceed $357,000,000, and the cost, as defined in section 502 
     of the Congressional Budget Act of 1974, of such bonds shall 
     not exceed zero.
       For administrative expenses to carry out the Historically 
     Black College and University Capital Financing Program 
     entered into pursuant to title VII, part B of the Higher 
     Education Act, as amended, $104,000.


            education research, statistics, and improvement

       For carrying out activities authorized by the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994, including part E; the National Education Statistics Act 
     of 1994; section 2102, sections 3132, 3136 and 3141, parts B, 
     C, and D of title III and parts A, B, I, and K and section 
     10601 of title X, and part C of title XIII of the Elementary 
     and Secondary Education Act of 1965, as amended, and title VI 
     of Public Law 103-227, $598,350,000: Provided, That 
     $200,000,000 shall be for section 3132, $56,965,000 shall be 
     for section 3136 and $10,000,000 shall be for section 3141 of 
     the Elementary and Secondary Education Act: provided 
     further, That notwithstanding any other provision of law, 
     one-half of one percent of the amount available for 
     section 3132 of the elementary and Secondary Education Act 
     of 1965, as amended, shall be set aside for the outlying 
     areas to be distributed among the outlying areas on the 
     basis of their relative need as determined by the 
     Secretary in accordance with the purposes of the program; 
     Provided further, That, notwithstanding section 3131(b) of 
     said Act, if any State educational agency does not apply 
     for a grant under section 3132, that State's allotment 
     under section 3131 shall be reserved by the Secretary for 
     grants to local educational agencies in the State that 
     apply directly to the Secretary according to the terms and 
     conditions announced by the Secretary in the Federal 
     Register: Provided further, That, of the amount available 
     for title III, part B of the Elementary and Secondary 
     Education Act of 1965, as amended, funds shall be awarded 
     to continue the Iowa Communication Network statewide fiber 
     optic demonstration and $2,000,000 shall be awarded to the 
     Southeastern Pennsylvania Consortium for Higher Education 
     for the establishment of local and wide area computer 
     networks to provide instructional resources to students 
     and faculty: Provided further, That none of the funds 
     appropriated in this paragraph may be obligated or 
     expended for the Goals 2000 Community Partnerships 
     Program.


                               libraries

       Notwithstanding title VII of this Act, for carrying out 
     titles I, II, III, and IV of the Library Services and 
     Construction Act, and title II-B of the Higher Education Act, 
     $136,369,000, of which $16,369,000 shall be used to carry out 
     the provisions of title II of the Library Services and 
     Construction Act and shall remain available until expended; 
     and $2,500,000 shall be for section 222 and $5,000,000 shall 
     be for section 223 of the Higher Education Act: Provided, 
     That $1,000,000 shall be competitively awarded to a nonprofit 
     regional social tolerance resource center, operating 
     tolerance tools and prejudice reduction programs and 
     multimedia tolerance and genocide

[[Page H11714]]

     exhibits: Provided further, That $1,500,000 shall be for the 
     continuation of a demonstration project making information 
     available for public use by connecting Internet to a 
     multistate consortium and a historical society: Provided 
     further, That $1,000,000 shall be for continuation of catalog 
     conversion of research and doctoral institutions and 
     networking of local libraries under the fiber optics 
     demonstration initiated in Public Law 102-394 under section 
     223 of the Higher Education Act: Provided further, That each 
     State or local recipient of funds under titles I, II, III, 
     and IV of the Library Services and Construction Act may sue 
     any such funds to plan for any library program or activity 
     authorized under title VII of this Act and conduct any other 
     activity reasonably necessary to provide for an orderly and 
     effective transition to the operation of library programs or 
     activities under title VII of this Act.

                        Departmental Management


                         program administration

       For carrying out, to the extent not otherwise provided, the 
     Department of Education Organization Act, including rental of 
     conference rooms in the District of Columbia and hire of two 
     passenger motor vehicles, $327,000,000.


                        office for civil rights

       For expenses necessary for the Office for Civil Rights, as 
     authorized by section 203 of the Department of Education 
     Organization Act, $55,000,000.


                    office of the inspector general

       For expenses necessary for the Office of the Inspector 
     General, as authorized by section 212 of the Department of 
     Education Organization Act, $30,000,000.

                           GENERAL PROVISIONS

       Sec. 301. No funds appropriated in this Act may be used for 
     the transportation of students or teachers (or for the 
     purchase of equipment for such transportation) in order to 
     overcome racial imbalance in any school or school system, or 
     for the transportation of students or teachers (or for the 
     purchase of equipment for such transportation) in order to 
     carry out a plan of racial desegregation of any school or 
     school system.
       Sec. 302. None of the funds contained in this Act shall be 
     used to require, directly or indirectly, the transportation 
     of any student to a school other than the school which is 
     nearest the student's home, except for a student requiring 
     special education, to the school offering such special 
     education, in order to comply with title VI of the Civil 
     Rights Act of 1964. For the purpose of this section an 
     indirect requirement of transportation of students includes 
     the transportation of students to carry out a plan involving 
     the reorganization of the grade structure of schools, the 
     pairing of schools, or the clustering of schools, or any 
     combination of grade restructuring, pairing or clustering. 
     The prohibition described in this section does not include 
     the establishment of magnet schools.
       Sec. 303. No funds appropriated under this Act may be used 
     to prevent the implementation of programs of voluntary prayer 
     and meditation in the public schools.
       Sec. 304. Notwithstanding any other provision of law, funds 
     available under section 458 of the Higher Education Act shall 
     not exceed $491,000,000 for fiscal year 1997. The Department 
     of Education shall use $80,000,000 of the amounts provided 
     for payment of administrative cost allowances to guaranty 
     agencies for fiscal; year 1996. For fiscal year 1997, the 
     Department of Education shall pay administrative costs to 
     guaranty agencies, calculated on the basis of 0.85 percent of 
     the total principal amount of loans upon which insurance was 
     issued on or after October 1, 1996: Provided, That such 
     administrative costs shall be paid only on the first 
     $8,200,000,000 of the principal amount of loans upon which 
     insurance was issued on or after October 1, 1996 by such 
     guaranty agencies, and shall not exceed a total of 
     $70,000,000. Such payments are to be paid quarterly, and 
     receipt of such funds and uses of such funds shall be in 
     accordance with section 428(f) of the Higher Education Act.
       Notwithstanding section 458 of the Higher Education Act, 
     the Secretary may not use funds available under that section 
     or any other section for subsequent fiscal years for 
     administrative expenses of the William D. Ford Direct Loan 
     Program. The Secretary may not require the return of guaranty 
     agency reserve funds during fiscal year 1997, except after 
     consultation with both the Chairmen and ranking members of 
     the House Economic and Educational Opportunities Committee 
     and the Senate Labor and Human Resources Committee. Any 
     reserve funds recovered by the Secretary shall be returned to 
     the Treasury of the United States for purposes of reducing 
     the Federal deficit.
       No funds available to the Secretary may be used for (1) the 
     hiring of advertising agencies or other third parties to 
     provide advertising services for student loan programs prior 
     to January 1, 1997, or (2) payment of administrative fees 
     relating to the William D. Ford Direct Loan Program to 
     institutions of higher education.
       Sec. 305. None of the funds appropriated in this Act may be 
     obligated or expended to carry out section 621(b) of Public 
     Law 101-589.


                          (TRANSFER OF FUNDS)

       Sec. 306. Not to exceed 1 percent of any discretionary 
     funds (pursuant to the Balanced Budget and Emergency Deficit 
     Control Act, as amended) which are appropriated for the 
     current fiscal year for the Department of Education in this 
     Act may be transferred between appropriations, but no such 
     appropriation shall be increased by more than 3 percent by 
     any such transfer: Provided, That the Appropriations 
     Committees of both Houses of Congress are notified at least 
     fifteen days in advance of any transfer.
       Sec. 307. (a) Section 8003(f)(3)(A)(i) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 
     7703(f)(3)(A)(i)) is amended--
       (1) in the matter preceding subclause (I), by striking 
     ``The Secretary'' and all that follows through ``greater of--
     '' and inserting the following: ``The Secretary, in 
     conjunction with the local educational agency, shall first 
     determine each of the following:'';
       (2) in each of subclauses (I) through (III), by striking 
     ``the average'' each place it appears the first time in each 
     such subclause and inserting ``The average'';
       (3) in subclause (I), by striking the semicolon and 
     inserting a period;
       (4) in subclause (II), by striking ``: or'' and inserting a 
     period; and
       (5) by adding at the end the following:
       ``The local educational agency shall select one of the 
     amounts determined under subclause (I), (II), or (III) for 
     purposes of the remaining computations under this 
     subparagraph.''.
       (b) The amendments made by subsection (a) shall apply with 
     respect to fiscal years beginning with fiscal year 1995.
       Sec. 308. Section 485(e)(9) of the Higher Education Act of 
     1965 is amended by striking out ``June 30'' in the second 
     sentence of such section and inserting ``August 30''.
       This title may be cited as the ``Department of Education 
     Appropriations Act, 1997''.

                       TITLE IV--RELATED AGENCIES

                      Armed Forces Retirement Home

       For expenses necessary for the Armed Forces Retirement Home 
     to operate and maintain the United States Soldiers' and 
     Airmen's Home and the United States Naval Home, to be paid 
     from funds available in the Armed Forces Retirement Home 
     Trust Fund, $56,204,000, of which $432,000 shall remain 
     available until expended for construction and renovation of 
     the physical plants at the United States Soldiers' and 
     Airmen's Home and the United States Naval Home: Provided, 
     That this appropriation shall not be available for the 
     payment of hospitalization of members of the Soldiers' and 
     Airmen's Home in United States Army hospitals at rates in 
     excess of those prescribed by the Secretary of the Army upon 
     recommendation of the Board of Commissioners and the Surgeon 
     General of the Army.

             Corporation for National and Community Service


        Domestic volunteer Service programs, operating eXPEnses

       For expenses necessary for the Corporation for National and 
     Community Service to carry out the provisions of the Domestic 
     Volunteer Service Act of 1973, as amended, $213,969,000.

                  Corporation for Public Broadcasting

       For payment to the Corporation for Public Broadcasting, as 
     authorized by the Communications Act of 1934, an amount which 
     shall be available within limitations specified by that Act, 
     for the fiscal year 1999, $250,000,000: Provided, That no 
     funds made available to the Corporation for Public 
     Broadcasting by this Act shall be used to pay for receptions, 
     parties, or similar forms of entertainment for Government 
     officials or employees: Provided further, That none of the 
     funds contained in this paragraph shall be available or used 
     to aid or support any program or activity from which any 
     person is excluded, or is denied benefits, or is 
     discriminated against, on the basis of race, color, 
     national origin, religion, or sex.

               Federal Mediation and Conciliation Service


                         salaries and expenses

       For expenses necessary for the Federal Mediation and 
     Conciliation Service to carry out the functions vested in it 
     by the Labor Management Relations Act, 1947 (29 U.S.C. 171-
     180, 182-183), including hire of passenger motor vehicles; 
     and for expenses necessary for the Labor-Management 
     Cooperation Act of 1978 (29 U.S.C. 175a); and for expenses 
     necessary for the Service to carry out the functions vested 
     in it by the Civil Service Reform Act, Public Law 95-454 (5 
     U.S.C. chapter 71), $32,579,000 including $1,500,000, to 
     remain available through September 30, 1998, for activities 
     authorized by the Labor-Management Cooperation Act of 1978 
     (29 U.S.C. 175a): Provided, That notwithstanding 31 U.S.C. 
     3302, fees charged, up to full-cost recovery, for special 
     training activities and for arbitration services shall be 
     credited to and merged with this account, and shall remain 
     available until expended: Provided further, That fees that 
     arbitration services shall be available only for education, 
     training, and professional development of the agency 
     workforce: Provided further, That the Director of the Service 
     is authorized to accept on behalf of the United States gifts 
     of services and real, personal, or other property in the aid 
     of any projects or functions within the Director's 
     jurisdiction.

            Federal Mine Safety and Health Review Commission


                         salaries and expenses

       For expenses necessary for the Federal Mine Safety and 
     Health Review Commission (30 U.S.C. 801 et seq.), $6,060,000.

        National Commission on Libraries and Information Science


                         salaries and expenses

       For necessary expenses for the National Commission on 
     Libraries and Information Science, established by the Act of 
     July 20, 1970 (Public Law 91-345, as amended by Public Law 
     102-95), $897,000.

                     National Council on Disability


                         salaries and expenses

       For expenses necessary for the National Council on 
     Disability as authorized by title IV of the Rehabilitation 
     Act of 1973, as amended, $1,793,000.

                     National Education Goals Panel

       For expenses necessary for the National Education Goals 
     Panel, as authorized by title II, part A of the Goals 2000: 
     Educate America Act, $1,500,000.

[[Page H11715]]

                     National Labor Relations Board


                         salaries and expenses

       For expenses necessary for the National Labor Relations 
     Board to carry out the functions vested in it by the Labor-
     Management Relations Act, 1947, as amended (29 U.S.C. 141-
     167), and other laws, $175,000,000: Provided, That no part of 
     this appropriation shall be available to organize or assist 
     in organizing agricultural laborers or used in connection 
     with investigations, hearings, directives, or orders 
     concerning bargaining units composed of agricultural laborers 
     as referred to in section 2(3) of the Act of July 5, 1935 (29 
     U.S.C. 152), and as amended by the Labor-Management Relations 
     Act, 1947, as amended, and as defined in section 3(f) of the 
     Act of June 25, 1938 (29 U.S.C. 203), and including in said 
     definition employees engaged in the maintenance and operation 
     of ditches, canals, reservoirs, and waterways when maintained 
     or operated on a mutual, nonprofit basis and at least 95 per 
     centum of the water stored or supplied thereby is used for 
     farming purposes: Provided further, That none of the funds 
     made available by this Act shall be used in any way to 
     promulgate a final rule (altering 29 CFR part 103) regarding 
     single location bargaining units in representative cases.

                       National Medication Board


                         salaries and expenses

       For expenses necessary to carry out the provisions of the 
     Railway Labor Act, as amended (45 U.S.C. 151-188), including 
     emergency boards appointed by the President, $8,300,000: 
     Provided, That unobligated balances at the end of fiscal year 
     1997 not needed for emergency boards shall remain available 
     for other statutory purposes through September 30, 1998.

            Occupational Safety and Health Review Commission


                         salaries and expenses

       For expenses necessary for the Occupational Safety and 
     Health Review Commission (29 U.S.C. 661), $7,753,000.

                  Physician Payment Review Commission


                         salaries and expenses

       For expenses necessary to carry out section 1845(a) of the 
     Social Security Act, $3,263,000, to be transferred to this 
     appropriation from the Federal Supplementary Medical 
     Insurance Trust Fund.

               Prospective Payment Assessment Commission


                         salaries and expenses

       For expenses necessary to carry out section 1886(e) of the 
     Social Security Act, $3,263,000, to be transferred to this 
     appropriation from the Federal Hospital Insurance and the 
     Federal Supplementary Medical Insurance Trust Funds.

                     Social Security Administration


                payments to social security trust funds

       For payment to the Federal Old-Age and Survivors Insurance 
     and the Federal Disability Insurance Trust Funds, as provided 
     under sections 201(m), 228(g), and 1131(b)(2) of the Social 
     Security Act, $20,923,000.
       In addition, to reimburse these trust funds for 
     administrative expenses to carry out sections 9704 and 9706 
     of the Internal Revenue Code of 1986, $10,000,000, to remain 
     available until expended.


               special benefits for disabled coal miners

       For carrying out title IV of the Federal Mine Safety and 
     Health Act of 1977, $460,070,000, to remain available until 
     expended.
       For making, after July 31 of the current fiscal year, 
     benefit payments to individuals under title IV of the Federal 
     Mine Safety and Health Act of 1977, for costs incurred in the 
     current fiscal year, such amounts as may be necessary.
       For making benefit payments under title IV of the Federal 
     Mine Safety and Health Act 1977 for the first quarter of 
     fiscal year 1998, $160,000,000, to remain available until 
     expended.


                  supplemental security income program

       For carrying out titles XI and XVI of the Social Security 
     Act, section 401 of Public Law 92-603, section 212 of Public 
     Law 93-66, as amended, and section 405 of Public Law 95-216, 
     including payment to the Social Security Trust Funds for 
     administrative expenses incurred pursuant to section 
     201(g)(1) of the Social Security Act, $19,372,010,000, to 
     remain available until expended: Provided, That any portion 
     of the funds provided to a State in the current fiscal year 
     and not obligated by the State during that year shall be 
     returned to the Treasury.
       From funds provided under the previous paragraph, not less 
     than $100,000,000 shall be available for payment to the 
     Social Security Trust Funds for administrative expenses for 
     conducting continuing disability reviews.
       In addition, $175,000,000, to remain available until 
     September 30, 1998, for payment to the Social Security Trust 
     Funds for administrative expenses for continuing disability 
     reviews as authorized by section 103 of Public Law 104-121 
     and Supplemental Security Income administrative work as 
     authorized by Public Law 104-193. The term ``continuing 
     disability reviews'' means reviews and redetermination as 
     defined under section 201(g)(1)(A) of the Social Security Act 
     as amended, and reviews and redeterminations authorized under 
     section 211 of Public Law 104-193.
       For making, after June 15 of the current fiscal year, 
     benefit payments to individuals under title XVI of the Social 
     Security Act, for unanticipated costs incurred for the 
     current fiscal year, such sums as may be necessary.
       For carrying out title XVI of the Social Security Act for 
     the first quarter of fiscal year 1998, $9,690,000,000, to 
     remain available until expended.


                 limitation on administrative expenses

       For necessary expenses, including the hire of two passenger 
     motor vehicles, and not to exceed $10,000 for official 
     reception and representation expenses, not more than 
     $5,873,382,000 may be expended, as authorized by section 
     201(g)(1) of the Social Security Act or as necessary to carry 
     out sections 9704 and 9706 of the Internal Revenue Code of 
     1986 from any one or all of the trust funds referred to 
     therein: Provided, That reimbursement to the trust funds 
     under this heading for administrative expenses to carry out 
     sections 9704 and 9706 of the Internal Revenue Code of 1986 
     shall be made, with interest, not later than September 30, 
     1988: Provided further, That not less than $1,268,000 shall 
     be for the Social Security Advisory Board: Provided further, 
     That unobligated balances at the end of fiscal year 1997 not 
     needed for fiscal year 1997 shall remain available until 
     expended for a state-of-the-art computing network, including 
     related equipment and administrative expenses associated 
     solely with this network.
       From funds provided under the previous paragraph, not less 
     than $200,000,000 shall be available for conducting 
     continuing disability reviews.
       In addition to funding already available under this 
     heading, and subject to the same terms and conditions, 
     $310,000,000, to remain available until September 30, 1998, 
     for continuing disability reviews as authorized by section 
     103 of Public Law 104-121 and Supplemental Security Income 
     administrative work as authorized by Public Law 104-193. The 
     term ``continuing disability reviews'' means reviews and 
     redetermination as defined under section 201(g)(1)(A) of the 
     Social Security Act as amended, and reviews and 
     redeterminations authorized under section 211 of Public Law 
     104-193.
       In addition to funding already available under this 
     heading, and subject to the same terms and conditions, 
     $234,895,000, which shall remain available until expended, to 
     invest in a state-of-the-art computing network, including 
     related equipment and administrative expenses associated 
     solely with this network, for the Social Security 
     Administration and the State Disability Determination 
     Services, may be expended from any or all of the trust funds 
     as authorized by section 201(g)(1) of the Social Security 
     Act.


                      office of inspector general

       For expenses necessary for the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, $6,335,000, together with not to exceed 
     $31,089,000, to be transferred and expended as authorized by 
     section 201(g)(1) of the Social Security Act from the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund.

                       Railroad Retirement Board


                     dual benefits payments account

       For payment to the Dual Benefits Payments Account, 
     authorized under section 15(d) of the Railroad Retirement Act 
     of 1974, $223,000,000, which shall include amounts becoming 
     available in fiscal year 1997 pursuant to section 
     224(c)(1)(B) of Public Law 98-76; and in addition, an amount, 
     not to exceed 2 percent of the amount provided herein, shall 
     be available proportional to the amount by  which the product 
     of recipients and the average benefit received exceeds 
     $223,000,000: Provided, That the total amount provided 
     herein shall be credited in 12 approximately equal amounts 
     on the first day of each month in the fiscal year.


          federal payments to the railroad retirement accounts

       For payment to the accounts established in the Treasury for 
     the payment of benefits under the Railroad Retirement Act for 
     interest earned on unnegotiated checks, $300,000, to remain 
     available through September 30, 1998, which shall be the 
     maximum amount available for payment pursuant to section 417 
     of Public Law 98-76.


                      limitation on administration

       For necessary expenses for the Railroad Retirement Board 
     for administration of the Railroad Retirement Act and the 
     Railroad Unemployment Insurance Act, $87,898,000, to be 
     derived in such amounts as determined by the Board from the 
     railroad retirement accounts and from moneys credited to the 
     railroad unemployment insurance administration fund.


             limitation on the office of inspector general

       For expenses necessary for the Office of Inspector General 
     for audit, investigatory and review activities, as authorized 
     by the Inspector General Act of 1978, as amended, not more 
     than $5,404,000, to be derived from the railroad retirement 
     accounts and railroad unemployment insurance account: 
     Provided, That none of the funds made available in this Act 
     may be transferred to the Office from the Department of 
     Health and Human Services, or used to carry out any such 
     transfer: Provided further, That none of the funds made 
     available in this paragraph may be used for any audit, 
     investigation, or review of the Medicare program.

                    United States Institute of Peace


                           operating expenses

       For necessary expenses of the United States Institute of 
     Peace as authorized in the United States Institute of Peace 
     Act, $11,160,000.

                      TITLE V--GENERAL PROVISIONS

       Sec. 501. The Secretaries of Labor, Health and Human 
     Services, and Education are authorized to transfer unexpended 
     balances of prior appropriations to accounts corresponding to 
     current appropriations provided in this Act: Provided, That 
     such transferred balances are used for the same purpose, and 
     for the same periods of time, for which they were originally 
     appropriated.
       Sec. 502. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 503. (a) No part of any appropriation contained in 
     this Act shall be used, other than for normal and recognized 
     executive-legislative relationships, for publicity or 
     propaganda purposes, for the preparation, distribution, or 
     use of any kit, pamphlet, booklet, publication, radio,

[[Page H11716]]

     television, or video presentation designed to support or 
     defeat legislation pending before the Congress, except in 
     presentation to the Congress itself or any State legislature, 
     except in presentation to the Congress or any State 
     legislative body itself.
       (b) No part of any appropriation contained in this Act 
     shall be used to pay the salary or expenses of any grant or 
     contract recipient, or agent acting for such recipient, 
     related to any activity designed to influence legislation or 
     appropriations pending before the Congress or any State 
     legislature.
       Sec. 504. The Secretaries of Labor and Education are each 
     authorized to make available not to exceed $15,000 from funds 
     available for salaries and expenses under titles I and III, 
     respectively, for official reception and representation 
     expenses; the Director of the Federal Mediation and 
     Conciliation Service is authorized to make available for 
     official reception and representation expenses not to exceed 
     $2,500 from the funds available for ``Salaries and expenses, 
     Federal Mediation and Conciliation Service''; and the 
     Chairman of the National Mediation Board is authorized to 
     make available for official reception and representation 
     expenses not to exceed $2,500 from funds available for 
     ``Salaries and expenses, National Mediation Board''.
       Sec. 505. Notwithstanding any other provision of this Act, 
     no funds appropriated under this Act shall be used to carry 
     out any program of distributing sterile needles for the 
     hypodermic injection of any illegal drug unless the Secretary 
     of Health and Human Services determines that such programs 
     are effective in preventing the spread of HIV and do not 
     encourage the use of illegal drugs.
       Sec. 506. (a) Purchase of American-Made Equipment and 
     Products.--It is the sense of the Congress that, to the 
     greatest extent practicable, all equipment and products 
     purchased with funds made available in this Act should be 
     American-made.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contact with, any entity using funds 
     made available in this Act, the head of each Federal agency, 
     to the greatest extent practicable, shall provide to such 
     entity a notice describing the statement made in subsection 
     (a) by the Congress.
       (c) Prohibition of Contracts With Persons Falsely Labeling 
     Products as Made in America.--If it has been finally 
     determined by a court or Federal agency that any person 
     intentionally affixed a label bearing a ``Made in America'' 
     inscription, or any inscription with the same meaning, to any 
     product sold in or shipped to the United States that is not 
     made in the United States, the person shall be ineligible to 
     receive any contract or subcontract made with funds made 
     available in this Act, pursuant to the debarment, suspension, 
     and ineligibility procedures described in sections 9.400 
     through 9.409 of title 48, code of Federal Regulations.
       Sec. 507. When issuing statements, press releases, request 
     for proposals, bid solicitations and other documents 
     describing projects or programs funded in whole or in part 
     with Federal money, all grantees receiving Federal funds 
     included in this Act, including but not limited to State and 
     local governments and recipients of Federal research grants, 
     shall clearly state (1) the percentage of the total costs of 
     the program or project which will be financed with Federal 
     money, (2) the dollar amount of Federal funds for the project 
     or program, and (3) percentage and dollar amount of the total 
     costs of the project or program that will be financed by 
     nongovernmental sources.
       Sec. 508. None of the funds appropriated under this Act 
     shall be expended for any abortion except when it is made 
     known to the Federal entity or official to which funds are 
     appropriated under this Act that such procedure is necessary 
     to save the life of the mother or that the pregnancy is the 
     result of an act of rape or incest.
       Sec. 509. Notwithstanding any other provision of law--
       (1) no amount may be transferred from an appropriation 
     account for the Departments of Labor, Health and Human 
     Services, and Education except as authorized in this or any 
     subsequent appropriation Act, or in the Act establishing the 
     program or activity for which funds are contained in this 
     Act;
       (2) no department, agency, or other entity, other than the 
     one responsible for administering the program or activity for 
     which an appropriation the program or activity for which an 
     appropriation is made in this Act, may exercise authority for 
     the timing of the obligation and expenditure of such 
     appropriation, or for the purpose for which it is obligated 
     and expended, except to the extent and in the manner 
     otherwise provided in sections 1512 and 1513 of title 31, 
     United States Code; and
       (3) no funds provided under this Act shall be available for 
     the salary (or any part thereof) of an employee who is 
     reassigned on a temporary detail basis to another position in 
     the employing agency or department or in any other agency or 
     department, unless the detail is independently approved by 
     the head of the employing department of agency.
       Sec. 510. None of the funds made available in this Act may 
     be used for the expenses of an electronic benefit transfer 
     (EBT) task force.
       Sec. 511. None of the funds made available in this Act may 
     be used to enforce the requirements of section 
     428(b)(1)(U)(iii) of the Higher Education Act of 1965 with 
     respect to any lender when it is made known to the Federal 
     official having authority to obligate or expend such 
     funds that the lender has a loan portfolio under part B of 
     title IV of such Act that is equal to or less than 
     $5,000,000.
       Sec. 512. (a) None of the funds made available in this Act 
     may be used for--
       (1) the creation of a human embryo or embryos for research 
     purposes; or
       (2) research in which a human embryo or embryos are 
     destroyed, discarded, or knowingly subjected to risk of 
     injury or death greater than that allowed for research on 
     fetuses in utero under 45 CFR 46.208(a)(2) and section 498(b) 
     of the Public Health Service Act (42 U.S.C. 289g(b)).
       (b) For purposes of this section, the term ``human embryo 
     or embryos'' include any organism, not protected as a human 
     subject under 45 CFR 46 as of the date of the enactment of 
     this Act, that is derived by fertilization, parthenogenesis, 
     cloning, or any other means from one or more human gametes.
       Sec. 513. (a) Limitation on Use of Funds for Promotion of 
     Legalization of Controlled Substances.--None of the funds 
     made available in this Act may be used for any activity when 
     it is made known to the Federal official having authority to 
     obligate or expend such funds that the activity promotes the 
     legalization of any drug or other substance included in 
     schedule I of the schedules of controlled substances 
     established by section 202 of the Controlled Substances Act 
     (21 U.S.C. 812).
       (b) Exceptions.--The limitation in subsection (a) shall not 
     apply when it is made known to the Federal official having 
     authority to obligate or expend such funds that there is 
     significant medical evidence of a therapeutic advantage to 
     the use of such drug or other substance or that Federally-
     sponsored clinical trials are being conducted to determine 
     therapeutic advantage.
       Sec. 514. (a) Denial of Funds for Preventing ROTC Access to 
     Campus.--None of the funds made available in this or any 
     other Department of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act for any 
     fiscal year may be provided by contract or by grant 
     (including a grant of funds to be available for student aid) 
     to a covered educational entity if the Secretary of Defense 
     determines that the covered educational entity has a policy 
     or practice (regardless of when implemented) that either 
     prohibits, or in effect prevents--
       (1) the maintaining, establishing, or operation of a unit 
     of the Senior Reserve Officer Training Corps (in accordance 
     with section 654 of title 10, United States Code, and other 
     applicable Federal laws) at the covered educational entity; 
     or
       (2) a student at the covered educational entity from 
     enrolling in a unit of the Senior Reserve Officer Training 
     Corps at another institution of higher education.
       (b) Denial of Funds for Preventing Federal Military 
     Recruiting on Campus.--None of the funds made available in 
     this or any other Departments of Labor, Health and Human 
     Services, and Education, and Related Agencies Appropriations 
     Act for any fiscal year may be provided by contract or by 
     grant (including a grant of funds to be available for student 
     aid) to a covered educational entity if the Secretary of 
     Defense determines that the covered educational entity has a 
     policy or practice (regardless of when implemented) that 
     either prohibits, or in effect prevents--
       (1) entry to campuses, or access to students (who are 17 
     years of age or older) on campuses, for purposes of Federal 
     military recruiting; or
       (2) access by military recruiters for purposes of Federal 
     military recruiting to the following information pertaining 
     to students (who are 17 years of age or older) enrolled at 
     the covered educational entity:
       (A) student names, addresses, and telephone listings; and
       (B) if known, student ages, levels of education, and 
     majors.
       (c) Exceptions.--The limitation established in subsection 
     (a) or (b) shall not apply to a covered educational entity if 
     the Secretary of Defense determines that--
       (1) the covered educational entity has ceased the policy or 
     practice described in such subsection;
       (2) the institution of higher education involved has a 
     longstanding policy of pacifism based on historical religious 
     affiliation; or
       (3) the institution of higher education involved is 
     prohibited by the law of any State, or by the order of any 
     State court, from allowing Senior Reserve Officer Training 
     Corps activities or Federal military recruiting on campus, 
     except that this paragraph shall apply only during the one-
     year period beginning on the effective date of this section.
       (d) Notice of Determinations.--Whenever the Secretary of 
     Defense makes a determination under subsection (a), (b), or 
     (c), the Secretary--
       (1) shall transmit a notice of the determination to the 
     Secretary of Education and to the Congress; and
       (2) shall publish in the Federal Register a notice of the 
     determination and the effect of the determination on the 
     eligibility of the covered educational entity for contracts 
     and grants.
       (e) Semiannual Notice in Federal Register.--The Secretary 
     of Defense shall publish in the Federal Register once every 6 
     months a list of each covered educational entity that is 
     currently ineligible for contracts and grants by reason of a 
     determination of the Secretary under subsection (a) or (b).
       (f) Covered Educational Entity.--For purposes of this 
     section, the term ``covered educational entity'' means an 
     institution of higher education, or a subelement of an 
     institution of higher education.
       (g) Effective Date.--This section shall take effect upon 
     the expiration of the 180-day period beginning on the date of 
     the enactment of this Act, by which date the Secretary of 
     Defense shall have published final regulations in 
     consultation with the Secretary of Education to carry out 
     this section.
       Sec. 515. (a) Technical Amendment to Other ROTC and 
     Military Recruiting Provisions.--Sections 508 and 509 of the 
     Energy and Water Development Appropriations Act, 1997, are 
     amended by striking ``when it is made

[[Page H11717]]

     known to the Federal official having authority to obligate or 
     expend such funds'' each place it appears and inserting ``if 
     the Secretary of Defense determines''.
       (b) Effective Date.--Sections 508 and 509 of the Energy and 
     Water Development Appropriations Act, 1997, shall not take 
     effect until the expiration of the 180-day period beginning 
     on the date of the enactment of this Act, by which date the 
     Secretary of Defense shall have published final regulations 
     to carry out such sections (as amended by subsection (a)).
       Sec. 516. None of the funds made available in this Act may 
     be obligated or expended to enter into or renew a contract 
     with an entity when it is made known to the Federal official 
     having authority to obligate or expend such funds that--
       (1) such entity is otherwise a contractor with the United 
     States and is subject to the requirement in section 4212(d) 
     of title 38, United States Code, regarding submission of an 
     annual report to the Secretary of Labor concerning employment 
     of certain veterans; and
       (2) such entity has not submitted a report as required by 
     that section for the most recent year for which such 
     requirement was applicable to such entity.
       Sec. 517. (a) Notwithstanding any provision of the Carl D. 
     Perkins Vocational and Applied Technology Act (as such Act 
     was in effect on September 24, 1990), a State shall be deemed 
     to have met the requirements of section 503 of such Act with 
     respect to decisions appealed by applications filed on April 
     30, 1993 and October 29, 1993 under section 452(b) of the 
     General Education Provisions Act.
       (b) Subsection (a) shall take effect on October 1, 1996.
       Sec. 518. None of the funds appropriated in this Act may be 
     made available to any entity under title X of the Public 
     Health Service Act unless it is made known to the Federal 
     official having authority to obligate or expend such funds 
     that the applicant for the award certifies to the Secretary 
     that it encourages family participation in the decision of 
     the minor to seek family planning services.
       Sec. 519. Of the budgetary resources available to agencies 
     in this Act for salaries and expenses during fiscal year 
     1997, $30,500,000, to be allocated by the Office of 
     Management and Budget, are permanently canceled: Provided, 
     That the foregoing provision shall not apply to the Food and 
     Drug Administration and the Indian Health Service: Provided 
     further, That amounts available in this Act for congressional 
     and legislative affairs, public affairs, and 
     intergovernmental affairs activities are hereby reduced by 
     $2,000,000.
       Sec. 520. Voluntary Separation Incentives for Employees of 
     Certain Federal Agencies.--Definitions.--For the purposes of 
     this section--
       (1) the term ``agency'' means the Railroad Retirement Board 
     and the Office of Inspector General of the Railroad 
     Retirement Board;
       (2) the term ``employee'' means an employee (as defined by 
     section 2105 of title 5, United States Code) who is employed 
     by an agency, is serving under an appointment without time 
     limitation, and has been currently employed for a continuous 
     period of at least 3 years, but does not include--
       (A) 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 agency;
       (B) an employee having a disability on the basis of which 
     such employee is or would be eligible for disability 
     retirement under subchapter III of chapter 83 or chapter 84 
     of title 5, United States Code, or another retirement system 
     for employees of the agency;
       (C) an employee who is in receipt of a specific notice of 
     involuntary separation for misconduct or unacceptable 
     performance;
       (D) 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 (5 U.S.C. 5597 
     note), would qualify for a voluntary separation incentive 
     payment under section 3 of such Act;
       (E) an employee who has previously received any voluntary 
     separation incentive payment by the Federal Government under 
     this section or any other authority and has not repaid such 
     payment;
       (F) an employee covered by statutory reemployment rights 
     who is on transfer to another organization; or
       (G) any employee who, during the twenty-four-month period 
     preceding the date of separation, has received a recruitment 
     or relocation bonus under section 5753 of title 5, United 
     States Code, or who, within the twelve-month period preceding 
     the date of separation, received a retention allowance under 
     section 5754 of title 5, United States Code.
       (b) Agency Strategic Plan.--
       (1) In general.--The three-member Railroad Retirement 
     Board, prior to obligating any resources for voluntary 
     separation incentive payments, shall submit to the House and 
     Senate Committees on Appropriations and the Committee on 
     Governmental Affairs of the Senate and the Committee on 
     Government Reform and Oversight of the House of 
     Representatives a strategic plan outlining the intended use 
     of such incentive payments and a proposed organizational 
     chart for the agency once such incentive payments have been 
     completed.
       (2) Contents.--The agency's plan shall include--
       (A) the positions and functions to be reduced or 
     eliminated, identified by organizational unit, geographic 
     location, occupational category and grade level;
       (B) the number and amounts of voluntary separation 
     incentive payments to be offered; and
       (C) a description of how the agency will operate without 
     the eliminated positions and functions.
       (c) Authority to Provide Voluntary Separation Incentive 
     Payments.--
       (1) In general.--A voluntary separation incentive payment 
     under this section may be paid by an agency to any employee 
     only to the extent necessary to eliminate the positions and 
     functions identified by the strategic plan.
       (2) Amount and treatment of payments.--A voluntary 
     separation incentive payment--
       (A) shall be paid in a lump sum after the employee's 
     separation;
       (B) shall be paid from appropriations or funds available 
     for the payment of the basic pay of the employees;
       (C) shall be equal to the lesser of--
       (i) an amount equal to the amount the employee would be 
     entitled to receive under section 5595(c) of title 5, United 
     States Code; or
       (ii) an amount determined by the agency head not to exceed 
     $25,000;
       (D) may not be made except in the case of any qualifying 
     employee who voluntarily separates (whether by retirement or 
     resignation) before September 30, 1997;
       (E) shall not be a basis for payment, and shall not be 
     included in the computation, of any other type of Government 
     benefit; and
       (F) shall not be taken into account in determining the 
     amount of any severance pay to which the employee may be 
     entitled under section 5595 of title 5, United States Code, 
     based on any other separation.
       (d) Additional Agency Contributions to the Retirement 
     Fund.--
       (1) In general.--In addition to any other payments which it 
     is required to make under subchapter III of chapter 83 of 
     title 5, United States Code, an agency 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 of the agency who is 
     covered under subchapter III of chapter 83 or chapter 84 of 
     title 5, United States Code, to whom a voluntary separation 
     incentive has been paid under this section.
       (2) Definition.--For the purpose of paragraph (1), the term 
     ``final basic pay'', with respect to an employee, 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.
       (e) Effect of Subsequent Employment With the Government.--
     An individual who has received a voluntary separation 
     incentive payment under this section and accepts any 
     employment for compensation with the Government of the United 
     States, or who works for any agency of the United States 
     Government through a personal services contract, within 5 
     years after the date of the separation on which the payment 
     is based shall be required to pay, prior to the individual's 
     first day of employment, the entire amount of the incentive 
     payment to the agency that paid the incentive payment.
       (f) Reduction of Agency Employment Levels.--
       (1) In general.--The total number of funded employee 
     positions in the agency shall be reduced by one position for 
     each vacancy created by the separation of any employee who 
     has received, or is due to receive, a voluntary separation 
     incentive payment under this section. For the purposes of 
     this subsection, positions shall be counted on a full-time-
     equivalent basis.
       (2) Enforcement.--The President, through the Office of 
     Management and Budget, shall monitor the agency and take any 
     action necessary to ensure that the requirements of this 
     subsection are met.
       (g) Effective Date.--This section shall take effect October 
     1, 1996.
       Sec. 521. Correction of Effective Date.--Effective on the 
     day after the date of enactment of the Health Centers 
     Consolidation Act of 1996, section 5 of that Act is amended 
     by striking ``October 1, 1997'' and inserting ``October 1, 
     1996''.
TITLE VI--REORGANIZATION AND PRIVATIZATION OF SALLIE MAE AND CONNIE LEE

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Student Loan Marketing 
     Association Reorganization Act of 1996''.

     SEC. 602. REORGANIZATION OF THE STUDENT LOAN MARKETING 
                   ASSOCIATION THROUGH THE FORMATION OF A HOLDING 
                   COMPANY.

       (a) Amendment.--Part B of title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1071 et seq.) is amended by inserting 
     after section 439 (20 U.S.C. 1087-2) the following new 
     section:

     ``SEC. 440. REORGANIZATION OF THE STUDENT LOAN MARKETING 
                   ASSOCIATION THROUGH THE FORMATION OF A HOLDING 
                   COMPANY.

       ``(a) Actions by the Association's Board of Directors.--The 
     Board of Directors of the Association shall take or cause to 
     be taken all such action as the Board of Directors deems 
     necessary or appropriate to effect, upon the shareholder 
     approval described in subsection (b), a restructuring of the 
     common stock ownership of the Association, as set forth in a 
     plan of reorganization adopted by the Board of Directors (the 
     terms of which shall be consistent with this section) so that 
     all of the outstanding common shares of the Association shall 
     be directly owned by a Holding Company. Such actions may 
     include, in the Board of Director's discretion, a merger of a 
     wholly owned subsidiary of the Holding Company with and into 
     the Association, which would have the effect provided in the 
     plan of reorganization and the law of the jurisdiction in 
     which such subsidiary is incorporated. As part of the 
     restructuring, the Board of Directors may cause--

[[Page H11718]]

       ``(1) the common shares of the Association to be converted, 
     on the reorganization effective date, to common shares of the 
     Holding Company on a one for one basis, consistent with 
     applicable State or District of Columbia law; and
       ``(2) Holding Company common shares to be registered with 
     the Securities and Exchange Commission.
       ``(b) Shareholder Approval.--The plan of reorganization 
     adopted by the Board of Directors pursuant to subsection (a) 
     shall be submitted to common shareholders of the Association 
     for their approval. The reorganization shall occur on the 
     reorganization effective date, provided that the plan of 
     reorganization has been approved by the affirmative votes, 
     cast in person or by proxy, of the holders of a majority of 
     the issued and outstanding shares of the Association common 
     stock.
       ``(c) Transition.--In the event the shareholders of the 
     Association approve the plan of reorganization under 
     subsection (b), the following provisions shall apply 
     beginning on the reorganization effective date:
       ``(1) In general.--Except as specifically provided in this 
     section, until the dissolution date the Association shall 
     continue to have all of the rights, privileges and 
     obligations set forth in, and shall be subject to all of the 
     limitations and restrictions of, section 439, and the 
     Association shall continue to carry out the purposes of such 
     section. The Holding Company and any subsidiary of the 
     Holding Company (other than the Association) shall not be 
     entitled to any of the rights, privileges, and obligations, 
     and shall not be subject to the limitations and restrictions, 
     applicable to the Association under section 439, except as 
     specifically provided in this section. The Holding Company 
     and any subsidiary of the Holding Company (other than the 
     Association or a subsidiary of the Association) shall not 
     purchase loans insured under this Act until such time as the 
     Association ceases acquiring such loans, except that the 
     Holding Company may purchase such loans if the Association is 
     merely continuing to acquire loans as a lender of last resort 
     pursuant to section 439(q) or under an agreement with the 
     Secretary described in paragraph (6).
       ``(2) Transfer of certain property.--
       ``(A) In general.--Except as provided in this section, on 
     the reorganization effective date or as soon as practicable 
     thereafter, the Association shall use the Association's best 
     efforts to transfer to the Holding Company or any subsidiary 
     of the Holding Company (or both), as directed by the Holding 
     Company, all real and personal property of the Association 
     (both tangible and intangible) other than the remaining 
     property. Subject to the preceding sentence, such transferred 
     property shall include all right, title, and interest in--
       ``(i) direct or indirect subsidiaries of the Association 
     (excluding special purpose funding companies in existence on 
     the date of enactment of this section and any interest in any 
     government-sponsored enterprise);
       ``(ii) contracts, leases, and other agreements of the 
     Association;
       ``(iii) licenses and other intellectual property of the 
     Association; and
       ``(iv) any other property of the Association.
       ``(B) Construction.--Nothing in this paragraph shall be 
     construed to prohibit the Association from transferring 
     remaining property from time to time to the Holding Company 
     or any subsidiary of the Holding Company, subject to the 
     provisions of paragraph (4).
       ``(3) Transfer of personnel.--On the reorganization 
     effective date, employees of the Association shall become 
     employees of the Holding Company (or any subsidiary of the 
     Holding Company), and the Holding Company (or any subsidiary 
     of the Holding Company) shall provide all necessary and 
     appropriate management and operational support (including 
     loan servicing) to the Association, as requested by the 
     Association. The Association, however, may obtain such 
     management and operational support from persons or entities 
     not associated with the Holding Company.
       ``(4) Dividends.--The Association may pay dividends in the 
     form of cash or noncash distributions so long as at the time 
     of the declaration of such dividends, after giving effect to 
     the payment of such dividends as of the date of such 
     declaration by the Board of Directors of the Association, the 
     Association's capital would be in compliance with the capital 
     standards and requirements set forth in section 439(r). If, 
     at any time after the reorganization effective date, the 
     Association fails to comply with such capital standards, the 
     Holding Company shall transfer with due diligence to the 
     Association additional capital in such amounts as are 
     necessary to ensure that the Association again complies with 
     the capital standards.
       ``(5) Certification prior to dividend.--Prior to the 
     payment of any dividend under paragraph (4), the Association 
     shall certify to the Secretary of the Treasury that the 
     payment of the dividend will be made in compliance with 
     paragraph (4) and shall provide copies of all calculations 
     needed to make such certification.
       ``(6) Restrictions on new business activity or acquisition 
     of assets by association.--
       ``(A) In general.--After the reorganization effective date, 
     the Association shall not engage in any new business 
     activities or acquire any additional program assets described 
     in section 439(d) other than in connection with--
       ``(i) student loan purchases through September 30, 2007;
       ``(ii) contractual commitments for future warehousing 
     advances, or pursuant to letters of credit or standby bond 
     purchase agreements, which are outstanding as of the 
     reorganization effective date;
       ``(iii) the Association serving as a lender-of-last-resort 
     pursuant to section 439(q); and
       ``(iv) the Association's purchase of loans insured under 
     this part, if the Secretary, with the approval of the 
     Secretary of the Treasury, enters into an agreement with the 
     Association for the continuation or resumption of the 
     Association's secondary market purchase program because the 
     Secretary determines there is inadequate liquidity for loans 
     made under this part.
       ``(B) Agreement.--The Secretary is authorized to enter into 
     an agreement described in clause (iv) of subparagraph (A) 
     with the Association covering such secondary market 
     activities. Any agreement entered into under such clause 
     shall cover a period of 12 months, but may be renewed if the 
     Secretary determines that liquidity remains inadequate. The 
     fee provided under section 439(h)(7) shall not apply to loans 
     acquired under any such agreement with the Secretary.
       ``(7) Issuance of debt obligations during the transition 
     period; attributes of debt obligations.--After the 
     reorganization effective date, the Association shall not 
     issue debt obligations which mature later than September 30, 
     2008, except in connection with serving as a lender-of-last-
     resort pursuant to section 439(q) or with purchasing loans 
     under an agreement with the Secretary as described in 
     paragraph (6). Nothing in this section shall modify the 
     attributes accorded the debt obligations of the Association 
     by section 439, regardless of whether such debt obligations 
     are incurred prior to, or at any time following, the 
     reorganization effective date or are transferred to a trust 
     in accordance with subsection (d).
       ``(8) Monitoring of safety and soundness.--
       ``(A) Obligation to obtain, maintain, and report 
     information.--The Association shall obtain such information 
     and make and keep such records as the Secretary of the 
     Treasury may from time to time prescribe concerning--
       ``(i) the financial risk to the Association resulting from 
     the activities of any associated person, to the extent such 
     activities are reasonably likely to have a material impact on 
     the financial condition of the Association, including the 
     Association's capital ratio, the Association's liquidity, or 
     the Association's ability to conduct and finance the 
     Association's operations; and
       ``(ii) the Association's policies, procedures, and systems 
     for monitoring and controlling any such financial risk.
       ``(B) Summary reports.--The Secretary of the Treasury may 
     require summary reports of the information described in 
     subparagraph (A) to be filed no more frequently than 
     quarterly. If, as a result of adverse market conditions or 
     based on reports provided pursuant to this subparagraph or 
     other available information, the Secretary of the Treasury 
     has concerns regarding the financial or operational condition 
     of the Association, the Secretary of the Treasury may, 
     notwithstanding the preceding sentence and subparagraph (A), 
     require the Association to make reports concerning the 
     activities of any associated person whose business activities 
     are reasonably likely to have a material impact on the 
     financial or operational condition of the Association.
       ``(C) Separate operation of corporations.--
       ``(i) In general.--The funds and assets of the Association 
     shall at all times be maintained separately from the funds 
     and assets of the Holding Company or any subsidiary of the 
     Holding Company and may be used by the Association solely to 
     carry out the Association's purposes and to fulfill the 
     Association's obligations.
       ``(ii) Books and records.--The Association shall maintain 
     books and records that clearly reflect the assets and 
     liabilities of the Association, separate from the assets and 
     liabilities of the Holding Company or any subsidiary of the 
     Holding Company.
       ``(iii) Corporate office.--The Association shall maintain a 
     corporate office that is physically separate from any office 
     of the Holding Company or any subsidiary of the Holding 
     Company.
       ``(iv) Director.--No director of the Association who is 
     appointed by the President pursuant to section 439(c)(1)(A) 
     may serve as a director of the Holding Company.
       ``(v) One officer requirement.--At least one officer of the 
     Association shall be an officer solely of the Association.
       ``(vi) Transactions.--Transactions between the Association 
     and the Holding Company or any subsidiary of the Holding 
     Company, including any loan servicing arrangements, shall be 
     on terms no less favorable to the Association than the 
     Association could obtain from an unrelated third party 
     offering comparable services.
       ``(vii) Credit prohibition.--The Association shall not 
     extend credit to the Holding Company or any subsidiary of the 
     Holding Company nor guarantee or provide any credit 
     enhancement to any debt obligations of the Holding Company or 
     any subsidiary of the Holding Company.
       ``(viii) Amounts collected.--Any amounts collected on 
     behalf of the Association by the Holding Company or any 
     subsidiary of the Holding Company with respect to the assets 
     of the Association, pursuant to a servicing contract or other 
     arrangement between the Association and the Holding Company 
     or any subsidiary of the Holding Company, shall be collected 
     solely for the benefit of the Association and shall be 
     immediately deposited by the Holding Company or such 
     subsidiary to an account under the sole control of the 
     Association.
       ``(D) Encumbrance of assets.--Notwithstanding any Federal 
     or State law, rule, or regulation, or legal or equitable 
     principle, doctrine, or theory to the contrary, under no 
     circumstances shall the assets of the Association be 
     available or used to pay claims or debts of or incurred by 
     the Holding Company. Nothing in this subparagraph shall be 
     construed to limit the right of the Association to pay 
     dividends not otherwise prohibited under this subparagraph or 
     to limit any liability of the Holding Company explicitly 
     provided for in this section.

[[Page H11719]]

       ``(E) Holding company activities.--After the reorganization 
     effective date and prior to the dissolution date, all 
     business activities of the Holding Company shall be conducted 
     through subsidiaries of the Holding Company.
       ``(F) Confidentiality.--Any information provided by the 
     Association pursuant to this section shall be subject to the 
     same confidentiality obligations contained in section 
     439(r)(12).
       ``(G) Definition.--For purposes of this paragraph, the term 
     `associated person' means any person, other than a natural 
     person, who is directly or indirectly controlling, controlled 
     by, or under common control with, the Association.
       ``(9) Issuance of stock warrants.--
       ``(A) In general.--On the reorganization effective date, 
     the Holding Company shall issue to the District of Columbia 
     Financial Responsibility and Management Assistance Authority 
     a number of stock warrants that is equal to one percent of 
     the outstanding shares of the Association, determined as of 
     the last day of the fiscal quarter preceding the date of 
     enactment of this section, with each stock warrant entitling 
     the holder of the stock warrant to purchase from the Holding 
     Company one share of the registered common stock of the 
     Holding Company or the Holding Company's successors or 
     assigns, at any time on or before September 30, 2008. The 
     exercise price for such warrants shall be an amount equal to 
     the average closing price of the common stock of the 
     Association for the 20 business days prior to the date of 
     enactment of this section on the exchange or market which is 
     then the primary exchange or market for the common stock of 
     the Association. The number of shares of Holding Company 
     common stock subject to each stock warrant and the exercise 
     price of each stock warrant shall be adjusted as necessary to 
     reflect--
       ``(i) the conversion of Association common stock into 
     Holding Company common stock as part of the plan of 
     reorganization approved by the Association's shareholders; 
     and
       ``(ii) any issuance or sale of stock (including issuance or 
     sale of treasury stock), stock split, recapitalization, 
     reorganization, or other corporate event, if agreed to by the 
     Secretary of the Treasury and the Association.
       ``(B) Authority to sell or exercise stock warrants; deposit 
     of proceeds.--The District of Columbia Financial 
     Responsibility and Management Assistance Authority is 
     authorized to sell or exercise the stock warrants described 
     in subparagraph (A). The District of Columbia Financial 
     Responsibility and Management Assistance Authority shall 
     deposit into the account established under section 3(e) of 
     the Student Loan Marketing Association Reorganization Act of 
     1996 amounts collected from the sale and proceeds resulting 
     from the exercise of the stock warrants pursuant to this 
     subparagraph.
       ``(10) Restrictions on transfer of association shares and 
     bankruptcy of association.--After the reorganization 
     effective date, the Holding Company shall not sell, pledge, 
     or otherwise transfer the outstanding shares of the 
     Association, or agree to or cause the liquidation of the 
     Association or cause the Association to file a petition 
     for bankruptcy under title 11, United States Code, without 
     prior approval of the Secretary of the Treasury and the 
     Secretary of Education.
       ``(d) Termination of the Association.--In the event the 
     shareholders of the Association approve a plan of 
     reorganization under subsection (b), the Association shall 
     dissolve, and the Association's separate existence shall 
     terminate on September 30, 2008, after discharge of all 
     outstanding debt obligations and liquidation pursuant to this 
     subsection. The Association may dissolve pursuant to this 
     subsection prior to such date by notifying the Secretary of 
     Education and the Secretary of the Treasury of the 
     Association's intention to dissolve, unless within 60 days 
     after receipt of such notice the Secretary of Education 
     notifies the Association that the Association continues to be 
     needed to serve as a lender of last resort pursuant to 
     section 439(q) or continues to be needed to purchase loans 
     under an agreement with the Secretary described in subsection 
     (c)(6). On the dissolution date, the Association shall take 
     the following actions:
       ``(1) Establishment of a trust.--The Association shall, 
     under the terms of an irrevocable trust agreement that is in 
     form and substance satisfactory to the Secretary of the 
     Treasury, the Association and the appointed trustee, 
     irrevocably transfer all remaining obligations of the 
     Association to the trust and irrevocably deposit or cause to 
     be deposited into such trust, to be held as trust funds 
     solely for the benefit of holders of the remaining 
     obligations, money or direct noncallable obligations of the 
     United States or any agency thereof for which payment the 
     full faith and credit of the United States is pledged, 
     maturing as to principal and interest in such amounts and at 
     such times as are determined by the Secretary of the Treasury 
     to be sufficient, without consideration of any significant 
     reinvestment of such interest, to pay the principal of, and 
     interest on, the remaining obligations in accordance with 
     their terms. To the extent the Association cannot provide 
     money or qualifying obligations in the amount required, the 
     Holding Company shall be required to transfer money or 
     qualifying obligations to the trust in the amount necessary 
     to prevent any deficiency.
       ``(2) Use of trust assets.--All money, obligations, or 
     financial assets deposited into the trust pursuant to this 
     subsection shall be applied by the trustee to the payment of 
     the remaining obligations assumed by the trust.
       ``(3) Obligations not transferred to the trust.--The 
     Association shall make proper provision for all other 
     obligations of the Association not transferred to the trust, 
     including the repurchase or redemption, or the making of 
     proper provision for the repurchase or redemption, of any 
     preferred stock of the Association outstanding. Any 
     obligations of the Association which cannot be fully 
     satisfied shall become liabilities of the Holding Company as 
     of the date of dissolution.
       ``(4) Transfer of remaining assets.--After compliance with 
     paragraphs (1) and (3), any remaining assets of the trust 
     shall be transferred to the Holding Company or any subsidiary 
     of the Holding Company, as directed by the Holding Company.
       ``(e) Operation of the Holding Company.--In the event the 
     shareholders of the Association approve the plan of 
     reorganization under subsection (b), the following provisions 
     shall apply beginning on the reorganization effective date:
       ``(1) Holding company board of directors.--The number of 
     members and composition of the Board of Directors of the 
     Holding Company shall be determined as set forth in the 
     Holding Company's charter or like instrument (as amended from 
     time to time) or bylaws (as amended from time to time) and as 
     permitted under the laws of the jurisdiction of the Holding 
     Company's incorporation.
       ``(2) Holding company name.--The names of the Holding 
     Company and any subsidiary of the Holding Company (other than 
     the Association)--
       ``(A) may not contain the name `Student Loan Marketing 
     Association'; and
       ``(B) may contain, to the extent permitted by applicable 
     State or District of Columbia law, `Sallie Mae' or variations 
     thereof, or such other names as the Board of Directors of the 
     Association or the Holding Company deems appropriate.
       ``(3) Use of sallie mae name.--Subject to paragraph (2), 
     the Association may assign to the Holding Company, or any 
     subsidiary of the Holding Company, the `Sallie Mae' name as a 
     trademark or service mark, except that neither the Holding 
     Company nor any subsidiary of the Holding Company (other than 
     the Association or any subsidiary of the Association) may use 
     the `Sallie Mae' name on, or to identify the issuer of, any 
     debt obligation or other security offered or sold by the 
     Holding Company or any subsidiary of the Holding Company 
     (other than a debt obligation or other security issued to and 
     held by the Holding Company or any subsidiary of the Holding 
     Company). The Association shall remit to the account 
     established under section 3(e) of the Student Loan 
     Marketing Association Reorganization Act of 1996, 
     $5,000,000, within 60 days of the reorganization effective 
     date as compensation for the right to assign the `Sallie 
     Mae' name as a trademark or service mark.
       ``(4) Disclosure required.--Until 3 years after the 
     dissolution date, the Holding Company, and any subsidiary of 
     the Holding Company (other than the Association), shall 
     prominently display--
       ``(A) in any document offering the Holding Company's 
     securities, a statement that the obligations of the Holding 
     Company and any subsidiary of the Holding Company are not 
     guaranteed by the full faith and credit of the United States; 
     and
       ``(B) in any advertisement or promotional materials which 
     use the `Sallie Mae' name or mark, a statement that neither 
     the Holding Company nor any subsidiary of the Holding Company 
     is a government-sponsored enterprise or instrumentality of 
     the United States.
       ``(f) Strict Construction.--Except as specifically set 
     forth in this section, nothing in this section shall be 
     construed to limit the authority of the Association as a 
     federally chartered corporation, or of the Holding Company as 
     a State or District of Columbia chartered corporation.
       ``(g) Right To Enforce.--The Secretary of Education or the 
     Secretary of the Treasury, as appropriate, may request that 
     the Attorney General bring an action in the United States 
     District Court for the District of Columbia for the 
     enforcement of any provision of this section, or may, under 
     the direction or control of the Attorney General, bring such 
     an action. Such court shall have jurisdiction and power to 
     order and require compliance with this section.
       ``(h) Deadline for Reorganization Effective Date.--This 
     section shall be of no further force and effect in the event 
     that the reorganization effective date does not occur on or 
     before 18 months after the date of enactment of this section.
       ``(i) Definitions.--For purposes of this section:
       ``(1) Association.--The term `Association' means the 
     Student Loan Marketing Association.
       ``(2) Dissolution date.--The term `dissolution date' means 
     September 30, 2008, or such earlier date as the Secretary of 
     Education permits the transfer of remaining obligations in 
     accordance with subsection (d).
       ``(3) Holding company.--The term `Holding Company' means 
     the new business corporation established pursuant to this 
     section by the Association under the laws of any State of the 
     United States or the District of Columbia for the purposes of 
     the reorganization and restructuring described in subsection 
     (a).
       ``(4) Remaining obligations.--The term `remaining 
     obligations' means the debt obligations of the Association 
     outstanding as of the dissolution date.
       ``(5) Remaining property.--The term `remaining property' 
     means the following assets and liabilities of the Association 
     which are outstanding as of the reorganization effective 
     date:
       ``(A) Debt obligations issued by the Association.
       ``(B) Contracts relating to interest rate, currency, or 
     commodity positions or protections.
       ``(C) Investment securities owned by the Association.
       ``(D) Any instruments, assets, or agreements described in 
     section 439(d) (including, without limitation, all student 
     loans and agreements relating to the purchase and sale of 
     student loans, forward purchase and lending commitments, 
     warehousing advances, academic facilities obligations, 
     letters of credit, standby bond purchase agreements, 
     liquidity agreements, and student loan revenue bonds or other 
     loans).

[[Page H11720]]

       ``(E) Except as specifically prohibited by this section or 
     section 439, any other nonmaterial assets or liabilities of 
     the Association which the Association's Board of Directors 
     determines to be necessary or appropriate to the 
     Association's operations.
       ``(6) Reorganization.--The term `reorganization' means the 
     restructuring event or events (including any merger event) 
     giving effect to the Holding Company structure described in 
     subsection (a).
       ``(7) Reorganization effective date.--The term 
     `reorganization effective date' means the effective date of 
     the reorganization as determined by the Board of Directors of 
     the Association, which shall not be earlier than the date 
     that shareholder approval is obtained pursuant to subsection 
     (b) and shall not be later than the date that is 18 months 
     after the date of enactment of this section.
       ``(8) Subsidiary.--The term `subsidiary' means one or more 
     direct or indirect subsidiaries.''.
       (b) Technical Amendments.--
       (1) Eligible lender.--
       (A) Amendments to the higher education act.--
       (i) Definition of eligible lender.--Section 435(d)(1)(F) of 
     the Higher Education Act of 1965 (20 U.S.C. 1085(d)(1)(F)) is 
     amended by inserting after ``Student Loan Marketing 
     Association'' the following: ``or the Holding Company of the 
     Student Loan Marketing Association, including any subsidiary 
     of the Holding Company, created pursuant to section 440,''.
       (ii) Definition of eligible lender and federal 
     consolidation loans.--Sections 435(d)(1)(G) and 428C(a)(1)(A) 
     of such Act (20 U.S.C. 1085(d)(1)(G) and 1078-3(a)(1)(A)) are 
     each amended by inserting after ``Student Loan Marketing 
     Association'' the following: ``or the Holding Company of 
     the Student Loan Marketing Association, including any 
     subsidiary of the Holding Company, created pursuant to 
     section 440''.
       (B) Effective date.--The amendments made by this paragraph 
     shall take effect on the reorganization effective date as 
     defined in section 440(h) of the Higher Education Act of 1965 
     (as added by subsection (a)).
       (2) Enforcement of safety and soundness requirements.--
     Section 439(r) of the Higher Education Act of 1965 (20 U.S.C. 
     1087-2(r)) is amended--
       (A) in the first sentence of paragraph (12), by inserting 
     ``or the Association's associated persons'' after ``by the 
     Association'';
       (B) by redesignating paragraph (13) as paragraph (15); and
       (C) by inserting after paragraph (12) the following new 
     paragraph:
       ``(13) Enforcement of safety and soundness requirements.--
     The Secretary of Education or the Secretary of the Treasury, 
     as appropriate, may request that the Attorney General bring 
     an action in the United States District Court for the 
     District of Columbia for the enforcement of any provision of 
     this section, or may, under the direction or control of the 
     Attorney General, bring such an action. Such court shall have 
     jurisdiction and power to order and require compliance with 
     this section.''.
       (3) Financial safety and soundness.--Section 439(r) of the 
     Higher Education Act of 1965 (20 U.S.C. 1087-2(r)) is further 
     amended--
       (A) in paragraph (1)--
       (i) by striking ``and'' at the end of subparagraph (A);
       (ii) by striking the period at the end of subparagraph (B) 
     and inserting ``; and''; and
       (iii) by adding at the end the following new subparagraph:
       ``(C)(i) financial statements of the Association within 45 
     days of the end of each fiscal quarter; and
       ``(ii) reports setting forth the calculation of the capital 
     ratio of the Association within 45 days of the end of each 
     fiscal quarter.'';
       (B) in paragraph (2)--
       (i) by striking clauses (i) and (ii) of subparagraph (A) 
     and inserting the following:
       ``(i) appoint auditors or examiners to conduct audits of 
     the Association from time to time to determine the condition 
     of the Association for the purpose of assessing the 
     Association's financial safety and soundness and to determine 
     whether the requirements of this section and section 440 are 
     being met; and
       ``(ii) obtain the services of such experts as the Secretary 
     of the Treasury determines necessary and appropriate, as 
     authorized by section 3109 of title 5, United States Code, to 
     assist in determining the condition of the Association for 
     the purpose of assessing the Association's financial safety 
     and soundness, and to determine whether the requirements of 
     this section and section 440 are being met.''; and
       (ii) by adding at the end the following new subparagraph:
       ``(D) Annual assessment.--
       ``(i) In general.--For each fiscal year beginning on or 
     after October 1, 1996, the Secretary of the Treasury may 
     establish and collect from the Association an assessment (or 
     assessments) in amounts sufficient to provide for reasonable 
     costs and expenses of carrying out the duties of the 
     Secretary of the Treasury under this section and section 440 
     during such fiscal year. In no event may the total amount so 
     assessed exceed, for any fiscal year, $800,000, adjusted for 
     each fiscal year ending after September 30, 1997, by the 
     ratio of the Consumer Price Index for All Urban Consumers 
     (issued by the Bureau of Labor Statistics) for the final 
     month of the fiscal year preceding the fiscal year for which 
     the assessment is made to the Consumer Price Index for All 
     Urban Consumers for September 1997.
       ``(ii) Deposit.--Amounts collected from assessments under 
     this subparagraph shall be deposited in an account within the 
     Treasury of the United States as designated by the Secretary 
     of the Treasury for that purpose. The Secretary of the 
     Treasury is authorized and directed to pay out of any funds 
     available in such account the reasonable costs and expenses 
     of carrying out the duties of the Secretary of the Treasury 
     under this section and section 440. None of the funds 
     deposited into such account shall be available for any 
     purpose other than making payments for such costs and 
     expenses.''; and
       (C) by inserting after paragraph (13) (as added by 
     paragraph (2)(C)) the following new paragraph:
       ``(14) Actions by secretary.--
       ``(A) In general.--For any fiscal quarter ending after 
     January 1, 2000, the Association shall have a capital ratio 
     of at least 2.25 percent. The Secretary of the Treasury may, 
     whenever such capital ratio is not met, take any one or more 
     of the actions described in paragraph (7), except that--
       ``(i) the capital ratio to be restored pursuant to 
     paragraph (7)(D) shall be 2.25 percent; and
       ``(ii) if the relevant capital ratio is in excess of or 
     equal to 2 percent for such quarter, the Secretary of the 
     Treasury shall defer taking any of the actions set forth in 
     paragraph (7) until the next succeeding quarter and may then 
     proceed with any such action only if the capital ratio of the 
     Association remains below 2.25 percent.
       ``(B) Applicability.--The provisions of paragraphs (4), 
     (5), (6), (8), (9), (10), and (11) shall be of no further 
     application to the Association for any period after January 
     1, 2000.''.
       (4) Information required; dividends.--Section 439(r) of the 
     Higher Education Act of 1965 (20 U.S.C. 1087-2(r)) is further 
     amended--
       (A) by adding at the end of paragraph (2) (as amended in 
     paragraph (3)(B)(ii)) the following new subparagraph:
       ``(E) Obligation to obtain, maintain, and report 
     information.--
       ``(i) In general.--The Association shall obtain such 
     information and make and keep such records as the Secretary 
     of the Treasury may from time to time prescribe concerning--
       ``(I) the financial risk to the Association resulting from 
     the activities of any associated person, to the extent such 
     activities are reasonably likely to have a material impact on 
     the financial condition of the Association, including the 
     Association's capital ratio, the Association's liquidity, or 
     the Association's ability to conduct and finance the 
     Association's operations; and
       ``(II) the Association's policies, procedures, and systems 
     for monitoring and controlling any such financial risk.
       ``(ii) Summary reports.--The Secretary of the Treasury may 
     require summary reports of such information to be filed no 
     more frequently than quarterly. If, as a result of adverse 
     market conditions or based on reports provided pursuant to 
     this subparagraph or other available information, the 
     Secretary of the Treasury has concerns regarding the 
     financial or operational condition of the Association, the 
     Secretary of the Treasury may, notwithstanding the preceding 
     sentence and clause (i), require the Association to make 
     reports concerning the activities of any associated person, 
     whose business activities are reasonably likely to have a 
     material impact on the financial or operational condition of 
     the Association.
       ``(iii) Definition.--For purposes of this subparagraph, the 
     term `associated person' means any person, other than a 
     natural person, directly or indirectly controlling, 
     controlled by, or under common control with the 
     Association.''; and
       (B) by adding at the end the following new paragraphs:
       ``(16) Dividends.--The Association may pay dividends in the 
     form of cash or noncash distributions so long as at the time 
     of the declaration of such dividends, after giving effect to 
     the payment of such dividends as of the date of such 
     declaration by the Board of Directors of the Association, the 
     Association's capital would be in compliance with the capital 
     standards set forth in this section.
       ``(17) Certification prior to payment of dividend.--Prior 
     to the payment of any dividend under paragraph (16), the 
     Association shall certify to the Secretary of the Treasury 
     that the payment of the dividend will be made in compliance 
     with paragraph (16) and shall provide copies of all 
     calculations needed to make such certification.''.
       (c) Sunset of the Association's Charter if No 
     Reorganization Plan Occurs.--Section 439 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087-2) is amended by adding 
     at the end the following new subsection:
       ``(s) Charter Sunset.--
       ``(1) Application of provisions.--This subsection applies 
     beginning 18 months and one day after the date of enactment 
     of this subsection if no reorganization of the Association 
     occurs in accordance with the provisions of section 440.
       ``(2) Sunset plan.--
       ``(A) Plan submission by the association.--Not later than 
     July 1, 2007, the Association shall submit to the Secretary 
     of the Treasury and to the Chairman and Ranking Member of the 
     Committee on Labor and Human Resources of the Senate and the 
     Chairman and Ranking Member of the Committee on Economic and 
     Educational Opportunities of the House of Representatives, a 
     detailed plan for the orderly winding up, by July 1, 2013, of 
     business activities conducted pursuant to the charter set 
     forth in this section. Such plan shall--
       ``(i) ensure that the Association will have adequate assets 
     to transfer to a trust, as provided in this subsection, to 
     ensure full payment of remaining obligations of the 
     Association in accordance with the terms of such obligations;
       ``(ii) provide that all assets not used to pay liabilities 
     shall be distributed to shareholders as provided in this 
     subsection; and
       ``(iii) provide that the operations of the Association 
     shall remain separate and distinct from that of any entity to 
     which the assets of the Association are transferred.

[[Page H11721]]

       ``(B) Amendment of the plan by the association.--The 
     Association shall from time to time amend such plan to 
     reflect changed circumstances, and submit such amendments to 
     the Secretary of the Treasury and to the Chairman and Ranking 
     Minority Member of the Committee on Labor and Human Resources 
     of the Senate and Chairman and Ranking Minority Member of the 
     Committee on Economic and Educational Opportunities of the 
     House of Representatives. In no case may any amendment extend 
     the date for full implementation of the plan beyond the 
     dissolution date provided in paragraph (3).
       ``(C) Plan monitoring.--The Secretary of the Treasury shall 
     monitor the Association's compliance with the plan and shall 
     continue to review the plan (including any amendments 
     thereto).
       ``(D) Amendment of the plan by the secretary of the 
     treasury.--The Secretary of the Treasury may require the 
     Association to amend the plan (including any amendments to 
     the plan), if the Secretary of the Treasury deems such 
     amendments necessary to ensure full payment of all 
     obligations of the Association.
       ``(E) Implementation by the association.--The Association 
     shall promptly implement the plan (including any amendments 
     to the plan, whether such amendments are made by the 
     Association or are required to be made by the Secretary of 
     the Treasury).
       ``(3) Dissolution of the association.--The Association 
     shall dissolve and the Association's separate existence shall 
     terminate on July 1, 2013, after discharge of all outstanding 
     debt obligations and liquidation pursuant to this subsection. 
     The Association may dissolve pursuant to this subsection 
     prior to such date by notifying the Secretary of Education 
     and the Secretary of the Treasury of the Association's 
     intention to dissolve, unless within 60 days of receipt of 
     such notice the Secretary of Education notifies the 
     Association that the Association continues to be needed to 
     serve as a lender of last resort pursuant to subsection (q) 
     or continues to be needed to purchase loans under an 
     agreement with the Secretary described in paragraph (4)(A). 
     On the dissolution date, the Association shall take the 
     following actions:
       ``(A) Establishment of a trust.--The Association shall, 
     under the terms of an irrevocable trust agreement in form and 
     substance satisfactory to the Secretary of the Treasury, the 
     Association, and the appointed trustee, irrevocably transfer 
     all remaining obligations of the Association to a trust and 
     irrevocably deposit or cause to be deposited into such trust, 
     to be held as trust funds solely for the benefit of holders 
     of the remaining obligations, money or direct noncallable 
     obligations of the United States or any agency thereof for 
     which payment the full faith and credit of the United States 
     is pledged, maturing as to principal and interest in such 
     amounts and at such times as are determined by the Secretary 
     of the Treasury to be sufficient, without consideration of 
     any significant reinvestment of such interest, to pay the 
     principal of, and interest on, the remaining obligations in 
     accordance with their terms.
       ``(B) Use of trust assets.--All money, obligations, or 
     financial assets deposited into the trust pursuant to this 
     subsection shall be applied by the trustee to the payment of 
     the remaining obligations assumed by the trust. Upon the 
     fulfillment of the trustee's duties under the trust, any 
     remaining assets of the trust shall be transferred to the 
     persons who, at the time of the dissolution, were the 
     shareholders of the Association, or to the legal successors 
     or assigns of such persons.
       ``(C) Obligations not transferred to the trust.--The 
     Association shall make proper provision for all other 
     obligations of the Association, including the repurchase or 
     redemption, or the making of proper provision for the 
     repurchase or redemption, of any preferred stock of the 
     Association outstanding.
       ``(D) Transfer of remaining assets.--After compliance with 
     subparagraphs (A) and (C), the Association shall transfer to 
     the shareholders of the Association any remaining assets of 
     the Association.
       ``(4) Restrictions relating to winding up.--
       ``(A) Restrictions on new business activity or acquisition 
     of assets by the association.--
       ``(i) In general.--Beginning on July 1, 2009, the 
     Association shall not engage in any new business activities 
     or acquire any additional program assets (including acquiring 
     assets pursuant to contractual commitments) described in 
     subsection (d) other than in connection with the 
     Association--

       ``(I) serving as a lender of last resort pursuant to 
     subsection (q); and
       ``(II) purchasing loans insured under this part, if the 
     Secretary, with the approval of the Secretary of the 
     Treasury, enters into an agreement with the Association for 
     the continuation or resumption of the Association's secondary 
     market purchase program because the Secretary determines 
     there is inadequate liquidity for loans made under this part.

       ``(ii) Agreement.--The Secretary is authorized to enter 
     into an agreement described in subclause (II) of clause (i) 
     with the Association covering such secondary market 
     activities. Any agreement entered into under such subclause 
     shall cover a period of 12 months, but may be renewed if the 
     Secretary determines that liquidity remains inadequate. The 
     fee provided under subsection (h)(7) shall not apply to loans 
     acquired under any such agreement with the Secretary.
       ``(B) Issuance of debt obligations during the wind up 
     period; attributes of debt obligations.--The Association 
     shall not issue debt obligations which mature later than July 
     1, 2013, except in connection with serving as a lender of 
     last resort pursuant to subsection (q) or with purchasing 
     loans under an agreement with the Secretary as described in 
     subparagraph (A). Nothing in this subsection shall modify the 
     attributes accorded the debt obligations of the Association 
     by this section, regardless of whether such debt obligations 
     are transferred to a trust in accordance with paragraph (3).
       ``(C) Use of association name.--The Association may not 
     transfer or permit the use of the name `Student Loan 
     Marketing Association', `Sallie Mae', or any variation 
     thereof, to or by any entity other than a subsidiary of the 
     Association.''.
       (d) Repeals.--
       (1) In general.--Sections 439 of the Higher Education Act 
     of 1965 (20 U.S.C. 1087-2) and 440 of such Act (as added by 
     subsection (a) of this section) are repealed.
       (2) Effective date.--The repeals made by paragraph (1) 
     shall be effective one year after--
       (A) the date on which all of the obligations of the trust 
     established under section 440(d)(1) of the Higher Education 
     Act of 1965 (as added by subsection (a)) have been 
     extinguished, if a reorganization occurs in accordance with 
     section 440 of such Act; or
       (B) the date on which all of the obligations of the trust 
     established under subsection 439(s)(3)(A) of such Act (as 
     added by subsection (c)) have been extinguished, if a 
     reorganization does not occur in accordance with section 440 
     of such Act.
       (e) Association Names.--Upon dissolution in accordance with 
     section 439(s) of the Higher Education Act of 1965 (20 U.S.C. 
     1087-2), the names ``Student Loan Marketing Association'', 
     ``Sallie Mae'', and any variations thereof may not be used by 
     any entity engaged in any business similar to the business 
     conducted pursuant to section 439 of such Act (as such 
     section was in effect on the date of enactment of this Act) 
     without the approval of the Secretary of the Treasury.
       (f) Right to Enforce.--The Secretary of Education or the 
     Secretary of the Treasury, as appropriate, may request that 
     the Attorney General bring an action in the United States 
     District Court for the District of Columbia for the 
     enforcement of any provision of subsection (e), or may, under 
     the direction or control of the Attorney General, bring such 
     an action. Such court shall have jurisdiction and power to 
     order and require compliance with subsection (e).

     SEC. 603. CONNIE LEE PRIVATIZATION.

       (a) Status of the Corporation and Corporate Powers; 
     Obligations Not Federally Guaranteed.--
       (1) Status of the corporation.--The Corporation shall not 
     be an agency, instrumentality, or establishment of the United 
     States Government, nor a Government corporation, nor a 
     Government controlled corporation, as such terms are defined 
     in section 103 of title 5, United States Code. No action 
     under section 1491 of title 28, United States Code (commonly 
     known as the Tucker Act) shall be allowable against the 
     United States based on the actions of the Corporation.
       (2) Corporate powers.--The Corporation shall be subject to 
     the provisions of this section, and, to the extent not 
     inconsistent with this section, to the District of Columbia 
     Business Corporation Act (or the comparable law of another 
     State, if applicable). The Corporation shall have the powers 
     conferred upon a corporation by the District of Columbia 
     Business Corporation Act (or such other applicable State law) 
     as from time to time in effect in order to conduct the 
     Corporation's affairs as a private, for-profit corporation 
     and to carry out the Corporation's purposes and activities 
     incidental thereto. The Corporation shall have the power to 
     enter into contracts, to execute instruments, to incur 
     liabilities, to provide products and services, and to do all 
     things as are necessary or incidental to the proper 
     management of the Corporation's affairs and the efficient 
     operation of a private, for-profit business.
       (3) Limitation on ownership of stock.--
       (A) Student loan marketing association.--The Student Loan 
     Marketing Association shall not increase its share of the 
     ownership of the Corporation in excess of 42 percent of the 
     shares of stock of the Corporation outstanding on the date of 
     enactment of this Act. The Student Loan Marketing Association 
     shall not control the operation of the Corporation, except 
     that the Student Loan Marketing Association may participate 
     in the election of directors as a shareholder, and may 
     continue to exercise the Student Loan Marketing Association's 
     right to appoint directors under section 754 of the Higher 
     Education Act of 1965 (20 U.S.C. 1132f-3) as long as that 
     section is in effect.
       (B) Prohibition.--Until such time as the Secretary of the 
     Treasury sells the stock of the Corporation owned by the 
     Secretary of Education pursuant to subsection (c), the 
     Student Loan Marketing Association shall not provide 
     financial support or guarantees to the Corporation.
       (C) Financial support or guarantees.--After the Secretary 
     of the Treasury sells the stock of the Corporation owned by 
     the Secretary of Education pursuant to subsection (c), the 
     Student Loan Marketing Association may provide financial 
     support or guarantees to the Corporation, if such support or 
     guarantees are subject to terms and conditions that are no 
     more advantageous to the Corporation than the terms and 
     conditions the Student Loan Marketing Association provides to 
     other entities, including, where applicable, other monoline 
     financial guaranty corporations in which the Student Loan 
     Marketing Association has no ownership interest.
       (4) No federal guarantee.--
       (A) Obligations insured by the corporation.--
       (i) Full faith and credit of the united states.--No 
     obligation that is insured, guaranteed, or otherwise backed 
     by the Corporation shall be deemed to be an obligation that 
     is guaranteed by the full faith and credit of the United 
     States.

[[Page H11722]]

       (ii) Student loan marketing association.--No obligation 
     that is insured, guaranteed, or otherwise backed by the 
     Corporation shall be deemed to be an obligation that is 
     guaranteed by the Student Loan Marketing Association.
       (iii) Special rule.--This paragraph shall not affect the 
     determination of whether such obligation is guaranteed for 
     purposes of Federal income taxes.
       (B) Securities offered by the corporation.--No debt or 
     equity securities of the Corporation shall be deemed to be 
     guaranteed by the full faith and credit of the United States.
       (5) Definition.--The term ``Corporation'' as used in this 
     section means the College Construction Loan Insurance 
     Association as in existence on the day before the date of 
     enactment of this Act, and any successor corporation.
       (b) Related Privatization Requirements.--
       (1) Notice requirements.--
       (A) In general.--During the six-year period following the 
     date of enactment of this Act, the Corporation shall include, 
     in each of the Corporation's contracts for the insurance, 
     guarantee, or reinsurance of obligations, and in each 
     document offering debt or equity securities of the 
     Corporation, a prominent statement providing notice that--
       (i) such obligations or such securities, as the case may 
     be, are not obligations of the United States, nor are such 
     obligations or such securities, as the case may be, 
     guaranteed in any way by the full faith and credit of the 
     United States; and
       (ii) the Corporation is not an instrumentality of the 
     United States.
       (B) Additional notice.--During the five-year period 
     following the sale of stock pursuant to subsection (c)(1), in 
     addition to the notice requirements in subparagraph (A), the 
     Corporation shall include, in each of the contracts and 
     documents referred to in such subparagraph, a prominent 
     statement providing notice that the United States is not an 
     investor in the Corporation.
       (2) Corporate charter.--The Corporation's charter shall be 
     amended as necessary and without delay to conform to the 
     requirements of this section.
       (3) Corporate name.--The name of the Corporation, or of any 
     direct or indirect subsidiary thereof, may not contain the 
     term ``College Construction Loan Insurance Association'', or 
     any substantially similar variation thereof.
       (4) Articles of incorporation.--The Corporation shall amend 
     the Corporation's articles of incorporation without delay to 
     reflect that one of the purposes of the Corporation shall be 
     to guarantee, insure, and reinsure bonds, leases, and other 
     evidences of debt of educational institutions, including 
     Historically Black Colleges and Universities and other 
     academic institutions which are ranked in the lower 
     investment grade category using a nationally recognized 
     credit rating system.
       (5) Requirements until stock sale.--Notwithstanding 
     subsection (d), the requirements of sections 754 and 760 of 
     the Higher Education Act of 1965 (20 U.S.C. 1132f-3 and 
     1132f-9), as such sections were in effect on the day before 
     the date of enactment of this Act, shall continue to be 
     effective until the day immediately following the date of 
     closing of the purchase of the Secretary of Education's stock 
     (or the date of closing of the final purchase, in the case of 
     multiple transactions) pursuant to subsection (c)(1) of this 
     Act.
       (c) Sale of Federally Owned Stock.--
       (1) Purchase by the corporation.--The Secretary of the 
     Treasury shall sell and the Corporation shall purchase, 
     within 90 days after the date of enactment of this Act, the 
     stock of the Corporation held by the Secretary of Education 
     at a price determined by the binding, independent appraisal 
     of a nationally recognized financial firm, except that the 
     90-day period may be extended by mutual agreement of the 
     Secretary of the Treasury and the Corporation to not more 
     than 150 days after the date of enactment of this Act. The 
     appraiser shall be jointly selected by the Secretary of the 
     Treasury and the Corporation. In the event that the Secretary 
     of the Treasury and the Corporation cannot agree on the 
     appraiser, then the Secretary of the Treasury and the 
     Corporation shall name an independent third party to select 
     the appraiser.
       (2) Reimbursement of costs and expenses of sale.--The 
     Secretary of the Treasury shall be reimbursed from the 
     proceeds of the sale of the stock under this subsection for 
     all reasonable costs and expenses related to such sale, 
     except that one-half of all reasonable costs and expenses 
     relating to the independent appraisal under paragraph (1) 
     shall be borne by the Corporation.
       (3) Deposit into account.--Amounts collected from the sale 
     of stock pursuant to this subsection that are not used to 
     reimburse the Secretary of the Treasury pursuant to paragraph 
     (2) shall be deposited into the account established under 
     subsection (e).
       (4) Assistance by the corporation.--The Corporation shall 
     provide such assistance as the Secretary of the Treasury and 
     the Secretary of Education may require to facilitate the sale 
     of the stock under this subsection.
       (5) Report to congress.--Not later than 6 months after the 
     date of enactment of this Act, the Secretary of the Treasury 
     shall report to the appropriate committees of Congress on the 
     completion and terms of the sale of stock of the Corporation 
     pursuant to this subsection.
       (d) Repeal of Statutory Restrictions and Related 
     Provisions.--Part D of title VII of the Higher Education Act 
     of 1965 (20 U.S.C. 1132f et seq.) is repealed.
       (e) Establishment of Account.--
       (1) In general.--Notwithstanding any other provision of 
     law, the District of Columbia Financial Responsibility and 
     Management Assistance Authority shall establish an account to 
     receive--
       (A) amounts collected from the sale and proceeds resulting 
     from the exercise of stock warrants pursuant to section 
     440(c)(9) of the Higher Education Act of 1965;
       (B) amounts and proceeds remitted as compensation for the 
     right to assign the ``Sallie Mae'' name as a trademark or 
     service mark pursuant to section 440(e)(3) of the Higher 
     Education Act of 1965; and
       (C) amounts and proceeds collected from the sale of the 
     stock of the Corporation and deposited pursuant to subsection 
     (c)(3).
       (2) Amounts and Proceeds.--
       (A) Amounts and proceeds relating to sallie mae.--The 
     amounts and proceeds described in subparagraphs (A) and (B) 
     of paragraph (1) shall be used to finance public elementary 
     and secondary school facility construction and repair within 
     the District of Columbia or to carry out the District of 
     Columbia School Reform Act of 1995.
       (B) Amounts and proceeds relating to connie lee.--The 
     amounts and proceeds described in subparagraph (C) of 
     paragraph (1) shall be used to finance public elementary and 
     secondary school facility construction and repair within the 
     District of Columbia.

     SEC. 604. DISCRIMINATION IN SECONDARY MARKETS PROHIBITED.

       Part B of title IV of the Higher Education Act of 1965 (20 
     U.S.C. 1071 et seq.) is amended by adding after section 440 
     (as added by section 602) the following new section:

     ``SEC. 440A. DISCRIMINATION IN SECONDARY MARKETS PROHIBITED.

       ``The Student Loan Marketing Association (and, if the 
     Association is privatized under section 440, any successor 
     entity functioning as a secondary market for loans under this 
     part, including the Holding Company described in such 
     section) shall not engage directly or indirectly in any 
     pattern or practice that results in a denial of a borrower's 
     access to loans under this part because of the borrower's 
     race, sex, color, religion, national origin, age, disability 
     status, income, attendance at a particular eligible 
     institution, length of the borrower's educational program, or 
     the borrower's academic year at an eligible institution.''.

           TITLE VII--MUSEUM AND LIBRARY SERVICES ACT OF 1996

     SECTION 701. SHORT TITLE.

       This title may be cited as the ``Museum and Library 
     Services Act of 1996''.

     SEC. 702. MUSEUM AND LIBRARY SERVICES.

       The Museum Services Act (20 U.S.C. 961 et seq.) is amended 
     to read as follows:

                ``TITLE II--MUSEUM AND LIBRARY SERVICES

                    ``Subtitle A--General Provisions

     ``SEC. 201. SHORT TITLE.

       ``This title may be cited as the `Museum and Library 
     Services Act'.

     ``SEC. 202. GENERAL DEFINITIONS.

       ``As used in this title:
       ``(1) Commission.--The term `Commission' means the National 
     Commission on Libraries and Information Science established 
     under section 3 of the National Commission on Libraries and 
     Information Sciences Act (20 U.S.C. 1502).
       ``(2) Director.--The term `Director' means the Director of 
     the Institute appointed under section 204.
       ``(3) Institute.--The term `Institute' means the Institute 
     of Museum and Library Services established under section 203.
       ``(4) Museum board.--The term `Museum Board' means the 
     National Museum Services Board established under section 275.

     ``SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

       ``(a) Establishment.--There is established, within the 
     National Foundation on the Arts and the Humanities, an 
     Institute of Museum and Library Services.
       ``(b) Offices.--The Institute shall consist of an Office of 
     Museum Services and an Office of Library Services. There 
     shall be a National Museum Services Board in the Office of 
     Museum Services.

     ``SEC. 204. DIRECTOR OF THE INSTITUTE.

       ``(a) Appointment.--
       ``(1) In general.--The Institute shall be headed by a 
     Director, appointed by the President, by and with the advice 
     and consent of the Senate.
       ``(2) Term.--The Director shall serve for a term of 4 
     years.
       ``(3) Qualifications.--Beginning with the first individual 
     appointed to the position of Director after the date of 
     enactment of the Museum and Library Services Act of 1996, 
     every second individual so appointed shall be appointed from 
     among individuals who have special competence with regard to 
     library and information services. Beginning with the second 
     individual appointed to the position of Director after the 
     date of enactment of the Museum and Library Services Act of 
     1996, every second individual so appointed shall be appointed 
     from among individuals who have special competence with 
     regard to museum services.
       ``(b) Compensation.--The Director may be compensated at the 
     rate provided for level III of the Executive Schedule under 
     section 5314 of title 5, United States Code.
       ``(c) Duties and Powers.--The Director shall perform such 
     duties and exercise such powers as may be prescribed by law, 
     including awarding financial assistance for activities 
     described in this title.
       ``(d) Nondelegation.--The Director shall not delegate any 
     of the functions of the Director to any person who is not an 
     officer or employee of the Institute.
       ``(e) Coordination.--The  Director  shall ensure  
     coordination  of  the  policies  and activities of  the  
     Institute  with  the  policies  and activities of  other  
     agencies  and  offices  of  the

[[Page H11723]]

     Federal Government having interest in and responsibilities 
     for the improvement of museums and libraries and information 
     services.

     ``SEC. 205. DEPUTY DIRECTORS.

       ``The Office of Library Services shall be headed by a 
     Deputy Director, who shall be appointed by the Director from 
     among individuals who have a graduate degree in library 
     science and expertise in library and information services. 
     The Office of Museum Services shall be headed by a Deputy 
     Director, who shall be appointed by the Director from among 
     individuals who have expertise in museum services.

     ``SEC. 206. PERSONNEL.

       ``(a) In General.--The Director may, in accordance with 
     applicable provisions of title 5, United States Code, appoint 
     and determine the compensation of such employees as the 
     Director determines to be necessary to carry out the duties 
     of the Institute.
       ``(b) Voluntary Services.--The Director may accept and 
     utilize the voluntary services of individuals and reimburse 
     the individuals for travel expenses, including per diem in 
     lieu of subsistence, in the same amounts and to the same 
     extent as authorized under section 5703 of title 5, United 
     States Code, for persons employed intermittently in Federal 
     Government service.

     ``SEC. 207. CONTRIBUTIONS.

       ``The Institute is authorized to solicit, accept, receive, 
     and invest in the name of the United States, gifts, bequests, 
     or devises of money and other property or services and to use 
     such property of services in furtherance of the functions of 
     the Institute. Any proceeds from such gifts, bequests, or 
     devises, after acceptance by the Institute, shall be paid by 
     the donor or the representative of the donor to the Director. 
     The Director shall enter the proceeds in a special-interest 
     bearing account to the credit of the Institute for the 
     purposes specified in each case.
     ``Subtitle B--Library Services and Technology

     ``SEC. 211. SHORT TITLE.

       ``This subtitle may be cited as the `Library Services and 
     Technology Act'.

     ``SEC. 212. PURPOSE.

       ``It is the purpose of this subtitle--
       ``(1) to consolidate Federal library service programs;
       ``(2) to stimulate excellence and promote access to 
     learning and information resources in all types of libraries 
     for individuals of all ages;
       ``(3) to promote library services that provide all users 
     access to information through State, regional, national and 
     international electronic networks;
       ``(4) to provide linkages among and between libraries; and
       ``(5) to promote targeted library services to people of 
     diverse geographic, cultural, and socioeconomic backgrounds, 
     to individuals with disabilities, and to people with limited 
     functional literacy or information skills.

     SEC. 213. DEFINITIONS.

       ``As used in this subtitle:
       ``(1) Indian tribe.--The term `Indian tribe' means any 
     tribe, band, nation, or other organized group or community, 
     including any Alaska native village, regional corporation, or 
     village corporation, as defined in or established pursuant to 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.), which is recognized by the Secretary of the Interior 
     as eligible for the special programs and services provided by 
     the United States to Indians because of their status as 
     Indians.
       ``(2) Library.--The term `library' includes--
       ``(A) a public library;
       ``(B) a public elementary school or secondary school 
     library;
       ``(C) an academic library;
       ``(D) a research library, which for the purposes of this 
     subtitle means a library that--
       ``(i) makes publicly available library services and 
     materials suitable for scholarly research and not otherwise 
     available to the public; and
       ``(ii) is not an integral part of an institution of higher 
     education; and
       ``(E) a private library, but only if the State in which 
     such private library is located determines that the library 
     should be considered a library for purposes of this subtitle.
       ``(3) Library consortium.--The term `library consortium' 
     means any local, statewide, regional, interstate, or 
     international cooperative association of library entities 
     which provides for the systematic and effective coordination 
     of the resources of school, public, academic, and special 
     libraries and information centers, for improved services for 
     the clientele of such library entities.
       ``(4) State.--The term `State', unless otherwise specified, 
     includes each of the 50 States of the United States, the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau.
       ``(5) State library administrative agency.--The term `State 
     library administrative agency' means the official agency of a 
     State charged by the law of the State with the extension and 
     development of public library services throughout the State.
       ``(6) State plan.--The term `State plan' means the document 
     which gives assurances that the officially designated State 
     library administrative agency has the fiscal and legal 
     authority and capability to administer all aspects of this 
     subtitle, provides assurances for establishing the State's 
     policies, priorities, criteria, and procedures necessary to 
     the implementation of all programs under this subtitle, 
     submits copies for approval as required by regulations 
     promulgated by the Director, identifies a State's library 
     needs, and sets forth the activities to be taken toward 
     meeting the identified needs supported with the assistance of 
     Federal funds made available under this subtitle.

     ``SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     $150,000,000 for fiscal year 1997 and such sums as may be 
     necessary for each of the fiscal years 1998 through 2002 to 
     carry out this subtitle.
       ``(2) Transfer.--The Secretary of Education shall--
       ``(A) transfer promptly to the Director any funds 
     appropriated under the authority of paragraph (1), to enable 
     the Director to carry out this subtitle; and
       ``(B) not exercise any authority concerning the 
     administration of this title other than the transfer 
     described in subparagraph (A).
       ``(b) Forward Funding.--
       ``(1) In general.--To the end of affording the responsible 
     Federal, State, and local officers adequate notice of 
     available Federal financial assistance for carrying out 
     ongoing library activities and projects, appropriations for 
     grants contracts, or other payments under any program under 
     this subtitle are authorized to be included in the 
     appropriations Act for the fiscal year preceding the fiscal 
     year during which such activities and projects shall be 
     carried out.
       ``(2) Additional authorization of appropriations.--In order 
     to effect a transition to the timing of appropriation action 
     authorized by subsection (a), the application of this section 
     may result in the enactment, in a fiscal year, of separate 
     appropriations for a program under this subtitle (whether in 
     the same appropriations Act or otherwise) for two consecutive 
     fiscal years.
       ``(c) Administration.--Not more than 3 percent of the funds 
     appropriated under this section for a fiscal year may be used 
     to pay for the Federal administrative costs of carrying out 
     this subtitle.

                ``CHAPTER 1--BASIC PROGRAM REQUIREMENTS

     ``SEC. 221. RESERVATIONS AND ALLOTMENTS.

       ``(a) Reservations.--
       ``(1) In general.--From the amount appropriated under the 
     authority of section 214 for any fiscal year, the Director--
       ``(A) shall reserve 1\1/2\ percent to award grants in 
     accordance with section 261; and
       ``(B) shall reserve 4 percent to award national leadership 
     grants or contracts in accordance with section 262.
       ``(2) Special rule.--If the funds reserved pursuant to 
     paragraph (1)(B) for a fiscal year have not been obligated by 
     the end of such fiscal year, then such funds shall be 
     allotted in accordance with subsection (b) for the fiscal 
     year succeeding the fiscal year for which the funds were so 
     reserved.
       ``(b) Allotments.--
       ``(1) In general.--From the sums appropriated under the 
     authority of section 214 and not reserved under subsection 
     (a) for any fiscal year, the Director shall award grants from 
     minimum allotments, as determined under paragraph (3), to 
     each State. Any sums remaining after minimum allotments are 
     made for such year shall be allotted in the manner set forth 
     in paragraph (2).
       ``(2) Remainder.--From the remainder of any sums 
     appropriated under the authority of section 214 that are not 
     reserved under subsection (a) and not allotted under 
     paragraph (1) for any fiscal year, the Director shall award 
     grants to each State in an amount that bears the same 
     relation to such remainder as the population of the State 
     bears to the population of all States.
       ``(3) Minimum allotment.--
       ``(A) In general.--For the purposes of this subsection, the 
     minimum allotment for each State shall be $340,000, except 
     that the minimum allotment shall be $40,000 in the case of 
     the United States Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau.
       ``(B) Ratable reductions.--If the sum appropriated under 
     the authority of section 214 and not reserved under 
     subsection (a) for any fiscal year is insufficient to fully 
     satisfy the aggregate of the minimum allotments for all 
     States for that purpose for such year, each of such minimum 
     allotments shall be reduced ratably.
       ``(C) Special rule.--
       ``(i) In general.--Notwithstanding any other provision of 
     this subsection and using funds allotted for the Republic of 
     the Marshall Islands, the Federated States of Micronesia, and 
     the Republic of Palau under this subsection, the Director 
     shall award grants to Guam, American Samoa, the Commonwealth 
     of the Northern Mariana Islands, the Federated States of 
     Micronesia, or the Republic of Palau to carry out activities 
     described in this subtitle in accordance with the provisions 
     of this subtitle that the Director determines are not 
     inconsistent with this subparagraph.
       ``(ii) Award basis.--The Director shall award grants 
     pursuant to clause (i) on a competitive basis and pursuant to 
     recommendations from the Pacific Region Educational 
     Laboratory in Honolulu, Hawaii.
       ``(iii) Termination of eligibility.--Notwithstanding any 
     other provision of law, the Republic of the Marshall Islands, 
     the Federated States of Micronesia, and the Republic of Palau 
     shall not receive any funds under this subtitle for any 
     fiscal year that begins after September 30, 2001.
       ``(iv) Administrative costs.--The Director may provide not 
     more than 5 percent of the funds made available for grants 
     under this subparagraph to pay the administrative costs of 
     the

[[Page H11724]]

     Pacific Region Educational Laboratory regarding activities 
     assisted under this subparagraph.
       ``(4) Data.--The population of each State and of all the 
     States shall be determined by the Director on the basis of 
     the most recent data available from the Bureau of the Census.

     ``SEC. 222. ADMINISTRATION.

       ``(a) In General.--Not more than 4 percent of the total 
     amount of funds received under this subtitle for any fiscal 
     year by a State may be used for administrative costs.
       ``(b) Construction.--Nothing in this section shall be 
     construed to limit spending for evaluation costs under 
     section 224(c) from sources other than this subtitle.

     ``SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE OF 
                   EFFORT REQUIREMENTS.

       ``(a) Payments.--Subject to appropriations provided 
     pursuant to section 214, the Director shall pay to each State 
     library administrative agency having a State plan approved 
     under section 224 the Federal share of the cost of the 
     activities described in the State plan.
       ``(b) Federal Share.--
       ``(1) In general.--The Federal share shall be 66 percent.
       ``(2) Non-federal share.--The non-Federal share of payments 
     shall be provided from non-Federal, State, or local sources.
       ``(c) Maintenance of Effort.--
       ``(1) State expenditures.--
       ``(A) Requirement.--
       ``(i) In general.--The amount otherwise payable to a State 
     for a fiscal year pursuant to an allotment under this chapter 
     shall be reduced if the level of State expenditures, as 
     described in paragraph (2), for the previous fiscal year is 
     less than the average of the total of such expenditures for 
     the 3 fiscal years preceding that previous fiscal year. The 
     amount of the reduction in allotment for any fiscal year 
     shall be equal to the amount by which the level of such State 
     expenditures for the fiscal year for which the determination 
     is made is less than the average of the total of such 
     expenditures for the 3 fiscal years preceding the fiscal year 
     for which the determination is made.
       ``(ii) Calculation.--Any decrease in State expenditures 
     resulting from the application of subparagraph (B) shall be 
     excluded from the calculation of the average level of State 
     expenditures for any 3-year period described in clause (i).
       ``(B) Decrease in federal support.--If the amount made 
     available under this subtitle for a fiscal year is less than 
     the amount made available under this subtitle for the 
     preceding fiscal year, then the expenditures required by 
     subparagraph (A) for such preceding fiscal year shall be 
     decreased by the same percentage as the percentage decrease 
     in the amount so made available.
       ``(2) Level of state expenditures.--The level of State 
     expenditures for the purposes of paragraph (1) shall include 
     all State dollars expended by the State library 
     administrative agency for library programs that are 
     consistent with the purposes of this subtitle. All funds 
     included in the maintenance of effort calculation under this 
     subsection shall be expended during the fiscal year for which 
     the determination is made, and shall not include capital 
     expenditures, special one-time project costs, or similar 
     windfalls.
       ``(3) Waiver.--The Director may waive the requirements of 
     paragraph (1) if the Director determines that such a waiver 
     would be equitable due to exceptional or uncontrollable 
     circumstances such as a natural disaster or a precipitous and 
     unforeseen decline in the financial resources of the State.

     ``SEC. 224. STATE PLANS.

       ``(a) State Plan Required.--
       ``(1) In general.--In order to be eligible to receive a 
     grant under this subtitle, a State library administrative 
     agency shall submit a State plan to the Director not later 
     than April 1, 1997.
       ``(2) Duration.--The State plan shall cover a period of 5 
     fiscal years.
       ``(3) Revisions.--If a State library administrative agency 
     makes a substantive revision to its State plan, then the 
     State library administrative agency shall submit to the 
     Director an amendment to the State plan containing such 
     revision not later than April 1 of the fiscal year preceding 
     the fiscal year for which the amendment will be effective.
       ``(b) Contents.--The State plan shall--
       ``(1) establish goals, and specify priorities, for the 
     State consistent with the purposes of this subtitle;
       ``(2) describe activities that are consistent with the 
     goals and priorities established under paragraph (1), the 
     purposes of this subtitle, and section 231, that the State 
     library administrative agency will carry out during such year 
     using such grant;
       ``(3) describe the procedures that such agency will use to 
     carry out the activities described in paragraph (2);
       ``(4) describe the methodology that such agency will use to 
     evaluate the success of the activities established under 
     paragraph (2) in achieving the goals and meeting the 
     priorities described in paragraph (1);
       ``(5) describe the procedures that such agency will use to 
     involve libraries and library users throughout the State in 
     policy decisions regarding implementation of this subtitle; 
     and
       ``(6) provide assurances satisfactory to the Director that 
     such agency will make such reports, in such form and 
     containing such information, as the Director may reasonably 
     require to carry out this subtitle and to determine the 
     extent to which funds provided under this subtitle have been 
     effective in carrying out the purposes of this subtitle.
       ``(c) Evaluation and Report.--Each State library 
     administrative agency receiving a grant under this subtitle 
     shall independently evaluate, and report to the Director 
     regarding, the activities assisted under this subtitle, prior 
     to the end of the 5-year plan.
       ``(d) Information.--Each library receiving assistance under 
     this subtitle shall submit to the State library 
     administrative agency such information as such agency may 
     require to meet the requirements of subsection (c).
       ``(e) Approval.--
       ``(1) In general.--The Director shall approve any State 
     plan under this subtitle that meets the requirements of this 
     subtitle and provides satisfactory assurances that the 
     provisions of such plan will be carried out.
       ``(2) Public availability.--Each State library 
     administrative agency receiving a grant under this subtitle 
     shall make the State plan available to the public
       ``(3) Administration.--If the Director determines that the 
     State plan does not meet the requirements of this section, 
     the Director shall--
       ``(A) immediately notify the State library administrative 
     agency of such determination and the reasons for such 
     determination;
       ``(B) offer the State library administrative agency the 
     opportunity to revise its State plan;
       ``(C) provide technical assistance in order to assist the 
     State library administrative agency in meeting the 
     requirements of this section; and
       ``(D) provide the State library administrative agency the 
     opportunity for a hearing.

                     ``CHAPTER 2--LIBRARY PROGRAMS

     ``SEC. 231. GRANTS TO STATES.

       ``(a) In General.--Of the funds provided to a State library 
     administrative agency under section 214, such agency shall 
     expend, either directly or through subgrants of cooperative 
     agreements, at least 96 percent of such funds for--
       ``(1)(A) establishing or enhancing electronic linkages 
     among or between libraries;
       ``(B) electronically linking libraries with educational, 
     social, or information services;
       ``(C) assisting libraries in accessing information through 
     electronic networks;
       ``(D) encouraging libraries in different areas, and 
     encouraging different types of libraries, to establish 
     consortia and share resources; or
       ``(E) paying costs for libraries to acquire or share 
     computer systems and telecommunications technologies; and
       ``(2) targeting library and information services to persons 
     having difficulty using a library and to underserved urban 
     and rural communities, including children (from birth through 
     age 17) from families with incomes below the poverty line (as 
     defined by the Office of Management and Budget and revised 
     annually in accordance with section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a 
     family of the size involved.
       ``(b) Special Rule.--Each State library administrative 
     agency receiving funds under this chapter may apportion the 
     funds available for the purposes described in subsection (a) 
     between the two purposes described in paragraphs (1) and (2) 
     of such subsection, as appropriate, to meet the needs of the 
     individual State.

                 ``CHAPTER 3--ADMINISTRATIVE PROVISIONS

                   ``Subchapter A--State Requirements

     ``SEC. 251. STATE ADVISORY COUNCILS.

       ``Each State desiring assistance under this subtitle may 
     establish a State advisory council which is broadly 
     representative of the library entities in the State, 
     including public, school, academic, special, and 
     institutional libraries, and libraries serving individuals 
     with disabilities.

                  ``Subchapter B--Federal Requirements

     ``SEC. 261. SERVICES FOR INDIAN TRIBES.

       ``From amounts reserved under section 221(a)(1)(A) for any 
     fiscal year the Director shall award grants to organizations 
     primarily serving and representing Indian tribes to enable 
     such organizations to carry out the activities described in 
     section 231.

     ``SEC. 262. NATIONAL LEADERSHIP GRANTS OR CONTRACTS.

       ``(a) In General.--From the amounts reserved under section 
     221(a)(1)(B) for any fiscal year the Director shall establish 
     and carry out a program awarding national leadership grants 
     or contracts to enhance the quality of library services 
     nationwide and to provide coordination between libraries and 
     museums. Such grants or contracts shall be used for 
     activities that may include--
       ``(1) education and training of persons in library and 
     information science, particularly in areas of new technology 
     and other critical needs, including graduate fellowships, 
     traineeships, institutes, or other programs;
       ``(2) research and demonstration projects related to the 
     improvement of libraries, education in library and 
     information science, enhancement of library services through 
     effective and efficient use of new technologies, and 
     dissemination of information derived from such projects;
       ``(3) preservation of digitization of library materials and 
     resources, giving priority to projects emphasizing 
     coordination, avoidance of duplication, and access by 
     researchers beyond the institution or library entity 
     undertaking the project; and
       ``(4) model programs demonstrating cooperative efforts 
     between libraries and museums.
       ``(b) Grants or Contracts.--
       ``(1) In general.--The Director may carry out the 
     activities described in subsection (a) by awarding grants to, 
     or entering into contracts with, libraries, agencies, 
     institutions of higher education, or museums, where 
     appropriate.
       ``(2) Competitive basis.--Grants and contracts under this 
     section shall be awarded on a competitive basis.
         ``(c) Special Rule.--The Director shall make every effort 
     to ensure that activities assisted under this section are 
     administered by appropriate library and museum professionals 
     or experts.

[[Page H11725]]

     ``SEC. 263. STATE AND LOCAL INITIATIVES.

       ``Nothing in this subtitle shall be construed to interfere 
     with State and local initiatives and responsibility in the 
     conduct of library services. The administration of libraries, 
     the selection of personnel and library books and materials, 
     and insofar as consistent with the purposes of this subtitle, 
     the determination of the best uses of the funds provided 
     under this subtitle, shall be reserved for the States and 
     their local subdivisions.

                     ``Subtitle C--Museum Services

     ``SEC. 271. PURPOSE.

       ``It is the purpose of this subtitle--
       ``(1) to encourage and assist museums in their educational 
     role, in conjunction with formal systems of elementary, 
     secondary, and postsecondary education and with programs of 
     nonformal education for all age groups;
       ``(2) to assist museums in modernizing their methods and 
     facilities so that the museums are better able to conserve 
     the cultural, historic, and scientific heritage of the United 
     States; and
       ``(3) to ease the financial burden borne by museums as a 
     result of their increasing use by the public.

     ``SEC. 272. DEFINITIONS.

       ``As used in this subtitle:
       ``(1) Museum.--The term `museum' means a public or private 
     nonprofit agency or institution organized on a permanent 
     basis for essentially educational or aesthetic purposes, that 
     utilizes a professional staff, owns or utilizes tangible 
     objects, cares for the tangible objects, and exhibits the 
     tangible objects to the public on a regular basis.
       ``(2) State.--The term `State' means each of the 50 States 
     of the United States, the District of Columbia, the 
     Commomwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.

     ``SEC. 273. MUSEUM SERVICES ACTIVITIES.

         ``(a) Grants.--The Director, subject to the policy 
     direction of the Museum Board, may make grants to museums to 
     pay for the Federal share of the cost of increasing and 
     improving museum services, through such activities as--
       ``(1) programs that enable museums to construct or install 
     displays, interpretations, and exhibitions in order to 
     improve museum services provided to the public;
       ``(2) assisting museums in developing and maintaining 
     professionally trained or otherwise experienced staff to meet 
     the needs of the museums;
       ``(3) assisting museums in meeting the administrative costs 
     of preserving and maintaining the collections of the museums, 
     exhibiting the collections to the public, and providing 
     educational programs to the public through the use of the 
     collections;
       ``(4) assisting museums in cooperating with each other in 
     developing traveling exhibitions, meeting transportation 
     costs, and identifying and locating collections available for 
     loan;
       ``(5) assisting museums in the conservation of their 
     collections;
       ``(6) developing and carrying out specialized programs for 
     specific segments of the public, such as programs for urban 
     neighborhoods, rural areas, Indian reservations, and penal 
     and other State institutions; and
       ``(7) model programs demonstrating cooperative efforts 
     between libraries and museums.
         ``(b) Contracts and Cooperative Agreements.--
       ``(1) Projects to strengthen museum services.--The 
     Director, subject to the policy direction of the Museum 
     Board, is authorized to enter into contracts and cooperative 
     agreements with appropriate entities, as determined by the 
     Director, to pay for the Federal share of enabling the 
     entities to undertake projects designed to strengthen museum 
     services, except that any contracts or cooperative agreements 
     entered into pursuant to this subsection shall be 
     effective only to such extent or in such amounts as are 
     provided in appropriations Acts.
       ``(2) Limitation on amount.--The aggregate amount of 
     financial assistance made available under this subsection for 
     a fiscal year shall not exceed 15 percent of the amount 
     appropriated under this subtitle for such fiscal year.
       ``(3) Operational expenses.--No financial assistance may be 
     provided under this subsection to pay for operational 
     expenses.
       ``(c) Federal Share.--
       ``(1) 50 Percent.--Except as provided in paragraph (2), the 
     Federal share described in subsection (a) and (b) shall be 
     not more than 50 percent.
       ``(2) Greater than 50 percent.--The Director may use not 
     more than 20 percent of the funds made available under this 
     subtitle for a fiscal year to make grants under subsection 
     (a), or enter into contracts or agreements under subsection 
     (b), for which the Federal share may be greater than 50 
     percent.
       ``(d) Review and Evaluation.--The Director shall establish 
     procedures for reviewing and evaluating grants, contracts, 
     and cooperative agreements made or entered into under this 
     subtitle. Procedures for reviewing grant applications or 
     contracts and cooperative agreements for financial assistance 
     under this subtitle shall not be subject to any review 
     outside of the Institute.

     ``SEC. 274. AWARD.

       ``The Director, with the advice of the Museum Board, may 
     annually award a National Award for Museum Service to 
     outstanding museums that have made significant contributions 
     in service to their communities.

     SEC. 275. NATIONAL MUSEUM SERVICES BOARD.

       ``(a) Establishment.--There is established in the Institute 
     a National Museum Services Board.
       ``(b) Composition and Qualifications.--
       ``(1) Composition.--The Museum Board shall consist of the 
     Director and 14 members appointed by the President, by and 
     with the advice and consent of the Senate.
       ``(2) Qualifications.--The appointive members of the Museum 
     Board shall be selected from among citizens of the United 
     States--
       ``(A) who are members of the general public;
       ``(B) who are or have been affiliated with--
       ``(i) resources that, collectively, are broadly 
     representative of the curatorial, conservation, educational, 
     and cultural resources of the United States; or
       ``(ii) museums that, collectively, are broadly 
     representative of various types of museums, including museums 
     relating to science, history, technology, art, zoos, and 
     botanical gardens; and
       ``(C) who are recognized for their broad knowledge, 
     expertise, or experience in museums or commitment to museums.
       ``(3) Georgraphic and other representation.--Members of the 
     Museum Board shall be appointed to reflect persons from 
     various geographic regions of the United States. The Museum 
     Board may not include, at any time, more than 3 members from 
     a single State. In making such appointments, the President 
     shall give due regard to equitable representation of women, 
     minorities, and persons with disabilities who are involved 
     with museums.
       ``(c) Terms.--
       ``(1) In general.--Each appointive member of the Museum 
     Board shall serve for a term of 5 years, except that--
       ``(A) of the members first appointed, 3 shall serve for 
     terms of 5 years, 3 shall serve for terms of 4 years, 3 shall 
     serve for terms of 3 years, 3 shall serve for terms of 2 
     years, and 2 shall serve for terms of 1 year, as designated 
     by the President at the time of nomination for appointment; 
     and
       ``(B) any member appointed to fill a vacancy shall serve 
     for the remainder of the term for which the predecessor of 
     the member was appointed.
       ``(2) Reappointement.--No member of the Museum Board who 
     has been a member for more than 7 consecutive years shall be 
     eligible for reappointment.
       ``(3) Service until successor takes office.--
     Notwithstanding any other provision of this subsection, a 
     member of the Museum Board shall serve after the expiration 
     of the term of the member until the successor to the member 
     takes office.
       ``(d) Duties and Powers.--The Museum Board shall have the 
     responsibility to advise the Director on general policies 
     with respect to the duties, powers, and authority of the 
     Institute relating to museum services, including general 
     policies with respect to--
       ``(1) financial assistance awarded under this subtitle for 
     museum services; and
       ``(2) projects described in section 262(a)(4).
       ``(e) Chairperson.--The President shall designate 1 of the 
     appointive members of the Museum Board as Chairperson of the 
     Museum Board.
       ``(f) Meetings.--
       ``(1) In general.--The Museum Board shall meet--
       ``(A) not less than 3 times each year, including--
       ``(i) not less than 2 times each year separately; and
       ``(ii) not less than 1 time each year in a joint meeting 
     with the Commission, convened for purposes of making general 
     policies with respect to financial assistance for projects 
     described in section 262(a)(4); and
       ``(B) at the call of the Director.
       ``(2) Vote.--All decisions by the Museum Board with respect 
     to the exercise of the duties and powers of the Museum Board 
     shall be made by a majority vote of the members of the Museum 
     Board who are present. All decisions by the Commission and 
     the Museum Board with respect to the policies described in 
     paragraph (1)(A)(ii) shall be made by a \2/3\ majority vote 
     of the total number of the members of the Commission and the 
     Museum Board who are present.
       ``(g) Quorum.--A majority of the members of the Museum 
     Board shall constitute a quorum for the conduct of business 
     at official meetings of the Museum Board, but a lesser number 
     of members may hold hearings. A majority of the members of 
     the Commission and a majority of the members of the Museum 
     Board shall constitute a quorum for the conduct of business 
     at official joint meeting of the Commission and the Museum 
     Board.
       ``(h) Compensation and Travel Expenses.--
       ``(1) Compensation.--Each member of the Museum Board who is 
     not an officer or employee of the Federal Government may be 
     compensated at a rate to be fixed by the President, but not 
     to exceed the daily equivalent of the maximum rate authorized 
     for a position above grade GS-15 of the General Schedule 
     under section 5108 of title 5, United States Code, for each 
     day (including travel time) during which such member is 
     engaged in the performance of the duties of the Museum Board. 
     All members of the Museum Board who are officers or employees 
     of the Federal Government shall serve without compensation in 
     addition to compensation received for their services as 
     officers or employees of the Federal Government.
       ``(2) Travel expenses.--The members of the Museum Board may 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, in the same amounts and to the same extent, as 
     authorized under section 5703 of title 5, United States Code, 
     for persons employed intermittently in Federal Government 
     service.
       ``(i) Coordination.--The Museum Board, with the advice of 
     the Director, shall take steps to ensure that the policies 
     and activities of the Institute are coordinated with other 
     activities of the Federal Government.

[[Page H11726]]

     ``SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Grants.--For the purpose of carrying out this 
     subtitle, there are authorized to be appropriated to the 
     Director $28,700,000 for the fiscal year 1997, and such sums 
     as may be necessary for each of the fiscal years 1998 through 
     2002.
       ``(b) Administration.--Not more than 10 percent of the 
     funds appropriated under this section for a fiscal year may 
     be used to pay for the administrative costs of carrying out 
     this subtitle.
       ``(c) Sums Remaining Available.--Sums appropriated pursuant 
     to subsection (a) for any fiscal year shall remain available 
     for obligation until expended.''.

     SEC. 703. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION 
                   SCIENCE.

       (a) Functions.--Section 5 of the National Commission on 
     Libraries and Information Science Act (20 U.S.C. 1504) is 
     amended--
       (1) by redesignating subsections (b) through (d) as 
     subsections (d) through (f), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) The Commission shall have the responsibility to 
     advise the Director of the Institute of Museum and Library 
     Services on general policies with respect to the duties, 
     powers, and authority of the Institute of Museum and Library 
     Services relating to library services, including--
       ``(1) general policies with respect to--
       ``(A) financial assistance awarded under the Museum and 
     Library Services Act for library services; and
       ``(B) projects described in section 262(a)(4) of such Act; 
     and
       ``(2) measures to ensure that the policies and activities 
     of the Institute of Museum and Library Services are 
     coordinated with other activities of the Federal 
     Government.
       ``(c)(1) The Commission shall meet not less than 1 time 
     each year in a joint meeting with the National Museum 
     Services Board, convened for purposes of providing advice on 
     general policy with respect to financial assistance for 
     projects described in section 262(a)(4) of such Act.
       ``(2) All decisions by the Commission and the National 
     Museum Services Board with respect to the advice on general 
     policy described in paragraph (1) shall be made by a \2/3\ 
     majority vote of the total number of the members of the 
     Commission and the National Museum Services Board who are 
     present.
       ``(3) A majority of the members of the Commission and a 
     majority of the members of the National Museum Services Board 
     shall constitute a quorum for the conduct of business at 
     official joint meetings of the Commission and the National 
     Museum Services Board.''.
       (b) Membership.--Section 6 of the National Commission on 
     Libraries and Information Science Act (20 U.S.C. 1505) is 
     amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``Librarian of 
     Congress'' and inserting ``Librarian of Congress, the 
     Director of the Institute of Museum and Library Services (who 
     shall serve as an ex officio, nonvoting member),'';
       (B) in the second sentence--
       (i) by striking ``special competence or interest in'' and 
     inserting ``special competence in or knowledge of; and
       (ii) by inserting before the period the following: ``and at 
     least one other of whom shall be knowledgeable with respect 
     to the library and information service and science needs of 
     the elderly'';
       (C) in the third sentence, by inserting ``appointive'' 
     before ``members''; and
       (D) in the last sentence, by striking ``term and at least'' 
     and all that follows and inserting ``term.''; and
       (2) in subsection (b), by striking ``the rate specified'' 
     and all that follows through ``and while'' and inserting 
     ``the daily equivalent of the maximum rate authorized for a 
     position above grade GS-15 of the General Schedule under 
     section 5108 of title 5, United States Code, for each day 
     (including travel-time) during which the members are engaged 
     in the business of the Commission. While''.

     SEC. 704. TRANSFER OF FUNCTIONS FROM INSTITUTE OF MUSEUM 
                   SERVICES.

       (a) Definitions.--For purposes of this section, unless 
     otherwise provided or indicated by the context--
       (1) the term ``Federal agency'' has the meaning given to 
     the term ``agency'' by section 551(1) of title 5, United 
     States Code;
       (2) the term ``function'' means any duty, obligation, 
     power, authority, responsibility, right, privilege, activity, 
     or program; and
       (3) the term ``office'' includes any office, 
     administration, agency, institute, unit, organizational 
     entity, or component thereof.
       (b) Transfer of Functions From the Institute of Museum 
     Services and the Library Program Office.--There are 
     transferred to the Director of the Institute of Museum and 
     Library Services established under section 203 of the Museum 
     and Library Services established under section 203 of the 
     Museum and Library Services Act--
       (1) all functions that the Director of the Institute of 
     Museum Services exercised before the date of enactment of 
     this section (including all related functions of any officer 
     or employee of the Institute of Museum Services); and
       (2) all functions that the Director of Library Programs in 
     the Office of Educational Research and Improvement in the 
     Department of Education exercised before the date of 
     enactment of this section and any related function of any 
     officer or employee of the Department of Education.
       (c) Determinations of Certain Functions by the Office of 
     Management and Budget.--If necessary, the Office of 
     Management and Budget shall make any determination of the 
     functions that are transferred under subsection (b).
         (d) Delegation and Assignment.--Except where otherwise 
     expressly prohibited by law or otherwise provided by this 
     section, the Director of the Institute of Museum and Library 
     Services may delegate any of the functions transferred to the 
     Director of the Institute of Museum and Library Services by 
     this section and any function transferred or granted to such 
     Director of the Institute of Museum and Library Services 
     after the effective date of this section to such officers and 
     employees of the Institute of Museum and Library Services as 
     the Director of the Institute of Museum and Library Services 
     may designate, and may authorize successive redelegations of 
     such functions as may be necessary or appropriate, except 
     that any delegation of any such functions with respect to 
     libraries shall be made to the Deputy Director of the Office 
     of Library Services and with respect to museums shall be made 
     to the Deputy Director of the Office of Museum Services. No 
     delegation of functions by the Director of the Institute 
     of Museum and Library Services under this section or under 
     any other provision of this section shall relieve such 
     Director of the Institute of Museum and Library Services 
     of responsibility for the administration of such 
     functions.
       (e) Reorganization.--The Director of the Institute of 
     Museum and Library Services may allocate or reallocate any 
     function transferred under subsection (b) among the officers 
     of the Institute of Museum and Library Services, and may 
     establish, consolidate, alter, or discontinue such 
     organizational entities in the Institute of Museum and 
     Library Services as may be necessary or appropriate.
       (f) Rules.--The Director of the Institute of Museum and 
     Library Services may prescribe, in accordance with chapters 5 
     and 6 of title 5, United States Code, such rules and 
     regulations as the Director of the Institute of Museum and 
     Library Services determines to be necessary or appropriate to 
     administer and manage the functions of the Institute of 
     Museum and Library Services.
       (g) Transfer and Allocations of Appropriations and 
     Personnel.--Except as otherwise provided in this section, the 
     personnel employed in connection with, and the assets, 
     liabilities, contracts, property, records, and unexpended 
     balances of appropriations, authorizations, allocations, and 
     other funds employed, used, held, arising from, available to, 
     or to be made available in connection with the functions 
     transferred by this section, subject to section 1531 of title 
     31, United States Code, shall be transferred to the Institute 
     of Museum and Library Services. Unexpended funds transferred 
     pursuant to this subsection shall be used only for the 
     purposes for which the funds were originally authorized and 
     appropriated.
       (h) Incidental Transfers.--The Director of the Office of 
     Management and Budget, at such time or times as the Director 
     shall provide, may make such determinations as may be 
     necessary with regard to the functions transferred by this 
     section, and make such additional incidental dispositions of 
     personnel, assets, liabilities, grants, contracts, property, 
     records, and unexpended balances of appropriations, 
     authorizations, allocations, and other funds held, used, 
     arising from, available to, or to be made available in 
     connection with such functions, as may be necessary to carry 
     out this section. The Director of the Office of Management 
     and Budget shall provide for the termination of the affairs 
     of all entities terminated by this section and for such 
     further measures and dispositions as may be necessary to 
     effectuate the purposes of this section.
       (i) Effect on Personnel.--
       (1) In general.--Except as otherwise provided by this 
     section, the transfer pursuant to this section of full-time 
     personnel (except special Government employees) and part-time 
     personnel holding permanent positions shall not cause any 
     such employee to be separated or reduced in grade or 
     compensation for 1 year after the date of transfer of such 
     employee under this section.
       (2) Executive schedule positions.--Except as otherwise 
     provided in this section, any person who, on the day 
     preceding the effective date of this section, held a position 
     compensated in accordance with the Executive Schedule 
     prescribed in chapter 53 of title 5, United States Code, and 
     who, without a break in service, is appointed in the 
     Institute of Museum and Library Services to a position having 
     duties comparable to the duties performed immediately 
     preceding such appointment shall continue to be compensated 
     in such new position at not less than the rate provided for 
     such previous position, for the duration of the service of 
     such person in such new position.
       (j) Savings Provisions.--
       (1) Continuing effect of legal documents.--All orders, 
     determinations, rules, regulations, permits, agreements, 
     grants, contracts, certificates, licenses, registrations, 
     privileges, and other administrative actions--
       (A) that have been issued, made, granted, or allowed to 
     become effective by the President, any Federal agency or 
     official of a Federal agency, or by a court of competent 
     jurisdiction, in the performance of functions that are 
     transferred under this section; and
       (B) that were in effect before the effective date of this 
     section, or were final before the effective date of this 
     section and are to become effective on or after the effective 
     date of this section;

     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the President, the Director of the 
     Institute of Museum and Library Services or other authorized 
     official, a court of competent jurisdiction, or by operation 
     of law.
       (2) Proceedings not affected.--This section shall not 
     affect any proceedings, including notices of proposed 
     rulemaking, or any application

[[Page H11727]]

     for any license, permit, certificate, or financial assistance 
     pending before the Institute of Museum Services on the 
     effective date of this section, with respect to functions 
     transferred by this section. Such proceedings and 
     applications shall be continued. Orders shall be issued in 
     such proceedings, appeals, shall be taken from the orders, 
     and payments shall be made pursuant to the orders, as if this 
     section had not been enacted, and orders issued in any such 
     proceedings shall continue in effect until modified, 
     terminated, superseded, or revoked by a duly authorized 
     official, by a court of competent jurisdiction, or by 
     operation of law. Nothing in this paragraph shall be 
     construed to prohibit the discontinuance or modification of 
     any such proceeding under the same terms and conditions and 
     to the same extent that such proceeding could have been 
     discontinued or modified if this section had not been 
     enacted.
       (3) Suits not affected.--This section shall not affect 
     suits commenced before the effective date of this section, 
     and in all such suits, proceedings shall be had, appeals 
     taken, and judgments rendered in the same manner and with the 
     same effect as if this section had not been enacted.
       (4) Nonabatement of actions.--No suit, action, or other 
     proceeding commenced by or against the Institute of Museum 
     Services, or by or against  any individual in the official 
     capacity of such individual as an officer of the Institute 
     of Museum Services, shall abate by reason of the enactment 
     of this section.
       (5) Administrative actions relating to promulgation of 
     regulations.--Any administrative action relating to the 
     preparation or promulgation of a regulation by the Institute 
     of Museum Services relating to a function transferred under 
     this section may be continued by the Institute of Museum and 
     Library Services with the same effect as if this section had 
     not been enacted.
       (k) Transition.--The Director of the Institute of Museum 
     and Library Services may utilize--
       (1) the services of such officers, employees, and other 
     personnel of the Institute of Museum Services with respect to 
     functions transferred to the Institute of Museum and Library 
     Services by this section; and
       (2) funds appropriated to such functions for such period of 
     time as may reasonably be needed to facilitate the orderly 
     implementation of this section.
       (l) References.--A reference in any other Federal law, 
     Executive order, rule, regulation, or delegation of 
     authority, or any document of or relating to--
       (1) the Director of the Institute of Museum Services with 
     regard to functions transferred under subsection (b), shall 
     be deemed to refer to the Director of the Institute of Museum 
     and Library Services; and
       (2) the Institute of Museum Services with regard to 
     functions transferred under subsection (b), shall be deemed 
     to refer to the Institute of Museum and Library Services.
       (m) Additional Conforming Amendments.--
       (1) Recommended legislation.--After consultation with the 
     appropriate committees of Congress and the director of the 
     Office of Management and Budget, the Director of the 
     Institute of Museum and Library Services shall prepare and 
     submit to the appropriate committees of Congress recommended 
     legislation containing technical and conforming amendments to 
     reflect the changes made by this section.
       (2) Submission to congress.--Not later than 6 months after 
     the effective date of this section, the Director of the 
     Institute of Museum and Library Services shall submit to the 
     appropriate committees of Congress the recommended 
     legislation referred to under paragraph (1).

     SEC. 705. SERVICE OF INDIVIDUALS SERVING ON DATE OF 
                   ENACTMENT.

       Notwithstanding section 204 of the Museum of Library 
     Services Act, the individual who was appointed to the 
     position of Director of the Institute of Museum Services 
     under section 205 of the Museum Services Act (as such section 
     was in effect on the day before the date of enactment of this 
     Act) and who is serving in such position on the day before 
     the date of enactment of this Act shall serve as the first 
     Director of the Institute of Museum and Library Services 
     under section 204 of the Museum and Library Services Act (as 
     added by section 2 of this Act), and shall serve at the 
     pleasure of the President.

     SEC. 706. CONSIDERATION.

       Consistent with title 5, United States Code, in appointing 
     employees of the Office of Library Services, the Director of 
     the Institute of Museum and Library Services shall give 
     strong consideration to individuals with experience in 
     administering State-based and national library and 
     information services programs.

     SEC. 707. TRANSITION AND TRANSFER OF FUNDS.

       (a) Transition.--The Director of the Office of Management 
     and Budget shall take appropriate measures to ensure an 
     orderly transition from the activities previously 
     administered by the Director of Library Programs in the 
     Office of Educational Research and Improvement in the 
     Department of Education to the activities administered by the 
     Institute for Museum and Library Services under this Act. 
     Such measures may include the transfer of appropriated funds.
       (b) Transfer.--From any amounts available to the Secretary 
     of Education for salaries and expenses at the Department of 
     Education, the Secretary of Education shall transfer to the 
     Director the amount of funds necessary to ensure the orderly 
     transition from activities previously administered by the 
     Director of the Office of Library Programs in the Office of 
     Educational Research and Improvement in the Department of 
     Education to the activities administered by the Institute for 
     Museum and Library Services. In no event shall the amount of 
     funds transferred pursuant to the preceding sentence be less 
     than $200,000.

     SEC. 708. REPEALS.

       (a) Library Services and Construction Act.--The Library 
     Services and Construction Act (20 U.S.C. 351 et seq.) is 
     repealed.
       (b) Title II of the Higher Education Act of 1965.--Title II 
     of the Higher Education Act of 1965 (20 U.S.C. 1021 et seq.), 
     relating to academic libraries and information services, is 
     repealed.
       (c) Part D of Title XIII of the Higher Education Amendments 
     of 1986.--Part D of title XIII of the Higher Education 
     Amendments of 1986 (20 U.S.C. 1029 note), relating to library 
     resources, is repealed.
       (d) Section 519 of the Education Amendments of 1974.--
     Section 519 of the Education Amendments of 1974 (20 U.S.C. 
     1221i) is repealed.
       (e) Part F of the Technology for Education Act of 1994.--
     Part F of the Technology for Education Act of 1994 (20 U.S.C. 
     7001 et seq.), contained in title III of the Elementary and 
     Secondary Education Act of 1965, is repealed.

     SEC. 709. CONFORMING AMENDMENTS.

       (a) References to Library Services and Construction Act.--
       (1) Technology for education act of 1994.--Section 3113(10) 
     of the Technology for Education Act of 1994 (20 U.S.C. 
     6813(10)) is amended by striking ``section 3 of the Library 
     Services and Construction Act;'' and inserting ``section 213 
     of the Library Services and Technology Act;''
       (2) Omnibus education reconciliation act of 1981.--Section 
     528 of the Omnibus Education Reconciliation Act of 1981 (20 
     U.S.C. 3489) is amended--
       (A) by striking paragraph (12); and
       (B) by redesignating paragraphs (13) through (15) as 
     paragraphs (12) through (14), respectively.
       (3) Elementary and secondary education act of 1965.--
     Section 3113(10) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6813(10)) is amended by striking 
     ``section 3 of the Library Services and Construction Act'' 
     and inserting ``section 213 of the Library Services and 
     Technology Act''.
       (4) Community improvement volunteer act of 1994.--Section 
     7305 of the Community Improvement Volunteer Act of 1994 (40 
     U.S.C. 276d-3) is amended--
       (A) by striking paragraph (1); and
       () by redesignating paragraphs (2) through (6) as 
     paragraphs (1) through (5), respectively.
       (5) Appalachian regional development act of 1965.--Section 
     214(c) of the Appalachian Regional Development Act of 1965 
     (40 U.S.C. App. 214(c)) is amended by striking ``Library 
     Services and Construction Act;''
       (6) Demonstration cities and metropolitan development act 
     of 1966.--Section 208(2) of the Demonstration Cities and 
     Metropolitan Development Act of 1966 (42 U.S.C. 3338(2)) is 
     amended by striking ``title II of the Library Services and 
     Construction Act;''.
       (7) Public law 87-688.--Subsection (c) of the first section 
     of the Act entitled ``An Act to extend the application of 
     certain laws to American Samoa'', approved September 25, 1962 
     (48 U.S.C. 1666(c)) is amended by striking ``the Library 
     Services Act (70 Stat. 293; 20 U.S.C. 351 et seq.),''.
       (8) Communications act of 1934.--Paragraph (4) of section 
     254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)(4) 
     is amended by striking ``library not eligible for 
     participation in State-based plans for funds under title III 
     of the Library Services and Construction Act (20 U.S.C. 335c 
     et seq.)'' and inserting ``library or library consortium not 
     eligible for assistance from a State library administrative 
     agency under the Library Services and Technology Act''.
       (b) References to Institute of Museum Services.--
       (1) Title 5, united states code.--Section 5315 of title 5 
     United States Code, is amended by striking the following:
       ``Director of the Institute of Museum Services,'' and 
     inserting the following:
       ``Director of the Institute of Museum and Library 
     Services.''.
       (2) Department of education organization act.--Section 301 
     of the Department of Education Organization Act (20 U.S.C. 
     3441) is amended--
       (A) in subsection (a)--
       (i) by striking paragraph (5); and
       (ii) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively; and
       (B) in subsection (b)--
       (i) by striking paragraph (4); and
       (ii) by redesignating paragraphs (5) through (7) as 
     paragraphs (4) through (6), respectively.
       (3) Elementary and secondary education act of 1965.--
       (A) Sections 2101(b), 2205(c)(1)(D), 2208(d)(1)(H)(v), and 
     2209(b)(1)(C)(iv), and subsection (d)(6) and (e)(2) of 
     section 10401 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D), 6648(d)(1)(H)(v), 
     6649(b)(1)(C)(vi), and 8091 (d)(6) and (e)(2)) are amended by 
     striking ``the Institute of Museum Services'' and inserting 
     ``the Institute of Museum and Library Services''.
       (B) Section 10412(b) of such Act (20 U.S.C. 8102(b) is 
     amended--
       (i) in paragraph (2), by striking ``the Director of the 
     Institute Museum Services,'' and inserting ``the Director of 
     the Institute of Museum and Library Services,''; and
       (ii) in paragraph (7), by striking ``the Director of the 
     Institute of Museum Services,'' and inserting ``the director 
     of the Institute of Museum and Library Services,''.
       (C) Section 10414(a)(2)(B) of such Act (20 U.S.C. 
     8104(a)(2)(B)) is amended by striking clause (iii) and 
     inserting the following new clause:
       ``(iii) the Institute of Museum and Library Services.''.

[[Page H11728]]

         (c) References to Office of Libraries and Learning 
     Resources.--Section 413(b)(1) of the Department of Education 
     Organization Act (20 U.S.C. 3473(b)(1)) is amended--
       (1) by striking subparagraph (H); and
       (2) by redesignating subparagraphs (I) through (M) as 
     subparagraphs (H) through (L), respectively.
         (d) Reference to State Postsecondary Review Entity 
     Programs.--Section 356(b)(2) of the Higher Education Act of 
     1965 (20 U.S.C. 10696(b)) is amended by striking ``II,''.
       This Act may be cited as the ``Departments of Labor, Health 
     and Human Services, and Education, and Related Agencies 
     Appropriations Act, 1997''.
       (f) For programs, projects or activities in the Treasury, 
     Postal Service, and General Appropriations Act, 1997, 
     provided as follows, to be effective as if it had been 
     enacted into law as the regular appropriations Act:

 AN ACT Making appropriations for the Treasury Department, the United 
   States Postal Service, the Executive Office of the President, and 
certain Independent Agencies, for the fiscal year ending September 30, 
                      1997, and for other purposes

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         salaries and expenses

       For necessary expenses of the Departmental Offices 
     including operation and maintenance of the Treasury Building 
     and Annex; hire of passenger motor vehicles; maintenance, 
     repairs, and improvements of, and purchase of commercial 
     insurance policies for, real properties leased or owned 
     overseas, when necessary for the performance of official 
     business; not to exceed $2,900,000 for official travel 
     expenses; not to exceed $150,000 for official reception and 
     representation expenses; not to exceed $258,000 for 
     unforeseen emergencies of a confidential nature, to be 
     allocated and expended under the direction of the Secretary 
     of the Treasury and to be accounted for solely on his 
     certificate; $111,760,000.

                         Automation Enhancement


                      including transfer of funds

       For the development and acquisition of automatic data 
     processing equipment, software, and services for the 
     Department of the Treasury, $27,100,000, of which $15,000,000 
     shall be available to the United States Customs Service for 
     the Automated Commercial Environment project, and of which 
     $5,600,000 shall be available to the United States Customs 
     Service for the International Trade Data System: Provided, 
     That these funds shall remain available until September 30, 
     1999: Provided further, That these funds shall be transferred 
     to accounts and in amounts as necessary to satisfy the 
     requirements of the Department's offices, bureaus, and other 
     organizations: Provided further, That this transfer authority 
     shall be in addition to any other transfer authority provided 
     in this Act: Provided further, That none of the funds shall 
     be used to support or supplement Internal Revenue Service 
     appropriations for Information Systems and Tax Systems 
     Modernization: Provided further, That of the funds 
     appropriated for the Automated Commercial Environment, 
     $3,475,000 may not be obligated until the Commissioner of 
     Customs consults with the Committees on Appropriations 
     regarding deficiencies identified by the General Accounting 
     Office.

                      Office of Inspector General


                         salaries and expenses

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act 
     of 1978, as amended, not to exceed $2,000,000 for official 
     travel expenses; including hire of passenger motor vehicles; 
     and not to exceed $100,000 for unforeseen emergencies of a 
     confidential nature, to be allocated and expended under the 
     direction of the Inspector General of the Treasury; 
     $29,736,000.

                 Office of Professional Responsibility


                         salaries and expenses

       For necessary expenses of the Office of Professional 
     Responsibility, including purchase and hire of passenger 
     motor vehicles, $1,500,000.

          Treasury Buildings and Annex Repair and Restoration


                      including transfer of funds

       For the repair, alteration, and improvement of the Treasury 
     Building and Annex, $28,213,000, to remain available until 
     expended: Provided, That funds previously made available 
     under this title for the Secret Service Headquarter's 
     building shall be transferred to the Secret Service 
     Acquisition, Construction, Improvement and Related Expenses 
     appropriation.

                  Financial Crimes Enforcement Network


                         salaries and expenses

       For necessary expenses of the Financial Crimes Enforcement 
     Network, including hire of passenger motor vehicles; travel 
     expenses of non-Federal law enforcement personnel to attend 
     meetings concerned with financial intelligence activities, 
     law enforcement, and financial regulation; not to exceed 
     $14,000 for official reception and representation expenses; 
     and for assistance to Federal law enforcement agencies, with 
     or without reimbursement; $22,387,000: Provided, That 
     notwithstanding any other provision of law, the Director of 
     the Financial Crimes Enforcement Network may procure up to 
     $500,000 in specialized, unique, or novel automatic data 
     processing equipment, ancillary equipment, software, 
     services, and related resources from commercial vendors 
     without regard to otherwise applicable procurement laws and 
     regulations and without full and open competition, utilizing 
     procedures best suited under the circumstances of the 
     procurement to efficiently fulfill the agency's requirements: 
     Provided further, That funds appropriated in this account may 
     be used to procure personal services contracts.

               Department of the Treasury Forfeiture Fund

       For necessary expenses of the Treasury Forfeiture Fund, as 
     authorized by Public Law 102-393, not to exceed $10,000,000, 
     to be derived from deposits in the fund: Provided, That 
     notwithstanding any other provision of law, not to exceed 
     $7,500,000 shall be made available for the development of a 
     Federal wireless communication system: Provided further, That 
     the Secretary of the Treasury is authorized to receive all 
     unavailable collections transferred from the Special 
     Forfeiture Fund established by section 6073 of the Anti-Drug 
     Abuse Act of 1988 (21 (21 U.S.C. 1509) by the Director of the 
     Office of Drug Control Policy as a deposit into the 
     Treasury Forfeiture Fund (31 U.S.C. 9703(a)).

                    Violent Crime Reduction Programs


                      including transfer of funds

       For activities authorized by Public Law 103-322, to remain 
     available until expended, which shall be derived from the 
     Violent Crime Reduction Trust Fund, as follows:
       (a) As authorized by section 190001(e), $89,000,000, of 
     which $36,595,000 shall be available to the Bureau of 
     Alcohol, Tobacco and Firearms, of which $3,000,000 shall be 
     available for administering the Gang Resistance Education and 
     Training program, of which $3,662,000 shall be available for 
     ballistics technologies, including the purchase, maintenance 
     and upgrading of equipment and of which $29,133,000 shall be 
     available to enhance training and purchase equipment and 
     services, and of which $800,000 shall be available for 
     project LEAD; of which $18,300,000 shall be available to the 
     Secretary as authorized by section 732 of Public Law 104-132, 
     as amended by Section 113 of the Fiscal Year 1997 Department 
     of Commerce, Justice and State, and the Judiciary, and 
     Related Agencies Appropriations Act; of which $1,000,000 
     shall be available to the Financial Crimes Enforcement 
     Network; of which $20,000,000 shall be available to the 
     United States Secret Service, of which no less than 
     $1,400,000 shall be available for a grant for activities 
     related to the investigations of missing and exploited 
     children; and of which $13,105,000 shall be available to the 
     Federal Drug Control Programs, High Intensity Drug 
     Trafficking Areas program.
       (b) As authorized by section 32401, $8,000,000, for 
     disbursement through grants, cooperative agreements or 
     contracts, to local governments for Gang Resistance Education 
     and Training: Provided, That notwithstanding sections 32401 
     and 310001, such funds shall be allocated only to the 
     affected State and local law enforcement and prevention 
     organizations participating in such projects.

                        Treasury Franchise Fund

       There is hereby established in the Treasury a franchise 
     fund pilot, as authorized by section 403 of Public Law 103-
     356, to be available as provided in such section for expenses 
     and equipment necessary for the maintenance and operation of 
     such financial and administrative support services as the 
     Secretary determines may be performed more advantageously as 
     central services: Provided, That any inventories, equipment, 
     and other assets pertaining to the services to be provided by 
     such fund, either on hand or on order, less the related 
     liabilities or unpaid obligations, and any appropriations 
     made for the purpose of providing capital, shall be used to 
     capitalize such fund: Provided further, That such fund shall 
     be reimbursed or credited with the payments, including 
     advanced payments, from applicable appropriations and funds 
     available to the Department and other Federal agencies for 
     which such administrative and financial services are 
     performed, at rates which will recover all expenses of 
     operation, including accrued leave, depreciation of fund 
     plant and equipment, amortization of Automatic Data 
     Processing (ADP) software and systems, and an amount 
     necessary to maintain a reasonable operating reserve, as 
     determined by the Secretary: Provided further, That such fund 
     shall provide services on a competitive basis: Provided 
     further, That an amount not to exceed 4 percent of the total 
     annual income to such fund may be retained in the fund for 
     fiscal year 1997 and each fiscal year thereafter, to remain 
     available until expended, to be used for the acquisition of 
     capital equipment and for the improvement and implementation 
     of Treasury financial management, ADP, and other support 
     systems: Provided further, That no later than 30 days after 
     the end of each fiscal year, amounts in excess of this 
     reserve limitation shall be deposited as miscellaneous 
     receipts in the Treasury: Provided further, That such 
     franchise fund pilot shall terminate pursuant to section 
     403(f) of Public Law 103-356.

                Federal Law Enforcement Training Center

                         salaries and expenses

       For necessary expenses of the Federal Law Enforcement 
     Training Center, as a bureau of the Department of the 
     Treasury, including materials and support costs of Federal 
     law enforcement basic training; purchase (not to exceed 52 
     for police-type use, without regard to the general purchase 
     price limitation) and hire of passenger motor vehicles; for 
     expenses for student athletic and related activities; 
     uniforms without regard to the general purchase price 
     limitation for the current fiscal year; the conducting of and 
     participating in firearms matches and presentation of awards; 
     for public awareness and enhancing community support of law 
     enforcement training; not to exceed $9,500 for official 
     reception and representation expenses; room and board for 
     student interns; and services as authorized by 5 U.S.C. 3109; 
     $54,831,000, of which up to $13,034,000 for materials and 
     support costs of Federal law enforcement basic training shall 
     remain available until September

[[Page H11729]]

     30, 1999: Provided, That the Center is authorized to accept 
     and use gifts of property, both real and personal, and to 
     accept services, for authorized purposes, including funding 
     of a gift of intrinsic value which shall be awarded annually 
     by the Director of the Center to the outstanding student who 
     graduated from a basic training program at the Center during 
     the previous fiscal year, which shall be funded only by gifts 
     received through the Center's gift authority: Provided 
     further, That notwithstanding any other provision of law, 
     students attending training at any Federal Law Enforcement 
     Training Center site shall reside in on-Center or Center-
     provided housing, insofar as available and in accordance with 
     Center policy: Provided further, That funds appropriated in 
     this account shall be available, at the discretion of the 
     Director, for: training United States Postal Service law 
     enforcement personnel and Postal police officers; State and 
     local government law enforcement training on a space-
     available basis; training of foreign law enforcement 
     officials on a space-available basis with reimbursement of 
     actual costs to this appropriation; training of private 
     sector security officials on a space-available basis with 
     reimbursement of actual costs to this appropriation; and 
     travel expenses of non-Federal personnel to attend course 
     development meetings and training at the Center: Provided 
     further, That the Center is authorized to obligate funds in 
     anticipation of reimbursements from agencies receiving 
     training at the Federal Law Enforcement Training Center, 
     except that total obligations at the end of the fiscal year 
     shall not exceed total budgetary resources available at the 
     end of the fiscal year: Provided further, That the Federal 
     Law Enforcement Training Center is authorized to provide 
     short term medical services for students undergoing training 
     at the Center.

     acquisition, construction, improvements, and related expenses

       For expansion of the Federal Law Enforcement Training 
     Center, for acquisition of necessary additional real property 
     and facilities, and for ongoing maintenance, facility 
     improvements, and related expenses, $18,884,000, to remain 
     available until expended.

                      Financial Management Service

                         salaries and expenses

       For necessary expenses of the Financial Management Service, 
     $196,069,000, of which not to exceed $14,277,000 shall remain 
     available until expended for systems modernization 
     initiatives. In addition, $90,000, to be derived from the Oil 
     Spill Liability Trust Fund, to reimburse the Service for 
     administrative and personnel expenses for financial 
     management of the Fund, as authorized by section 1012 of 
     Public Law 101-380: Provided, That none of the funds made 
     available for systems modernization initiatives may not be 
     obligated until the Commissioner of the Financial Management 
     Service has submitted, and the Committees on Appropriations 
     of the House and Senate have approved, a report that 
     identifies, evaluates, and prioritizes all computer systems 
     investments planned for fiscal year 1997, a milestone 
     schedule for the development and implementation of all 
     projects included in the systems investment plan, and a 
     systems architecture plan.

                Bureau of Alcohol, Tobacco and Firearms

                         salaries and expenses

       For necessary expenses of the Bureau of Alcohol, Tobacco 
     and Firearms, including purchase of not to exceed 650 
     vehicles for police-type use for replacement only and hire of 
     passenger motor vehicles; hire of aircraft; and services of 
     expert witnesses at such rates as may be determined by the 
     Director; for payment of per diem and/or subsistence 
     allowances to employees where an assignment to the National 
     Response Team during the investigation of a bombing or arson 
     incident requires an employee to work 16 hours or more per 
     day or to remain overnight at his or her post of duty; not to 
     exceed $12,500 for official reception and representation 
     expenses; for training of State and local law enforcement 
     agencies with or without reimbursement, including training in 
     connection with the training and acquisition of canines for 
     explosives and fire accelerants detection; provision of 
     laboratory assistance to State and local agencies, with or 
     without reimbursement; $393,971,000, of which $12,011,000, to 
     remain available until expended, shall be available for arson 
     investigations, with priority assigned to any arson, 
     explosion or violence against religious institutions; which 
     not to exceed $1,000,000 shall be available for the payment 
     of attorneys' fees as provided by 18 U.S.C. 924(d)(2); and of 
     which $1,000,000 shall be available for the equipping of any 
     vessel, vehicle, equipment, or aircraft available for 
     official use by a State or local law enforcement agency if 
     the conveyance will be used in drug-related joint law 
     enforcement operations with the Bureau of Alcohol, Tobacco 
     and Firearms and for the payment of overtime salaries, 
     travel, fuel, training, equipment, and other similar costs of 
     State and local law enforcement officers that are incurred in 
     joint operations with the Bureau of Alcohol, Tobacco and 
     Firearms: Provided, That no funds made available by this or 
     any other Act may be used to transfer the functions, 
     missions, or activities of the Bureau of Alcohol, Tobacco and 
     Firearms to other agencies or Departments in the fiscal year 
     ending on September 30, 1997: Provided further, That no funds 
     appropriated herein shall be available for salaries or 
     administrative expenses in connection with consolidating or 
     centralizing, within the Department of the Treasury, the 
     records, or any portion thereof, of acquisition and 
     disposition of firearms maintained by Federal firearms 
     licensees: Provided further, That no funds appropriated 
     herein shall be used to pay administrative expenses or the 
     compensation of any officer or employee of the United States 
     to implement an amendment or amendments to 27 CFR 178.118 or 
     to change the definition of ``Curios or relics'' in 27 CFR 
     178.11 or remove any item from ATF Publication 5300.11 as it 
     existed on January 1, 1994: Provided further, That none of 
     the funds appropriated herein shall be available to 
     investigate or act upon applications for relief from Federal 
     firearms disabilities under 18 U.S.C. 925(c): Provided 
     further, That such funds shall be available to investigate 
     and act upon applications filed by corporations for relief 
     from Federal firearms disabilities under 18 U.S.C. 925(c): 
     Provided further, That no funds in this Act may be used to 
     provide ballistics imaging equipment to any State or local 
     authority who has obtained similar equipment through a 
     Federal grant or subsidy unless the State or local authority 
     agrees to return that equipment or to repay that grant or 
     subsidy to the Federal Government: Provided further, That no 
     funds available for separation incentive payments as 
     authorized by section 663 of this Act may be obligated 
     without the advance approval of the House and Senate 
     Committees on Appropriations: Provided further, That no funds 
     under this Act may be used to electronically 
     retrieve information gathered pursuant to 18 U.S.C. 
     923(g)(4) by name or any personal identification code.


                         laboratory facilities

       For necessary expenses for design of a new facility or 
     facilities, to house the Bureau of Alcohol, Tobacco and 
     Firearms National Laboratory Center and the Fire 
     Investigation Research and Development Center, not to exceed 
     185,000 occupiable square feet, $6,978,000, to remain 
     available until expended: Provided, That these funds shall 
     not be available until a prospectus of authorization for the 
     Laboratory Facilities is approved by the House Committee on 
     Transportation and Infrastructure and the Senate Committee on 
     Environment and Public Works.

                     United States Customs Service


                         salaries and expenses

       For necessary expenses of the United States Customs 
     Service, including purchase of up to 1,000 motor vehicles of 
     which 960 are for replacement only, including 990 for police-
     type use and commercial operations; hire of motor vehicles; 
     contracting with individuals for personal services abroad; 
     not to exceed $30,000 for official reception and 
     representation expenses; and awards of compensation to 
     informers, as authorized by any Act enforced by the United 
     States Customs Service; $1,487,250,000; of which $65,000,000 
     shall be available until expended for Operation Hardline; of 
     which $28,000,000 shall remain available until expended for 
     acquisition of aircraft and related operations and 
     maintenance associated with Operation Gateway; and of which 
     such sums as become available in the Customs User Fee 
     Account, except sums subject to section 13031(f)(3) of the 
     Consolidated Omnibus Reconciliation Act of 1985, as amended 
     (19 U.S.C. 58c(f)(3)), shall be derived from that Account; of 
     the total, not to exceed $150,000 shall be available for 
     payment for rental space in connection with preclearance 
     operations, and not to exceed $4,000,000 shall be available 
     until expended for research and not to exceed $1,000,000 
     shall be available until expended for conducting special 
     operations pursuant to 19 U.S.C. 2081 and up to $6,000,000 
     shall be available until expended for the procurement of 
     automation infrastructure items, including hardware, 
     software, and installation: Provided, That uniforms may be 
     purchased without regard to the general purchase price 
     limitation for the current fiscal year: Provided further, 
     That the United States Custom Service shall implement the 
     General Aviation Telephonic Entry program within 30 days of 
     enactment of this Act: Provided further, That no funds 
     available for separation incentive payments as authorized by 
     section 663 of this Act may be obligated without the advance 
     approval of the House and Senate Committees on 
     Appropriations: Provided further, That the Spirit of St. 
     Louis Airport in St. Louis County, Missouri, shall be 
     designated a port of entry: Provided further, That no funds 
     under this Act may be used to provide less than 30 days 
     public notice for any change in apparel regulations: Provided 
     further, That $750,000 shall be available for additional 
     part-time and temporary positions in the Honolulu Customs 
     District: Provided further, That of the funds appropriated 
     $2,500,000 may be made available for the Western Hemisphere 
     Trade Center authorized by Public Law 103-182.

    operation and maintenance, air and marine interdiction programs

       For expenses, not otherwise provided for, necessary for the 
     operation and maintenance of marine vessels, aircraft, and 
     other related equipment of the Air and Marine Programs, 
     including operational training and mission-related travel, 
     and rental payments for facilities occupied by the air or 
     marine interdiction and demand reduction programs, the 
     operations of which include: the interdiction of narcotics 
     and other goods; the provision of support to Customs and 
     other Federal, State, and local agencies in the enforcement 
     or administration of laws enforced by the Customs Service; 
     and, at the discretion of the Commissioner of Customs, the 
     provision of assistance to Federal, State, and local agencies 
     in other law enforcement and emergency humanitarian efforts; 
     $83,363,000, which shall remain available until expended: 
     Provided, That no aircraft or other related equipment, with 
     the exception of aircraft which is one of a kind and has been 
     identified as excess to Customs requirements and aircraft 
     which has been damaged beyond repair, shall be transferred to 
     any other Federal agency, Department, or office outside of 
     the Department of the Treasury, during fiscal year 1997 
     without the prior approval of the House and Senate Committees 
     on Appropriations.

[[Page H11730]]

                   customs services at small airports


                  (to be derived from fees collected)

       Such sums as may be necessary for expenses for the 
     provision of Customs services at certain small airports or 
     other facilities when authorized by law and designated by the 
     Secretary of the Treasury, including expenditures for the 
     salary and expenses of individuals employed to provide such 
     services, to be derived from fees collected by the Secretary 
     pursuant to section 236 of Public Law 98-573 for each of 
     these airports or other facilities when authorized by law and 
     designated by the Secretary, and to remain available until 
     expended.

                   harbor maintenance fee collection

       For administrative expenses related to the collection of 
     the Harbor Maintenance Fee, pursuant to Public Law 103-182, 
     $3,000,000, to be derived from the Harbor Maintenance 
     Trust Fund and to be transferred to and merged with the 
     Customs ``Salaries and Expenses'' account for such 
     purposes.

                       Bureau of the Public Debt

                     administering the public debt

       For necessary expenses connected with any public-debt 
     issues of the United States; $169,735,000: Provided, That the 
     sum appropriated herein from the General Fund for fiscal year 
     1997 shall be reduced by not more than $4,400,000 as 
     definitive security issue fees and Treasury Direct Investor 
     Account Maintenance fees are collected, so as to result in a 
     final fiscal year 1997 appropriation from the General Fund 
     estimated at $165,335,000.

                        Internal Revenue Service

                 processing, assistance, and management

       For necessary expenses of the Internal Revenue Service, not 
     otherwise provided for; including processing tax returns; 
     revenue accounting; providing assistance to taxpayers, 
     management services, and inspection; including purchase (not 
     to exceed 150 for replacement only for police-type use) and 
     hire of passenger motor vehicles (31 U.S.C. 1343(b)); and 
     services as authorized by 5 U.S.C. 3109, at such rates as may 
     be determined by the Commissioner; $1,779,840,000, of which 
     up to $3,700,000 shall be for the Tax Counseling for the 
     Elderly Program, and of which not to exceed $25,000 shall be 
     for official reception and representation expenses.

                          tax law enforcement

       For necessary expenses of the Internal Revenue Service for 
     determining and establishing tax liabilities; tax and 
     enforcement litigation; technical rulings; examining employee 
     plans and exempt organizations; investigation and enforcement 
     activities; securing unfiled tax returns; collecting unpaid 
     accounts; statistics of income and compliance research; the 
     purchase (for police-type use, not to exceed 850), and hire 
     of passenger motor vehicles (31 U.S.C. 1343(b)); and services 
     as authorized by 5 U.S.C. 3109, at such rates as may be 
     determined by the Commissioner $4,104,211,000, of which not 
     to exceed $1,000,000 shall remain available until September 
     30, 1999, for research.


                          information systems

       For necessary expenses for data processing and 
     telecommunications support for Internal Revenue Service 
     activities, including tax systems modernization and 
     operational information systems; the hire of passenger motor 
     vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 
     U.S.C. 3109, at such rates as may be determined by the 
     Commissioner, $1,323,075,000, of which no less than 
     $130,075,000 shall be available for Tax Systems Modernization 
     (TSM) development and deployment which shall be available 
     until September 30, 1999, and of which no less than 
     $206,200,000 shall be available for TSM Operational Systems: 
     Provided, That none of the funds made available for TSM 
     Operational Systems shall be available after July 31, 1997, 
     unless the Department of the Treasury has prepared a Request 
     for Proposal which could be used as a base for a solicitation 
     of a contract with an alternative or new Prime Contractor to 
     manage, integrate, test and implement the TSM program: 
     Provided further, That all activities associated with the 
     development of a request for proposal, contract solicitation, 
     and contract award for private sector assistance on TSM (both 
     operational systems and development and deployment systems), 
     beyond private sector assistance which is currently under 
     contract, shall be conducted by the Department of the 
     Treasury's Modernization Management Board: Provided further, 
     That the Internal Revenue Service determines that it is 
     unable to meet deadlines established herein, the Secretary of 
     the Treasury shall notify the Committees on Appropriations of 
     the House and the Senate of the delay: Provided further, That 
     the Internal Revenue Service shall submit, by February 1, 
     1997, a timetable for implementing, by October 1, 1997, 
     recommendations made by the General Accounting Office in its 
     July 1995 report, entitled: ``Tax Systems Modernization: 
     Management and Technical Weaknesses Must Be Corrected If 
     Modernization Is To Succeed'': Provided further, That the 
     Internal Revenue Service shall submit, by December 1, 
     1996, a schedule to transfer, not later than July 31, 
     1997, a majority of Tax Systems Modernization development, 
     deployment, management, integration, and testing, from the 
     Internal Revenue Service to the private sector.

                          information systems


                              (Rescission)

       Of the funds made available under this heading for 
     Information Systems in Public Law 104-52, $115,000,000 are 
     rescinded, in Public Law 103-123, $17,447,000 are rescinded, 
     in Public Law 102-393, $15,000,000 are rescinded, and in 
     Public Law 102-141, $27,000,000 are rescinded.


          administrative provisions--internal revenue service

       Section 101. Not to exceed 5 percent of any appropriation 
     made available in this Act to the Internal Revenue Service 
     may be transferred to any other Internal Revenue Service 
     appropriation upon the advance approval of the House and 
     Senate Committees on Appropriations.
       Sec. 102. The Internal Revenue Service shall maintain a 
     training program to insure that Internal Revenue Service 
     employees are trained in taxpayers' rights, in dealing 
     courteously with the taxpayers, and in cross-cultural 
     relations.
       Sec. 103. The funds provided in this Act for the Internal 
     Revenue Service shall be used to provide as a minimum, the 
     fiscal year 1995 level of service, staffing, and funding for 
     Taxpayer Services.
       Sec. 104. No funds available in this Act to the Internal 
     Revenue Service for separation incentive payments as 
     authorized by section 663 of this Act may be obligated 
     without the advance approval of the House and Senate 
     Committees on Appropriations.
       Sec. 105. The Internal Revenue Service (IRS) may proceed 
     with its field support reorganization in fiscal year 1997 
     after it submits its report, no earlier than March 1, 1997, 
     to the Committees on Appropriations of the House and Senate 
     only if the IRS maintains, in fiscal year 1997, the current 
     level of taxpayer service employees that work on cases 
     generated through walk in visits and telephone calls to IRS 
     offices.
       Sec. 106. Funds made available by this or any other Act to 
     the Internal Revenue Service shall be available for improved 
     facilities and increased manpower to provide sufficient and 
     effective 1-800 help line for taxpayers. The Commissioner 
     shall make the improvement of the IRS 1-800 help line service 
     a priority and allocate resources necessary to increase phone 
     lines and staff to improve the IRS 1-800 help line service.
       Sec. 107. No funds made available by this Act, or any other 
     Act, to the Internal Revenue Service may be used to pay for 
     the design and printing of more than two ink colors on the 
     covers of income tax packages, and such ink colors must be 
     the same colors as used to print the balance of the material 
     in each package.
       Sec. 108. Notwithstanding any other provision of law, no 
     field support reorganization of the Internal Revenue Service 
     shall be undertaken in Aberdeen, South Dakota until the 
     Internal Revenue Service toll-free help phone line assistance 
     program reaches at least an 80 percent service level. The 
     Commissioner shall submit to Congress a report and the GAO 
     shall certify to Congress that the 80 percent service level 
     has been met.

                      United States Secret Service

                         salaries and expenses

       For necessary expenses of the United States Secret Service, 
     including purchase (not to exceed 702 vehicles for police-
     type use, of which 665 shall be for replacement only), and 
     hire of passenger motor vehicles; hire of aircraft; training 
     and assistance requested by State and local governments, 
     which may be provided without reimbursement; services of 
     expert witnesses at such rates as may be determined by the 
     Director; rental of buildings in the District of Columbia, 
     and fencing, lighting, guard booths, and other facilities on 
     private or other property not in Government ownership or 
     control, as may be necessary to perform protective functions; 
     for payment of per diem and/or subsistence allowances to 
     employees where a protective assignment during the actual day 
     or days of the visit of a protectee require an employee to 
     work 16 hours per day or to remain overnight at his or her 
     post of duty; the conducting of and participating in firearms 
     matches; presentation of awards; and for travel of Secret 
     Service employees on protective missions without regard to 
     the limitations on such expenditures in this or any other 
     Act: Provided, That approval is obtained in advance from the 
     House and Senate Committees on Appropriations; for repairs, 
     alterations, and minor construction at the James J. Rowley 
     Secret Service Training Center; for research and development; 
     for making grants to conduct behavioral research in support 
     of protective research and operations; not to exceed $20,000 
     for official reception and representation expenses; not to 
     exceed $50,000 to provide technical assistance and equipment 
     to foreign law enforcement organizations in counterfeit 
     investigations; for payment in advance for commercial 
     accommodations as may be necessary to perform protective 
     functions; and for uniforms without regard to the general 
     purchase price limitation for the current fiscal year: 
     Provided further, That 3 U.S.C. 203(a) is amended by deleting 
     ``but not exceeding twelve hundred in number''; $528,262,000, 
     of which $1,200,000 shall be available as a grant for 
     activities related to the investigations of missing and 
     exploited children and shall remain available until expended.


                         salaries and expenses

                              (rescission)

       Of the funds made available under this heading in Public 
     Law 104-52, $7,600,000 are rescinded.


      acquisition, construction, improvement, and related expenses

                     (including transfer of funds)

       For necessary expenses of construction, repair, alteration, 
     and improvement of facilities, $37,365,000, of which 
     $8,200,000 shall be available for the Rowley Secret Service 
     Training Center, to remain available until expended: 
     Provided, That funds previously provided under the title, 
     ``Treasury Buildings and Annex Repair and Restoration,'' for 
     the Secret Service's Headquarters Building, shall be 
     transferred to this account: Provided further, That funds for 
     the Rowley Secret Service Training Center shall not be 
     available until a prospectus authorizing such facilities is 
     approved in accordance with the Public Buildings Act of 1959, 
     as amended, except that funds may be expended for required 
     expenses in connection with the development of a proposed 
     prospectus.

[[Page H11731]]

             General Provisions--Department of the Treasury

       Section 111. Any obligation or expenditure by the Secretary 
     in connection with law enforcement activities of a Federal 
     agency or a Department of the Treasury law enforcement 
     organization in accordance with 31 U.S.C. 9703(g)(4)(B) from 
     unobligated balances remaining in the Fund on September 30, 
     1997, shall be made in compliance with the reprogramming 
     guidelines contained in the House and Senate reports 
     accompanying this Act.
       Sec. 112. Appropriations to the Treasury Department in this 
     Act shall be available for uniforms or allowances therefor, 
     as authorized by law (5 U.S.C. 5901), including maintenance, 
     repairs, and cleaning; purchase of insurance for official 
     motor vehicles operated in foreign countries; purchase of 
     motor vehicles without regard to the general purchase price 
     limitations for vehicles purchased and used overseas for the 
     current fiscal year; entering into contracts with the 
     Department of State for the furnishing of health and medical 
     services to employees and their dependents serving in foreign 
     countries; and services authorized by 5 U.S.C. 3109.
       Sec. 113. None of the funds appropriated by this title 
     shall be used in connection with the collection of any 
     underpayment of any tax imposed by the Internal Revenue Code 
     of 1986 unless the conduct of officers and employees of the 
     Internal Revenue Service in connection with such collection, 
     including any private sector employees under contract to the 
     Internal Revenue Service, complies with subsection (a) of 
     section 805 (relating to communications in connection with 
     debt collection), and section 806 (relating to harassment or 
     abuse), of the Fair Debt Collection Practices Act (15 U.S.C. 
     1692).
       Sec. 114. The Internal Revenue Service shall institute 
     policies and procedures which will safeguard the 
     confidentiality of taxpayer information.
       Sec. 115. The funds provided to the Bureau of Alcohol 
     Tobacco and Firearms for fiscal year 1997 in this Act for the 
     enforcement of the Federal Alcohol Administration Act shall 
     be expended in a manner so as not to diminish enforcement 
     efforts with respect to section 105 of the Federal Alcohol 
     Administration Act.
       Sec. 116. Paragraph (3)(C) of section 9703(g) of title 31, 
     United States Code, is amended--
       (1) by striking in the third sentence ``and at the end of 
     each fiscal year thereafter'';
       (2) by inserting in lieu thereof ``1994, 1995, and 1996''; 
     and
       (3) by adding at the end the following new sentence: ``At 
     the end of fiscal year 1997, and at the end of each fiscal 
     year thereafter, the Secretary shall reserve any amounts that 
     are required to be retained in the Fund to ensure the 
     availability of amounts in the subsequent fiscal year for 
     purposes authorized under subsection (a).''
       Sec. 117. Of the funds available to the Internal Revenue 
     Service, $13,000,000 shall be made available to continue the 
     private sector debt collection program which was initiated in 
     fiscal year 1996 and $13,000,000 shall be transferred to the 
     Departmental Offices appropriation to initiate a new private 
     sector debt collection program: Provided, That the transfer 
     provided herein shall be in addition to any other transfer 
     authority contained in this Act.
       Sec. 118. Section 923(j) of title 18, United States Code, 
     is amended by striking the period after the last sentence, 
     and inserting the following: ``, including the right of a 
     licensee to conduct `curios or relics' firearms transfers and 
     business away from their business premises with another 
     licensee without regard as to whether the location of where 
     the business is conducted is located in the State specified 
     on the license of either licensee.''.
       This title may be cited as the ``Treasury Department 
     Appropriations Act, 1997''.

                        TITLE II--POSTAL SERVICE

                     Payments to the Postal Service

                   payment to the postal service fund

       For payment to the Postal Service Fund for revenue forgone 
     on free and reduced rate mail, pursuant to subsections (c) 
     and (d) of section 2401 of title 39, United States Code, 
     $85,080,000: Provided, That mail for overseas voting and mail 
     for the blind shall continue to be free: Provided further, 
     That 6-day delivery and rural delivery of mail shall continue 
     at not less than the 1983 level: Provided further, That none 
     of the funds made available to the Postal Service by this Act 
     shall be used to implement any rule, regulation, or policy of 
     charging any officer or employee of any State or local child 
     support enforcement agency, or any individual participating 
     in a State or local program of child support enforcement, a 
     fee for information requested or provided concerning an 
     address of a postal customer: Provided further, That none of 
     the funds provided in this Act shall be used to consolidate 
     or close small rural and other small post offices in the 
     fiscal year ending on September 30, 1997.


      payment to the postal service fund for nonfunded liabilities

       For payment to the Postal Service Fund for meeting the 
     liabilities of the former Post Office Department to the 
     Employees' Compensation Fund pursuant to 39 United States 
     Code 2004, $35,536,000.

TITLE  III--EXECUTIVE  OFFICE  OF  THE PRESIDENT AND FUNDS APPROPRIATED 
                            TO THE PRESIDENT

                   Compensation of the President and

                         the White House Office

                     compensation of the president

       For compensation of the President, including an expense 
     allowance at the rate of $50,000 per annum as authorized by 3 
     U.S.C. 102, $250,000: Provided, That none of the funds made 
     available for official expenses shall be expended for any 
     other purpose and any unused amount shall revert to the 
     Treasury pursuant to section 1552 of title 31, United States 
     Code: Provided further, That none of the funds made available 
     for official expenses shall be considered as taxable to the 
     President.

                         salaries and expenses

       For necessary expenses for the White House as authorized by 
     law, including not to exceed $3,850,000 for services as 
     authorized by 5 U.S.C. 3109 and 3 U.S.C. 105; including 
     subsistence expenses as authorized by 3 U.S.C. 105, which 
     shall be expended and accounted for as provided in that 
     section; hire of passenger motor vehicles, newspapers, 
     periodicals, teletype news service, and travel (not to exceed 
     $100,000 to be expended and accounted for as provided by 3 
     U.S.C. 103); not to exceed $19,000 for official entertainment 
     expenses, to be available for allocation within the Executive 
     Office of the President; $40,193,000: Provided, That $420,000 
     of the funds appropriated may not be obligated until the 
     Director of the Office of Administration has submitted, and 
     the Committees on Appropriations of the House and Senate have 
     approved, a report that identifies, evaluates, and 
     prioritizes all computer systems investments planned for 
     fiscal year 1997, a milestone schedule for the development 
     and implementation of all projects included in the systems 
     investment plan, and a systems architecture plan.

                 Executive Residence at the White House

                           operating expenses

       For the care, maintenance, repair and alteration, 
     refurnishing, improvement, heating and lighting, including 
     electric power and fixtures, of the Executive Residence at 
     the White House and official entertainment expenses of the 
     President, $7,827,000, to be expended and accounted for as 
     provided by 3 U.S.C. 105, 109-110, 112-114.

 Special Assistance to the President and the Official Residence of the 
                             Vice President

                         salaries and expenses

       For necessary expenses to enable the Vice President to 
     provide assistance to the President in connection with 
     specially assigned functions, services as authorized by 5 
     U.S.C. 3109 and 3 U.S.C. 106, including subsistence expenses 
     as authorized by 3 U.S.C. 106, which shall be expended and 
     accounted for as provided in that section; and hire of 
     passenger motor vehicles; $3,280,000: Provided, That $150,000 
     of the funds appropriated may not be obligated until the 
     Director of the Office of Administration has submitted, and 
     the Committees on Appropriations of the House and Senate have 
     approved, a report that identifies, evaluates, and 
     prioritizes all computer systems investments planned for 
     fiscal year 1997, a milestone schedule for the development 
     and implementation of all projects included in the systems 
     investment plan, and a systems architecture plan.

                           operating expenses

       For the care, operation, refurnishing, improvement, heating 
     and lighting, including electric power and fixtures, of the 
     official residence of the Vice President, the hire of 
     passenger motor vehicles, and not to exceed $90,000 for 
     official entertainment expenses of the Vice President, to be 
     accounted for solely on his certificate; $324,000: Provided, 
     That advances or repayments or transfers from this 
     appropriation may be made to any department or agency for 
     expenses of carrying out such activities: Provided further, 
     That $8,000 of the funds appropriated may not be obligated 
     until the Director of the Office of Administration has 
     submitted for approval to the Committees on Appropriations of 
     the House and Senate a report that identifies, evaluates, and 
     prioritizes all computer systems investments planned for 
     fiscal year 1997, a milestone schedule for the development 
     and implementation of all projects included in the systems 
     investment plan, and a systems architecture plan.

                      Council of Economic Advisers

                         salaries and expenses

       For necessary expenses of the Council in carrying out its 
     functions under the Employment Act of 1946 (15 U.S.C. 1021), 
     $3,439,000.

                      Office of Policy Development

                         salaries and expenses

       For necessary expenses of the Office of Policy Development, 
     including services as authorized by 5 U.S.C. 3109, and 3 
     U.S.C. 107; $3,867,000: Provided, That $45,000 of the funds 
     appropriated may not be obligated until the Director of the 
     Office of Administration has submitted, and the Committees on 
     Appropriations of the House and Senate have approved, a 
     report that identifies, evaluates, and prioritizes all 
     computer systems investments planned for fiscal year 1997, a 
     milestone schedule for the development and implementation of 
     all projects included in the systems investment plan, and a 
     systems architecture plan.

                       National Security Council

                         salaries and expenses

       For necessary expenses of the National Security Council, 
     including services as authorized by 5 U.S.C. 3109, 
     $6,648,000: Provided, That $3,000 of the funds appropriated 
     may not be obligated until the Director of the Office of 
     Administration has submitted, and the Committees on 
     Appropriations of the House and Senate have approved, a 
     report that identifies, evaluates, and prioritizes all 
     computer systems investments planned for fiscal year 1997, a 
     milestone schedule for the development and implementation of 
     all projects included in the systems investment plan, and a 
     systems architecture plan.

                        Office of Administration

                         salaries and expenses

       For necessary expenses of the Office of Administration, 
     $26,100,000, including services as

[[Page H11732]]

     authorized by 5 U.S.C. 3109 and 3 U.S.C. 107, and hire of 
     passenger motor vehicles: Provided, That $340,700 of the 
     funds appropriated may not be obligated until the Director of 
     the Office of Administration has submitted, and the 
     Committees on Appropriations of the House and Senate have 
     approved, a report that identifies, evaluates, and 
     prioritizes all computer systems investments planned for 
     fiscal year 1997, a milestone schedule for the development 
     and implementation of all projects included in the systems 
     investment plan, and a systems architecture plan.

                    Office of Management and Budget

                         salaries and expenses

       For necessary expenses of the Office of Management and 
     Budget, including hire of passenger motor vehicles, services 
     as authorized by 5 U.S.C. 3109, $55,573,000, of which not to 
     exceed $5,000,000 shall be available to carry out the 
     provisions of 44 U.S.C. chapter 35: Provided, That, as 
     provided in 31 U.S.C. 1301(a), appropriations shall be 
     applied only to the objects for which appropriations were 
     made except as otherwise provided by law: Provided further, 
     That none of the funds appropriated in this Act for the 
     Office of Management and Budget may be used for the purpose 
     of reviewing any agricultural marketing orders or any 
     activities or regulations under the provisions of the 
     Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et 
     seq.): Provided further, That none of the funds made 
     available for the Office of Management and Budget by this Act 
     may be expended for the altering of the transcript of actual 
     testimony of witnesses, except for testimony of officials of 
     the Office of Management and Budget, before the House and 
     Senate Committees on Appropriations or the House and Senate 
     Committees on Veterans' Affairs or their subcommittees: 
     Provided further, That this proviso shall not apply to 
     printed hearings released by the House and Senate Committees 
     on Appropriations or the House and Senate Committees on 
     Veterans' Affairs.

                 Office of National Drug Control Policy

                         salaries and expenses


                     (including transfer of funds)

       For necessary expenses of the Office of National Drug 
     Control Policy; for research activities pursuant to title I 
     of Public Law 100-690; not to exceed $8,000 for official 
     reception and representation expenses; and for participation 
     in joint projects or in the provision of services on matters 
     of mutual interest with nonprofit, research, or public 
     organizations or agencies, with or without reimbursement; 
     $35,838,000, of which $19,000,000 shall remain available 
     until expended, consisting of $1,000,000 for policy research 
     and evaluation and $18,000,000 for the Counter-Drug 
     Technology Assessment Center for counternarcotics research 
     and development projects of which $1,000,000 shall be 
     obligated for state conferences on model state drug laws: 
     Provided, That the $17,000,000 for the Counter-Drug 
     Technology Assessment Center shall be available for transfer 
     to other Federal departments or agencies: Provided further, 
     That the Office is authorized to accept, hold, administer, 
     and utilize gifts, both real and personal, for the purpose of 
     aiding or facilitating the work of the Office: Provided 
     further, That not before January 31, 1997, the Director of 
     the Office of National Drug Control Policy shall transfer all 
     balances in the Special Forfeiture Fund established by 
     section 6073 of the Anti-Drug Abuse Act of 1988 (21 U.S.C. 
     Sec. 1509) to the Treasury Forfeiture Fund (31 U.S.C. 
     9703(a)).

                     Federal Drug Control Programs


             high intensity drug trafficking areas program

                     (including transfer of funds)

       For necessary expenses of the Office of National Drug 
     Control Policy's High Intensity Drug Trafficking Areas 
     Program, $127,102,000 for drug control activities consistent 
     with the approved strategy for each of the designated High 
     Intensity Drug Trafficking Areas, of which $3,000,000 shall 
     be used for a newly designated High Intensity Drug 
     Trafficking Area in Lake County, Indiana; of which $6,000,000 
     shall be used for a newly designated High Intensity Drug 
     Trafficking Area for the Gulf Coast States of Louisiana, 
     Alabama, and Mississippi; of which $8,000,000 shall be used 
     for a newly designated High Intensity Drug Trafficking Area 
     dedicated to combating methamphetamine use, production and 
     trafficking in a five State area including Iowa, Missouri, 
     Nebraska, South Dakota, and Kansas; of which $3,000,000 shall 
     be used for a newly designated High Intensity Drug 
     Trafficking Area in the State of Colorado; of which 
     $3,000,000 shall be used for a newly designated High 
     Intensity Drug Trafficking Area in the Pacific Northwest; of 
     the total amount appropriated, including transferred funds, 
     no less than $71,000,000 shall be transferred to State and 
     local entities for drug control activities, and up to 
     $69,207,000 may be transferred to Federal agencies and 
     departments at a rate to be determined by the Director: 
     Provided, That the funds made available under this head shall 
     be obligated within 90 days of the date of enactment of this 
     Act.
       This title may be cited as the ``Executive Office 
     Appropriations Act, 1997''.

                     TITLE IV--INDEPENDENT AGENCIES

 Committee for Purchase From People Who Are Blind or Severely Disabled

                         salaries and expenses

       For necessary expenses of the Committee for Purchase From 
     People Who Are Blind or Severely Disabled established by the 
     Act of June 23, 1971, Public Law 92-28; $1,800,000.

                      Federal Election Commission

                         salaries and expenses

       For necessary expenses to carry out the provisions of the 
     Federal Election Campaign Act of 1971, as amended, 
     $28,165,000, of which no less than $2,500,000 shall be 
     available for internal automated data processing systems, and 
     of which not to exceed $5,000 shall be available for 
     reception and representation expenses.

                   Federal Labor Relations Authority

                         salaries and expenses

       For necessary expenses to carry out functions of the 
     Federal Labor Relations Authority, pursuant to Reorganization 
     Plan Numbered 2 of 1978, and the Civil Service Reform Act of 
     1978, including services as authorized by 5 U.S.C. 3109, 
     including hire of experts and consultants, hire of passenger 
     motor vehicles, rental of conference rooms in the District of 
     Columbia and elsewhere; $21,588,000: Provided, That public 
     members of the Federal Service Impasses Panel may be paid 
     travel expenses and per diem in lieu of subsistence as 
     authorized by law (5 U.S.C. 5703) for persons employed 
     intermittently in the Government service, and compensation as 
     authorized by 5 U.S.C. 3109: Provided further, That 
     notwithstanding 31 U.S.C. 3302, funds received from fees 
     charged to non-Federal participants at labor-management 
     relations conferences shall be credited to and merged with 
     this account, to be available without further appropriation 
     for the costs of carrying out these conferences.

                    General Services Administration

                         federal buildings fund


                 limitations on availability of revenue

                     (including transfer of funds)

       For additional expenses necessary to carry out the purpose 
     of the Fund established pursuant to section 210(f) of the 
     Federal Property and Administrative Services Act of 1949, 
     as amended (40 U.S.C. 490(f)), $400,544,000, to be 
     deposited into said Fund. The revenues and collections 
     deposited into the Fund shall be available for necessary 
     expenses of real property management and related 
     activities not otherwise provided for, including 
     operation, maintenance, and protection of federally owned 
     and leased buildings; rental of buildings in the District 
     of Columbia; restoration of leased premises; moving 
     governmental agencies (including space adjustments and 
     telecommunications relocation expenses) in connection with 
     the assignment, allocation and transfer of space; 
     contractual services incident to cleaning or servicing 
     buildings, and moving; repair and alteration of federally 
     owned buildings including grounds, approaches and 
     appurtenances; care and safeguarding of sites; 
     maintenance, preservation, demolition, and equipment; 
     acquisition of buildings and sites by purchase, 
     condemnation, or as otherwise authorized by law; 
     acquisition of options to purchase buildings and sites; 
     conversion and extension of federally owned buildings; 
     preliminary planning and design of projects by contract or 
     otherwise; construction of new buildings (including 
     equipment for such buildings); and payment of principal, 
     interest, taxes, and any other obligations for public 
     buildings acquired by installment purchase and purchase 
     contract, in the aggregate amount of $5,555,544,000 of 
     which (1) not to exceed $657,711,000 shall remain 
     available until expended for construction of additional 
     projects and at maximum construction improvement costs 
     (including funds for sites and expenses and associated 
     design and construction services) as follows:
       New Construction:
       California:
       Fresno, Federal Building and U.S. Courthouse, $6,595,000
       Colorado:
       Denver, Rogers Federal Building-U.S. Courthouse, $9,545,000
       District of Columbia:
       U.S. Courthouse Annex, $5,703,000
       Florida:
       Miami, U.S. Courthouse, $24,990,000
       Orlando, U.S. Courthouse, $9,514,000
       Kentucky:
       Covington, U.S. Courthouse, $17,134,000
       London, U.S. Courthouse, $13,732,000
       Montana:
       Babb, Piegan Border Station, $333,000
       Sweetgrass, Border Station, $1,059,000
       Nevada:
       Las Vegas, U.S. Courthouse, $83,719,000
       New York:
       Brooklyn, U.S. Courthouse, $169,000,000
       Ohio:
       Cleveland, U.S. Courthouse, $128,559,000
       Youngstown, U.S. Courthouse, $15,813,000
       Oregon:
       Portland, Consolidated Law Federal Office Building, 
     $4,750,000
       Pennsylvania:
       Erie, U.S. Courthouse Annex, $3,300,000
       Philadelphia, DVA-Federal Complex, Phase II, $13,765,000
       South Carolina:
       Columbia, U.S. Courthouse Annex, $43,848,000
       Texas:
       Corpus Christi, U.S. Courthouse, $24,161,000
       Utah:
       Salt Lake City, Moss U.S. Courthouse Annex and Alteration, 
     $11,474,000
       Washington:
       Blaine, U.S. Border Station, $13,978,000
       Oroville, U.S. Border Station, $1,452,000
       Seattle, U.S. Courthouse, $16,853,000
       Sumas, U.S. Border Station (Claim), $1,177,000
       Nationwide:
       Non-prospectus construction projects, $10,000,000
       Security Enhancements, $27,256,000:
     Provided, That each of the immediately foregoing limits of 
     costs on new construction projects may be exceeded to the 
     extent that savings are affected in other such projects, but 
     not to exceed 10 percent unless advance approval is obtained 
     from the House and Senate Committees on Appropriations of a 
     greater amount: Provided further, That the cost of future 
     U.S. Courthouse annex projects shall reflect savings

[[Page H11733]]

     through improving design efficiencies, curtailing planned 
     interior finishes, requiring more efficient use of courtroom 
     and library space, and by otherwise limiting space 
     requirements: Provided further, That from funds available in 
     the Federal Buildings Fund, $20,000,000 shall be available 
     until expended for environmental clean up activities at the 
     Southeast Federal Center in the District of Columbia and 
     $81,000,000 shall be available until expended for design and 
     construction activities at the Consolidated Law Federal 
     Office Building in Portland, Oregon: Provided further, That 
     from funds available for non-prospectus construction 
     projects, $250,000 may be available until expended for the 
     acquisition, lease, construction, and equipping of 
     flexiplace work telecommuting centers in West Virginia: 
     Provided further, That all funds for direct construction 
     projects shall expire on September 30, 1999: (2) not to 
     exceed $639,000,000 shall remain available until expended, 
     for repairs and alterations which includes associated 
     design and construction services: Provided further, That 
     funds in the Federal Buildings Fund for Repairs and 
     Alterations shall, for prospectus projects, be limited to 
     the amount by project as follows, except each project may 
     be increased by an amount not to exceed 10 per centum 
     unless advance approval is obtained from the Committees on 
     Appropriations of the House and Senate of a greater 
     amount:
     Repairs and alterations:
     District of Columbia:
       Ariel Rios Building, $62,740,000
       Justice Department, Phase 1 of 3, $50,000,000
       Lafayette Building, $5,166,000
     Hawaii:
       Honolulu, Prince Jonah Kuhio Kalanianaole Federal Building 
     and U.S. Courthouse, $4,140,000
     Illinois:
       Chicago, Everett M. Dirksen Federal Building, $18,844,000
       Chicago, John C. Kluczynski, Jr. Federal Building (IRS), 
     $13,414,000
     Louisiana:
       New Orleans, Customhouse, $3,500,000
       Maryland:
       Montgomery County, White Oak environmental clean up 
     activities, $10,000,000
     Massachusetts:
       Andover, IRS Regional Service Center, $812,000
     New Hampshire:
       Concord, J.C. Cleveland Federal Building, $8,251,000
     New Jersey:
       Camden, U.S. Post Office-Courthouse $11,096,000
     New York:
       Albany, James T. Foley Post Office-Courthouse, $3,880,000
       Brookhaven, IRS Service Center, $2,272,000
       New York, Jacob K. Javits Federal Building, $13,651,000
     Pennsylvania:
       Scranton, Federal Building-U.S. Courthouse, $10,610,000
     Rhode Island:
       Providence, Federal Building-U.S. Courthouse, $8,209,000
     Texas:
       Fort Worth, Federal Center, $11,259,000
     Nationwide:
       Chlorofluorocarbons Program, $23,456,000
       Elevator Program, $10,000,000
       Energy Program, $20,000,000
       Security Enhancements, various buildings, $2,700,000
       Basic Repairs and Alterations, $345,000,000:
     Provided further, That additional projects for which 
     prospectuses have been fully approved may be funded under 
     this category only if advance approval is obtained from the 
     Committees on Appropriations of the House and Senate: 
     Provided further, That the amounts provided in this or any 
     prior Act for Repairs and Alterations may be used to fund 
     costs associated with implementing security improvements to 
     buildings necessary to meet the minimum standards for 
     security in accordance with current law and in compliance 
     with the reprogramming guidelines of the appropriate 
     Committees of the House and Senate: Provided further, That 
     funds in the Federal Buildings Fund for Repairs and 
     Alterations shall, for prospectus projects, be limited to the 
     originally authorized amount, except each project may be 
     increased by an amount not to exceed 10 percent when advance 
     approval is obtained from the Committees on Appropriations of 
     the House and Senate of a greater amount: Provided further, 
     That the difference between the funds appropriated and 
     expended on any projects in this or any prior Act, under the 
     heading ``Repairs and Alterations'', may be transferred to 
     Basic Repairs and Alterations or used to fund authorized 
     increases in prospectus projects: Provided further, That from 
     funds made available for Basic Repairs and Alterations, 
     $8,000,000 shall be made available for renovation of the 
     Agricultural Research Service Laboratory in Ames, Iowa, which 
     is currently occupied by the Animal and Plant Health 
     Inspection Service: Provided further, That from funds made 
     available for Basic Repairs and Alterations, $1,450,000 may 
     be available for the renovation of the Pioneer Courthouse 
     located at 520 SW Morrison, in Portland, Oregon: Provided 
     further, That from funds made available for Basic Repairs and 
     Alterations, $6,000,000 shall be used for necessary expenses 
     associated with ongoing construction of the U.S. Courthouse 
     in Montgomery, Alabama: Provided further, That from funds 
     made available for Basic Repairs and Alterations, $100,000 
     shall be transferred to the National Park Service 
     ``Construction'' appropriation for restoration and 
     maintenance of the multi-purpose field at Wallenberg Place 
     in Washington, DC: Provided further, That all funds for 
     repairs and alterations prospectus projects shall expire 
     on September 30, 1999, and remain in the Federal Buildings 
     Fund except funds for projects as to which funds for 
     design or other funds have been obligated in whole or in 
     part prior to such date: Provided further, That the amount 
     provided in this or any prior Act for Basic Repairs and 
     Alterations may be used to pay claims against the 
     Government arising from any projects under the heading 
     ``Repairs and Alterations'' or used to fund authorized 
     increases in prospectus projects: Provided further, That 
     $5,700,000 of the funds provided under this heading in 
     Public Law 103-329, for the IRS Service Center, 
     Holtsville, New York, shall be available until September 
     30, 1998; (3) not to exceed $173,075,000 for installment 
     acquisition payments including payments on purchase 
     contracts which shall remain available until expended: 
     Provided further, That up to $1,500,000 shall be available 
     for a design prospectus of the Federal Building and U.S. 
     Courthouse located at 811 Grand Avenue in Kansas City, 
     Missouri; (4) not to exceed $2,343,795,000 for rental of 
     space which shall remain available until expended; and (5) 
     not to exceed $1,552,651,000 for building operations which 
     shall remain available until expended and of which 
     $8,000,000 shall be transferred to the ``Policy and 
     Operations'' appropriation: Provided further, That funds 
     available to the General Services Administration shall not 
     be available for expenses in connection with any 
     construction, repair, alteration, and acquisition project 
     for which a prospectus, if required by the Public 
     Buildings Act of 1959, as amended, has not been approved, 
     except that necessary funds may be expended for each 
     project for required expenses in connection with the 
     development of a proposed prospectus: Provided further, 
     That the Administrator of General Services shall, at the 
     earliest practicable date, initiate discussions with the 
     Smithsonian Institution on the feasibility of transferring 
     Federal Building 10B located at 600 Independence Avenue 
     SW., Washington, DC to the Smithsonian Institution at such 
     price and under such terms and conditions as determined 
     appropriate by the Administrator and subject to the prior 
     approval of the appropriate authorizing and appropriations 
     committees of the Congress: Provided further, That funds 
     provided in this Act under the heading ``Security 
     Enhancements, various buildings'' may be used, by project 
     in accordance with an approved prospectus: Provided 
     further, That the Administrator is authorized in fiscal 
     year 1997 and thereafter, to enter into and perform such 
     leases, contracts, or other transactions with any agency 
     or instrumentality of the United States, the several 
     States, or the District of Columbia, or with any person, 
     firm, association, or corporation, as may be necessary to 
     implement the trade center plan at the Federal Triangle 
     Project and is hereby granted all the rights and 
     authorities of the former Pennsylvania Avenue Development 
     Corporation (PADC) with regard to property transferred 
     from the PADC to the General Services Administration in 
     fiscal year 1996: Provided further, That notwithstanding 
     any other provision of law, the Administrator of General 
     Services is hereby authorized to use all funds transferred 
     from the PADC or income earned on PADC properties for 
     activities associated with carrying out the 
     responsibilities of the PADC transferred to the 
     Administrator of General Services and that any such income 
     earned on or after April 1, 1996, shall be deposited to 
     the Pennsylvania Avenue Activities account and shall 
     remain available until expended: Provided further, That 
     any funds or income as may be deemed by the Administrator 
     as excess to the amount needed to fulfill the PADC 
     responsibilities transferred to the Administrator of 
     General Services, shall be applied to any outstanding 
     debt, with the exception of debt associated with the 
     Ronald Reagan Building and International Trade Center, 
     incurred by the PADC in the course of acquiring real 
     estate: Provided further, That with respect to real 
     property transferred from the PADC to the General Services 
     Administration pursuant to section 313 of Public Law 104-
     134, Title III, General Provisions, the Administrator of 
     General Services is hereafter authorized and directed to 
     make payments required by section 10(b) of the PADC Act of 
     1972, Public Law 92-578 in the same manner as previously 
     paid by the PADC: Provided further, That for the purposes 
     of this authorization, buildings constructed pursuant to 
     the purchase contract authority of the Public Buildings 
     Amendments of 1972 (40 U.S.C. 602a), buildings occupied 
     pursuant to installment purchase contracts, and buildings 
     under the control of another department or agency where 
     alterations of such buildings are required in connection 
     with the moving of such other department or agency from 
     buildings then, or thereafter to be, under the control of 
     the General Services Administration shall be considered to 
     be federally owned buildings: Provided further, That funds 
     available in the Federal Buildings Fund may be expended 
     for emergency repairs when advance approval is obtained 
     from the Committees on Appropriations of the House and 
     Senate: Provided further, That amounts necessary to 
     provide reimbursable special services to other agencies 
     under section 210(f)(6) of the Federal Property and 
     Administrative Services Act of 1949, as amended (40 U.S.C. 
     490(f)(6)) and amounts to provide such reimbursable 
     fencing, lighting, guard booths, and other facilities on 
     private or other property not in Government ownership or 
     control as may be appropriate to enable the United States 
     Secret Service to perform its protective functions 
     pursuant to 18 U.S.C. 3056, as amended, shall be available 
     from such revenues and collections: Provided further, That 
     revenues and collections and any other sums accruing to 
     this Fund during fiscal year 1997, excluding 
     reimbursements under section 210(f)(6) of the Federal 
     Property and Administrative Services Act of 1949 (40 
     U.S.C. 490(f)(6)) in excess of $5,555,544,000 shall remain 
     in the Fund and shall not be available for expenditure 
     except as authorized in appropriations Acts.

[[Page H11734]]

                         policy and operations

       For expenses authorized by law, not otherwise provided for, 
     for Government-wide policy and oversight activities 
     associated with asset management activities; utilization and 
     donation  of surplus personal property; transportation 
     management activities; procurement and supply management 
     activities; Government-wide and internal responsibilities 
     relating to automated data management, telecommunications, 
     information resources management, and related technology 
     activities; utilization survey, deed compliance inspection, 
     appraisal, environmental and cultural analysis, and land use 
     planning functions pertaining to excess and surplus real 
     property; agency-wide policy direction; Board of Contract 
     Appeals; accounting, records management, and other support 
     services incident to adjudication of Indian Tribal Claims by 
     the United States Court of Federal Claims; services as 
     authorized by 5 U.S.C. 3109; and not to exceed $5,000 for 
     official reception and representation expenses; $110,173,000.

                      office of inspector general

       For necessary expenses of the Office of Inspector General 
     and services authorized by 5 U.S.C. 3109, $33,863,000: 
     Provided, That not to exceed $5,000 shall be available for 
     payment for information and detection of fraud against the 
     Government, including payment for recovery of stolen 
     Government property: Provided further, That not to exceed 
     $2,500 shall be available for awards to employees of other 
     Federal agencies and private citizens in recognition of 
     efforts and initiatives resulting in enhanced Office of 
     Inspector General effectiveness.

           allowances and office staff for former presidents

       For carrying out the provisions of the Act of August 25, 
     1958, as amended (3 U.S.C. 102 note), and Public Law 95-138, 
     $2,180,000: Provided, That the Administrator of General 
     Services shall transfer to the Secretary of the Treasury such 
     sums as may be necessary to carry out the provisions of such 
     Acts.

                   expenses, presidential transition

       For expenses necessary to carry out the Presidential 
     Transition Act of 1963, as amended (3 U.S.C. 102 note), 
     $5,600,000.

          general provisions--general services administration

       Sec. 401. The appropriate appropriation or fund available 
     to the General Services Administration shall be credited with 
     the cost of operation, protection, maintenance, upkeep, 
     repair, and improvement, included as part of rentals received 
     from Government corporations pursuant to law (40 U.S.C. 129).
       Sec. 402. Funds available to the General Services 
     Administration shall be available for the hire of passenger 
     motor vehicles.
       Sec. 403. Funds in the Federal Buildings Fund made 
     available for fiscal year 1997 for Federal Buildings Fund 
     activities may be transferred between such activities only to 
     the extent necessary to meet program requirements: Provided, 
     That any proposed transfers shall be approved in advance by 
     the Committees on Appropriations of the House and Senate.
       Sec. 404. No funds made available by this Act shall be used 
     to transmit a fiscal year 1998 request for United States 
     Courthouse construction that does not meet the design guide 
     standards for construction as established by the General 
     Services Administration, the Judicial Conference of the 
     United States, and the Office of Management and Budget and 
     does not reflect the priorities of the Judicial Conference of 
     the United States as set out in its approved 5-year 
     construction plan: Provided, That the request must be 
     accompanied by a standardized courtroom utilization study of 
     each facility to be replaced or expanded.
       Sec. 405. None of the funds provided in this Act may be 
     used to increase the amount of occupiable square feet, 
     provide cleaning services, security enhancements, or any 
     other service usually provided through the Federal Buildings 
     Fund, to any agency which does not pay the requested rate per 
     square foot assessment for space and services as determined 
     by the General Services Administration in compliance with the 
     Public Buildings Amendments Act of 1972 (Public Law 92-313).
       Sec. 406. The Administrator of the General Services is 
     directed to ensure that the materials used for the facade on 
     the United States Courthouse Annex, Savannah, Georgia project 
     are compatible with the existing Savannah Federal Building-
     U.S. Courthouse facade, in order to ensure compatibility of 
     this new facility with the Savannah historic district and to 
     ensure that the Annex will not endanger the National Landmark 
     status of the Savannah historic district.
       Sec. 407. (a) Section 210 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 490) is 
     amended by adding at the end the following new subsection:
       ``(l)(1) The Administrator may establish, acquire space 
     for, and equip flexiplace work telecommuting centers (in this 
     subsection referred to as `telecommuting centers') for use by 
     employees of Federal agencies, State and local governments, 
     and the private sector in accordance with this subsection.
       ``(2) The Administrator may make any telecommuting center 
     available for use by individuals who are not Federal 
     employees to the extent the center is not being fully 
     utilized by Federal employees. The Administrator shall give 
     Federal employees priority in using the telecommuting 
     centers.
       ``(3)(A) The Administrator shall charge user fees for the 
     use of any telecommuting center. The amount of the user fee 
     shall approximate commercial charges for comparable space and 
     services except that in no instance shall such fee be less 
     than that necessary to pay the cost of establishing and 
     operating the center, including the reasonable cost of 
     renovation and replacement of furniture, fixtures, and 
     equipment.
       ``(B) Amounts received by the Administrator after September 
     30, 1993, as user fees for use of any telecommuting center 
     may be deposited into the Fund established under subsection 
     (f) of this section and may be used by the Administrator to 
     pay costs incurred in the establishment and operation of the 
     center.
       ``(4) The Administrator may provide guidance, assistance, 
     and oversight to any person regarding establishment and 
     operation of alternative workplace arrangements, such as 
     telecommuting, hoteling, virtual offices, and other 
     distributive work arrangements.
       ``(5) In considering whether to acquire any space, 
     quarters, buildings, or other facilities for use by employees 
     of any executive agency, the head of that agency shall 
     consider whether the need for the facilities can be met using 
     alternative workplace arrangements referred to in paragraph 
     (4).''.
       (b) Section 13 of the Public Building Act of 1959, as 
     amended, (107 Stat. 438; 40 U.S.C. 612) is amended--
       (1) by striking ``(xi)'' and inserting in lieu thereof 
     ``(xii)''; and
       (2) by striking ``and (x)'' and inserting in lieu thereof 
     ``(x) telecommuting centers and (xi)''.
       Sec. 408. Notwithstanding any other provision of law, the 
     Administrator of General Services is authorized and directed 
     to acquire the land bounded by S.W. First Avenue, S.W. Second 
     Avenue, S.W. Main Street, and S.W. Madison Street, Portland, 
     Oregon, for the purposes of constructing the proposed Law 
     Enforcement Center on the site.
       Sec. 409. Section 2815 of Public Law 103-160, relating to 
     the conveyance of real property at the Iowa Army Ammunition 
     Plant, is amended--
       (1) in subsection (a), by striking ``may convey to'' and 
     inserting ``shall convey, without reimbursement and if 
     requested by,''; and
       (2) by striking subsection (b) and inserting the following 
     new subsection:
       ``(b) Use of Water and Sewer Lines.--As part of the 
     conveyance under subsection (a), the Secretary shall permit 
     the City to use existing water and sewer lines and sewage 
     system at the Iowa Army Ammunition Plant for a three-year 
     period beginning on the date of the conveyance.''.
       Sec. 410. (a) Conveyance of Land.--
       (1) Administrator of general services.--Subject to 
     subsections (b) and (c), the Administrator of General 
     Services (hereinafter in this section referred to as the 
     ``Administrator'') shall convey, without compensation, to a 
     nonprofit organization known as the ``Beaver County 
     Corporation for Economic Development'' all right, title, and 
     interest of the United States in and to those pieces or 
     parcels of land in Hopewell Township, Pennsylvania, described 
     in subsection (b), together with all improvements thereon and 
     appurtenances thereto. The purpose of the conveyance is to 
     provide a site for economic development in Hopewell Township.
       (2) Property description.--The land referred to in 
     paragraph (1) is the parcel of land in the township of 
     Hopewell, county of Beaver, Pennsylvania, bounded and 
     described as follows:
       (A) Beginning at the southwest corner at a point common to 
     Lot No. 1, same plan, lands now or formerly of Frank and 
     Catherine Wutter, and the easterly right-of-way line of 
     Pennsylvania Legislative Route No. 60 (Beaver Valley 
     Expressway); thence proceeding by the easterly right-of-way 
     of Pennsylvania Legislative Route No. 60 by the following 
     three courses and distances:
       (i) North 17 degrees, 14 minutes, 20 seconds West, 213.10 
     feet to a point.
       (ii) North 72 degrees, 45 minutes, 40 seconds East, 30.00 
     feet to a point.
       (iii) North 17 degrees, 14 minutes, 20 seconds West, 252.91 
     feet to a point; on a line dividing Lot No. 1 from the other 
     part of Lot No. 1, said part now called Lot No. 5, same plan; 
     thence by last mentioned dividing line, North 78 degrees, 00 
     minutes, 00 seconds East; 135.58 feet to a point, a cul-de-
     sac on Industrial Drive; thence by said cul-de-sac and the 
     southerly side of Industrial Drive by the following courses 
     and distances:

       (I) By a curve to the right having a radius of 100.00 feet 
     for an arc distance of 243.401 feet to a point.
       (II) Thence by a curve to the right having a radius of 
     100.00 feet for an arc distance of 86.321 feet to a point.

       (III) Thence by 78 degrees, 00 minutes, 00 seconds East, 
     777.78 feet to a point.
       (IV) Thence, North 12 degrees, 00 minutes, 00 seconds West, 
     74.71 feet to a point.
       (V) Thence by a curve to the right, having a radius of 
     50.00 feet for an arc distance of 78.54 feet to a point.
       (VI) Thence North 78 degrees, 00 minutes, 00 seconds East, 
     81.24 feet to a point.
       (VII) Thence by a curve to the right, having a radius of 
     415.00 feet for an arc distance of 140.64 feet to a point.
       (VIII) Thence, South 82 degrees, 35 minutes, 01 second 
     East, 125.00 feet to a point.
       (IX) Thence, South 7 degrees, 24 minutes, 59 seconds West, 
     5.00 feet to a point.
       (X) Thence by a curve to the right, having a radius of 
     320.00 feet for an arc distance of 256.85 feet to a point.
       (XI) Thence by a curve to the right having a radius of 
     50.00 feet for an arc distance of 44.18 feet to a point on 
     the northerly side of Airport Road.

       (B) Thence by the northerly side thereof by the following:
       (i) South 14 degrees, 01 minutes, 54 seconds, West, 56.94 
     feet to a point.
       (ii) Thence by a curve to the right having a radius of 
     225.00 feet for an arc distance of 207.989 feet to a point.
       (iii) Thence South 66 degrees, 59 minutes, 45 seconds West, 
     192.08 feet to a point on the

[[Page H11735]]

     southern boundary of Lot No. 1, which line is also the line 
     dividing Lot No. 1 from lands now or formerly, of Frank and 
     Catherine Wutter.
       (C) Thence by the same, South 75 degrees, 01 minutes, 00 
     seconds West, 1,351.23 feet to a point at the place of 
     beginning.
       (3) Date of conveyance.--The date of the conveyance of 
     property required under paragraph (1) shall be not later than 
     the 90th day following the date of the enactment of this Act.
       (4) Conveyance terms.--
       (A) Terms and conditions.--The conveyance of property 
     required under paragraph (1) shall be subject to such terms 
     and conditions as may be determined by the Administrator to 
     be necessary to safeguard the interests of the United States. 
     Such terms and conditions shall be consistent with the terms 
     and conditions set forth in this section.
       (B) Quitclaim deed.--The conveyance of property required 
     under paragraph (1) shall be by quitclaim deed.
       (b) Limitation on Conveyance.--No part of any land conveyed 
     under subsection (a) may be used, during the 30-year period 
     beginning on the date of conveyance for any purpose other 
     than economic development.
       (c) Reversionary Interest.--
       (1) In general.--The property conveyed under subsection (a) 
     shall revert to the United States on any date in the 30-year 
     period beginning on the date of such conveyance on which the 
     property is used for a purpose other than economic 
     development.
       (2) Enforcing reversion.--The Administrator shall perform 
     all acts necessary to enforce any reversion of property to 
     the United States under this subsection.
       (3) Inventory of public buildings service.--Property that 
     reverts to the United States under this subsection shall be 
     under the control of the General Services Administration.
       Sec. 411. Notwithstanding any other provision of law, the 
     land contained in block 111 in the Federal District, Denver, 
     Colorado, obtained pursuant to paragraphs (6) and (7) of 
     section 12 of Public Law 94-204 (43 U.S.C. 1611 note) shall 
     not be subject to condemnation by any agency or 
     instrumentality of the Federal Government, without the 
     consent of the owner of that land.

           John F. Kennedy Assassination Records Review Board

       For necessary expenses to carry out the John F. Kennedy 
     Assassination Records Collection Act of 1992, $2,150,000.

                     Merit Systems Protection Board

                         salaries and expenses


                     (including transfer of funds)

       For necessary expenses to carry out functions of the Merit 
     Systems Protection Board pursuant to Reorganization Plan 
     Numbered 2 of 1978 and the Civil Service Reform Act of 1978, 
     including services as authorized by 5 U.S.C. 3109, rental of 
     conference rooms in the District of Columbia and elsewhere, 
     hire of passenger motor vehicles, and direct procurement of 
     survey printing, $23,923,000, together with not to exceed 
     $2,430,000 for administrative expenses to adjudicate 
     retirement appeals to be transferred from the Civil Service 
     Retirement and Disability Fund in amounts determined by the 
     Merit Systems Protection Board.

              National Archives and Records Administration


                           operating expenses

       For necessary expenses in connection with the 
     administration of the National Archives (including the 
     Information Security Oversight Office) and records and 
     related activities, as provided by law, and for expenses 
     necessary for the review and declassification of documents, 
     and for the hire of passenger motor vehicles, $196,963,000: 
     Provided, That the Archivist of the United States is 
     authorized to use any excess funds available from the amount 
     borrowed for construction of the National Archives facility, 
     for expenses necessary to move into the facility.


             Archives Facilities and Presidential Libraries

                        repairs and restoration

       For the repair, alteration, and improvement of archives 
     facilities and presidential libraries, and to 
     provide adequate storage for holdings, $16,229,000 to 
     remain available until expended.

        national historical publications and records commission


                             grants program

       For necessary expenses for allocations and grants for 
     historical publications and records as authorized by 44 
     U.S.C. 2504, as amended, $5,000,000 to remain available until 
     expended.

                      Office of Government Ethics

                         salaries and expenses

       For necessary expenses to carry out functions of the Office 
     of Government Ethics pursuant to the Ethics in Government Act 
     of 1978, as amended by Public Law 100-598, and the Ethics 
     Reform Act of 1989, Public Law 101-194, including services as 
     authorized by 5 U.S.C. 3109, rental of conference rooms in 
     the District of Columbia and elsewhere, hire of passenger 
     motor vehicles, and not to exceed $1,500 for official 
     reception and representation expenses; $8,078,000.

                     Office of Personnel Management

                         salaries and expenses


                  (including transfer of trust funds)

       For necessary expenses to carry out functions of the Office 
     of Personnel Management pursuant to Reorganization Plan 
     Numbered 2 of 1978 and the Civil Service Reform Act of 1978, 
     including services as authorized by 5 U.S.C. 3109; medical 
     examinations performed for veterans by private physicians on 
     a fee basis; rental of conference rooms in the District of 
     Columbia and elsewhere; hire of passenger motor vehicles; not 
     to exceed $2,500 for official reception and representation 
     expenses; advances for reimbursements to applicable funds of 
     the Office of Personnel Management and the Federal Bureau of 
     Investigation for expenses incurred under Executive Order 
     10422 of January 9, 1953, as amended; and payment of per diem 
     and/or subsistence allowances to employees where Voting 
     Rights Act activities require an employee to remain overnight 
     at his or her post of duty; $87,076,000, of which not to 
     exceed $1,000,000 shall be available for the establishment of 
     health promotion and disease prevention programs for Federal 
     employees; and in addition $94,736,000 for administrative 
     expenses, to be transferred from the appropriate trust funds 
     of the Office of Personnel Management without regard to other 
     statutes, including direct procurement of printing materials 
     for annuitants,  for the retirement and insurance programs, 
     of which $3,500,000 shall be transferred at such times as the 
     Office of Personnel Management deems appropriate, and shall 
     remain available until expended for the costs of automating 
     the retirement recordkeeping systems, together with remaining 
     amounts authorized in previous Acts for the recordkeeping 
     systems: Provided, That the provisions of this appropriation 
     shall not affect the authority to use applicable trust funds 
     as provided by section 8348(a)(1)(B) of title 5, United 
     States Code: Provided further, That, except as may be 
     consistent with 5 U.S.C. 8902a(f)(1) and (i), no payment may 
     be made from the Employees Health Benefits Fund to any 
     physician, hospital, or other provider of health care 
     services or supplies who is, at the time such services or 
     supplies are provided to an individual covered under chapter 
     89 of title 5, United States Code, excluded, pursuant to 
     section 1128 or 1128A of the Social Security Act (42 U.S.C. 
     1320a-7-1320a-7a), from participation in any program under 
     title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.): Provided further, That no part of this appropriation 
     shall be available for salaries and expenses of the Legal 
     Examining Unit of the Office of Personnel Management 
     established pursuant to Executive Order 9358 of July 1, 1943, 
     or any successor unit of like purpose: Provided further, That 
     the President's Commission on White House Fellows, 
     established by Executive Order 11183 of October 3, 1964, may, 
     during the fiscal year ending September 30, 1997, accept 
     donations of money, property, and personal services in 
     connection with the development of a publicity brochure to 
     provide information about the White House Fellows, except 
     that no such donations shall be accepted for travel or 
     reimbursement of travel expenses, or for the salaries of 
     employees of such Commission.


           general provisions--office of personnel management

       Sec. 421. The first sentence of section 1304(e)(1) of title 
     5, United States Code, is amended by inserting after 
     ``basis'' the following ``, including personnel management 
     services performed at the request of individual agencies 
     (which would otherwise be the responsibility of such 
     agencies), or at the request of nonappropriated fund 
     instrumentalities''.
       Sec. 422. Paragraph (1) of section 8906(e) of title 5, 
     United States Code, is amended--
       (1) by striking the last sentence of that paragraph and 
     redesignating the remainder of that paragraph as (1)(A);
       (2) by adding at the end of paragraph (1)(A) (as so 
     designated) the following:
       ``(B) During each pay period in which an enrollment 
     continues under subparagraph (A)--
       ``(i) employee and Government contributions required by 
     this section shall be paid on a current basis; and
       ``(ii) if necessary, the head of the employing agency shall 
     approve advance payment, recoverable in the same manner as 
     under section 5524a(c), of a portion of basic pay sufficient 
     to pay current employee contributions.
       ``(C) Each agency shall establish procedures for accepting 
     direct payments of employee contributions for the purposes of 
     this paragraph.''.

                      office of inspector general

                         salaries and expenses


                  (including transfer of trust funds)

       For necessary expenses of the Office of Inspector General 
     in carrying out the provisions of the Inspector General Act, 
     as amended, including services as authorized by 5 U.S.C. 
     3109, hire of passenger motor vehicles, $960,000; and in 
     addition, not to exceed $8,645,000 for administrative 
     expenses to audit the Office of Personnel Management's 
     retirement and insurance programs, to be transferred from the 
     appropriate trust funds of the Office of Personnel 
     Management, as determined by the Inspector General: Provided, 
     That the Inspector General is authorized to rent conference 
     rooms in the District of Columbia and elsewhere.

      government payment for annuitants, employees health benefits

       For payment of Government contributions with respect to 
     retired employees, as authorized by chapter 89 of title 5, 
     United States Code, and the Retired Federal Employees Health 
     Benefits Act (74 Stat. 849), as amended, such sums as may be 
     necessary.

       government payment for annuitants, employee life insurance

       For payment of Government contributions with respect to 
     employees retiring after December 31, 1989, as required by 
     chapter 87 of title 5, United States Code, such sums as may 
     be necessary.

        payment to civil service retirement and disability fund

       For financing the unfunded liability of new and increased 
     annuity benefits becoming effective on or after October 20, 
     1969, as authorized by 5 U.S.C. 8348, and annuities under 
     special Acts to be credited to the Civil Service Retirement 
     and Disability Fund, such sums as may be necessary: Provided, 
     That annuities authorized by the Act of May 29, 1944, as 
     amended, and the

[[Page H11736]]

     Act of August 19, 1950, as amended (33 U.S.C. 771-75), may 
     hereafter be paid out of the Civil Service Retirement and 
     Disability Fund.

                       Office of Special Counsel

                         salaries and expenses

       For necessary expenses to carry out functions of the Office 
     of Special Counsel pursuant to Reorganization Plan Numbered 2 
     of 1978, the Civil Service Reform Act of 1978 (Public Law 95-
     454), the Whistleblower Protection Act of 1989 (Public Law 
     101-12), Public Law 103-424, and the Uniformed Services 
     Employment and Reemployment Act of 1994 (Public Law 103-353), 
     including services as authorized by 5 U.S.C. 3109, payment of 
     fees and expenses for witnesses, rental of conference rooms 
     in the District of Columbia and elsewhere, and hire of 
     passenger motor vehicles; $8,116,000.

                        United States Tax Court

                         salaries and expenses

       For necessary expenses, including contract reporting and 
     other services as authorized by 5 U.S.C. 3109, $33,781,000: 
     Provided, That travel expenses of the judges shall be paid 
     upon the written certificate of the judge.
       This title may be cited as the ``Independent Agencies 
     Appropriations Act, 1997''.

                      TITLE V--GENERAL PROVISIONS

                                This Act

       Section 501. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 502. The expenditure of any appropriation under this 
     Act for any consulting service through procurement contract, 
     pursuant to 5 U.S.C. 3109, shall be limited to those 
     contracts where such expenditures are a matter of public 
     record and available for public inspection, except where 
     otherwise provided under existing law, or under existing 
     Executive order issued pursuant to existing law.
       Sec. 503. Section 5131 of title 31, United States Code, is 
     amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).
       Sec. 504. None of the funds made available by this Act 
     shall be available for any activity or for paying the salary 
     of any Government employee where funding an activity or 
     paying a salary to a Government employee would result in a 
     decision, determination, rule, regulation, or policy that 
     would prohibit the enforcement of section 307 of the Tariff 
     Act of 1930.
       Sec. 505. None of the funds made available by this Act 
     shall be available for the purpose of transferring control 
     over the Federal Law Enforcement Training Center located at 
     Glynco, Georgia, and Artesia, New Mexico, out of the 
     Treasury Department.
       Sec. 506. No part of any appropriation contained in this 
     Act shall be used for publicity or propaganda purposes within 
     the United States not heretofore authorized by the Congress.
       Sec. 507. No part of any appropriation contained in this 
     Act shall be available for the payment of the salary of any 
     officer or employee of the United States Postal Service, 
     who--
       (1) prohibits or prevents, or attempts or threatens to 
     prohibit or prevent, any officer or employee of the United 
     States Postal Service from having any direct oral or written 
     communication or contact with any Member or committee of 
     Congress in connection with any matter pertaining to the 
     employment of such officer or employee or pertaining to the 
     United States Postal Service in any way, irrespective of 
     whether such communication or contact is at the initiative of 
     such officer or employee or in response to the request or 
     inquiry of such Member or committee; or
       (2) removes, suspends from duty without pay, demotes, 
     reduces in rank, seniority, status, pay, or performance of 
     efficiency rating, denies promotion to, relocates, reassigns, 
     transfers, disciplines, or discriminates in regard to any 
     employment right, entitlement, or benefit, or any term or 
     condition of employment of, any officer or employee of the 
     United States Postal Service, or attempts or threatens to 
     commit any of the foregoing actions with respect to such 
     officer or employee, by reason of any communication or 
     contact of such officer or employee with any Member or 
     committee of Congress as described in paragraph (1).
       Sec. 508. The Office of Personnel Management may, during 
     the fiscal year ending September 30, 1997, accept donations 
     of supplies, services, land, and equipment for the Federal 
     Executive Institute and Management Development Centers to 
     assist in enhancing the quality of Federal management.
       Sec. 509. The United States Secret Service may, during the 
     fiscal year ending September 30, 1997, and hereafter, accept 
     donations of money to offset costs incurred while protecting 
     former Presidents and spouses of former Presidents when the 
     former President or spouse travels for the purpose of making 
     an appearance or speech for a payment of money or any thing 
     of value.
       Sec. 510. No part of any appropriation contained in this 
     Act shall be available to pay the salary for any person 
     filling a position, other than a temporary position, formerly 
     held by an employee who has left to enter the Armed Forces of 
     the United States and has satisfactorily completed his period 
     of active military or naval service and has within 90 days 
     after his release from such service or from hospitalization 
     continuing after discharge for a period of not more than 1 
     year made application for restoration to his former position 
     and has been certified by the Office of Personnel Management 
     as still qualified to perform the duties of his former 
     position and has not been restored thereto.
       Sec. 511. None of the funds made available in this Act may 
     be used to provide any non-public information such as mailing 
     or telephone lists to any person or any organization outside 
     of the Federal Government without the approval of the House 
     and Senate Committees on Appropriations.
       Sec. 512. No funds appropriated pursuant to this Act may be 
     expended by an entity unless the entity agrees that in 
     expending the assistance the entity will comply with sections 
     2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a-10c, 
     popularly known as the ``Buy American Act'').
       Sec. 513. (a) Purchase of American-Made Equipment and 
     Products.--In the case of any equipment or products that may 
     be authorized to be purchased with financial assistance 
     provided under this Act, it is the sense of the Congress that 
     entities receiving such assistance should, in expending the 
     assistance, purchase only American-made equipment and 
     products.
       (b) Notice to Recipients of Assistance.--In providing 
     financial assistance under this Act, the Secretary of the 
     Treasury shall provide to each recipient of the assistance a 
     notice describing the statement made in subsection (a) by the 
     Congress.
       Sec. 514. If it has been finally determined by a court or 
     Federal agency that any person intentionally affixed a label 
     bearing a ``Made in America'' inscription, or any inscription 
     with the same meaning, to any product sold in or shipped to 
     the United States that is not made in the United States, such 
     person shall be ineligible to receive any contract or 
     subcontract made with funds provided pursuant to this Act, 
     pursuant to the debarment, suspension, and ineligibility 
     procedures described in sections 9.400 through 9.409 of title 
     48, Code of Federal Regulations.
       Sec. 515. Except as otherwise specifically provided by law, 
     not to exceed 50 percent of unobligated balances remaining 
     available at the end of fiscal year 1997 from appropriations 
     made available for salaries and expenses for fiscal year 1997 
     in this Act, shall remain available through September 30, 
     1998, for each such account for the purposes authorized: 
     Provided, That a request shall be submitted to the House and 
     Senate Committees on Appropriations for approval prior to the 
     expenditure of such funds.
       Sec. 516. Where appropriations in this Act are expendable 
     for travel expenses of employees and no specific limitation 
     has been placed thereon, the expenditures for such travel 
     expenses may not exceed the amount set forth in the budget 
     estimates submitted for appropriations without the advance 
     approval of the House and Senate Committees on 
     Appropriations: Provided, That this section shall not apply 
     to travel performed by uncompensated officials of local 
     boards and appeal boards in the Selective Service System; to 
     travel performed directly in connection with care and 
     treatment of medical beneficiaries of the Department of 
     Veterans Affairs; to travel of the Office of Personnel 
     Management in carrying out its observation responsibilities 
     of the Voting Rights Act; or to payments to interagency motor 
     pools separately set forth in the budget schedules: Provided 
     further, That this provision does not apply to accounts that 
     do not contain an object identification for travel.
       Sec. 517. Notwithstanding any other provision of law or 
     regulation during the fiscal year ending September 30, 1997, 
     and thereafter:
       (1) The authority of the special police officers of the 
     Bureau of Engraving and Printing, in the Washington, DC 
     Metropolitan area, extends to buildings and land under the 
     custody and control of the Bureau; to buildings and land 
     acquired by or for the Bureau through lease, unless otherwise 
     provided by the acquisition agency; to the streets, sidewalks 
     and open areas immediately adjacent to the Bureau along 
     Wallenberg Place (15th Street) and 14th Street between 
     Independence and Maine Avenues and C and D Streets between 
     12th and 14th Streets; to areas which include surrounding 
     parking facilities used by Bureau employees, including the 
     lots at 12th and C Streets, SW, Maine Avenue and Water 
     Streets, SW, Maiden Lane, the Tidal Basin and East Potomac 
     Park; to the protection in transit of United States 
     securities, plates and dies used in the production of United 
     States securities, or other products or implements of the 
     Bureau of Engraving and Printing which the Director of that 
     agency so designates.
       (2) The authority of the special police officers of the 
     United States Mint extends to the buildings and land under 
     the custody and control of the Mint; to the streets, 
     sidewalks and open areas in the vicinity to such facilities; 
     to surrounding parking facilities used by Mint employees; and 
     to the protection in transit of bullion, coins, dies, and 
     other property and assets of, or in the custody of, the Mint.
       (3) The exercise of police authority by Bureau or Mint 
     officers, with the exception of the exercise of authority 
     upon property under the custody and control of the Bureau or 
     the Mint, respectively, shall be deemed supplementary to the 
     Federal police force with primary jurisdictional 
     responsibility. This authority shall be in addition to any 
     other law enforcement authority which has been provided to 
     these officers under other provisions of law or regulations.
       Sec. 518. No funds appropriated by this Act shall be 
     available to pay for an abortion, or the administrative 
     expenses in connection with any health plan under the Federal 
     employees health benefit program which provides any benefits 
     or coverage for abortions.
       Sec. 519. The provision of section 518 shall not apply 
     where the life of the mother would be endangered if the fetus 
     were carried to term, or the pregnancy is the result of an 
     act of rape or incest.
       Sec. 520. No part of any appropriation made available in 
     this Act shall be used to implement Bureau of Alcohol, 
     Tobacco and Firearms Ruling TD ATF-360; Re: Notice Nos. 782, 
     780, 91F009P.
       Sec. 521. Notwithstanding title 5, United States Code, 
     Personal Service Contractors (PSC)

[[Page H11737]]

     employed by the Department of the Treasury shall be 
     considered as Federal Government employees for purposes of 
     making available Federal employee health and life insurance.
       Sec. 522. Section 5131 of title 31, United States Code, is 
     amended by striking subsection (c); and by redesignating 
     subsection (d) as subsection (c).
       Sec. 523. Section 5112(i)(4) of title 31, United States 
     Code, is amended by adding at the end the following new 
     subparagraph:
       ``(C) The Secretary may continue to mint and issue coins in 
     accordance with the specifications contained in paragraphs 
     (7), (8), (9), and (10) of subsection (a) and paragraph 
     (1)(A) of this subsection at the same time the Secretary in 
     minting and issuing other bullion and proof gold coins under 
     this subsection in accordance with such program procedures 
     and coin specifications, designs, varieties, quantities, 
     denominations, and inscriptions as the Secretary, in the 
     Secretary's discretion, may prescribe from time to time.'': 
     Provided, That profits generated from the sale of gold to the 
     United States Mint for this program shall be considered as a 
     receipt to be deposited into the General Fund of the 
     Treasury.
       Sec. 524. Section 5112 of title 31, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(k) The Secretary may mint and issue bullion and proof 
     platinum coins in accordance with such specifications, 
     designs, varieties, quantities, denominations, and 
     inscriptions as the Secretary, in the Secretary's discretion, 
     may prescribe from time to time.'': Provided, That the 
     Secretary is authorized to use Government platinum reserves 
     stockpiled at the United States Mint as working inventory and 
     shall ensure that reserves utilized are replaced by the Mint.
       Sec. 526. (a) Reimbursement of Certain Attorney Fees and 
     Costs.--
       (1) In general.--The Secretary of the Treasury shall pay 
     from amounts appropriated in title I of this Act under the 
     heading, ``Departmental Offices, Salaries and Expenses'', up 
     to $500,000 to reimburse former employees of the White House 
     Travel Office whose employment in that Office was terminated 
     on May 19, 1993, for any attorney fees and costs they 
     incurred with respect to that termination.
       (2) Verification required.--The Secretary shall pay an 
     individual in full under paragraph (1) upon submission by the 
     individual of documentation verifying the attorney fees and 
     costs.
       (3) No inference of liability.--Liability of the United 
     States shall not be inferred from enactment of or payment 
     under this subsection.
       (b) Limitation on Filing of Claims.--The Secretary of the 
     Treasury shall not pay any claim filed under this section 
     that is filed later than 120 days after the date of the 
     enactment of this Act.
       (c) Limitation.--Payments under subsection (a) shall not 
     include attorney fees or costs incurred with respect to any 
     Congressional hearing or investigation into the termination 
     of employment of the former employees of the White House 
     Travel Office.
       (d) Reduction.--The amount paid pursuant to this section to 
     an individual for attorney fees and costs described in 
     subsection (a) shall be reduced by any amount received before 
     the date of the enactment of this Act, without obligation for 
     repayment by the individual, for payment of such attorney 
     fees and costs (including any amount received from the funds 
     appropriated for the individual in the matter relating to the 
     ``Office of the General Counsel'' under the heading ``Office 
     of the Secretary'' in title I of the Department of 
     Transportation and Related Agencies Appropriations Act, 
     1994).
       (e) Payment in Full Settlement of Claims Against the United 
     States.--Payment under this section, when accepted by an 
     individual described in subsection (a), shall be in full 
     satisfaction of all claims of, or on behalf of, the 
     individual against the United States that arose out of the 
     termination of the White House Travel Office employment of 
     that individual on May 19, 1993.
       Sec. 527. None of the funds made available in this Act may 
     be used by the Executive Office of the President to request 
     from the Federal Bureau of Investigation any official 
     background investigation report on any individual, except 
     when it is made known to the Federal official having 
     authority to obligate or expend such funds that--
       (1) such individual has given his or her express written 
     consent for such request not more than 6 months prior to the 
     date of such request and during the same presidential 
     administration; or
       (2) such request is required due to extraordinary 
     circumstances involving national security.
       Sec. 528. (a) Closing of Alley.--The alley bisecting the 
     property on which a facility is being constructed for use by 
     the United States Government at 930 H Street, N.W., 
     Washington, District of Columbia, is closed to the public, 
     without regard to any contingencies.
       (b) Jurisdiction.--The Administrator of General Services 
     shall have administrative jurisdiction over, and shall hold 
     title on behalf of the United States in, the alley, property, 
     and facility referred to in subsection (a).
       Sec. 529. (a) Commemorative Coin Program Restrictions.--
     Section 5112 of title 31, United States Code, as amended by 
     sections 524 and 530 of this Act, is amended by adding at the 
     end the following new subsection:
       ``(m) Commemorative Coin Program Restrictions.--
       ``(1) Maximum number.--Beginning January 1, 1999, the 
     Secretary may mint and issue commemorative coins under this 
     section during any calendar year with respect to not more 
     than 2 commemorative coin programs.
       ``(2) Mintage levels.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     in carrying out any commemorative coin program, the Secretary 
     shall mint--
       ``(i) not more than 750,000 clad half-dollar coins;
       ``(ii) not more than 500,000 silver one-dollar coins; and
       ``(iii) not more than 100,000 gold five-dollar or ten-
     dollar coins.
       ``(B) Exception.--If the Secretary determines, based on 
     independent, market-based research conducted by a designated 
     recipient organization of a commemorative coin program, that 
     the mintage levels described in subparagraph (A) are not 
     adequate to meet public demand for that commemorative coin, 
     the Secretary may waive one or more of the requirements of 
     subparagraph (A) with respect to that commemorative coin 
     program.
       ``(C) Designated recipient organization defined.--For 
     purposes of this paragraph, the term `designated recipient 
     organization' means any organization designated, under any 
     provision of law, as the recipient of any surcharge imposed 
     on the sale of any numismatic item.''.
       (b) Recovery of Mint Expenses Required Before Payment of 
     Surcharges to any Recipient Organization.--
       (1) Clarification of law relating to deposit of surcharges 
     in the numismatic public enterprise fund.--Section 5134(c)(2) 
     of title 31, United States Code, is amended by inserting ``, 
     including amounts attributable to any surcharge imposed with 
     respect to the sale of any numismatic item'' before the 
     period.
       (2) Conditions on payment of surcharges to recipient 
     organizations.--Section 5134 of title 31, United States Code, 
     is amended by adding at the end the following new subsection:
       ``(f) Conditions on Payment of Surcharges to Recipient 
     Organizations.--
       ``(1) Payment of surcharges.--Notwithstanding any other 
     provision of law, no amount derived from the proceeds of any 
     surcharge imposed on the sale of any numismatic item shall be 
     paid from the fund to any designated recipient organization 
     unless--
       ``(A) all numismatic operation and program costs allocable 
     to the program under which such numismatic item is produced 
     and sold have been recovered; and
       ``(B) the designated recipient organization submits an 
     audited financial statement that demonstrates to the 
     satisfaction of the Secretary of the Treasury that, with 
     respect to all projects or purposes for which the proceeds of 
     such surcharge may be used, the organization has raised funds 
     from private sources for such projects and purposes in an 
     amount that is equal to or greater than the maximum amount 
     the organization may receive from the proceeds of such 
     surcharge.
       ``(2) Annual audits.--
       ``(A) Annual audits of recipients required.--Each 
     designated recipient organization that receives any payment 
     from the fund of any amount derived from the proceeds of any 
     surcharge imposed on the sale of any numismatic item shall 
     provide, as a condition for receiving any such amount, for an 
     annual audit, in accordance with generally accepted 
     government auditing standards by an independent public 
     accountant selected by the organization, of all such payments 
     to the organization beginning in the first fiscal year of the 
     organization in which any such amount is received and 
     continuing until all amounts received by such organization 
     from the fund with respect to such surcharges are fully 
     expended or placed in trust.
       ``(B) Minimum requirements for annual audits.--At a 
     minimum, each audit of a designated recipient organization 
     pursuant to subparagraph (A) shall report--
       ``(i) the amount of payments received by the designated 
     recipient organization from the fund during the fiscal year 
     of the organization for which the audit is conducted that are 
     derived from the proceeds of any surcharge imposed on the 
     sale of any numismatic item;
       ``(ii) the amount expended by the designated recipient 
     organization from the proceeds of such surcharges during the 
     fiscal year of the organization for which the audit is 
     conducted; and
       ``(iii) whether all expenditures by the designated 
     recipient organization during the fiscal year of the 
     organization for which the audit is conducted from the 
     proceeds of such surcharges were for authorized purposes.
       ``(C) Responsibility of organization to account for 
     expenditures of surcharges.--Each designated recipient 
     organization that receives any payment from the fund of any 
     amount derived from the proceeds of any surcharge imposed on 
     the sale of any numismatic item shall take appropriate steps, 
     as a condition for receiving any such payment, to ensure that 
     the receipt of the payment and the expenditure of the 
     proceeds of such surcharge by the organization in each fiscal 
     year of the organization can be accounted for separately from 
     all other revenues and expenditures of the organization.
       ``(D) Submission of audit report.--Not later than 90 days 
     after the end of any fiscal year of a designated recipient 
     organization for which an audit is required under 
     subparagraph (A), the organization shall--
       ``(i) submit a copy of the report to the Secretary of the 
     Treasury; and
       ``(ii) make a copy of the report available to the public.
       ``(E) Use of surcharges for audits.--Any designated 
     recipient organization that receives any payment from the 
     fund of any amount derived from the proceeds of any surcharge 
     imposed on the sale of any numismatic item may use the amount 
     received to pay the cost of an audit required under 
     subparagraph (A).
       ``(F) Waiver of paragraph.--The Secretary of the Treasury 
     may waive the application of any subparagraph of this 
     paragraph to any designated recipient organization for any 
     fiscal year after taking into account the amount of 
     surcharges that such organization received or expended during 
     such year.

[[Page H11738]]

       ``(G) Nonapplicability to federal entities.--This paragraph 
     shall not apply to any Federal agency or department or any 
     independent establishment in the executive branch that 
     receives any payment from the fund of any amount derived from 
     the proceeds of any surcharge imposed on the sale of any 
     numismatic item.
       ``(H) Availability of books and records.--An organization 
     that receives any payment from the fund of any amount derived 
     from the proceeds of any surcharge imposed on the sale of any 
     numismatic item shall provide, as a condition for receiving 
     any such payment, to the Inspector General of the Department 
     of the Treasury or the Comptroller General of the United 
     States, upon the request of such Inspector General or the 
     Comptroller General, all books, records, and work papers 
     belonging to or used by the organization, or by any 
     independent public accountant who audited the organization in 
     accordance with subparagraph (A), which may relate to the 
     receipt or expenditure of any such amount by the 
     organization.
       ``(3) Use of agents or attorneys to influence commemorative 
     coin legislation.--No portion of any payment from the fund to 
     any designated recipient organization of any amount derived 
     from the proceeds of any surcharge imposed on the sale of any 
     numismatic item may be used, directly or indirectly, by the 
     organization to compensate any agent or attorney for services 
     rendered to support or influence in any way legislative 
     action of the Congress relating to such numismatic item.
       ``(4) Designated recipient organization defined.--For 
     purposes of this subsection, the term `designated recipient 
     organization' means any organization designated, under any 
     provision of law, as the recipient of any surcharge imposed 
     on the sale of any numismatic item.''.
       (3) Scope of application.--The amendments made by this 
     section shall apply with respect to the proceeds of any 
     surcharge imposed on the sale of any numismatic item that are 
     deposited in the Numismatic Public Enterprise Fund after the 
     date of the enactment of this Act.
       (4) Repeal of existing recipient report requirement.--
     Section 303 of Public Law 103-186 (31 U.S.C. 5112 note) is 
     repealed.
       (c) Quarterly Financial Reports.--Section 5134 of title 31, 
     United States Code, is amended by adding at the end the 
     following new subsection:
       ``(g) Quarterly Financial Reports.--
       ``(1) In general.--Not later than the 30th day of each 
     month following each calendar quarter through and including 
     the final period of sales with respect to any commemorative 
     coin program authorized on or after the date of enactment of 
     the Treasury, Postal Service, and General Government 
     Appropriations Act, 1997, the Mint shall submit to the 
     Congress a quarterly financial report in accordance with this 
     subsection.
       ``(2) Requirements.--Each report submitted under paragraph 
     (1) shall include, with respect to the calendar quarter at 
     issue--
       ``(A) a detailed financial statement, prepared in 
     accordance with generally accepted accounting principles, 
     that includes financial information specific to that quarter, 
     as well as cumulative financial information relating to the 
     entire program;
       ``(B) a detailed accounting of--
       ``(i) all costs relating to marketing efforts;
       ``(ii) all funds projected for marketing use;
       ``(iii) all costs for employee travel relating to the 
     promotion of commemorative coin programs;
       ``(iv) all numismatic items minted, sold, not sold, and 
     rejected during the production process; and
       ``(v) the costs of melting down all rejected and unsold 
     products;
       ``(C) adequate market-based research for all commemorative 
     coin programs; and
       ``(D) a description of the efforts of the Mint in keeping 
     the sale price of numismatic items as low as practicable.''.
       (d) Citizens Commemorative Coin Advisory Committee.--
       (1) Fixed terms for members.--Section 5135(a)(4) of title 
     31, United States Code, is amended to read as follows:
       ``(4) Terms.--Each member appointed under clause (i) or 
     (iii) of paragraph (3)(A) shall be appointed for a term of 4 
     years.''.
       (2) Chairperson.--Section 5135(a) of title 31, United 
     States Code, is amended by adding at the end the following 
     new paragraph:
       ``(7) Chairperson.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Chairperson of the Advisory Committee shall be elected by the 
     members of the Advisory Committee from among such members.
       ``(B) Exception.--The member appointed pursuant to 
     paragraph (3)(A)(ii) (or the alternate to that member) may 
     not serve as the Chairperson of the Advisory Committee, 
     beginning on June 1, 1999.''.
       (e) Effective Date.--This section and the amendments made 
     by this section shall take effect on the date of enactment of 
     this Act.

                      TITLE VI--GENERAL PROVISIONS

                Departments, Agencies, and Corporations

       Section  601. Funds appropriated in this or any other Act 
     may be used to pay travel to the United States for the 
     immediate family of employees serving abroad in cases of 
     death or life threatening illness of said employee.
       Sec. 602. No department, agency, or instrumentality of the 
     United States receiving appropriated funds under this or any 
     other Act for fiscal year 1997 shall obligate or expend any 
     such funds, unless such department, agency, or 
     instrumentality has in place, and will continue to administer 
     in good faith, a written policy designed to ensure that all 
     of its workplaces are free from the illegal use, possession, 
     or distribution of controlled substances (as defined in the 
     Controlled Substances Act) by the officers and employees of 
     such department, agency, or instrumentality.
       Sec. 603. Notwithstanding 31 U.S.C. 1345, any agency, 
     department or instrumentality of the United States which 
     provides or proposes to provide child care services for 
     Federal employees may reimburse any Federal employee or any 
     person employed to provide such services for travel, 
     transportation, and subsistence expenses incurred for 
     training classes, conferences or other meetings in connection 
     with the provision of such services: Provided, That any per 
     diem allowance made pursuant to this section shall not exceed 
     the rate specified in regulations prescribed pursuant to 
     section 5707 of title 5, United States Code.
       Sec. 604. Unless otherwise specifically provided, the 
     maximum amount allowable during the current fiscal year in 
     accordance with section 16 of the Act of August 2, 1946 (60 
     Stat. 810), for the purchase of any passenger motor vehicle 
     (exclusive of buses, ambulances, law enforcement, and 
     undercover surveillance vehicles), is hereby fixed at $8,100 
     except station wagons for which the maximum shall be $9,100: 
     Provided, That these limits may be exceeded by not to exceed 
     $3,700 for police-type vehicles, and by not to exceed $4,000 
     for special heavy-duty vehicles: Provided further, That the 
     limits set forth in this section may not be exceeded by more 
     than 5 percent for electric or hybrid vehicles purchased for 
     demonstration under the provisions of the Electric and Hybrid 
     Vehicle Research, Development, and Demonstration Act of 1976: 
     Provided further, That the limits set forth in this section 
     may be exceeded by the incremental cost of clean alternative 
     fuels vehicles acquired pursuant to Public Law 101-549 over 
     the cost of comparable conventionally fueled vehicles.
       Sec. 605. Appropriations of the executive departments and 
     independent establishments for the current fiscal year 
     available for expenses of travel or for the expenses of the 
     activity concerned, are hereby made available for quarters 
     allowances and cost-of-living allowances, in accordance with 
     5 U.S.C. 5922-24.
       Sec. 606. Unless otherwise specified during the current 
     fiscal year, no part of any appropriation contained in this 
     or any other Act shall be used to pay the compensation of any 
     officer or employee of the Government of the United States 
     (including any agency the majority of the stock of which is 
     owned by the Government of the United States) whose post of 
     duty is in the continental United States unless such person 
     (1) is a citizen of the United States, (2) is a person in the 
     service of the United States on the date of enactment of this 
     Act who, being eligible for citizenship, has filed a 
     declaration of intention to become a citizen of the United 
     States prior to such date and is actually residing in the 
     United States, (3) is a person who owes allegiance to the 
     United States, (4) is an alien from Cuba, Poland, South 
     Vietnam, the countries of the former Soviet Union, or the 
     Baltic countries lawfully admitted to the United States for 
     permanent residence, (5) is a South Vietnamese, Cambodian, or 
     Laotian refugee paroled in the United States after January 1, 
     1975, or (6) is a national of the People's Republic of China 
     who qualifys for adjustment of status pursuant to the Chinese 
     Student Protection Act of 1992: Provided, That for the 
     purpose of this section, an affidavit signed by any such 
     person shall be considered prima facie evidence that the 
     requirements of this section with respect to his or her 
     status have been complied with: Provided further, That any 
     person making a false affidavit shall be guilty of a felony, 
     and, upon conviction, shall be fined no more than $4,000 or 
     imprisoned for not more than 1 year, or both: Provided 
     further, That the above penal clause shall be in addition to, 
     and not in substitution for, any other provisions of existing 
     law: Provided further, That any payment made to any officer 
     or employee contrary to the provisions of this section shall 
     be recoverable in action by the Federal Government. This 
     section shall not apply to citizens of Ireland, Israel, or 
     the Republic of the Philippines, or to nationals of those 
     countries allied with the United States in the current 
     defense effort, or to international broadcasters employed by 
     the United States Information Agency, or to temporary 
     employment of translators, or to temporary employment in the 
     field service (not to exceed 60 days) as a result of 
     emergencies.
       Sec. 607. Appropriations available to any department or 
     agency during the current fiscal year for necessary expenses, 
     including maintenance or operating expenses, shall also be 
     available for payment to the General Services Administration 
     for charges for space and services and those expenses of 
     renovation and alteration of buildings and facilities which 
     constitute public improvements performed in accordance with 
     the Public Buildings Act of 1959 (73 Stat. 749), the Public 
     Buildings Amendments of 1972 (87 Stat. 216), or other 
     applicable law.
       Sec. 608. In addition to funds provided in this or any 
     other Act, all Federal agencies are authorized to receive and 
     use funds resulting from the sale of materials, including 
     Federal records disposed of pursuant to a records schedule 
     recovered through recycling or waste prevention programs. 
     Such funds shall be available until expended for the 
     following purposes:
       (1) Acquisition, waste reduction and prevention, and 
     recycling programs as described in Executive Order 12873 
     (October 20, 1993), including any such programs adopted prior 
     to the effective date of the Executive Order.
       (2) Other Federal agency environmental management programs, 
     including, but not limited to, the development and 
     implementation of hazardous waste management and pollution 
     prevention programs.
       (3) Other employee programs as authorized by law or as 
     deemed appropriate by the head of the Federal agency.

[[Page H11739]]

       Sec. 609. Funds made available by this or any other Act for 
     administrative expenses in the current fiscal year of the 
     corporations and agencies subject to chapter 91 of title 31, 
     United States Code, shall be available, in addition to 
     objects for which such funds are otherwise available, for 
     rent in the District of Columbia; services in accordance with 
     5 U.S.C. 3109; and the objects specified under this head, all 
     the provisions of which shall be applicable to the 
     expenditure of such funds unless otherwise specified in the 
     Act by which they are made available: Provided, That in the 
     event any functions budgeted as administrative expenses are 
     subsequently transferred to or paid from other funds, the 
     limitations on administrative expenses shall be 
     correspondingly reduced.
       Sec. 610. No part of any appropriation for the current 
     fiscal year contained in this or any other Act shall be paid 
     to any person for the filling of any position for which he or 
     she has been nominated after the Senate has voted not to 
     approve the nomination of said person.
       Sec. 611. For the fiscal year ending September 30, 1997, 
     and thereafter, any department or agency to which the 
     Administrator of General Services has delegated the authority 
     to operate, maintain or repair any building or facility 
     pursuant to section 205(d) of the Federal Property and 
     Administrative Services Act of 1949, as amended, shall retain 
     that portion of the GSA rental payment available for 
     operation, maintenance or repair of the building or facility, 
     as determined by the Administrator, and expend such funds 
     directly for the operation, maintenance or repair of the 
     building or facility. Any funds retained under this section 
     shall remain available until expended for such purposes.
       Sec. 612. (a) In General.--Section 1306 of title 31, United 
     States Code, is amended to read as follows:

     ``Sec. 1306. Use of foreign credits

       ``(a) In General.--Foreign credits (including currencies) 
     owed to or owned by the United States may be used by any 
     agency for any purpose for which appropriations are made for 
     the agency for the current fiscal year (including the 
     carrying out of Acts requiring or authorizing the use of such 
     credits), but only when reimbursement therefor is made to the 
     Treasury from applicable appropriations of the agency.
       ``(b) Exception to Reimbursement Requirement.--Credits 
     described in subsection (a) that are received as exchanged 
     allowances, or as the proceeds of the sale of personal 
     property, may be used in whole or partial payment for the 
     acquisition of similar items, to the extent and in the manner 
     authorized by law, without reimbursement to the Treasury.''.
       (b) Applicability.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act 
     and shall apply thereafter.
       Sec. 613. No part of any appropriation contained in this or 
     any other Act shall be available for interagency financing of 
     boards (except Federal Executive Boards), commissions, 
     councils, committees, or similar groups (whether or not they 
     are interagency entities) which do not have a prior and 
     specific statutory approval to receive financial support from 
     more than one agency or instrumentality.
       Sec. 614. Funds made available by this or any other Act to 
     the ``Postal Service Fund'' (39 U.S.C. 2003) shall be 
     available for employment of guards for all buildings and 
     areas owned or occupied by the Postal Service and under the 
     charge and control of the Postal Service, and such guards 
     shall have, with respect to such property, the powers of 
     special policemen provided by the first section of the Act of 
     June 1, 1948, as amended (62 Stat. 281; 40 U.S.C. 318), and, 
     as to property owned or occupied by the Postal Service, the 
     Postmaster General may take the same actions as the 
     Administrator of General Services may take under the 
     provisions of sections 2 and 3 of the Act of June 1, 1948, as 
     amended (62 Stat. 281; 40 U.S.C. 318a, 318b), attaching 
     thereto penal consequences under the authority and within the 
     limits provided in section 4 of the Act of June 1, 1948, as 
     amended (62 Stat. 281; 40 U.S.C. 318c).
       Sec. 615. None of the funds made available pursuant to the 
     provisions of this Act shall be used to implement, 
     administer, or enforce any regulation which has been 
     disapproved pursuant to a resolution of disapproval duly 
     adopted in accordance with the applicable law of the United 
     States.
       Sec. 616. (a) Notwithstanding any other provision of law, 
     and except as otherwise provided in this section, no part of 
     any of the funds appropriated for the fiscal year ending on 
     September 30, 1997, by this or any other Act, may be used to 
     pay any prevailing rate employee described in section 
     5342(a)(2)(A) of title 5, United States Code--
       (1) during the period from the date of expiration of the 
     limitation imposed by section 616 of the Treasury, Postal 
     Service and General Government Appropriations Act, 1996, 
     until the normal effective date of the applicable wage survey 
     adjustment that is to take effect in fiscal year 1997, in an 
     amount that exceeds the rate payable for the applicable grade 
     and step of the applicable wage schedule in accordance with 
     such section 616; and
       (2) during the period consisting of the remainder of fiscal 
     year 1997, in an amount that exceeds, as a result of a wage 
     survey adjustment, the rate payable under paragraph (1) by 
     more than the sum of--
       (A) the percentage adjustment taking effect in fiscal year 
     1997 under section 5303 of title 5, United States Code, in 
     the rates of pay under the General Schedule; and
       (B) the difference between the overall average percentage 
     of the locality-based comparability payments taking effect in 
     fiscal year 1997 under section 5304 of such title (whether by 
     adjustment or otherwise), and the overall average percentage 
     of such payments which was effective in fiscal year 1996 
     under such section.
       (b) Notwithstanding any other provision of law, no 
     prevailing rate employee described in subparagraph (B) or (C) 
     of section 5342(a)(2) of title 5, United States Code, and no 
     employee covered by section 5348 of such title, may be paid 
     during the periods for which subsection (a) is in effect at a 
     rate that exceeds the rates that would be payable under 
     subsection (a) were subsection (a) applicable to such 
     employee.
       (c) For the purposes of this section, the rates payable to 
     an employee who is covered by this section and who is paid 
     from a schedule not in existence on September 30, 1996, shall 
     be determined under regulations prescribed by the Office of 
     Personnel Management.
       (d) Notwithstanding any other provision of law, rates of 
     premium pay for employees subject to this section may not be 
     changed from the rates in effect on September 30, 1996, 
     except to the extent determined by the Office of Personnel 
     Management to be consistent with the purpose of this section.
       (e) This section shall apply with respect to pay for 
     service performed after September 30, 1996.
       (f) For the purpose of administering any provision of law 
     (including section 8431 of title 5, United States Code, and 
     any rule or regulation that provides premium pay, retirement, 
     life insurance, or any other employee benefit) that requires 
     any deduction or contribution, or that imposes any 
     requirement or limitation on the basis of a rate of salary or 
     basic pay, the rate of salary or basic pay payable after the 
     application of this section shall be treated as the rate of 
     salary or basic pay.
       (g) Nothing in this section shall be considered to permit 
     or require the payment to any employee covered by this 
     section at a rate in excess of the rate that would be payable 
     were this section not in effect.
       (h) The Office of Personnel Management may provide for 
     exceptions to the limitations imposed by this section if the 
     Office determines that such exceptions are necessary to 
     ensure the recruitment or retention of qualified employees.
       Sec. 617. During the period in which the head of any 
     department or agency, or any other officer or civilian 
     employee of the Government appointed by the President of the 
     United States, holds office, no funds may be obligated or 
     expended in excess of $5,000 to furnish or redecorate the 
     office of such department head, agency head, officer or 
     employee, or to purchase furniture or make improvements for 
     any such office, unless advance notice of such furnishing or 
     redecoration is expressly approved by the Committees on 
     Appropriations of the House and Senate. For the purposes of 
     this section, the word ``office'' shall include the entire 
     suite of offices assigned to the individual, as well as any 
     other space used primarily by the individual or the use of 
     which is directly controlled by the individual.
       Sec. 618. Notwithstanding any other provision of law, no 
     executive branch agency shall purchase, construct, and/or 
     lease any additional facilities, except within or contiguous 
     to existing locations, to be used for the purpose of 
     conducting Federal law enforcement training without the 
     advance approval of the House and Senate Committees on 
     Appropriations.
       Sec. 619. Notwithstanding section 1346 of title 31, United 
     States Code, or section 613 of this Act, funds made available 
     for fiscal year 1997 by this or any other Act shall be 
     available for the interagency funding of national security 
     and emergency preparedness telecommunications initiatives 
     which benefit multiple Federal departments, agencies, or 
     entities, as provided by Executive Order Numbered 12472 
     (April 3, 1984).
       Sec. 620. (a) None of the funds appropriated by this or any 
     other Act may be obligated or expended by any Federal 
     department, agency, or other instrumentality for the salaries 
     or expenses of any employee appointed to a position of a 
     confidential or policy-determining character excepted from 
     the competitive service pursuant to section 3302 of title 5, 
     United States Code, without a certification to the Office of 
     Personnel Management from the head of the Federal department, 
     agency, or other instrumentality employing the Schedule C 
     appointee that the Schedule C position was not created solely 
     or primarily in order to detail the employee to the White 
     House.
       (b) The provisions of this section shall not apply to 
     Federal employees or members of the armed services detailed 
     to or from--
       (1) the Central Intelligence Agency;
       (2) the National Security Agency;
       (3) the Defense Intelligence Agency;
       (4) the offices within the Department of Defense for the 
     collection of specialized national foreign intelligence 
     through reconnaissance programs;
       (5) the Bureau of Intelligence and Research of the 
     Department of State;
       (6) any agency, office, or unit of the Army, Navy, Air 
     Force, and Marine Corps, the Federal Bureau of Investigation 
     and the Drug Enforcement Administration of the Department of 
     Justice, the Department of Transportation, the Department of 
     the Treasury, and the Department of Energy performing 
     intelligence functions; and
       (7) the Director of Central Intelligence.
       Sec. 621. No department, agency, or instrumentality of the 
     United States receiving appropriated funds under this or any 
     other Act for fiscal year 1997 shall obligate or expend any 
     such funds, unless such department, agency or instrumentality 
     has in place, and will continue to administer in good faith, 
     a written policy designed to ensure that all of its 
     workplaces are free from discrimination and sexual harassment 
     and that all of its workplaces are not in violation of title 
     VII of the Civil Rights Act of 1964, as amended, the Age 
     Discrimination in Employment Act of 1967, and the 
     Rehabilitation Act of 1973.

[[Page H11740]]

       Sec. 622. No part of any appropriation contained in this 
     Act may be used to pay for the expenses of travel of 
     employees, including employees of the Executive Office of the 
     President, not directly responsible for the discharge of 
     official governmental tasks and duties: Provided, That this 
     restriction shall not apply to the family of the President, 
     Members of Congress or their spouses, Heads of State of a 
     foreign country or their designees, persons providing 
     assistance to the President for official purposes, or other 
     individuals so designated by the President.
       Sec. 623. Notwithstanding any provision of law, the 
     President, or his designee, must certify to Congress, 
     annually, that no person or persons with direct or indirect 
     responsibility for administering the Executive Office of the 
     President's Drug-Free Workplace Plan are themselves subject 
     to a program of individual random drug testing.
       Sec. 624. (a) None of the funds made available in this Act 
     or any other Act may be obligated or expended for any 
     employee training when it is made known to the Federal 
     official having authority to obligate or expend such funds 
     that such employee training--
       (1) does not meet identified needs for knowledge, skills, 
     and abilities bearing directly upon the performance of 
     official duties;
       (2) contains elements likely to induce high levels of 
     emotional response or psychological stress in some 
     participants;
       (3) does not require prior employee notification of the 
     content and methods to be used in the training and written 
     end of course evaluation;
       (4) contains any methods or content associated with 
     religious or quasi-religious belief systems or ``new age'' 
     belief systems as defined in Equal Employment Opportunity 
     Commission Notice N-915.022, dated September 2, 1988;
       (5) is offensive to, or designed to change, participants' 
     personal values or lifestyle outside the workplace; or
       (6) includes content related to human immunodeficiency 
     virus/acquired immune deficiency syndrome (HIV/AIDS) other 
     than that necessary to make employees more aware of the 
     medical ramifications of HIV/AIDS and the workplace rights of 
     HIV-positive employees.
        (b) Nothing in this section shall prohibit, restrict, or 
     otherwise preclude an agency from conducting training bearing 
     directly upon the performance of official duties.
       Sec. 625. No funds appropriated in this or any other Act 
     for fiscal year 1997 may be used to implement or enforce the 
     agreements in Standard Forms 312 and 4355 of the Government 
     or any other nondisclosure policy, form, or agreement if such 
     policy, form, or agreement does not contain the following 
     provisions: ``These restrictions are consistent with and do 
     not supersede, conflict with, or otherwise alter the employee 
     obligations, rights, or liabilities created by Executive 
     Order 12356; section 7211 of title 5, United States Code 
     (governing disclosures to Congress); section 1034 of title 
     10, United States Code, as amended by the Military 
     Whistleblower Protection Act (governing disclosure to 
     Congress by members of the military); section 2302(b)(8) of 
     title 5, United States Code, as amended by the Whistleblower 
     Protection Act (governing disclosures of illegality, waste, 
     fraud, abuse or public health or safety threats); the 
     Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 
     et seq.) (governing disclosures that could expose 
     confidential Government agents); and the statutes which 
     protect against disclosure that may compromise the national 
     security, including sections 641, 793, 794, 798, and 952 of 
     title 18, United States Code, and section 4(b) of the 
     Subversive Activities Act of 1950 (50 U.S.C. section 783(b)). 
     The definitions, requirements, obligations, rights, 
     sanctions, and liabilities created by said Executive Order 
     and listed statutes are incorporated into this agreement and 
     are controlling.'': Provided, That notwithstanding the 
     preceding paragraph, a nondisclosure policy form or agreement 
     that is to be executed by a person connected with the conduct 
     of an intelligence or intelligence-related activity, other 
     than an employee or officer of the United States Government, 
     may contain provisions appropriate to the particular activity 
     for which such document is to be used. Such form or agreement 
     shall, at a minimum, require that the person will not 
     disclose any classified information received in the course of 
     such activity unless specifically authorized to do so by the 
     United States Government. Such nondisclosure forms shall also 
     make it clear that they do not bar disclosures to Congress or 
     to an authorized official of an executive agency or the 
     Department of Justice that are essential to reporting a 
     substantial violation of law.
       Sec. 626. (a) None of the funds appropriated by this or any 
     other Act may be expended by any Federal Agency to procure 
     any product or service subject to section 5124 of Public Law 
     104-106 and that will be available under the procurement by 
     the Administrator of General Services known as ``FTS2000'' 
     unless--
       (1) such product or service is procured by the 
     Administrator of General Services as part of the procurement 
     known as ``FTS2000''; or
       (2) that agency establishes to the satisfaction of the 
     Administrator of General Services that--
       (A) that agency's requirements for such procurement are 
     unique and cannot be satisfied by property and service 
     procured by the Administrator of General Services as part of 
     the procurement known as ``FTS2000''; and
       (B) the agency procurement, pursuant to such delegation, 
     would be cost-effective and would not adversely affect the 
     cost-effectiveness of the FTS2000 procurement.
       (b) After December 31, 1998, subsection (a) shall apply 
     only if the Administrator of General Services has reported 
     that the FTS2000 procurement is producing prices that allow 
     the Government to satisfy its requirements for such 
     procurement in the most cost-effective manner.
       Sec. 627. Subsection (f) of section 403 of Public Law 103-
     356 is amended by deleting ``October 1, 1999'' and inserting 
     ``October 1, 2001''.
       Sec. 628. (a) In General.--Notwithstanding any other 
     provision of law, none of the funds made available by this 
     Act for the Department of the Treasury shall be available for 
     any activity or for paying the salary of any Government 
     employee where funding an activity or paying a salary to a 
     Government employee would result in a decision, 
     determination, rule, regulation, or policy that would permit 
     the Secretary of the Treasury to make any loan or extension 
     of credit under section 5302 of title 31, United States Code, 
     with respect to a single foreign entity or government of a 
     foreign country (including agencies or other entities of that 
     government)--
       (1) with respect to a loan or extension of credit for more 
     than 60 days, unless the President certifies to the Committee 
     on Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Banking and Financial Services of the House of 
     Representatives that--
       (A) there is no projected cost (as that term is defined in 
     section 502 of the Federal Credit Reform Act of 1990) to the 
     United States from the proposed loan or extension of credit; 
     and
       (B) any proposed obligation or expenditure of United States 
     funds to or on behalf of the foreign government is adequately 
     backed by an assured source of repayment to ensure that all 
     United States funds will be repaid; and
       (2) other than as provided by an Act of Congress, if that 
     loan or extension of credit would result in expenditures and 
     obligations, including contingent obligations, aggregating 
     more than $1,000,000,000 with respect to that foreign country 
     for more than 180 days during the 12-month period beginning 
     on the date on which the first such action is taken.
       (b) Waiver of Limitations.--The President may exceed the 
     dollar and time limitations in subsection (a)(2) if he 
     certifies in writing to the Congress that a financial crisis 
     in that foreign country poses a threat to vital United States 
     economic interests or to the stability of the international 
     financial system.
       (c) Expedited Procedures for a Resolution of Disapproval.--
     A presidential certification pursuant to subsection (b) shall 
     not take effect, if the Congress, within 30 calendar days 
     after receiving such certification, enacts a joint resolution 
     of disapproval, as described in paragraph (5) of this 
     subsection.
       (1) Reference to committees.--All joint resolutions 
     introduced in the Senate to disapprove the certification 
     shall be referred to the Committee on Banking, Housing, and 
     Urban Affairs, and in the House of Representatives, to the 
     appropriate committees.
       (2) Discharge of committees.--(A) If the committee of 
     either House to which a resolution has been referred has not 
     reported it at the end of 15 days after its introduction, it 
     is in order to move either to discharge the committee from 
     further consideration of the joint resolution or to discharge 
     the committee from further consideration of any other 
     resolution introduced with respect to the same matter, except 
     no motion to discharge shall be in order after the committee 
     has reported a joint resolution with respect to the same 
     matter.
       (B) A motion to discharge may be made only by an individual 
     favoring the resolution, and is privileged in the Senate; and 
     debate thereon shall be limited to not more than 1 hour, the 
     time to be divided in the Senate equally between, and 
     controlled by, the majority leader and the minority leader or 
     their designees.
       (3) Floor consideration in the senate.--(A) A motion in the 
     Senate to proceed to the consideration of a resolution shall 
     be privileged.
       (B) Debate in the Senate on a resolution, and all debatable 
     motions and appeals in connection therewith, shall be limited 
     to not more than 4 hours, to be equally divided between, and 
     controlled by, the majority leader and the minority leader or 
     their designees.
       (C) Debate in the Senate on any debatable motion or appeal 
     in connection with a resolution shall be limited to not more 
     than 20 minutes, to be equally divided between, and 
     controlled by, the mover and the manager of the resolution, 
     except that in the event the manager of the resolution is in 
     favor of any such motion or appeal, the time in opposition 
     thereto, shall be controlled by the minority leader or his 
     designee. Such leaders, or either of them, may, from time 
     under their control on the passage of a resolution, allot 
     additional time to any Senator during the consideration of 
     any debatable motion or appeal.
       (D) A motion in the Senate to further limit debate on a 
     resolution, debatable motion, or appeal is not debatable. No 
     amendment to, or motion to recommit, a resolution is in order 
     in the Senate.
       (4) In the case of a resolution, if prior to the passage by 
     one House of a resolution of that House, that House receives 
     a resolution with respect to the same matter from the other 
     House, then--
       (A) the procedure in that House shall be the same as if no 
     resolution had been received from the other House; but
       (B) the vote on final passage shall be on the resolution of 
     the other House.
       (5) For purposes of this subsection, the term ``joint 
     resolution'' means only a joint resolution of the 2 Houses of 
     Congress, the matter after the resolving clause of which is 
     as follows: ``That the Congress disapproves the action of the 
     President under section 628(c) of the Treasury, Postal 
     Service, and General Government Appropriations Act, 1997, 
     notice of which was submitted to the Congress on 
     ______________.'', with the blank space being filled with the 
     appropriate date.
       (d) Applicability.--This section--
       (1) shall not apply to any action taken as part of the 
     program of assistance to Mexico announced by the President on 
     January 31, 1995; and

[[Page H11741]]

       (2) shall remain in effect through fiscal year 1997.
       Sec. 629. (a) Technical Amendment.--Section 640 of Public 
     Law 104-52 (109 Stat. 513) is amended by striking ``Service 
     performed'' and inserting ``Hereafter, service performed''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in Public Law 104-52 on the 
     date of its enactment.
       Sec. 630. Notwithstanding any other provision of law, no 
     part of any appropriation contained in this Act for any 
     fiscal year shall be available for paying Sunday premium or 
     differential pay to any employee unless such employee 
     actually performed work during the time corresponding to such 
     premium or differential pay.
       Sec. 631. No part of any funds appropriated in this or any 
     other Act shall be used by an agency of the executive branch, 
     other than for normal and recognized executive-legislative 
     relationships, for publicity or propaganda purposes, and for 
     the preparation, distribution or use of any kit, pamphlet, 
     booklet, publication, radio, television or film presentation 
     designed to support or defeat legislation pending before the 
     Congress, except in presentation to the Congress itself.
       Sec. 632. (a) The United States Courthouse under 
     construction at 1030 Southwest 3d Avenue in Portland, Oregon, 
     shall be known and designated as the ``Mark O. Hatfield 
     United States Courthouse''.
       (b) Any reference in a law, map, regulation, document, 
     paper, or other record of the United States to the courthouse 
     referred to in section 901 shall be deemed to be a reference 
     to the ``Mark O. Hatfield United States Courthouse''.
       (c) This section shall take effect on January 2, 1997.
       Sec. 633. Survivor Annuity Resumption Upon Termination of 
     Marriage.--(a) Amendments.--
       (1) Civil service retirement system.--Section 8341(e) of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``(4) If the annuity of a child under this subchapter 
     terminates under paragraph (3)(E) because of marriage, then, 
     if such marriage ends, such annuity shall resume on the first 
     day of the month in which it ends, but only if--
       ``(A) any lump sum paid is returned to the Fund; and
       ``(B) that individual is not otherwise ineligible for such 
     annuity.''.
       (2) Federal employees' retirement system.--Section 8443(b) 
     of such title is amended by adding at the end the following: 
     ``If the annuity of a child under this subchapter terminates 
     under subparagraph (E) because of marriage, then, if such 
     marriage ends, such annuity shall resume on the first day of 
     the month in which it ends, but only if any lump sum paid is 
     returned to the Fund, and that individual is not otherwise 
     ineligible for such annuity.''.
       (3) Federal employees health benefits.--Section 8908 of 
     title 5, United States Code, is amended by adding at the end 
     of the following new subsection:
       ``(d) A surviving child whose survivor annuity under 
     section 8341(e) or 8443(b) was terminated and is later 
     restored under paragraph (4) of section 8341(e) or the last 
     sentence of section 8443(b) may, under regulations prescribed 
     by the Office, enroll in a health benefits plan described by 
     section 8903 or 8903a if such surviving child was covered by 
     any such plan immediately before such annuity was 
     terminated.''.
       (b) Applicability.--The amendments made by subsection (a) 
     shall apply with respect to any termination of marriage 
     taking effect before, on, or after the date of enactment of 
     this Act, except that benefits shall be payable only with 
     respect to amounts accruing for periods beginning on the 
     first day of the month beginning after the later of such 
     termination of marriage or such date of enactment.
       Sec. 634. Availability of Annual Leave For Employees 
     Affected by Reduction in Force.--Section 6302 of title 5, 
     United States Code, is amended by adding at the end of the 
     following new subsection:
       ``(g) An employee who is being involuntarily separated from 
     an agency due to a reduction in force or transfer of function 
     under subchapter I of chapter 35 may elect to use annual 
     leave to the employee's credit to remain on the agency's 
     rolls after the date the employee would otherwise have been 
     separated if, and only to the extent that, such additional 
     time in a pay status will enable the employee to qualify for 
     an immediate annuity under section 8336, 8412, 8414, or to 
     qualify to carry health benefits coverage into retirement 
     under section 8905(b).''.
       Sec. 635. Section 207(e)(6)(B) of title 18, United States 
     Code, is amended by striking ``level V of the Executive 
     Schedule'' and inserting ``level 5 of the Senior Executive 
     Service''.
       Sec. 636. Reimbursements Relating to Professional Liability 
     Insurance.--(a) Authority.--Notwithstanding any other 
     provision of law, amounts appropriated by this Act (or any 
     other Act for fiscal year 1997 or any fiscal year thereafter) 
     for salaries and expenses may be used to reimburse any 
     qualified employee for not to exceed one-half the costs 
     incurred by such employee for professional liability 
     insurance. A payment under this section shall be contingent 
     upon the submission of such information or documentation as 
     the employing agency may require.
       (b) Qualified Employee.--For purposes of this section, the 
     term ``qualified employee'' means an agency employee whose 
     position is that of--
       (1) a law enforcement officer; or
       (2) a supervisor or management official.
       (c) Definitions.--For purposes of this section--
       (1) the term ``agency'' means an Executive agency, as 
     defined by section 105 of title 5, United States Code, and 
     any agency of the Legislative Branch of Government including 
     any office or committee of the Senate or the House of 
     Representatives;
       (2) the term ``law enforcement officer'' means an employee, 
     the duties of whose position are primarily the investigation, 
     apprehension, prosecution, or detention of individuals 
     suspected or convicted of offenses against the criminal laws 
     of the United States, including any law enforcement 
     officer under section 8331(20) or 8401(17) of such title 
     5, or under section 4823 of title 22, United States Code;
       (3) the terms ``supervisor'' and ``management official'' 
     have the respective meanings given them by section 7103(a) of 
     such title 5, and
       (4) the term ``professional liability insurance'' means 
     insurance which provides coverage for--
       (A) legal liability for damages due to injuries to other 
     persons, damage to their property, or other damage or loss to 
     such other persons (including the expenses of litigation and 
     settlement) resulting from or arising out of any tortious 
     act, error, or omission of the covered individual (whether 
     common law, statutory, or constitutional) while in the 
     performance of such individual's official duties as a 
     qualified employee; and
       (B) the cost of legal representation for the covered 
     individual in connection with any administrative or judicial 
     proceeding (including any investigation or disciplinary 
     proceeding) relating to any act, error, or omission of the 
     covered individual while in the performance of such 
     individual's official duties as a qualified employee, and 
     other legal costs and fees relating to any such 
     administrative or judicial proceeding.
       (d) Applicability.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act 
     and shall apply thereafter.
       Sec. 637. For purposes of each provision of law amended by 
     section 704(a)(2) of the Ethics Reform Act of 1989 (5 U.S.C. 
     5318 note), no adjustment under section 5303 of title 5, 
     United States Code, shall be considered to have taken effect 
     in fiscal year 1997 in the rates of basic pay for the 
     statutory pay systems.
       Sec. 638. For FY 1997, the Secretary of the Treasury is 
     authorized to use funds made available to the FSLIC 
     Resolution Fund under P.L. 103-327, not to exceed $26.1 
     million, to reimburse the Department of Justice for the 
     reasonable expenses of litigation that are incurred in the 
     defense of claims against the U.S. arising from FIRREA and 
     its implementation.
       Sec. 639. Section 608 of Public Law 104-52 is amended in 
     the first sentence by inserting before the period, ``, 
     including Federal records disposed of pursuant to a records 
     schedule''.
       Sec. 640. In reviewing and analyzing the contracting out, 
     outsourcing or privatization of business and administrative 
     functions, and in implementing 40 U.S.C. sections 1413 and 
     1423, and other provisions, in title LI of the National 
     Defense Authorization Act for fiscal year 1996 (the 
     Information Technology Management Reform Act)--
       (1) the Director of the Office of Management and Budget and 
     the heads of the executive agencies may have studies, 
     analyses, reviews and other management assistance performed 
     by the private sector;
       (2) the reviews, analyses, and studies called for by 40 
     U.S.C. section 1413(b)(2) (B) and (C) shall be completed and 
     reported to the Agency Head within 180 days, or less measured 
     from when a study analysis or review is initiated unless the 
     Agency Head determines additional time is needed;
       (3) in accordance with principles and rules governing 
     organizational conflicts of interest, persons involved in a 
     particular study may not compete for any work that is to be 
     or is outsourced as a result of that study; and
       (4) this section will apply with respect to studies 
     occurring on or after the date of enactment of this 
     subsection and completed before September 1, 1999 and the 
     Comptroller General of the United States shall review and 
     provide an assessment of this program by January 1, 1999.
       Sec. 641. (a) Section 1--Authorization of Appropriations.--
     Section 8(a)(1) of the Whistleblower Protection Act of 1989 
     (5 U.S.C. 5509 note, Public Law 101-12, April 10, 1989, 103 
     Stat. 34, as amended Public Law 103-424, Section 1, October 
     29, 1994, 108 Stat. 4361), is amended by striking the words: 
     ``1993, 1994, 1995, 1996, and 1997,'' and inserting in lieu 
     thereof ``1998, 1999, 2000, 2001, and 2002''.
       (b) Section 2--Effective Date.--This Act shall take effect 
     on October 1, 1998.
       Sec. 642. (a) Section 1.--Authorization of 
     Appropriations.--Section 8(a)(1) of the Whistleblower 
     Protection Act of 1989 (5 U.S.C. 5509 note; Public Law 103-
     424; 103 Stat. 34) is amended by striking out: ``1993, 1994, 
     1995, 1996, and 1997,'' and inserting in lieu thereof ``1998, 
     1999, 2000, 2001, and 2002''.
       (b) Section 2--Effective Date.--This Act shall take effect 
     on October 1, 1998.
       Sec. 643. Modifications of National Commission on 
     Restructuring the Internal Revenue Service.--(a) Quorum.--
     Paragraph (4) of section 637(b) of the Treasury, Postal 
     Service, and General Government Appropriations Act, 1996 
     (Public Law 104-52, 109 Stat. 510) is amended by striking 
     ``Seven'' and inserting ``Nine''.
       (b) Co-Chairs.--
       (1) In general.--Paragraph (3) of section 637(b) of such 
     Act is amended--
       (A) by striking ``a Chairman'' and inserting ``Co-Chairs'', 
     and
       (B) by striking ``Chairman'' in the heading and inserting 
     ``Co-Chairs''.
       (2) Conforming amendments.--(A) Paragraph (5)(B) of section 
     637(b) of such Act is amended by striking ``a Chairman'' and 
     inserting ``Co-Chairs''.
       (B) Subsections (b)(4), (d)(1)(B), (d)(3), and (e)(1) of 
     section 637 of such Act are each amended by striking 
     ``Chairman'' each place it appears and inserting ``Co-
     Chairs''.
       (c) Gifts.--Section 637(d) of such Act is amended by adding 
     at the end the following new paragraph:

[[Page H11742]]

       ``(6) Gifts.--The Commission may accept, use, and dispose 
     of gifts or donations of services or property in carrying out 
     its duties under this section.''
       (d) Travel Expenses.--Section 637(f)(2) of such Act is 
     amended by striking ``shall'' and inserting ``may''.
       (e) Time for Filing Report.--
       (1) In general.--Paragraph (1) of section 637(g) of such 
     Act is amended by striking ``one year'' and inserting ``15 
     months''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     637(c)(1) of such Act is amended by striking ``one year'' and 
     inserting ``15 months''.
       (f) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Treasury, Postal Service, and General Government 
     Appropriations Act, 1996.
       Sec. 644. (a) In General.--Section 202(a) of title 39, 
     United States Code, is amended by striking ``$10,000 a year'' 
     and inserting ``$30,000 a year''.
       (b) Effective Date.--Subsection (a) shall take effect at 
     the beginning of the next applicable pay period beginning 
     after the date of the enactment of this Act.
       Sec. 645. (a) In General.--No later than September 30, 
     1997, the Director of the Office of Management and Budget 
     shall submit to the Congress a report that provides--
       (1) estimates of the total annual costs and benefits of 
     Federal regulatory programs, including quantitative and 
     nonquantitative measures of regulatory costs and benefits;
       (2) estimates of the costs and benefits (including 
     quantitative and nonquantitative measures) of each rule that 
     is likely to have a gross annual effect on the economy of 
     $100,000,000 or more in increased costs;
       (3) an assessment of the direct and indirect impacts of 
     Federal rules on the private sector, State and local 
     government, and the Federal Government; and
       (4) recommendations from the Director and a description of 
     significant public comments to reform or eliminate any 
     Federal regulatory program or program element that is 
     inefficient, ineffective, or is not a sound use of the 
     Nation's resources.
       (b) Notice.--The Director shall provide public notice and 
     an opportunity to comment on the report under subsection (a) 
     before the report is issued in final form.
       Sec. 646. Subsection (b) of section 404 of Public Law 103-
     356 is amended by deleting ``September 30, 1997'' and 
     inserting ``December 31, 1999''.
       Sec. 647. (a) Notwithstanding any other provision of law, 
     the Secretary shall, on behalf of the United States, transfer 
     to the University of Miami, without charge, title to the real 
     property and improvements that as of the date of the 
     enactment of this Act constitute the Federal facility known 
     as the Perrine Primate Center, subject to the condition that, 
     during the 10-year period beginning on the date of the 
     transfer--
       (1) the University will provide for the continued use of 
     the real property and improvements as an animal research 
     facility, including primates, and such use will be the 
     exclusive use of the property (with such incidental 
     exceptions as the Secretary may approve); or
       (2) the real property and improvements will be used for 
     research-related purposes other than the purpose specified in 
     paragraph (1) (or for both of such purposes), if the 
     Secretary and the University enter into an agreement 
     accordingly.
       (b) The conveyance under subsection (a) shall not become 
     effective unless the conveyance specifies that, if the 
     University of Miami engages in a material breach of the 
     conditions specified in such subsection, title to the real 
     property and improvements involved reverts to the United 
     States at the election of the Secretary.
       (c) The real property referred to in subsections (a) and 
     (b) is located in the county of Dade in the State of Florida, 
     and is a parcel consisting of the northernmost 30 acre-parcel 
     of the area. The exact acreage and legal description used for 
     purposes of the transfer under subsection (a) shall be in 
     accordance with a survey that is satisfactory to the 
     Secretary.
       (d) For the purposes of this section--
       (1) the term ``Secretary'' means the Secretary of Health 
     and Human Services; and
       (2) the term ``University of Miami'' means the University 
     of Miami located in the State of Florida.
       Sec. 648. (a) Increased Penalties for Counterfeiting 
     Violations.--Sections 474 and 474A of title 18, United States 
     Code, are amended by striking ``class C felony'' each place 
     that term appears and inserting ``class B felony''.
       (b) Criminal Penalty for Production, Sale, Transportation, 
     Possession of Fictitious Financial Instruments Purporting to 
     be Those of the States, of Political Subdivisions, and of 
     Private Organizations.--
       (1) In general.--Chapter 25 of title 18, United States 
     Code, is amended by inserting after section 513, the 
     following new section:

     ``Sec. 514. Fictitious obligations

       ``(a) Whoever, with the intent to defraud--
       ``(1) draws, prints, processes, produces, publishes, or 
     otherwise makes, or attempts or causes the same, within the 
     United States;
       ``(2) passes, utters, presents, offers, brokers, issues, 
     sells, or attempts or causes the same, or with like intent 
     possesses, within the United States; or
       ``(3) utilizes interstate or foreign commerce, including 
     the use of the mails or wire, radio, or other electronic 
     communication, to transmit, transport, ship, move, transfer, 
     or attempts or causes the same, to, from, or through the 
     United States,
     any false or fictitious instrument, document, or other item 
     appearing, representing, purporting, or contriving through 
     scheme or artifice, to be an actual security or other 
     financial instrument issued under the authority of the United 
     States, a foreign government, a State or other political 
     subdivision of the United States, or an organization, shall 
     be guilty of a class B felony.
       ``(b) For purposes of this section, any term used in this 
     section that is defined in section 513(c) has the same 
     meaning given such term in section 513(c).
       ``(c) The United States Secret Service, in addition to any 
     other agency having such authority, shall have authority to 
     investigate offenses under this section.''.
       (2) Technical amendment.--The analysis for chapter 25 of 
     title 18, United States Code, is amended by inserting after 
     the item relating to section 513 the following:

``514. Fictitious obligations.''.

       (c) Period of Effect.--This section and the amendments made 
     by this section shall become effective on the date of 
     enactment of this Act and shall remain in effect during each 
     fiscal year following that date of enactment.

       Sec. 649. None of the funds appropriated by this Act may be 
     used by an agency to provide a Federal employee's home 
     address to any labor organization except when it is made 
     known to the Federal official having authority to obligate or 
     expend such funds that the employee has authorized such 
     disclosure or that such disclosure has been ordered by a 
     court of competent jurisdiction.
       Sec. 650. (a) No later than 45 days after the date of the 
     enactment of this Act, the Inspector General of each Federal 
     department or agency that uses administratively 
     uncontrollable overtime in the pay of any employee shall--
       (1) conduct an audit on the use of administratively 
     uncontrollable overtime by employees of such department or 
     agency, which shall include--
       (A) an examination of the policies, extent, costs, and 
     other relevant aspects of the use of administratively 
     uncontrollable overtime at the department or agency; and
       (B) a determination of whether the eligibility criteria of 
     the department or agency and payment of administratively 
     uncontrollable overtime comply with Federal statutory and 
     regulatory requirements; and
       (2) submit a report of the findings and conclusions of such 
     audit to--
       (A) the Office of Personnel Management;
       (B) the Governmental Affairs Committee of the Senate; and
       (C) the Government Reform and Oversight Committee of the 
     House of Representatives.
       (b) No later than 30 days after the submission of the 
     report under subsection (a), the Office of Personnel 
     Management shall issue revised guidelines to all Federal 
     departments and agencies that--
       (1) limit the use of administratively uncontrollable 
     overtime to employees meeting the statutory intent of section 
     5545(c)(2) of title 5, United States Code; and
       (2) expressly prohibit the use of administratively 
     uncontrollable overtime for--
       (A) customary or routine work duties; and
       (B) work duties that are primarily administrative in 
     nature, or occur in noncompelling circumstances.
       Sec. 651. Notwithstanding section 8116 of title 5, United 
     States Code, and in addition to any payment made under 5 
     U.S.C. 8101 et seq., beginning in fiscal year 1997 and 
     thereafter, the head of any department or agency is 
     authorized to pay from appropriations made available to the 
     department or agency a death gratuity to the personal 
     representative (as that term is defined by applicable law) of 
     a civilian employee of that department or agency whose death 
     resulted from an injury sustained in the line of duty on or 
     after August 2, 1990: Provided, That payments made pursuant 
     to this section, in combination with the payments made 
     pursuant to sections 8133(f) and 8134(a) of such title 5 and 
     section 312 of Public Law 103-332 (108 Stat. 2537), may not 
     exceed a total of $10,000 per employee.
       Sec. 653. (a) Authorization.--
       The Secretary of the Treasury is authorized to establish 
     scientific certification standards for explosives detection 
     canines, and shall provide, on a reimbursable basis, for the 
     certification of explosives detection canines employed by 
     Federal agencies, or other agencies providing explosives 
     detection services at airports in the United States.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purposes of this section.
       Sec. 654. National Repository for Information on Explosives 
     Incidents and Arson.
       (a) Section 846 of title 18, United States Code, is amended 
     by--
       (1) designating the existing section as subsection (a); and
       (2) by adding the following new subsection (b) to read as 
     follows:
       ``(b) The Secretary is authorized to establish a national 
     repository of information on incidents involving arson and 
     the suspected criminal misuse of explosives. All Federal 
     agencies having information concerning such incidents shall 
     report the information to the Secretary pursuant to such 
     regulations as deemed necessary to carry out the provisions 
     of this subsection. The repository shall also contain 
     information on incidents voluntarily reported to the 
     Secretary by State and local authorities.''.
       (b) There is authorized to be appropriated such sums as may 
     be necessary to carry out the provisions of this subsection.
       Sec. 655. Section 5(c)(1) of Public Law 102-259 (20 U.S.C. 
     5603(c)(1)) is amended--
       (1) in subparagraph (A)(iii), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; and''; and

[[Page H11743]]

       (3) by adding after subparagraph (B) the following:
       ``(C) a Trustee may serve after the expiration of the 
     Trustee's term until a successor has been chosen.''.
       Sec. 656. Notwithstanding any other provision of law, the 
     Secretary of the Interior, through the Bureau of Indian 
     Affairs, may directly transfer to Indian tribes in North and 
     South Dakota portable housing units at the Grand Forks Air 
     Force base in North Dakota which have been declared excess by 
     the Department of Defense and requested for transfer by the 
     Department of the Interior.
       Sec. 657. Section 922(q) of title 18, United States Code, 
     is amended to read as follows:
       ``(q)(1) The Congress finds and declares that--
       ``(A) crime, particularly crime involving drugs and guns, 
     is a pervasive, nationwide problem;
       ``(B) crime at the local level is exacerbated by the 
     interstate movement of drugs, guns, and criminal gangs;
       ``(C) firearms and ammunition move easily in interstate 
     commerce and have been found in increasing numbers in and 
     around schools, as documented in numerous hearings in both 
     the Committee on the Judiciary the House of Representatives 
     and the Committee on the Judiciary of the Senate;
       ``(D) in fact, even before the sale of a firearm, the gun, 
     its component parts, ammunition, and the raw materials from 
     which they are made have considerably moved in interstate 
     commerce;
       ``(E) while criminals freely move from State to State, 
     ordinary citizens and foreign visitors may fear to travel to 
     or through certain parts of the country due to concern about 
     violent crime and gun violence, and parents may decline to 
     send their children to school for the same reason;
       ``(F) the occurrence of violent crime in school zones has 
     resulted in a decline in the quality of education in our 
     country;
       ``(G) this decline in the quality of education has an 
     adverse impact on interstate commerce and the foreign 
     commerce of the United States;
       ``(H) States, localities, and school systems find it almost 
     impossible to handle gun-related crime by themselves--even 
     States, localities, and school systems that have made strong 
     efforts to prevent, detect, and punish gun-related crime find 
     their efforts unavailing due in part to the failure or 
     inability of other States or localities to take strong 
     measures; and
       ``(I) the Congress has the power, under the interstate 
     commerce clause and other provisions of the Constitution, to 
     enact measures to ensure the integrity and safety of the 
     Nation's schools by enactment of this subsection.
       ``(2)(A) It shall be unlawful for any individual knowingly 
     to possess a firearm that has moved in or that otherwise 
     affects interstate or foreign commerce at a place that the 
     individual knows, or has reasonable cause to believe, is a 
     school zone.
       ``(B) Subparagraph (A) does not apply to the possession of 
     a firearm--
       ``(i) on private property not part of school grounds;
       ``(ii) if the individual possessing the firearm is licensed 
     to do so by the State in which the school zone is located or 
     a political subdivision of the State, and the law of the 
     State or political subdivision requires that, before an 
     individual obtains such a license, the law enforcement 
     authorities of the State or political subdivision verify that 
     the individual is qualified under law to receive the license;
       ``(iii) that is--
       ``(I) not loaded; and
       ``(II) in a locked container, or a locked firearms rack 
     that is on a motor vehicle;
       ``(iv) by an individual for use in a program approved by a 
     school in the school zone;
       ``(v) by an individual in accordance with a contract 
     entered into between a school in the school zone and the 
     individual or an employer of the individual;
       ``(vi) by a law enforcement officer acting in his or her 
     official capacity; or
       ``(vii) that is unloaded and is possessed by an individual 
     while traversing school premises for the purpose of gaining 
     access to public or private lands open to hunting, if the 
     entry on school premises is authorized by school authorities.
       ``(3)(A) Except as provided in subparagraph (B), it shall 
     be unlawful for any person, knowingly or with reckless 
     disregard for the safety of another, to discharge or attempt 
     to discharge a firearm that has moved in or that otherwise 
     affects interstate or foreign commerce at a place that the 
     person knows is a school zone.
       ``(B) Subparagraph (A) does not apply to the discharge of a 
     firearm--
       ``(i) on private property not part of school grounds;
       ``(ii) as part of a program approved by a school in the 
     school zone, by an individual who is participating in the 
     program;
       ``(iii) by an individual in accordance with a contract 
     entered into between a school in a school zone and the 
     individual or an employer of the individual; or
       ``(iv) by a law enforcement officer acting in his or her 
     official capacity.
       ``(4) Nothing in this subsection shall be construed as 
     preempting or preventing a State or local government from 
     enacting a statute establishing gun free school zones as 
     provided in this subsection.''.

     SEC. 658. GUN BAN FOR INDIVIDUALS CONVICTED OF A MISDEMEANOR 
                   CRIME OF DOMESTIC VIOLENCE.

       (a) Definition.--Section 921(a) of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(33)(A) Except as provided in subparagraph (C), the term 
     `misdemeanor crime of domestic violence' means an offense 
     that--
       ``(i) is a misdemeanor under Federal or State law; and
       ``(ii) has, as an element, the use or attempted use of 
     physical force, or the threatened use of a deadly weapon, 
     committed by a current or former spouse, parent, or guardian 
     of the victim, by a person with whom the victim shares a 
     child in common, by a person who is cohabiting with or has 
     cohabited with the victim as a spouse, parent, or guardian, 
     or by a person similarly situated to a spouse, parent, or 
     guardian of the victim.
       ``(B)(i) A person shall not be considered to have been 
     convicted of such an offense for purposes of this chapter, 
     unless--
       ``(I) the person was represented by counsel in the case, or 
     knowingly and intelligently waived the right to counsel in 
     the case; and
       (II) in the case of a prosecution for an offense described 
     in this paragraph for which a person was entitled to a jury 
     trial in the jurisdiction in which the case was tried, either
       (aa) the case was tried by a jury, or
       (bb) the person knowingly and intelligently waived the 
     right to have the case tried by a jury, by guilty plea or 
     otherwise,
       ``(ii) A person shall not be considered to have been 
     convicted of such an offense for purposes of this chapter if 
     the conviction has been expunged or set aside, or is an 
     offense for which the person has been pardoned or has had 
     civil rights restored (if the law of the applicable 
     jurisdiction provides for the loss of civil rights under such 
     an offense) unless the pardon, expungement, or restoration of 
     civil rights expressly provides that the person may not ship, 
     transport, possess, or receive firearms.''.
       (b)Prohibitions.--
       (1) Section 922(d) of such title is amended--
       (A) by striking ``or'' at the end of paragraph (7);
       (B) by striking the period at the end of paragraph (8) and 
     inserting ``; or''; and
       (C) by inserting after paragraph (8) the following:
       ``(9) has been convicted in any court of a misdemeanor 
     crime of domestic violence.''.
       (2) Section 922(g) of such title is amended--
       (A) by striking ``or'' at the end of paragrph (7);
       (B) by striking the comma at the end of paragraph (8) and 
     inserting ``; or''; and
       (C) by inserting after paragraph (8) the following:
       ``(9) who has been convicted in any court of a misdemeanor 
     crime of domestic violence,''.
       (3) Section 922(s)(3)(B)(i) of such title is amended by 
     inserting ``, and has not been convicted in any court of a 
     misdemeanor crime of domestic violence'' before this 
     semicolon.
       (c) Government Entities Not Excepted.--Section 925(a)(1) of 
     such title is amended by inserting ``sections 922(d)(9) and 
     922(g)(9) and'' after ``except for''.

     SEC. 659. THRIFT SAVINGS PLAN.

    Title I--Additional Investment Funds for the Thrift Savings Plan


                         SEC. 101. SHORT TITLE

       This title may be cited as the ``Thrift Savings Investment 
     Funds Act of 1996''.


   SEC. 102. ADDITIONAL INVESTMENT FUNDS FOR THE THRIFT SAVINGS PLAN

       Section 8438 of title 5, United States Code, is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (5) through (8) as 
     paragraphs (6) through (9), respectively;
       (B) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) the term `International Stock Index Investment Fund' 
     means the International Stock Index Investment Fund 
     established under subsection (b)(1)(E);'';
       (C) in paragraph (8) (as redesignated by subparagraph (A) 
     of this paragraph) by striking out ``and'' at the end 
     thereof;
       (D) in paragraph (9) (as redesignated by subparagraph (A) 
     of this paragraph)--
       (i) by striking out ``paragraph (7)(D)'' in each place it 
     appears and inserting in each such place ``paragraph 
     (8)(D)''; and
       (ii) by striking out the period and inserting in lieu 
     thereof a semicolon and ``and''; and
       (E) by adding at the end thereof the following new 
     paragraph:
       ``(10) the term `Small Capitalization Stock Index 
     Investment Fund' means the Small Capitalization Stock Index 
     Investment Fund established under subsection (b)(1)(D).''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (B) by striking out ``and'' at the end 
     thereof;
       (ii) in subparagraph (C) by striking out the period and 
     inserting in lieu thereof a semicolon; and
       (iii) by adding at the end thereof the following new 
     subparagraphs:
       ``(D) a Small Capitalization Stock Index Investment Fund as 
     provided in paragraph (3); and
       ``(E) an International Stock Index Investment Fund as 
     provided in paragraph (4).''; and
       (B) by adding at the end thereof the following new 
     paragraphs:
       ``(3)(A) The Board shall select an index which is a 
     commonly recognized index comprised of common stock the 
     aggregate market value of which represents the United States 
     equity markets excluding the common stocks included in the 
     Common Stock Index Investment Fund.
       ``(B) The Small Capitalization Stock Index Investment Fund 
     shall be invested in a portfolio designed to replicate the 
     performance of the index in subparagraph (A). The portfolio 
     shall be designed such that, to the extent practicable, the 
     percentage of the Small Capitalization Stock Index Investment 
     Fund that is invested in each stock is the same as the 
     percentage determined by dividing the aggregate market value 
     of all shares of that stock by the aggregate market value of 
     all shares of all stocks included in such index.
       ``(4)(A) The Board shall select an index which is a 
     commonly recognized index comprised of

[[Page H11744]]

     stock the aggregate market value of which is a 
     reasonably complete representation of the international 
     equity markets excluding the United States equity markets.
       ``(B) The International Stock Index Investment Fund shall 
     be invested in a portfolio designed to replicate the 
     performance of the index in subparagraph (A). The portfolio 
     shall be designed such that, to the extent practicable, the 
     percentage of the International Stock Index Investment Fund 
     that is invested in each stock is the same as the percentage 
     determined by dividing the aggregate market value of all 
     shares of that stock by the aggregate market value of all 
     shares of all stocks included in such index.''.


              SEC. 103. ACKNOWLEDGEMENT OF INVESTMENT RISK

       Section 8439(d) of title 5, United States Code, is amended 
     by striking out ``Each employee, Member, former employee, or 
     former Member who elects to invest in the Common Stock Index 
     Investment Fund or the Fixed Income Investment Fund described 
     in paragraphs (1) and (3),'' and inserting in lieu thereof 
     ``Each employee, Member, former employee, or former Member 
     who elects to invest in the Common Stock Index Investment 
     Fund, the Fixed Income Investment Fund, the International 
     Stock Index Investment Fund, or the Small Capitalization 
     Stock Index Investment Fund, defined in paragraphs (1), (3), 
     (5), and (10),''.


                        SEC. 104. EFFECTIVE DATE

       This title shall take effect on the date of enactment of 
     this Act, and the Funds established under this title shall be 
     offered for investment at the earliest practicable election 
     period (described in section 8432(b) of title 5, United 
     States Code) as determined by the Executive Director in 
     regulations.

              Title II--Thrift Savings Accounts Liquidity


                         SEC. 201. SHORT TITLE

       This title may be cited as the ``Thrift Savings Plan Act of 
     1996''.


  SEC. 202. NOTICE TO SPOUSES FOR IN-SERVICE WITHDRAWALS; DE MINIMUS 
         ACCOUNTS; CIVIL SERVICE RETIREMENT SYSTEM PARTICIPANTS

       Section 8351(b) of title 5, United States Code, is 
     amended--
       (1) in paragraph (5)--
       (A) in subparagraph (B)--
       (i) by striking out ``An election, change of election, or 
     modification (relating to the commencement date of a deferred 
     annuity)'' and inserting in lieu thereof ``An election or 
     change of election'';
       (ii) by inserting ``or withdrawal'' after ``and a loan'';
       (iii) by inserting ``and (h)'' after ``8433(g)'';
       (iv) by striking out ``the election, change of election, or 
     modification'' and inserting in lieu thereof ``the election 
     or change of election''; and
       (v) by inserting ``or withdrawal'' after ``for such loan''; 
     and
       (B) in subparagraph (D)--
       (i) by inserting ``or withdrawals'' after ``of loans''; and
       (ii) by inserting ``or (h)'' after ``8433(g)''; and
       (2) in paragraph (6)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the employee or Member elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     subsection (b)''.


    SEC. 203. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELECTIONS, FEDERAL 
                EMPLOYEES RETIREMENT SYSTEM PARTICIPANTS

       (a) In General.--Section 8433 of title 5, United States 
     Code, is amended--
       (1) by striking out subsections (b) and (c) and inserting 
     in lieu thereof the following:
       ``(b) Subject to section 8435 of this title, any employee 
     or Member who separates from Government employment is 
     entitled and may elect to withdraw from the Thrift Savings 
     Fund the balance of the employee's or Member's account as--
       ``(1) an annuity;
       ``(2) a single payment;
       ``(3) 2 or more substantially equal payments to be made not 
     less frequently than annually; or
       ``(4) any combination of payments as provided under 
     paragraphs (1) through (3) as the Executive Director may 
     prescribe by regulation.
       ``(c)(1) In addition to the right provided under subsection 
     (b) to withdraw the balance of the account, an employee or 
     Member who separates from Government service and who has not 
     made a withdrawal under subsection (h)(1)(A) may make one 
     withdrawal of any amount as a single payment in accordance 
     with subsection (b)(2) from the employee's or Member's 
     account.
       ``(2) An employee or Member may request that the amount 
     withdrawn from the Thrift Savings Fund in accordance with 
     subsection (b)(2) be transferred to an eligible retirement 
     plan.
       ``(3) The Executive Director shall make each transfer 
     elected under paragraph (2) directly to an eligible 
     retirement plan or plans (as defined in section 402(c)(8) of 
     the Internal Revenue Code of 1986) identified by the 
     employee, Member, former employee, or former Member for whom 
     the transfer is made.
       ``(4) A transfer may not be made for an employee, Member, 
     former employee, or former Member under paragraph (2) until 
     the Executive Director receives from that individual the 
     information required by the Executive Director specifically 
     to identify the eligible retirement plan or plans to which 
     the transfer is to be made.'';
       (2) in subsection (d)--
       (A) in paragraph (1) by striking out ``Subject to paragraph 
     (3)(A)'' and inserting in lieu thereof ``Subject to paragraph 
     (3)'';
       (B) by striking out paragraph (2) and redesignating 
     paragraph (3) as paragraph (2); and
       (C) in paragraph (2) (as redesignated under subparagraph 
     (B) of this paragraph)--
       (i) in subparagraph (A) by striking out ``(A) by striking 
     out ``(A)''; and
       (ii) by striking out subparagraph (B);
       (3) in subsection (f)(1)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation; and
       (B) by striking out ``unless the employee or Member elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     subsection (b), or'' and inserting a comma;
       (4) in subsection (f)(2)--
       (A) by striking out ``February 1'' and inserting in lieu 
     thereof ``April 1'';
       (B) in subparagraph (A)--
       (i) by striking out ``65'' and inserting in lieu thereof 
     ``70\1/2\''; and
       (ii) by inserting ``or'' after the semicolon;
       (C) by striking out subparagraph (B); and
       (D) by redesignating subparagraph (C) as subparagraph (B);
       (5) in subsection (g)--
       (A) in paragraph (1) by striking out ``after December 31, 
     1987, and'', and by adding at the end of the paragraph the 
     following sentence: ``Before a loan is issued, the Executive 
     Director shall provide in writing the employee or Member with 
     appropriate information concerning the cost of the loan 
     relative to other sources of financing, as well as the 
     lifetime cost of the loan, including the difference in 
     interest rates between the funds offered by the Thrift 
     Savings Fund, and any other effect of such loan on the 
     employee's or Member's final account balance.''; and
       (B) by striking out paragraph (2) and redesignating 
     paragraphs (3) through (5) as paragraphs (2) through (4), 
     respectively; and
       (6) by adding after subsection (g) the following new 
     subsection:
       ``(h)(1) An employee or Member may apply, before 
     separation, to the Board for permission to withdraw an amount 
     from the employee's or Member's account based upon--
       ``(A) the employee or Member having attained age 59\1/2\; 
     or
       ``(B) financial hardship.
       ``(2) A withdrawal under paragraph (1)(A) shall be 
     available to each eligible participant one time only.
       ``(3) A withdrawal under paragraph (1)(B) shall be 
     available only for an amount not exceeding the value of that 
     portion of such account which is attributable to 
     contributions made by the employee or Member under section 
     8432(a) of this title.
       ``(4) Withdrawals under paragraph (1) shall be subject to 
     such other conditions as the Executive Director may prescribe 
     by regulation.
       ``(5) A withdrawal may not be made under this subsection 
     unless the requirements of section 8435(e) of this title are 
     satisfied.''.
       (b) Invalidity of Certain Prior Elections.--Any election 
     made under section 8433(b)(2) of title 5, United States Code 
     (as in effect before the effective date of this title), with 
     respect to an annuity which has not commenced before the 
     implementation date of this title as provided by regulation 
     by the Executive Director in accordance with section 207 of 
     this title, shall be invalid.


  sec. 204. survivor annuities for former spouses; notice to federal 
     employees retirement system spouses for in-service withdrawals

       Section 8435 of title 5, United States Code, is amended--
       (1) in subsection (a)(1)(A)--
       (A) by striking out ``may make an election under subsection 
     (b)(3) or (b)(4) or section 8433 of this title or change an 
     election previously made under subsection (b)(1) or (b)(2) of 
     such section'' and inserting in lien thereof ``may withdraw 
     all or part of a Thrift Savings Fund account under subsection 
     (b) (2), (3), or (4) of section 8433 of this title or change 
     a withdrawal election''; and
       (B) by adding at the end thereof ``A married employee or 
     Member (or former employee or Member) may make a withdrawal 
     from a Thrift Savings Fund account under subsection (c)(1) of 
     section 8433 of this title only if the employee or Member (or 
     former employee or Member) satisfies the requirements of 
     subparagraph (B).'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking out ``An election, change of election, or 
     modification of the commencement date of a deferred annuity'' 
     and inserting in lieu thereof ``An election or change of 
     election''; and
       (ii) by striking out ``modification, or transfer'' and 
     inserting in lien thereof ``or transfer''; and
       (B) in paragraph (2) in the matter following subparagraph 
     (B)(ii) by striking out ``modification,'';
       (3) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by inserting ``or withdrawal'' after ``A loan;'';
       (II) by inserting ``and (h)'' after ``8433(g)''; and
       (III) by inserting ``or withdrawal'' after ``such loan'';

       (ii) in subparagraph (B) by inserting ``or withdrawal'' 
     after ``loan''; and
       (iii) in subparagraph (C)--

       (I) by inserting ``or withdrawal'' after ``to a loan''; and

       (II) by inserting ``or withdrawal'' after ``for such 
     loan''; and

       (B) in paragraph (2)--
       (i) by inserting ``or withdrawal'' after ``loan''; and
       (ii) by inserting ``and (h)'' after ``8344(g)''; and
       (4) in subsection (g)--
       (A) by inserting ``or withdrawals'' after ``loans''; and

[[Page H11745]]

       (B) by inserting ``and (h)'' after ``8344(g)''.


        sec. 205. de minimus accounts relating to the judiciary

       (a) Justices and Judges.--Section 8440a(b)(7) of title 5, 
     United States Code, is amended--
       (1) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (2) by striking out ``unless the justice or judge elects, 
     at such time and otherwise in such manner as the Executive 
     Director prescribes, one of the options available under 
     section 8433(b)''.
       (b) Bankruptcy Judges and Magistrates.--Section 8440b(b) of 
     title 5, United States Code, is amended--
       (1) in paragraph (7) in the first sentence by inserting 
     ``of the distribution'' after ``equal to the amount''; and
       (2) in paragraph (8)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the bankruptcy judge or 
     magistrate elects, at such time and otherwise in such manner 
     as the Executive Director prescribes, one of the options 
     available under subsection (b)''.
       (c) Federal Claims Judges.--Section 8440c(b) of title 5, 
     United States Code, is amended--
       (1) in paragraph (7) in the first sentence by inserting 
     ``of the distribution'' after ``equal to the amount''; and
       (2) in paragraph (8)--
       (A) by striking out ``$3,500 or less'' and inserting in 
     lieu thereof ``less than an amount that the Executive 
     Director prescribes by regulation''; and
       (B) by striking out ``unless the judge elects, at such time 
     and otherwise in such manner as the Executive Director 
     prescribes, one of the options available under section 
     8433(b)''.


                   sec. 206. definition of basic pay

       (a) In General.--(1) Section 8401(4) of title 5, United 
     States Code, is amended by striking out ``except as provided 
     in subchapter III of this chapter,''.
       (2) Section 8431 of title 5, United States Code, is 
     repealed.
       (b) Technical and Conforming Amendments.--(1) The table of 
     sections for chapter 84 of title 5, United States Code, is 
     amended by striking out the item relating to section 8431.
       (2) Section 5545a(h)(2)(A) of title 5, United States Code, 
     is amended by striking out ``8431,''.
       (3) Section 615(f) of the Treasury, Postal Service, and 
     General Government Appropriations Act, 1996 (Public Law 104-
     52; 109 Stat. 500; 5 U.S.C. 5343 note) is amended by striking 
     out ``section 8431 of title 5, United States Code,''.


                        sec. 207. effective date

       This title shall take effect on the date of the enactment 
     of this Act and withdrawals and elections as provided under 
     the amendments made by this title shall be made at the 
     earliest practicable date as determined by the Executive 
     Director in regulations.
       Sec. 660. Notwithstanding Section 613, interagency 
     financing is authorized to carry out the purposes of the 
     National Bioethics Advisory Commission.
       Sec. 661. (a) Designation.--The United States courthouse to 
     be constructed at 111 South 18th Plaza, Omaha, Nebraska, 
     shall be known and designated as the ``Roman L. Hruska United 
     States Courthouse''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     United States courthouse referred to in section 1 shall be 
     deemed to be a reference to the ``Roman L. Hruska United 
     States Courthouse''.
       Sec. 662. (a) Provisions Relating to Title 39, United 
     States Code.--
       ``(1) Appointment and removal of inspector general.--
     Section 202 of title 39, United States Code, is amended by 
     adding at the end the following:
       ``(e)(1) The Governors shall appoint and shall have the 
     power to remove the Inspector General.
       ``(2) The Inspector General shall be appointed--
       ``(A) for a term of 7 years;
       ``(B) without regard to political affiliation; and
       ``(C) solely on the basis of integrity and demonstrated 
     ability in accounting, auditing, financial analysis, law, 
     management analysis, public administration, or 
     investigations.
       ``(3) The Inspector General may at any time be removed upon 
     the written concurrence of at least 7 Governors, but only for 
     cause. Nothing in this subsection shall be considered to 
     exempt the Governors from the requirements of section 8G(e) 
     of the Inspector General Act of 1978.''.
       (2) Definition.--Section 102 of title 39, United States 
     Code, is amended--
       (A) by striking ``and'' at the end of paragraph (2);
       (B) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(4) `Inspector General' means the Inspector General 
     appointed under section 202(e) of this title.''.
       (3) Separate item in annual budget.--For purposes of the 
     fifth sentence of section 2009 of title 39, United States 
     Code, the operations of the Office of Inspector General of 
     the United States Postal Service shall be considered a major 
     type of activity.
       (b) Amendments to the Inspector General Act of 1978.--
       (1) Governors as head of the postal service.--Section 
     8G(a)(4) of the Inspector General Act of 1978 (5 U.S.C. App.) 
     is amended by striking ``except that'' and all that follows 
     through the semicolon and inserting ``except that--
       ``(A) with respect to the National Science Foundation, such 
     term means the National Science Board; and
       ``(B) with respect to the United States Postal Service, 
     such term means the Governors (within the meaning of section 
     102(3) of title 39, United States Code);''.
       (2) Special rules relating to the united states postal 
     service.--Subsection (f) of section 8G of such Act is amended 
     to read as follows:
       ``(f)(1) For purposes of carrying out subsection (c) with 
     respect to the United States Postal Service, the appointment 
     provisions of section 202(e) of title 39, United States Code, 
     shall be applied.
       ``(2) In carrying out the duties and responsibilities 
     specified in this Act, the Inspector General of the United 
     States Postal Service (hereinafter in this subsection 
     referred to as the `Inspector General') shall have oversight 
     responsibility for all activities of the Postal Inspection 
     Service, including any internal investigation performed by 
     the Postal Inspection Service. The Chief Postal Inspector 
     shall promptly report the significant activities being 
     carried out by the Postal Inspection Service to such 
     Inspector General.
       ``(3)(A)(i) Notwithstanding subsection (d), the Inspector 
     General shall be under the authority, direction, and control 
     of the Governors with respect to audits or investigations, or 
     the issuance of subpoenas, which require access to sensitive 
     information concerning--
       ``(I) ongoing civil or criminal investigations or 
     proceedings;
       ``(II) undercover operations;
       ``(III) the identity of confidential sources, including 
     protected witnesses;
       ``(IV) intelligence or counterintelligence matters; or
       ``(V) other matters the disclosure of which would 
     constitute a serious threat to national security.
       ``(ii) With respect to the information described under 
     clause (i), the Governors may prohibit the Inspector General 
     from carrying out or completing any audit or investigation, 
     or from issuing any subpoena, after such Inspector General 
     has decided to initiate, carry out, or complete such audit or 
     investigation or to issue such subpoena, if the Governors 
     determine that such prohibition is necessary to prevent the 
     disclosure of any information described under clause (i) or 
     to prevent the significant impairment to the national 
     interests of the United States.
       ``(iii) If the Governors exercise any power under clause 
     (i) or (ii), the Governors shall notify the Inspector General 
     in writing stating the reasons for such exercise. Within 30 
     days after receipt of any such notice, the Inspector General 
     shall transmit a copy of such notice to the Committee on 
     Governmental Affairs of the Senate and the Committee on 
     Government Reform and Oversight of the House of 
     Representatives, and to other appropriate committees or 
     subcommittees of the Congress.
       ``(B) In carrying out the duties and responsibilities 
     specified in this Act, the Inspector General--
       ``(i) may initiate, conduct and supervise such audits and 
     investigations in the United States Postal Service as the 
     Inspector General considers appropriate; and
       ``(ii) shall give particular regard to the activities of 
     the Postal Inspection Service with a view toward avoiding 
     duplication and insuring effective coordination and 
     cooperation.
       ``(C) Any report required to be transmitted by the 
     Governors to the appropriate committees or subcommittees of 
     the Congress under section 5(d) shall also be transmitted, 
     within the seven-day period specified under such section, to 
     the Committee on Governmental Affairs of the Senate and the 
     Committee on Government Reform and Oversight of the House of 
     Representatives.
       ``(3) Nothing in this Act shall restrict, eliminate, or 
     otherwise adversely affect any of the rights, privileges, 
     or benefits of either employees of the United States 
     Postal Service, or labor organizations representing 
     employees of the United States Postal Service, under 
     chapter 12 of title 39, United States Code, the National 
     Labor Relations Act, any handbook or manual affecting 
     employee labor relations with the United States Postal 
     Service, or any collective bargaining agreement.
       ``(4) As used in this subsection, the term `Governors' has 
     the meaning given such term by section 102(3) of title 39, 
     United States Code.''.
       (3) Technical correction.--The Inspector General Act of 
     1978 is amended by redesignating the second section which is 
     designated as section 8G as section 8H.
       (c) Provisions Relating to Compensation.--
       (1) Inspector general.--Section 5315 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Inspector General, United States Postal Service.''.
     The amendment made by the preceding sentence shall apply 
     notwithstanding section 410 or any other provision of title 
     39, United States Code.
       (2) Officers and employees of the office of inspector 
     general of the united states postal service; postal 
     inspectors.--
       (A) In general.--Sectin 1003 of title 39, United States 
     Code, is amended--
       (i) by redesignating subsection (b) as subsection (d); and
       (ii) by inserting after subsection (a) the following:
       ``(b) Compensation and benefits for all officers and 
     employees serving in or under the Office of Inspector General 
     of the United States Postal Service shall be maintained on a 
     standard of comparability to the compensation and benefits 
     paid for comparable levels of work in the respective Offices 
     of Inspector General of the various establishments named in 
     section 11(2) of the Inspector General Act of 1978.
       ``(c) Compensation and benefits for all Postal Inspectors 
     shall be maintained on a standard of comparability to the 
     compensation and benefits

[[Page H11746]]

     paid for comparable levels of work in the executive branch of 
     the Government outside of the Postal Service. As used in this 
     subsection, the term `Postal Inspector' included any agent to 
     whom any investigative powers are granted under section 3061 
     of title 18.''.
       (B) Conforming amendment.--The first sentence of section 
     1003(a) of title 39, United States Code, is amended by 
     striking ``chapters 2 and 12 of this title'' and inserting 
     ``chapters 2 and 12 of this title, section 8G of the 
     Inspector General Act of 1978,''.
       (d) Strategic Plans.--
       (1) Office of inspector general of the united states postal 
     service.--
       (A) In general.--Strategic plans shall be prepared under 
     this paragraph addressing staffing requirements, general 
     goals and objectives for major functions and operations of 
     the Office of Inspector General of the United States Postal 
     Service, and how goals and objectives of the Office are to be 
     achieved, including a description of operational processes, 
     skills and technology, and the human, capital, information, 
     and other resources required to meet those goals and 
     objectives.
       (B) Specific requirements.--Plans under this paragraph--
       (i) shall be prepared by the Inspector General of the 
     United States Postal Service;
       (ii) shall each cover a 5-year period (the beginning and 
     ending dates of which shall be specified in each such plan); 
     and
       (iii) shall be included, as part of the annual budget 
     required under section 2009 of title 39, United States Code, 
     at least every 3 years.
       (C) First submission.--The first plan under this paragraph 
     shall be prepared in time to be included with the annual 
     budget under section 2009 of title 39, United States Code, 
     next due to be submitted after the end of the 6-month period 
     beginning on the date of the appointment of the first 
     Inspector General to be appointed pursuant to the amendments 
     made by this section.
       (2) Postal inspection service.--The Chief Postal Inspector 
     shall, with respect to the Postal Inspection Service, prepare 
     a strategic plan similar in content to that required under 
     paragraph (1)(A) with respect to the Office of Inspector 
     General of the United States Postal Service. Such plan shall 
     be prepared in time to be included with the annual budget 
     under section 2009 of such title 39 next due to be submitted 
     after the end of the 30-day period beginning on the date 
     of the enactment of this Act.
       (e) First Appointment; Transfers; Transition Provision.--
       (1) First appointment.--The first Inspector General of the 
     United States Postal Service appointed pursuant to the 
     amendments made by this section shall be appointed before the 
     end of the 90-day period beginning on the date of the 
     enactment of this Act.
       (2) Transfers.--
       (A) In general.--All measures described in section 8G(b) of 
     the Inspector General Act of 1978 necessary to establish an 
     Office of Inspector General within the United States Postal 
     Service pursuant to this section, including all appropriate 
     transfers, shall occur--
       (i) no earlier than the date the appointment under 
     paragraph (1) is made; and
       (ii) no later than 60 days after the date the appointment 
     under paragraph (1) is made.
       (B) Provisions relating to personnel.--
       (i) Consultation.--Decisions concerning which personnel are 
     to be transferred pursuant to subparagraph (A) shall be made 
     by the Governors (within the meaning of section 102(3) of 
     title 39, United States Code) in consultation with the 
     Inspector General appointed under paragraph (1).
       (ii) Transferred personnel.--Personnel transferred pursuant 
     to subparagraph (A) shall, to the extent not inconsistent 
     with other provisions of this subsection, be transferred in 
     accordance with applicable laws and regulations relating to 
     the transfer of functions within the United States Postal 
     Service, except that, notwithstanding any provision of 
     section 1003(b) of title 39, United States Code, as amended 
     by this section, the classification and compensation of such 
     personnel shall not be reduced, by reason of having been 
     transferred, for 1 year after being so transferred.
       (3) Transition provision.--The Chief Postal Inspector may 
     continue to serve as Inspector General of the United States 
     Postal Service until the date on which an Inspector General 
     is appointed under paragraph (1) or, if earlier, the end of 
     the period referred to in such paragraph. Compensation for 
     any service under this paragraph shall be determined as if 
     this section had not been enacted.
       (f) Technical and Conforming Amendments.--
       (1) Section 410(b) of title 39, United States Code, is 
     amended--
       (A) by striking ``and'' at the end of paragraph (9); and
       (B) by amending paragraph (10) to read as follows:
     ``(10) the Inspector General Act of 1978; and''
       (2)(A) Section 204 of such title 39 is amended--
       (i) by amending the section heading to read as follows:

     Sec. 204. General Counsel; Judicial Officer; Chief Postal 
       Inspector'';

       (ii) in the first sentence by striking ``and a Judicial 
     Officer.'' and inserting ``a Judicial Officer, and a Chief 
     Postal Inspector.'';
       (iii) in the second sentence by striking ``and the Judicial 
     Officer'' and inserting ``the Judicial Officer, and the Chief 
     Postal Inspector''; and
       (iv) by adding at the end the following: ``The Chief Postal 
     Inspector shall report to, and be under the general 
     supervision of, the Postmaster General. The Postmaster 
     General shall promptly notify the Governors and both Houses 
     of Congress in writing if he or she removes the Chief Postal 
     Inspector or transfers the Chief Postal Inspector to another 
     position or location within the Postal Service, and shall 
     include in any such notification the reasons for the removal 
     or transfer.''.
       (B) The table of sections for chapter 2 of such title 39 is 
     amended by striking the item relating to section 204 and 
     inserting the following:

``204. General Counsel; Judicial Officer; Chief Postal Inspector.''.
       Sec. 663. Voluntary Separation Incentives for Employees of 
     Certain Federal Agencies.--(a) Definitions.--For the purposes 
     of this section--
       (1) the term ``agency'' means any Executive agency (as 
     defined in section 105 of title 5, United States Code), other 
     than an Executive agency (except an agency receiving such 
     authority in the Department of Transportation Appropriations 
     Act, 1997) that is authorized by any other provision of this 
     Act or any other Act to provide voluntary separation 
     incentive payments during all, or any part of, fiscal year 
     1997; and
       (2) the term ``employee'' means an employee (as defined by 
     section 2105 of title 5, United States Code) who is employed 
     by an agency, is serving under an appointment without time 
     limitation, and has been currently employed for a continuous 
     period of at least 3 years, but does not include--
       (A) 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 agency;
       (B) an employee having a disability on the basis of which 
     such employee is or would be eligible for disability 
     retirement under subchapter III of chapter 83 or chapter 84 
     of title 5, United States Code, or another retirement system 
     for employees of the agency;
       (C) an employee who is in receipt of a specific notice of 
     involuntary separation for misconduct or unacceptable 
     performance;
       (D) 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 (5 U.S.C. 5597 
     note), would qualify for a voluntary separation incentive 
     payment under section 3 of such Act;
       (E) an employee who has previously received any voluntary 
     separation incentive payment by the Federal Government under 
     this section or any other authority and has not repaid such 
     payment;
       (F) an employee covered by statutory reemployment rights 
     who is on transfer to another organization; or
       (G) any employee who, during the twenty four month period 
     preceding the date of separation, has received a recruitment 
     or relocation bonus under section 5753 of title 5, United 
     States Code, or who, within the twelve month period preceding 
     the date of separation, received a retention allowance under 
     section 5754 of title 5, United States Code.
       (b) Agency Strategic Plan.--
       (1) In general.--The head of each agency, prior to 
     obligating any resources for voluntary separation incentive 
     payments, shall submit to the House and Senate Committees on 
     Appropriations and the Committee on Governmental Affairs of 
     the Senate and the Committee on Government Reform and 
     Oversight of the House of Representatives a strategic plan 
     outlining the intended use of such incentive payments and a 
     proposed organizational chart for the agency once such 
     incentive payments have been completed.
       (2) Contents.--The agency's plan shall include--
       (A) the positions and functions to be reduced or 
     eliminated, identified by organizational unit, geographic 
     location, occupational category and grade level;
       (B) the number and amounts of voluntary separation 
     incentive payments to be offered; and
       (C) a description of how the agency will operate without 
     the eliminated positions and functions.
       (c) Authority to Provide Voluntary Separation Incentive 
     Payments.--
       (1) In general.--A voluntary separation incentive payment 
     under this section may be paid by an agency to any employee 
     only to the extent necessary to eliminate the positions and 
     functions identified by the strategic plan.
       (2) Amount and treatment of payments.--A voluntary 
     separation incentive payment--
       (A) shall be paid in a lump sum after the employee's 
     separation;
       (B) shall be paid from appropriations or funds available 
     for the payment of the basic pay of the employees;
       (C) shall be equal to the lesser of--
       (i) an amount equal to the amount the employee would be 
     entitled to receive under section 5595(c) of title 5, United 
     States Code; or
       (ii) an amount determined by the agency head not to exceed 
     $25,000;
       (D) may not be made except in the case of any qualifying 
     employee who voluntarily separates (whether by retirement or 
     resignation) before December 31, 1997;
       (E) shall not be a basis for payment, and shall not be 
     included in the computation, of any other type of Government 
     benefit; and
       (F) shall not be taken into account in determining the 
     amount of any severance pay to which the employee may be 
     entitled under section 5595 of title 5, United States Code, 
     based on any other separation.
       (d) Additional Agency Contributions to the Retirement 
     Fund.--
       (1) In general.--In addition to any other payments which it 
     is required to make under subchapter III of chapter 83 of 
     title 5, United States Code, an agency 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 of the agency who is 
     covered under subchapter III of chapter 83 or

[[Page H11747]]

     chapter 84 of title 5, United States Code, to whom a 
     voluntary separation incentive has been paid under this 
     section.
       (2) Definition.--For the purpose of paragraph (1), the term 
     ``final basic pay'', with respect to an employee, 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.
       (e) Effect of Subsequent Employment With the Government.--
     An individual who has received a voluntary separation 
     incentive payment under this section and accepts any 
     employment for compensation with the Government of the United 
     States, or who works for any agency of the United States 
     Government through a personal services contract, within 5 
     years after the date of the separation on which the payment 
     is based shall be required to pay, prior to the individual's 
     first day of employment, the entire amount of the incentive 
     payment to the agency that paid the incentive payment.
       (f) Reduction of Agency Employment Levels.--
       (1) In general.--The total number of funded employee 
     positions in the agency shall be reduced by one position for 
     each vacancy created by the separation of any employee who 
     has received, or is due to receive, a voluntary separation 
     incentive payment under this section. For the purposes of 
     this subsection, positions shall be counted on a full-time 
     equivalent basis.
       (2) Enforcement.--The President, through the Office of 
     Management and Budget, shall monitor the agency and take any 
     action necessary to ensure that the requirements of this 
     subsection are met.
       (g) Effective Date.--This section shall take effect October 
     1, 1996.

     SEC. 664. ELECTRONIC BENEFIT TRANSFER PILOT.

       Title 31, United States Code, is amended by inserting after 
     section 3335 the following new section:

     ``Sec. 3336. Electronic benefit transfer pilot

       ``(a) The Congress finds that:
       ``(1) Electronic benefit transfer (EBT) is a safe, 
     reliable, and economical way to provide benefit payments to 
     individuals who do not have an account at a financial 
     institution.
       ``(2) The designation of financial institutions as 
     financial agents of the Federal Government for EBT is an 
     appropriate and reasonable use of the Secretary's authority 
     to designate financial agents.
       ``(3) A joint federal-state EBT system offers convenience 
     and economies of scale for those states (and their citizens) 
     that wish to deliver state-administered benefits on a single 
     card by entering into a partnership with the federal 
     government.
       ``(4) The Secretary's designation of a financial agent to 
     deliver EBT is a specialized service not available through 
     ordinary business channels and may be offered to the states 
     pursuant to section 6501 et seq. of this title.
       ``(b) The Secretary shall continue to carry out the 
     existing EBT pilot to disburse benefit payments 
     electronically to recipients who do not have an account at a 
     financial institution, which shall include the designation of 
     one or more financial institutions as a financial agent of 
     the Government, and the offering to the participating states 
     of the opportunity to contract with the financial agent 
     selected by the Secretary, as described in the Invitation for 
     Expressions of Interest to Acquire EBT Services for the 
     Southern Alliance of States dated March 9, 1995, as amended 
     as of June 30, 1995, July 7, 1995, and August 1, 1995.
       ``(c) The selection and designation of financial agents, 
     the design of the pilot program, and any other matter 
     associated with or related to the EBT pilot described in 
     subsection (b) shall not be subject to judicial review.''

     SEC. 665. DESIGNATION OF FINANCIAL AGENTS.

       1. 12 U.S.C. 90 is amended by adding at the end thereof the 
     following:

     ``Notwithstanding the Federal Property and Administrative 
     Services Act of 1949, as amended, the Secretary may select 
     associations as financial agents in accordance with any 
     process the Secretary deems appropriate and their reasonable 
     duties may include the provision of electronic benefit 
     transfer services (including State-administered benefits with 
     the consent of the States), as defined by the Secretary.''.
       2. Make conforming amendments to 12 U.S.C. 265, 266, 391, 
     1452(d), 1767, 1789a, 2013, 2122 and to 31 U.S.C. 3122 and 
     3303.

         TITLE VII--COUNTER-TERRORISM AND DRUG LAW ENFORCEMENT

                       DEPARTMENT OF THE TREASURY

                          Departmental Offices


                         salaries and expenses

       For an additional amount for the necessary expenses of the 
     Office of Foreign Assets Control, $288,000: Provided, That of 
     the amount provided, $288,000 is designated by Congress as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.

                      Office of Inspector General


                         salaries and expenses

       For an additional amount for the necessary expenses of the 
     Office of Inspector General $34,000, to remain available 
     until expended: Provided, That of the amount provided, 
     $34,000 is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended.


                         counterterrorism fund

       For necessary expenses, as determined by the Secretary, 
     $15,000,000, to remain available until expended, to reimburse 
     any Department of the Treasury organization for the costs of 
     providing support to counter, investigate, or prosecute 
     terrorism, including payment of rewards in connection with 
     these activities: Provided, That the entire amount of this 
     appropriation shall be available only to the extent that an 
     official budget request for a specific dollar amount, that 
     includes designation of the entire amount of the request as 
     an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, is transmitted by 
     the President to Congress: Provided further, That the entire 
     amount is designated by Congress as an emergency 
     appropriation pursuant to section 251(b)(2)(D)(i) of such 
     Act.

                Federal Law Enforcement Training Center


                         salaries and expenses

       For an additional amount for the necessary expenses of the 
     Federal Law Enforcement Training Center, $1,354,000, to 
     remain available until expended: Provided, That of the amount 
     provided, $1,354,000 is designated by Congress as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.


      acquisition, construction, improvement, and related expenses

       For an additional amount for the necessary expenses for the 
     acquisition, construction, improvement, and related expenses, 
     $2,700,000, to remain available until expended: Provided, 
     That of the amount provided, $2,700,00 is designated by 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.

                      Financial Management Service


                         salaries and expenses

       For an additional amount for the necessary expenses of the 
     Financial Management Service, $449,000, to remain available 
     until expended: Provided, That of the amount provided, 
     $449,000 is designated by Congress as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balance Budget and Emergency Deficit Control Act of 1985, as 
     amended.

                Bureau of Alcohol, Tobacco and Firearms


                         salaries and expenses

       For an additional amount for the necessary expenses of the 
     Bureau of Alcohol, Tobacco and Firearms, $66,423,000; of 
     which $3,500,000 shall be available for the construction and 
     expansion of a canine training facility, to remain available 
     until expended, of which $3,000,000 shall be available for 
     conducting a study of car bomb explosives, to remain 
     available until expended; and of which $6,700,000, to remain 
     available until expended, for relocation of the Bureau's 
     headquarters building and laboratory facilities; Provided, 
     That of the amount provided, $66,423,000 is designated by 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.

                     United States Customs Service


                         salaries and expenses

       For an additional amount for the necessary expense of the 
     United States Customs Service, $62,335,000; of which not to 
     exceed $26,400,000 shall be available until expended for 
     funding non-competitive cooperative agreements with air 
     carriers, airports, or other cargo authorities, which provide 
     for the Customs Service to purchase and assist in installing 
     advanced air cargo inspection equipment for the joint use of 
     such entities and the United States Customs Service: 
     Provided, That of the amount provided, $62,335,000 is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended,

                        Internal Revenue Service


                 processing, assistance and management

       For an additional amount for the necessary expenses for the 
     processing, assistance and management, $10,488,000, to remain 
     available until expended: Provided, That of the amount 
     provided, $10,488,000 is designated by Congress as an 
     emergency requirement pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.

                     United States Secret Service,


                         salaries and expenses

       For an additional amount for the necessary expenses of the 
     United States Secret Service $3,026,000, to remain available 
     until expended: Provided, That of the amount provided, 
     $3,026,000 is designated by Congress as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

                          INDEPENDENT AGENCIES

                     Office of Personnel Management


                         salaries and expenses

       For an additional amount for the necessary expenses of the 
     Office of Personnel Management $210,000, to remain available 
     until expended: Provided, That of the amount provided, 
     $210,000 is designated by Congress as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

                  FUNDS APPROPRIATED TO THE PRESIDENT

                     Federal Drug Control Programs


                        special forfeiture fund

                     (including transfer of funds)

       For activities authorized by Public Law 100-690, as 
     amended, $112,900,000, of which $42,000,000 shall be 
     transferred to the United

[[Page H11748]]

     States Customs Service for the conversion of P-3AEW aircraft 
     for the air interdiction program; of which $10,000,000 shall 
     be available for transfer to other Federal agencies for 
     methamphetamine reduction efforts; and of which $60,900,000 
     shall be available to the Director of the Office of National 
     Drug Control Policy for enhancing other drug control 
     activities, including transfer to other Federal agencies: 
     Provided, That of the amount provided, $112,900,000 is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended to become 
     available only upon receipt by the Congress of a supplemental 
     request from the President requesting such designation.

          TITLE VIII--FEDERAL FINANCIAL MANAGEMENT IMPROVEMENT

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Federal Financial 
     Management Improvement Act of 1996.''

     SEC. 802. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds the following:
       (1) Much effort has been devoted to strengthening Federal 
     internal accounting controls in the past. Although progress 
     has been made in recent years, Federal accounting standards 
     have not been uniformly implemented in financial management 
     systems for agencies.
       (2) Federal financial management continues to be seriously 
     deficient, and Federal financial management and fiscal 
     practices have failed to--
       (A) identify costs fully;
       (B) reflect the total liabilities of congressional actions; 
     and
       (C) accurately report the financial condition of the 
     Federal Government.
         (3) Current Federal accounting practices do not 
     accurately report financial results of the Federal Government 
     or the full costs of programs and activities. The continued 
     use of these practices undermines the Government's ability to 
     provide credible and reliable financial data and encourages 
     already widespread Government waste, and will not assist in 
     achieving a balanced budget.
       (4) Waste and inefficiency in the Federal Government 
     undermine the confidence of the American people in the 
     government and reduce the federal Government's ability to 
     address vital public needs adequately.
       (5) To rebuild the accountability and credibility of the 
     Federal Government, and restore public confidence in the 
     Federal Government, agencies must incorporate accounting 
     standards and reporting objectives established for the 
     Federal Government into their financial management systems so 
     that all the assets and liabilities, revenues, and 
     expenditures or expenses, and the full costs of programs and 
     activities of the Federal Government can be consistently and 
     accurately recorded, monitored, and uniformly reported 
     throughout the Federal Government.
       (6) Since its establishment in October 1990, the Federal 
     Accounting Standards Advisory Board (hereinafter referred to 
     as the ``FASAB'') has made substantial progress toward 
     developing and recommending a comprehensive set of accounting 
     concepts and standards for the Federal Government. When the 
     accounting concepts and standards developed by FASB are 
     incorporated into Federal financial management systems, 
     agencies will be able to provide cost and financial 
     information that will assist the Congress and financial 
     managers to evaluate the cost and performance of Federal 
     programs and activities, and will therefore provide important 
     information that has been lacking, but is needed for improved 
     decision making by financial managers and the Congress.
       (7) The development of financial management systems with 
     the capacity to support these standards and concepts will, 
     over the long term, improve Federal financial management.
       (b) Purpose.--The purposes of this Act are to--
       (1) provide for consistency of accounting by an agency from 
     one fiscal year to the next, and uniform accounting standards 
     throughout the Federal Government;
       (2) require Federal financial management systems to support 
     full disclosure of Federal financial data, including the full 
     costs of Federal programs and activities, to the citizens, 
     the Congress, the President, and agency management, so that 
     programs and activities can be considered based on their full 
     costs and merits;
       (3) increase the accountability and credibility of federal 
     financial management;
       (4) improve performance, productivity and efficiency of 
     Federal Government financial management;
       (5) establish financial management systems to support 
     controlling the cost of Federal Government;
       (6) build upon and complement the Chief Financial Officers 
     Act of 1990 (Public Law 101-576; 104 Stat. 2838), the 
     Government Performance and Results Act of 1993 (Public Law 
     103-62; 107 Stat. 285) and the Government Management Reform 
     Act of 1994 (Public Law 103-356; 108 Stat. 3410); and
       (7) increase the capability of agencies to monitor 
     execution of the budget by more readily permitting reports 
     that compare spending of resources to results of activities.

     SEC. 803 IMPLEMENTATION OF FEDERAL FINANCIAL MANAGEMENT 
                   IMPROVEMENTS.

       (a) In General.--Each agency shall implement and maintain 
     financial management systems that comply substantially with 
     Federal financial management systems requirements, applicable 
     Federal accounting standards, and the United States 
     Government Standard General Ledger at the transaction level.
       (b) Audit Compliance Finding.--
       (1) In general.--Each audit required by section 3521(e) of 
     title 31, United States Code, shall report whether the agency 
     financial management systems comply with the requirements of 
     subsection (a).
       (2) Content of Reports.--When the person performing the 
     audit required by section 3521(e) of title 31, United States 
     Code, reports that the agency financial management systems do 
     not comply with the requirements of subsection (a), the 
     person performing the audit shall include in the report on 
     the audit--
       (A) the entity or organization responsible for the 
     financial management systems that have been found not to 
     comply with the requirements of subsection (a);
       (B) all facts pertaining to the failure to comply with the 
     requirements of subsection (a), including--
       (i) the nature and extent of the noncompliance including 
     areas in which there is substantial but not full compliance;
       (ii) the primary reason or cause of the noncompliance;
       (iii) the entity or organization responsible for the non-
     compliance; and
       (iv) any relevant comments from any responsible officer or 
     employee; and
       (C) a statement with respect to the recommended remedial 
     actions and the time frames to implement such actions.
       (c) Complaince Implementation.--
       (1) Determination.--No later than the date described under 
     paragraph (2), the Head of an agency shall determine whether 
     the financial management systems of the agency comply with 
     the requirements of subsection (a). Such determination shall 
     be based on--
       (A) a review of the report on the applicable agency-wide 
     audited financial statement;
       (B) any other information the Head of the agency considers 
     relevant and appropriate.
       (2) Date of determination.--The determination under 
     paragraph (1) shall be made no later than 120 days after the 
     earlier of--
       (A) the date of the receipt of an agency-wide audited 
     financial statement; or
       (B) the last day of the fiscal year following the year 
     covered by such statement.
       (3) Remediation plan.--
       (A) If the Head of an agency determines that the agency's 
     financial management systems do not comply with the 
     requirements of subsection (a), the head of the agency, in 
     consultation with the Director, shall establish a remediation 
     plan that shall include resources, remedies, and intermediate 
     target dates necessary to bring the agency's financial 
     management systems into substantial compliance.
       (B) If the determination of the head of the agency differs 
     from the audit compliance findings required in subsection 
     (b), the Director shall review such determinations and 
     provide a report on the findings to the appropriate 
     committees of the Congress.
       (4) Time period for compliance.--A remediation plan shall 
     bring the agency's financial management systems into 
     substantial compliance no later than 3 years after the date a 
     determination is made under paragraph (1), unless the agency, 
     with concurrence of the Director--
       (A) determines that the agency's financial management 
     systems cannot comply with the requirements of subsection (a) 
     within 3 years;
       (B) specifies the most feasible date for bringing the 
     agency's financial management systems into compliance with 
     the requirements of subsection (a); and
       (C) designates an official of the agency who shall be 
     responsible for bringing the agency's financial management 
     systems into compliance with the requirements of subsection 
     (a) by the date specified under subparagraph (B).

     SEC. 804. REPORTING REQUIREMENTS.

       (a) Reports by the Director.--No later than March 31 of 
     each year, the Director shall submit a report to the Congress 
     regarding implementation of this Act. The Director may 
     include the report in the financial management status report 
     and the 5-year financial management plan submitted under 
     section 3512(a)(1) of title 31, United States Code.
       (b) Reports by the Inspector General.--Each Inspector 
     General who prepares a report under section 5(a) of the 
     Inspector General Act of 1978 (5 U.S.C. App.) shall report to 
     Congress instances and reasons when an agency has not met the 
     intermediate target dates established in the remediation 
     plan required under section 3(c). Specifically the report 
     shall include--
       (1) the entity or organization responsible for the non-
     compliance;
       (2) the facts pertaining to the failure to comply with the 
     requirements of subsection (a), including the nature and 
     extent of the non-compliance, the primary reason or cause for 
     the failure to comply, and any extenuating circumstances; and
       (3) a statement of the remedial actions needed to comply.
       (c) Reports by the Comptroller General.--No later than 
     October 1, 1997, and October 1, of each year thereafter, the 
     Comptroller General of the United States shall report to the 
     appropriate committees of the Congress concerning--
       (1) compliance with the requirements of section 3(a) of 
     this Act, including whether the financial statements of the 
     Federal Government have been prepared in accordance with 
     applicable accounting standards; and
       (2) the adequacy of applicable accounting standards for the 
     Federal Government.

     SEC. 805. CONFORMING AMENDMENTS.

       (a) Audits by Agencies.--Section 3521(f)(1) of title 31, 
     United States Code, is amended in the first sentence by 
     inserting ``and the Controller of the Office of Federal 
     Financial Management'' before the period.
       (b) Financial Management Status Report.--Section 3512(a)(2) 
     of title 31, United States Code, is amended by--
       (1) in subparagraph (D) by striking ``and' after the 
     semicolon;

[[Page H11749]]

       (2) by redesignating subparagraph (E) as subparagraph (F); 
     and
       (3) by inserting after subparagraph (D) the following:
       ``(E) a listing of agencies whose financial management 
     systems do not comply substantially with the requirements of 
     Section 3(a) the Federal Financial Management Improvement Act 
     of 1996, and a summary statement of the efforts underway to 
     remedy the noncompliance; and''
       (c) Inspector General Act of 1978.--Section 5(a) of the 
     Inspector General Act of 1978 is amended--
       (1) in paragraph (11) by striking ``and'' after the 
     semicolon;
       (2) in paragraph (12) by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(13) the information described under section   05(b) of 
     the Federal Financial Management Improvement Act of 1996.''

     SEC. 806. DEFINITIONS.

       For purposes of this title:
       (1) Agency.--The term ``agency'' means a department or 
     agency of the United States Government as defined in section 
     901(b) of title 31, United States Code.
       (2) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (3) Federal Accounting Standards.--The term ``Federal 
     accounting standards'' means applicable accounting 
     principles, standards, and requirements consistent with 
     section 902(a)(3)(A) of title 31, United States Code.
       (4) Financial management systems.--The term ``financial 
     management systems'' includes the financial systems and the 
     financial portions of mixed systems necessary to support 
     financial management, including automated and manual 
     processes, procedures, controls, data, hardware, software, 
     and support personnel dedicated to the operation and 
     maintenance of system functions.
       (5) Financial system.--The term ``financial system'' 
     includes an information system, comprised of one or more 
     applications, that is used for--
       (A) collecting, processing, maintaining, transmitting, or 
     reporting data about financial events;
       (B) supporting financial planning or budgeting activities;
       (C) accumulating and reporting costs information; or
       (D) supporting the preparation of financial statements.
       (6) Mixed system.--The term ``mixed system'' means an 
     information system that supports both financial and 
     nonfinancial functions of the Federal Government or 
     components thereof.

     SEC. 807. EFFECTIVE DATE.

       This title shall take effect for the fiscal year ending 
     September 30, 1997.

     SEC. 808. REVISION OF SHORT TITLES.

       (a) Section 4001 of Public Law 104-106 (110 Stat. 642; 41 
     U.S.C. 251 note) is amended to read as follows:

     SEC. 4001. SHORT TITLE.

       ``This division and division E may be cited as the 
     `Clinger-Cohen Act of 1996'.''.
       (b) Section 5001 of Public Law 104-106 (110 Stat. 679; 40 
     U.S.C. 1401 note) is amended to read as follows:

     ``SEC. 5001. SHORT TITLE.

       ``This division and division D may be cited as the 
     `Clinger-Cohen Act of 1996'.''
       (c) Any reference in any law, regulation, document, record, 
     or other paper of the United States to the Federal 
     Acquisition Reform Act of 1996 or to the Information 
     Technology Management Reform Act of 1996 shall be considered 
     to be a reference to the Clinger-Cohen Act of 1996.
       This Act may be cited as the ``Treasury, Postal Service, 
     and General Government Appropriations Act, 1997''.
      TITLE II--ECONOMIC GROWTH AND REGULATORY PAPERWORK REDUCTION

     SEC. 2001. SHORT TITLE; TABLE OF CONTENTS; DEFINITIONS

       (a) Short Title.--This title may be cited as the ``Economic 
     Growth and Regulatory Paperwork Reduction Act of 1996''.
       (b) Table of Contents.--The table of contents for this 
     title is as follows:

      TITLE II--ECONOMIC GROWTH AND REGULATORY PAPERWORK REDUCTION

Sec. 2001. Short title; table of contents; definitions

       Subtitle A--Streamlining the Home Mortgage Lending Process

Sec. 2101. Simplification and unification of disclosures required under 
              RESPA and TILA for mortgage transactions.
Sec. 2102. General exemption authority for loans.
Sec. 2103. Reductions in Real Estate Settlement Procedures Act of 1974 
              regulatory burdens.
Sec. 2104. Waiver for certain borrowers.
Sec. 2105. Alternative disclosures for adjustable rate mortgages.
Sec. 2106. Restitution for violations of the Truth in Lending Act.
Sec. 2107. Limitation on liability under the Truth in Lending Act.

             Subtitle B--Streamlining Government Regulation

     Chapter 1--Eliminating Unnecessary Regulatory Requirements and 
                               Procedures

Sec. 2201. Elimination of redundant approval requirement for Oakar 
              transactions.
Sec. 2202. Elimination of duplicative requirements imposed upon bank 
              holding companies.
Sec. 2203. Elimination of the per branch capital requirement for 
              national banks and State member banks.
Sec. 2204. Elimination of branch application requirements for automatic 
              teller machines.
Sec. 2205. Elimination of requirement for approval of investments in 
              bank premises for well capitalized and well managed 
              banks.
Sec. 2206. Elimination of approval requirement for divestitures.
Sec. 2207. Streamlined nonbanking acquisitions by well capitalized and 
              well managed banking organizations.
Sec. 2208. Elimination of unnecessary filing for officer and director 
              appointments.
Sec. 2209. Amendments to the Depository Institution Management 
              Interlocks Act.
Sec. 2210. Elimination of recordkeeping and reporting requirements for 
              officers.
Sec. 2211. Repayment of Treasury loan.
Sec. 2212. Branch closures.
Sec. 2213. Foreign banks.
Sec. 2214. Disposition of foreclosed assets.
Sec. 2215. Exemption authority for antitying provision.
Sec. 2216. FDIC approval of new State bank powers.

         Chapter 2--Eliminating Unnecessary Regulatory Burdens

Sec. 2221. Small bank examination cycle.
Sec. 2222. Required review of regulations.
Sec. 2223. Repeal of identification of nonbank financial institution 
              customers.
Sec. 2224. Repeal of certain reporting requirements.
Sec. 2225. Increase in home mortgage disclosure exemption threshold.
Sec. 2226. Elimination of stock loan reporting requirement.
Sec. 2227. Credit availability assessment.

                 Chapter 3--Regulatory Micromanagement

Sec. 2241. National bank directors.
Sec. 2242. Paperwork reduction review.
Sec. 2243. State bank representation on Board of Directors of the FDIC.
Sec. 2244. Consultation among examiners.

Subtitle C--Regulatory Impact on Cost of Credit and Credit Availability

Sec. 2301. Audit costs.
Sec. 2302. Incentives for self-testing.
Sec. 2303. Qualified thrift investment amendments.
Sec. 2304. Limited purpose banks.
Sec. 2305. Amendment to Fair Debt Collection Practices Act.
Sec. 2306. Increase in certain credit union loan ceilings.
Sec. 2307. Bank investments in Edge Act and agreement corporations.

                      Subtitle D--Consumer Credit

                   Chapter 1--Credit Reporting Reform

Sec. 2401. Short title.
Sec. 2402. Definitions.
Sec. 2403. Furnishing consumer reports; use for employment purposes.
Sec. 2404. Use of consumer reports for prescreening and direct 
              marketing; prohibition on unauthorized or uncertified use 
              of information.
Sec. 2405. Consumer consent required to furnish consumer report 
              containing medical information.
Sec. 2406. Obsolete information and information contained in consumer 
              reports.
Sec. 2407. Compliance procedures.
Sec. 2408. Consumer disclosures.
Sec. 2409. Procedures in case of the disputed accuracy of any 
              information in a consumer's file.
Sec. 2410. Charges for certain disclosures.
Sec. 2411. Duties of users of consumer reports.
Sec. 2412. Civil liability.
Sec. 2413. Responsibilities of persons who furnish information to 
              consumer reporting agencies.
Sec. 2414. Investigative consumer reports.
Sec. 2415. Increased criminal penalties for obtaining information under 
              false pretenses.
Sec. 2416. Administrative enforcement.
Sec. 2417. State enforcement of Fair Credit Reporting Act.
Sec. 2418. Federal Reserve Board authority.
Sec. 2419. Preemption of State law.
Sec. 2420. Effective date.
Sec. 2421. Relationship to other law.
Sec. 2422. Federal Reserve Board study.

                 Chapter 2--Credit Repair Organizations

Sec. 2451. Regulation of credit repair organizations.
Sec. 2452. Credit worthiness.

Subtitle E--Asset Conservation, Lender Liability, and Deposit Insurance 
                               Protection

Sec. 2501. Short title.
Sec. 2502. CERCLA lender and fiduciary liability limitations 
              amendments.
Sec. 2503. Conforming amendment.
Sec. 2504. Lender liability rule.
Sec. 2505. Effective date.

                       Subtitle F--Miscellaneous

Sec. 2601. Federal Reserve Board study.
Sec. 2602. Treatment of claims arising from breach of contracts 
              executed by the receiver or conservator.
Sec. 2603. Criminal sanctions for fictitious financial instruments and 
              counterfeiting.
Sec. 2604. Amendments to the Truth in Savings Act.
Sec. 2605. Consumer Leasing Act amendments.
Sec. 2606. Study of corporate credit unions.
Sec. 2607. Report on the reconciliation of differences between 
              regulatory accounting principles and generally accepted 
              accounting principles.
Sec. 2608. State-by-State and metropolitan area-by-metropolitan area 
              study of bank fees.

[[Page H11750]]

Sec. 2609. Prospective application of gold clauses in contracts.
Sec. 2610. Qualified family partnerships.
Sec. 2611. Cooperative efforts between depository institutions and 
              farmers and ranchers in drought-stricken areas.
Sec. 2612. Streamlining process for determining new nonbanking 
              activities.
Sec. 2613. Authorizing bank service companies to organize as limited 
              liability partnerships.
Sec. 2614. Retirement certificates of deposits.
Sec. 2615. Prohibitions on certain depository institution associations 
              with Government-sponsored enterprises.

                  Subtitle G--Deposit Insurance Funds

Sec. 2701. Short title.
Sec. 2702. Special assessment to capitalize SAIF.
Sec. 2703. Financing corporation funding.
Sec. 2704. Merger of BIF and SAIF.
Sec. 2705. Creation of SAIF special reserve.
Sec. 2706. Refund of amounts in deposit insurance fund in excess of 
              designated reserve amount.
Sec. 2707. Assessment rates for SAIF members may not be less than 
              assessment rates for BIF members.
Sec. 2708. Assessments authorized only if needed to maintain the 
              reserve ratio of a deposit insurance fund.
Sec. 2709. Treasury study of common depository institution charter.
Sec. 2710. Definitions.
Sec. 2711. Deductions for special assessments.
       (c) Definitions.--Except as otherwise specified in this 
     title, the following definitions shall apply for purposes of 
     this title:
       (1) Appraisal subcommittee.--The term ``Appraisal 
     Subcommittee'' means the Appraisal Subcommittee established 
     under section 1011 of the Federal Financial Institutions 
     Examination Council Act of 1978 (as in existence on the day 
     before the date of enactment of this Act).
       (2) Appropriate Federal banking agency.--The term 
     ``appropriate Federal banking agency'' has the same meaning 
     as in section 3 of the Federal Deposit Insurance Act.
       (3) Board.--The term ``Board'' means the Board of Governors 
     of the Federal Reserve System.
       (4) Corporation.--The term ``Corporation'' means the 
     Federal Deposit Insurance Corporation.
       (5) Council.--The term ``Council'' means the Financial 
     Institutions Examination Council established under section 
     1004 of the Federal Financial Institutions Examination 
     Council Act of 1978.
       (6) Insured credit union.--The term ``insured credit 
     union'' has the same meaning as in section 101 of the Federal 
     Credit Union Act.
       (7) Insured depository institution.--The term ``insured 
     depository institution'' has the same meaning as in section 3 
     of the Federal Deposit Insurance Act.
       Subtitle A--Streamlining the Home Mortgage Lending Process

     SEC. 2101. SIMPLIFICATION AND UNIFICATION OF DISCLOSURES 
                   REQUIRED UNDER RESPA AND TILA FOR MORTGAGE 
                   TRANSACTIONS.

       (a) In General.--With respect to credit transactions which 
     are subject to the Real Estate Settlement Procedures Act of 
     1974 and the Truth in Lending Act, the Board of Governors of 
     the Federal Reserve System (hereafter in this section 
     referred to as the ``Board'') and the Secretary of Housing 
     and Urban Development (hereafter in this section referred to 
     as the ``Secretary'') shall take such action as may be 
     necessary before the end of the 6-month period beginning on 
     the date of enactment of this Act--
       (1) to simplify and improve the disclosures applicable to 
     such transactions under such Acts, including the timing of 
     the disclosures; and
       (2) to provide a single format for such disclosures which 
     will satisfy the requirements of each such Act with respect 
     to such transactions.
       (b) Regulations.--To the extent that it is necessary to 
     prescribe any regulation in order to effect any changes 
     required to be made under subsection (a), the proposed 
     regulation shall be published in the Federal Register before 
     the end of the 6-month period referred to in subsection (a).
       (c) Recommendations for Legislation.--If the Board and the 
     Secretary find that legislative action may be necessary or 
     appropriate in order to simplify and unify the disclosure 
     requirements under the Real Estate Settlement Procedures Act 
     of 1974 and the Truth in Lending Act, the Board and the 
     Secretary shall submit a report containing recommendations to 
     the Congress concerning such action.

     SEC. 2102. GENERAL EXEMPTION AUTHORITY FOR LOANS.

       (a) Regulatory Flexibility.--Section 104 of the Truth in 
     Lending Act (15 U.S.C. 1603) is amended--
       (1) by redesignating paragraphs (5) and (6) as paragraphs 
     (6) and (7), respectively; and
       (2) by inserting after paragraph (4) the following new 
     paragraph:
       ``(5) Transactions for which the Board, by rule, determines 
     that coverage under this title is not necessary to carry out 
     the purposes of this title.''.
       (b) Exemption Authority.--Section 105 of the Truth in 
     Lending Act (15 U.S.C. 1604) is amended by adding at the end 
     the following new subsection:
       ``(f) Exemption Authority.--
       ``(1) In general.--The Board may exempt, by regulation, 
     from all or part of this title any class of transactions, 
     other than transactions involving any mortgage described in 
     section 103(aa), for which, in the determination of the 
     Board, coverage under all or part of this title does not 
     provide a meaningful benefit to consumers in the form of 
     useful information or protection.
       ``(2) Factors for consideration.--In determining which 
     classes of transactions to exempt in whole or in part under 
     paragraph (1), the Board shall consider the following factors 
     and publish its rationale at the time a proposed exemption is 
     published for comment:
       ``(A) The amount of the loan and whether the disclosures, 
     right of rescission, and other provisions provide a benefit 
     to the consumers who are parties to such transactions, as 
     determined by the Board.
       ``(B) The extent to which the requirements of this title 
     complicate, hinder, or make more expensive the credit process 
     for the class of transactions.
       ``(C) The status of the borrower, including--
       ``(i) any related financial arrangements of the borrower, 
     as determined by the Board;
       ``(ii) the financial sophistication of the borrower 
     relative to the type of transaction; and
       ``(iii) the importance to the borrower of the credit, 
     related supporting property, and coverage under this title, 
     as determined by the Board;
       ``(D) whether the loan is secured by the principal 
     residence of the consumer; and
       ``(E) whether the goal of consumer protection would be 
     undermined by such an exemption.''.

     SEC. 2103. REDUCTIONS IN REAL ESTATE SETTLEMENT PROCEDURES 
                   ACT OF 1974 REGULATORY BURDENS.

       (a) Unnecessary Disclosure.--Section 6(a) of the Real 
     Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605(a)) 
     is amended to read as follows:
       ``(a) Disclosure to Applicant Relating to Assignment, Sale, 
     or Transfer of Loan Servicing.--Each person who makes a 
     federally related mortgage loan shall disclose to each person 
     who applies for the loan, at the time of application for the 
     loan, whether the servicing of the loan may be assigned, 
     sold, or transferred to any other person at any time while 
     the loan is outstanding.''.
       (b) Consistency of Real Estate Settlement Procedures Act 
     and Truth in Lending Act Exemption of Business Loans.--
     Section 7 of the Real Estate Settlement Procedures Act of 
     1974 (12 U.S.C. 2606) is amended--
       (1) by striking ``This Act'' and inserting the following:
       ``(a) In General.--This Act''; and
       (2) by adding at the end the following new subsection:
       ``(b) Interpretation.--In prescribing regulations under 
     section 19(a), the Secretary shall ensure that, with respect 
     to subsection (a) of this section, the exemption for credit 
     transactions involving extensions of credit primarily for 
     business, commercial, or agricultural purposes, as provided 
     in section 7(1) of the Real Estate Settlement Procedures Act 
     of 1974 shall be the same as the exemption for such credit 
     transactions under section 104(1) of the Truth in Lending 
     Act.''.
       (c) Redesignation of Controlled Business Arrangements as 
     Affiliated Business Arrangements.--The Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended--
       (1) in section 3(7), by striking ``controlled business 
     arrangement'' and inserting ``affiliated business 
     arrangement''; and
       (2) in subsections (c)(4) and (d)(6) of section 8, by 
     striking ``controlled business arrangements'' and inserting 
     ``affiliated business arrangements''.
       (d) Disclosures by Telephone or Electronic Media.--Section 
     8(c)(4) of the Real Estate Settlement Procedures Act of 1974 
     (12 U.S.C. 2607(c)(4)(A)) is amended by striking subparagraph 
     (A) and inserting the following ``(A) a disclosure is made of 
     the existence of such an arrangement to the person being 
     referred and, in connection with such referral, such person 
     is provided a written estimate of the charge or range of 
     charges generally made by the provider to which the person is 
     referred (i) in the case of a face-to-face referral or a 
     referral made in writing or by electronic media, at or before 
     the time of the referral (and compliance with this 
     requirement in such case may be evidenced by a notation in a 
     written, electronic, or similar system of records maintained 
     in the regular course of business); (ii) in the case of a 
     referral made by telephone, within 3 business days after the 
     referral by telephone, (and in such case an abbreviated 
     verbal disclosure of the existence of the arrangement and the 
     fact that a written disclosure will be provided within 3 
     business days shall be made to the person being referred 
     during the telephone referral); or (iii) in the case of a 
     referral by a lender (including a referral by a lender to an 
     affiliated lender), at the time the estimates required under 
     section 5(c) are provided (notwithstanding clause (i) or 
     (ii)); and any required written receipt of such disclosure 
     (without regard to the manner of the disclosure under clause 
     (i), (ii), or (iii)) may be obtained at the closing or 
     settlement (except that a person making a face-to-face 
     referral who provides the written disclosure at or before the 
     time of the referral shall attempt to obtain any required 
     written receipt of such disclosure at such time and if the 
     person being referred chooses not to acknowledge the receipt 
     of the disclosure at that time, that fact shall be noted in 
     the written, electronic, or similar system of records 
     maintained in the regular course of business by the person 
     making the referral),''.
       (e) Limitation on Claims Arising From Violations of 
     Requirements for Servicing Mortgages and Administering Escrow 
     Accounts.--Section 16 of the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2614) is amended--
       (1) by striking ``section 8 or 9'' and inserting ``section 
     6, 8, or 9''; and
       (2) by striking ``within one year'' and inserting ``within 
     3 years in the case of a violation of section 6 and 1 year in 
     the case of a violation of section 8 or 9''.

[[Page H11751]]

       (f) Delay of Effectiveness of Recent Final Regulation 
     Relating to Payments to Employees.--Section 19 of the Real 
     Estate Settlement Procedures Act of 1974 (12 U.S.C. 2617) is 
     amended by adding at the end the following new subsection:
       ``(d) Delay of Effectiveness of Recent Final Regulation 
     Relating to Payments to Employees.--
       ``(1) In general.--The amendment to part 3500 of title 24 
     of the Code of Federal Regulations contained in the final 
     regulation prescribed by the Secretary and published in the 
     Federal Register on June 7, 1996, which will, as of the 
     effective date of such amendment--
       ``(A) eliminate the exemption for payments by an employer 
     to employees of such employer for referral activities which 
     is currently codified as section 3500.14(g)(1)(vii) of such 
     title 24; and
       ``(B) replace such exemption with a more limited exemption 
     in new clauses (vii), (viii), and (ix) of section 3500.14 of 
     such title 24,

     shall not take effect before July 31, 1997.
       ``(2) Continuation of prior rule.--The regulation codified 
     as section 3500.14(g)(1)(vii) of title 24 of the Code of 
     Federal Regulations, relating to employer-employee payments, 
     as in effect on May 1, 1996, shall remain in effect until the 
     date the amendment referred to in paragraph (1) takes effect 
     in accordance with such paragraph.
       ``(3) Public notice of effective date.--The Secretary shall 
     provide public notice of the date on which the amendment 
     referred to in paragraph (1) will take effect in accordance 
     with such paragraph not less than 90 days and not more than 
     180 days before such effective date.''.
       (g) Technical and Conforming Amendments.--
       (1) Section 4(a) of the Real Estate Settlement Procedures 
     Act of 1974 (12 U.S.C. 2603(a)) is amended by striking 
     ``Federal Home Loan Bank Board'' and inserting ``Director of 
     the Office of Thrift Supervision''.
       (2) Section 10(c)(1)(C) of the Real Estate Settlement 
     Procedures Act of 1974 (12 U.S.C. 2609(c)(1)(C)) is amended 
     by striking ``Not later than the expiration of the 90-day 
     period beginning on the date of the enactment of the 
     Cranston-Gonzalez National Affordable Housing Act, the'' and 
     inserting ``The''.
       (h) Repeal of Obsolete Provisions.--The Real Estate 
     Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is 
     amended by striking sections 13, 14 and 15.

     SEC. 2104. WAIVER FOR CERTAIN BORROWERS.

       Section 105 of the Truth in Lending Act (15 U.S.C. 1604) is 
     amended by adding at the end the following new subsection:
       ``(g) Waiver for Certain Borrowers.--
       ``(1) In general.--The Board, by regulation, may exempt 
     from the requirements of this title certain credit 
     transactions if--
       ``(A) the transaction involves a consumer--
       ``(i) with an annual earned income of more than $200,000; 
     or
       ``(ii) having net assets in excess of $1,000,000 at the 
     time of the transaction; and
       ``(B) a waiver that is handwritten, signed, and dated by 
     the consumer is first obtained from the consumer.
       ``(2) Adjustments by the board.--The Board, at its 
     discretion, may adjust the annual earned income and net asset 
     requirements of paragraph (1) for inflation.''.

     SEC. 2105. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE 
                   MORTGAGES.

       Section 128(a) of the Truth in Lending Act (15 U.S.C. 
     1638(a)) is amended by adding at the end the following new 
     paragraph:
       ``(14) In the case of any variable interest rate 
     residential mortgage transaction, in disclosures provided at 
     application as prescribed by the Board for a variable rate 
     transaction secured by the consumer's principal dwelling, at 
     the option of the creditor, a statement that the periodic 
     payments may increase or decrease substantially, and the 
     maximum interest rate and payment for a $10,000 loan 
     originated at a recent interest rate, as determined by the 
     Board, assuming the maximum periodic increases in rates and 
     payments under the program, or a historical example 
     illustrating the effects of interest rate changes implemented 
     according to the loan program.''.

     SEC. 2106. RESTITUTION FOR VIOLATIONS OF THE TRUTH IN LENDING 
                   ACT.

       Section 108(e)(3) of the Truth in Lending Act (15 U.S.C. 
     2602(3)) is amended--
       (1) by striking ``ordered (A) if'' and inserting the 
     following: ``ordered--
       ``(A) if'';
       (2) by striking ``may require a partial'' and inserting 
     ``may--
       ``(i) require a partial'';
       (3) by striking ``, except that with respect'' and all that 
     follows through ``Act, the agency shall require'' and 
     inserting ``; or
       ``(ii) require'';
       (4) by striking ``reasonable, (B) the'' and inserting the 
     following: ``reasonable, if (in the case of an agency 
     referred to in paragraph (1), (2), or (3) of subsection (a)), 
     the agency determines that a partial adjustment or making 
     partial payments over an extended period is necessary to 
     avoid causing the creditor to become undercapitalized 
     pursuant to section 38 of the Federal Deposit Insurance Act;
       ``(B) the''; and
       (5) by striking ``(C) except'' and inserting the following:
       ``(C) except''.

     SEC. 2107. LIMITATION ON LIABILITY UNDER THE TRUTH IN LENDING 
                   ACT.

       (a) In General.--Section 139(a) of the Truth in Lending Act 
     (15 U.S.C. 1649(a)) is amended by striking ``For any consumer 
     credit transaction subject to this title'' and inserting 
     ``For any closed end consumer credit transaction that is 
     secured by real property or a dwelling, that is subject to 
     this title, and''.
       (b) Effectuve Date.--The amendment made by subsection (a) 
     shall be effective as of September 30, 1995.
             Subtitle B--Streamlining Government Regulation

    CHAPTER 1--ELIMINATING UNNECESSARY REGULATORY REQUIREMENTS AND 
                               PROCEDURES

     SEC. 2201. ELIMINATION OF REDUNDANT APPROVAL REQUIREMENT FOR 
                   OAKAR TRANSACTIONS.

       (a) In General.--Section 5(d)(3) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1815(d)(3)) is amended--
       (1) in subparagraph (A), by striking ``with the prior 
     written approval of'' and inserting ``if the transaction is 
     approved by'';
       (2) in subparagraph (E)--
       (A) by striking clauses (i) and (iv);
       (B) by redesignating clauses (ii) and (iii) as clauses (i) 
     and (ii), respectively; and
       (C) by adding at the end the following new clause:
       ``(iii) Capital requirements.--A transaction described in 
     this paragraph shall not be approved under section 18(c)(2) 
     unless the acquiring, assuming, or resulting depository 
     institution will meet all applicable capital requirements 
     upon consummation of the transaction.'';
       (3) by striking subparagraph (G); and
       (4) by redesignating subparagraphs (H) through (J) as 
     subparagraphs (G) through (I), respectively.
       (b) Conforming Amendments.--
       (1) Revised statutes.--Section 5156A(b)(1) of the Revised 
     Statutes of the United States (12 U.S.C. 215c(b)(1)) is 
     amended by striking ``by section 5(d)(3) of the Federal 
     Deposit Insurance Act or any other'' and inserting ``under 
     any''.
       (2) Home owners' loan act.--Section 10(s)(2)(A) of the Home 
     Owners' Loan Act (12 U.S.C. 1467a(s)(2)(A)) is amended by 
     striking ``under section 5(d)(3) of the Federal Deposit 
     Insurance Act or any other'' and inserting ``under any''.

     SEC. 2203. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED 
                   UPON BANK HOLDING COMPANIES.

       (a) Exemption for Bank Holding Companies.--Section 10 of 
     the Home Owners' Loan Act (12 U.S.C. 1467a) is amended by 
     adding at the end the following new subsection:
       ``(t) Exemption for Bank Holding Companies.--This section 
     shall not apply to a bank holding company that is subject to 
     the Bank Holding Company Act of 1956, or any company 
     controlled by such bank holding company.''.
       (b) Definition.--Section 10(a)(1)(D) of the Home Owners' 
     Loan Act (12 U.S.C. 1467a(a)(1)(D)) is amended to read as 
     follows:
       ``(D) Savings and loan holding company.--
       ``(i) In general.--Except as provided in clause (ii), the 
     term `savings and loan holding company' means any company 
     that directly or indirectly controls a savings association or 
     that controls any other company that is a savings and loan 
     holding company.
       ``(ii) Exclusion.--The term `savings and loan holding 
     company' does not include a bank holding company that is 
     registered under, and subject to, the Bank Holding Company 
     Act of 1956, or to any company directly or indirectly 
     controlled by such company (other than a savings 
     association).''.
       (c) Acquisitions.--Section 10(e)(1) of the Home Owners' 
     Loan Act (12 U.S.C. 1467a(e)(1)) is amended--
       (1) in subparagraph (A)(iii)(VII), by inserting ``or'' at 
     the end;
       (2) in subparagraph (A)(iv), by inserting ``and'' at the 
     end; and
       (3) in subparagraph (B)--
       (A) by striking ``or (ii)'' and inserting ``(ii)''; and
       (B) by inserting before the first period ``, or (iii) 
     acquired by a bank holding company that is registered under, 
     and subject to, the Bank Holding Company Act of 1956, or any 
     company controlled by such bank holding company''.
       (d) Amendments to the Bank Holding Company Act of 1956.--
     Section 4(i) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1843(i)) is amended by adding at the end the following 
     new paragraphs:
       ``(4) Solicitation of views.--
       ``(A) Notice to director.--Upon receiving any application 
     or notice by a bank holding company to acquire, directly or 
     indirectly, a savings association under subsection (c)(8), 
     the Board shall solicit comments and recommendations from the 
     Director with respect to such acquisition.
       ``(B) Comment period.--The comments and recommendations of 
     the Director under subparagraph (A) with respect to any 
     acquisition subject to such subparagraph shall be transmitted 
     to the Board not later than 30 days after the receipt by the 
     Director of the notice relating to such acquisition (or such 
     shorter period as the Board may specify if the Board advises 
     the Director that an emergency exists that requires 
     expeditious action).
       ``(5) Examination.--
       ``(A) Scope.--The Board shall consult with the Director, as 
     appropriate, in establishing the scope of an examination by 
     the Board of a bank holding company that directly or 
     indirectly controls a savings association.
       ``(B) Access to inspection reports.--Upon the request of 
     the Director, the Board shall furnish the Director with a 
     copy of any inspection report, additional examination 
     materials, or supervisory information relating to any bank 
     holding company that directly or indirectly controls a 
     savings association.
       ``(6)  Coordination of enforcement efforts.--The Board and 
     the Director shall cooperate in any enforcement action 
     against any bank holding company that controls a savings 
     association, if the relevant conduct involves such 
     association.

[[Page H11752]]

       ``(7) Director defined.--For purposes of this section, the 
     term `Director' means the Director of the Office of Thrift 
     Supervision.''.

     SEC. 2204. ELIMINATION OF THE PER BRANCH CAPITAL REQUIREMENT 
                   FOR NATIONAL BANKS AND STATE MEMBER BANKS.

       Section 5155(h) of the Revised Statutes of the United 
     States (12 U.S.C. 36(h)) is amended to read as follows:
       ``(h) [Repealed]''.

     SEC. 2205. ELIMINATION OF BRANCH APPLICATION REQUIREMENTS FOR 
                   AUTOMATIC TELLER MACHINES.

       (a) ``Branch'' Under National Bank Act.--Section 5155(j) of 
     the Revised Statutes of the United States (12 U.S.C. 36(j)) 
     is amended by adding at the end the following: ``The term 
     `branch', as used in this section, does not include an 
     automated teller machine or a remote service unit.''.
       (b) ``Domestic Branch'' Under the Federal Deposit Insurance 
     Act.--Section 3(o) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(o)) is amended by striking ``lent; and the'' and 
     inserting ``lent. The term `domestic branch' does not include 
     an automated teller machine or a remote service unit. The''.

     SEC. 2206. ELIMINATION OF REQUIREMENT FOR APPROVAL OF 
                   INVESTMENTS IN BANK PREMISES FOR WELL 
                   CAPITALIZED AND WELL MANAGED BANKS.

       Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is 
     amended to read as follows:

     ``SEC. 24A. INVESTMENT IN BANK PREMISES OR STOCK OF 
                   CORPORATION HOLDING PREMISES.

       ``(a) Conditions of Investment.--No national bank or State 
     member bank shall invest in bank premises, or in the stock, 
     bonds, debentures, or other such obligations of any 
     corporation holding the premises of such bank, or make loans 
     to or upon the security of any such corporation--
       ``(1) unless the bank receives the prior approval of the 
     Comptroller of the Currency (with respect to a national bank) 
     or the Board (with respect to a State member bank);
       ``(2) unless the aggregate of all such investments and 
     loans, together with the amount of any indebtedness incurred 
     by any such corporation that is an affiliate of the bank, is 
     less than or equal to the amount of the capital stock of such 
     bank; or
       ``(3) unless--
       ``(A) the aggregate of all such investments and loans, 
     together with the amount of any indebtedness incurred by any 
     such corporation that is an affiliate of the bank, is less 
     than or equal to 150 percent of the capital and surplus of 
     the bank; and
       ``(B) the bank--
       ``(i) has a CAMEL composite rating of 1 or 2 under the 
     Uniform Financial Institutions Rating System (or an 
     equivalent rating under a comparable rating system) as of the 
     most recent examination of such bank;
       ``(ii) is well capitalized and will continue to be well 
     capitalized after the investment or loan; and
       ``(iii) provides notification to the Comptroller of the 
     Currency (with respect to a national bank) or to the Board 
     (with respect to a State member bank) not later than 30 days 
     after making the investment or loan.
       ``(b) Definitions.--For purposes of this section--
       ``(1) the term `affiliate' has the same meaning as in 
     section 2 of the Banking Act of 1933; and
       ``(2) the term `well capitalized' has the same meaning as 
     in section 38(b) of the Federal Deposit Insurance Act.''.

     SEC. 2207. ELIMINATION OF APPROVAL REQUIREMENT FOR 
                   DIVESTITURES.

       Section 2(g) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1841(g)) is amended--
       (1) in paragraph (1), by adding ``and'' at the end;
       (2) in paragraph (2), by striking ``; and'' and inserting a 
     period; and
       (3) by striking paragraph (3).

     SEC. 2208. STREAMLINED NONBANKING ACQUISITIONS BY WELL 
                   CAPITALIZED AND WELL MANAGED BANKING 
                   ORGANIZATIONS.

       (a) Notice Requirements.--Section 4(j) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1843(j)) is amended--
       (1) in paragraph (1)(A), by striking ``No'' and inserting 
     ``Except as provided in paragraph (3), no''; and
       (2) by adding at the end the following new paragraphs:
       ``(3) No notice required for certain transactions.--No 
     notice under paragraph (1) of this subsection or under 
     subsection (c)(8) or (a)(2)(B) is required for a proposal by 
     a bank holding company to engage in any activity or acquire 
     the shares or assets of any company, other than an insured 
     depository institution, if the proposal qualifies under 
     paragraph (4).
       ``(4) Criteria for statutory approval.--A proposal 
     qualifies under this paragraph if all of the following 
     criteria are met:
       ``(A) Financial criteria.--Both before and immediately 
     after the proposed transaction--
       ``(i) the acquiring bank holding company is well 
     capitalized;
       ``(ii) the lead insured depository institution of such 
     holding company is well capitalized;
       ``(iii) well capitalized insured depository institutions 
     control at least 80 percent of the aggregate total risk-
     weighted assets of insured depository institutions controlled 
     by such holding company; and
       ``(iv) no insured depository institution controlled by such 
     holding company is undercapitalized.
       ``(B) Managerial criteria.--
       ``(i) Well managed.--At the time of the transaction, the 
     acquiring bank holding company, its lead insured depository 
     institution, and insured depository institutions that control 
     at least 90 percent of the aggregate total risk-weighted 
     assets of insured depository institutions controlled by such 
     holding company are well managed.
       ``(ii) Limitation on poorly managed institutions.--Except 
     as provided in paragraph (6), no insured depository 
     institution controlled by the acquiring bank holding company 
     has received 1 of the 2 lowest composite ratings at the later 
     of the institution's most recent examination or subsequent 
     review.
       ``(C) Activities permissible.--Following consummation of 
     the proposal, the bank holding company engages directly or 
     through a subsidiary solely in--
       ``(i) activities that are permissible under subsection 
     (c)(8), as determined by the Board by regulation or order 
     thereunder, subject to all of the restrictions, terms, and 
     conditions of such subsection and such regulation or order; 
     and
       ``(ii) such other activities as are otherwise permissible 
     under this section, subject to the restrictions, terms and 
     conditions, including any prior notice or approval 
     requirements, provided in this section.
       ``(D) Size of acquisition.--
       ``(i) Asset size.--The book value of the total assets to be 
     acquired does not exceed 10 percent of the consolidated total 
     risk-weighted assets of the acquiring bank holding company.
       ``(ii) Consideration.--The gross consideration to be paid 
     for the securities or assets does not exceed 15 percent of 
     the consolidated Tier 1 capital of the acquiring bank holding 
     company.
       ``(E) Notice not otherwise warranted.--For proposals 
     described in paragraph (5)(B), the Board has not, before the 
     conclusion of the period provided in paragraph (5)(B), 
     advised the bank holding company that a notice under 
     paragraph (1) is required.
       ``(F) Compliance criterion.--During the 12-month period 
     ending on the date on which the bank holding company proposes 
     to commence an activity or acquisition, no administrative 
     enforcement action has been commenced, and no cease and 
     desist order has been issued pursuant to section 8 of the 
     Federal Deposit Insurance Act, against the bank holding 
     company or any depository institution subsidiary of the 
     holding company, and no such enforcement action, order, or 
     other administrative enforcement proceeding is pending as of 
     such date.
       ``(5) Notification.--
       ``(A) Commencement of activities approved by rule.--A bank 
     holding company that qualifies under paragraph (4) and that 
     proposes to engage de novo, directly or through a subsidiary, 
     in any activity that is permissible under subsection (c)(8), 
     as determined by the Board by regulation, may commence that 
     activity without prior notice to the Board and must provide 
     written notification to the Board not later than 10 business 
     days after commencing the activity.
       ``(B) Activities permitted by order and acquisitions.--
       ``(i) In general.--At least 12 business days before 
     commencing any activity pursuant to paragraph (3) (other than 
     an activity described in subparagraph (A) of this paragraph) 
     or acquiring shares or assets of any company pursuant to 
     paragraph (3), the bank holding company shall provide written 
     notice of the proposal to the Board, unless the Board 
     determines that no notice or a shorter notice period is 
     appropriate.
       ``(ii) Description of activities and terms.--A notification 
     under this subparagraph shall include a description of the 
     proposed activities and the terms of any proposed 
     acquisition.
       ``(6) Recently acquired institutions.--Any insured 
     depository institution which has been acquired by a bank 
     holding company during the 12-month period preceding the date 
     on which the company proposes to commence an activity or 
     acquisition pursuant to paragraph (3) may be excluded for 
     purposes of paragraph (4)(B)(ii) if--
       ``(A) the bank holding company has developed a plan for the 
     institution to restore the capital and management of the 
     institution which is acceptable to the appropriate Federal 
     banking agency; and
       ``(B) all such insured depository institutions represent, 
     in the aggregate, less than 10 percent of the aggregate total 
     risk-weighted assets of all insured depository institutions 
     controlled by the bank holding company.
       ``(7) Adjustment of percentages.--The Board may, by 
     regulation, adjust the percentages and the manner in which 
     the percentages of insured depository institutions are 
     calculated under paragraph (4)(B)(i), (4)(D), or (6)(B) if 
     the Board determines that any such adjustment is consistent 
     with safety and soundness and the purposes of this Act.''.
       (b) Definitions.--Section 2(o) of the Bank Holding Company 
     Act of 1956 (12 U.S.C. 1841(o)) is amended--
       (1) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Capital terms.--
       ``(A) Insured depository institutions.--With respect to 
     insured depository institutions, the terms `well 
     capitalized', `adequately capitalized', and 
     `undercapitalized' have the same meanings as in section 38(b) 
     of the Federal Deposit Insurance Act.
       ``(B) Bank holding company.--
       ``(i) Adequately capitalized.--With respect to a bank 
     holding company, the term `adequately capitalized' means a 
     level of capitalization which meets or exceeds all applicable 
     Federal regulatory capital standards.
       ``(ii) Well capitalized.--A bank holding company is `well 
     capitalized' if it meets the required capital levels for well 
     capitalized bank holding companies established by the Board.
       ``(C) Other capital terms.--The terms `Tier 1' and `risk-
     weighted assets' have the meanings given those terms in the 
     capital guidelines or regulations established by the Board 
     for bank holding companies.''; and

[[Page H11753]]

       (2) by adding at the end the following new paragraphs:
       ``(8) Lead insured depository institutions.--
       ``(A) In general.--The term `lead insured depository 
     institution' means the largest insured depository institution 
     controlled by the subject bank holding company at any time, 
     based on a comparison of the average total risk-weighted 
     assets controlled by each insured depository institution 
     during the previous 12-month period.
       ``(B) Branch or agency.--For purposes of this paragraph and 
     section 4(j)(4), the term `insured depository institution' 
     includes any branch or agency operated in the United States 
     by a foreign bank.
       ``(9) Well managed.--The term `well managed' means--
       ``(A) in the case of any company or depository institution 
     which receives examinations, the achievement of--
       ``(i) a CAMEL composite rating of 1 or 2 (or an equivalent 
     rating under an equivalent rating system) in connection with 
     the most recent examination or subsequent review of such 
     company or institution; and
       ``(ii) at least a satisfactory rating for management, if 
     such rating is given; or
       ``(B) in the case of a company or depository institution 
     that has not received an examination rating, the existence 
     and use of managerial resources which the Board determines 
     are satisfactory.''.

     SEC. 2209. ELIMINATION OF UNNECESSARY FILING FOR OFFICER AND 
                   DIRECTOR APPOINTMENTS.

       Section 32 of the Federal Deposit Insurance Act (12 U.S.C. 
     1831i) is amended--
       (1) in subsection (a)--
       (A) by inserting ``(or such other period, as determined by 
     the appropriate Federal banking agency)'' after ``30 days'';
       (B) by striking ``if the insured depository institution or 
     depository institution holding company'' and inserting ``if 
     '';
       (C) by striking paragraphs (1) and (2);
       (D) by redesignating paragraph (3) as paragraph (1);
       (E) in paragraph (1), as redesignated--
       (i) by inserting ``the insured depository institution or 
     depository institution holding company'' before ``is not in 
     compliance''; and
       (ii) by striking the period at the end and inserting ``; 
     or''; and
       (F) by adding at the end the following new paragraph:
       ``(2) the agency determines, in connection with the review 
     by the agency of the plan required under section 38 or 
     otherwise, that such prior notice is appropriate.''; and
       (2) in subsection (b), by striking ``30-day period'' and 
     inserting ``notice period, not to exceed 90 days,''.

     SEC. 2210. AMENDMENTS TO THE DEPOSITORY INSTITUTION 
                   MANAGEMENT INTERLOCKS ACT.

       (a) Dual Service Among Larger Organizations.--Section 204 
     of the Depository Institution Management Interlocks Act (12 
     U.S.C. 3203) is amended--
       (1) by striking ``$1,000,000,000'' and inserting 
     ``$2,500,000,000'';
       (2) by striking ``$500,000,000'' and inserting 
     ``$1,500,000,000''; and
       (3) by adding at the end the following: ``In order to allow 
     for inflation or market changes, the appropriate Federal 
     depository institutions regulatory agencies may, by 
     regulation, adjust, as necessary, the amount of total assets 
     required for depository institutions or depository holding 
     companies under this section.''.
       (b) Extension of Grandfather Exemption.--Section 206 of the 
     Depository Institution Management Interlocks Act (12 U.S.C. 
     3205) is amended--
       (1) in subsection (a), by striking ``for a period of, 
     subject to the requirements of subsection (c), 20 years after 
     the date of enactment of this title'';
       (2) in subsection (b), by striking the second sentence; and
       (3) by striking subsection (c).
       (c) Regulations.--Section 209 of the Depository Institution 
     Management Interlocks Act (12 U.S.C. 3207) is amended--
       (1) in subsection (a)--
       (A) by striking ``(a) In General.--Rules and regulations'' 
     and inserting ``Regulations'';
       (B) by inserting ``, including regulations that permit 
     service by a management official that would otherwise be 
     prohibited by section 203 or section 204, if such service 
     would not result in a monopoly or substantial lessening of 
     competition,'' after ``title'';
       (C) in paragraph (4)--
       (i) by striking ``Federal Home Loan Bank Board'' and 
     inserting ``Director of the Office of Thrift Supervision''; 
     and
       (ii) by striking ``Savings and Loan'' and inserting 
     ``Deposit''; and
       (2) by striking subsections (b) and (c).

     SEC. 2211. ELIMINATION OF RECORDKEEPING AND REPORTING 
                   REQUIREMENTS FOR OFFICERS.

       (a) Employee Benefit Plans.--Section 22(h)(2) of the 
     Federal Reserve Act (12 U.S.C. 375b(2)) is amended--
       (1) by redesignating subparagraphs (A) through (C) as 
     clauses (i) through (iii), respectively, and indenting 
     appropriately;
       (2) by striking ``(2) Preferential terms prohibited.--'' 
     and inserting the following:
       ``(2) Preferential terms prohibited.--
       ``(A) In general.--''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) Exception.--Nothing in this paragraph shall prohibit 
     any extension of credit made pursuant to a benefit or 
     compensation program--
       ``(i) that is widely available to employees of the member 
     bank; and
       ``(ii) that does not give preference to any officer, 
     director, or principal shareholder of the member bank, or to 
     any related interest of such person, over other employees of 
     the member bank.''.
       (b) Exception for Extensions of Credit to Executive 
     Officers and Directors of Affiliates.--Section 22(h)(8)(B) of 
     the Federal Reserve Act (12 U.S.C. 375b(8)(B)) is amended to 
     read as follows:
       ``(B) Exception.--The Board may, by regulation, make 
     exceptions to subparagraph (A) for any executive officer or 
     director of a subsidiary of a company that controls the 
     member bank if--
       ``(i) the executive officer or director does not have 
     authority to participate, and does not participate, in major 
     policymaking functions of the member bank; and
       ``(ii) the assets of such subsidiary do not exceed 10 
     percent of the consolidated assets of a company that controls 
     the member bank and such subsidiary (and is not controlled by 
     any other company).''.

     SEC. 2212. REPAYMENT OF TREASURY LOAN.

       Section 1108 of the Federal Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 3337) is 
     amended by adding at the end the following new subsection.--
       ``(c) Repayment of Treasury Loan.--Not later than September 
     30, 1998, the Appraisal Subcommittee shall repay to the 
     Secretary of the Treasury the unpaid portion of the 
     $5,000,000 paid to the Appraisal Subcommittee pursuant to 
     this section.''.

     SEC. 2213. BRANCH CLOSURES.

       Section 42 of the Federal Deposit Insurance Act (12 U.S.C. 
     1831r-1) is amended by adding at the end the following new 
     subsection:
       ``(e) Scope of Application.--This section shall not apply 
     with respect to--
       ``(1) an automated teller machine;
       ``(2) the relocation of a branch or consolidation of one or 
     more branches into another branch, if the relocation or 
     consolidation--
       ``(A) occurs within the immediate neighborhood; and
       ``(B) does not substantially affect the nature of the 
     business or customers served; or
       ``(3) a branch that is closed in connection with--
       ``(A) an emergency acquisition under--
       ``(i) section 11(n); or
       ``(ii) subsection (f) or (k) of section 13; or
       ``(B) any assistance provided by the Corporation under 
     section 13(c).''.

     SEC. 2214. FOREIGN BANKS.

       (a) Examination of Branches and Agencies by Board.--Section 
     7(c) of the International Banking Act of 1978 (12 U.S.C. 
     3105(c)) is amended--
       (1) by striking ``(c)'' and inserting the following:
       ``(c) Foreign Bank Examinations and Reporting.--'';
       (2) in paragraph (1)(B), by adding at the end the following 
     new clause:
       ``(iii) Avoidance of duplication.--In exercising its 
     authority under this paragraph, the Board shall take all 
     reasonable measures to reduce burden and avoid unnecessary 
     duplication of examinations.'';
       (3) by striking subparagraph (C) of paragraph (1) and 
     inserting the following:
       ``(C) On-site examination.--Each Federal branch or agency, 
     and each State branch or agency, of a foreign bank shall be 
     subject to on-site examination by an appropriate Federal 
     banking agency or State bank supervisor as frequently as 
     would a national bank or a State bank, respectively, by the 
     appropriate Federal banking agency.''; and
       (4) in paragraph (1)(D), by inserting before the period at 
     the end the following: ``, only to the same extent that fees 
     are collected by the Board for examination of any State 
     member bank''.
       (b) Establishment of Foreign Bank Offices in the United 
     States.--Section 7(d) of the International Banking Act of 
     1978 (12 U.S.C. 3105(d)) is amended--
       (1) in paragraph (2), by striking ``The Board'' and 
     inserting ``Except as provided in paragraph (6), the Board'';
       (2) in paragraph (5), by striking ``Consistent with the 
     standards for approval in paragraph (2), the''; and inserting 
     ``The''; and
       (3) by adding at the end the following new paragraphs:
       ``(6) Exception.--
       ``(A) In general.--If the Board is unable to find, under 
     paragraph (2), that a foreign bank is subject to 
     comprehensive supervision or regulation on a consolidated 
     basis by the appropriate authorities in its home country, the 
     Board may nevertheless approve an application by such foreign 
     bank under paragraph (1) if--
       ``(i) the appropriate authorities in the home country of 
     the foreign bank are actively working to establish 
     arrangements for the consolidated supervision of such bank; 
     and
       ``(ii) all other factors are consistent with approval.
       ``(B) Other considerations.--In deciding whether to use its 
     discretion under subparagraph (A), the Board shall also 
     consider whether the foreign bank has adopted and implemented 
     procedures to combat money laundering. The Board may also 
     take into account whether the home country of the foreign 
     bank is developing a legal regime to address money laundering 
     or is participating in multilateral efforts to combat money 
     laundering.
       ``(C) Additional conditions.--In approving an application 
     under this paragraph, the Board, after requesting and taking 
     into consideration the views of the appropriate State bank 
     supervisor or the Comptroller of the Currency, as the case 
     may be, may impose such conditions or restrictions relating 
     to the activities or business operations of the proposed 
     branch, agency, or commercial lending company subsidiary, 
     including restrictions on sources of funding, as

[[Page H11754]]

     are considered appropriate. The Board shall coordinate with 
     the appropriate State bank supervisor or the Comptroller of 
     the Currency, as appropriate, in the implementation of such 
     conditions or restrictions.
       ``(D) Modification of conditions.--Any condition or 
     restriction imposed by the Board in connection with the 
     approval of an application under authority of this paragraph 
     may be modified or withdrawn.
       ``(7) Time period for board action.--
       ``(A) Final action.--The Board shall take final action on 
     any application under paragraph (1) not later than 180 days 
     after receipt of the application, except that the Board may 
     extend for an additional 180 days the period within which to 
     take final action on such application after providing notice 
     of, and the reasons for, the extension to the applicant 
     foreign bank and any appropriate State bank supervisor or the 
     Comptroller of the Currency, as appropriate.
       ``(B) Failure to submit information.--The Board may deny 
     any application if it does not receive information requested 
     from the applicant foreign bank or appropriate authorities in 
     the home country of the foreign bank in sufficient time to 
     permit the Board to evaluate such information adequately 
     within the time periods for final action set forth in 
     subparagraph (A).
       ``(C) Waiver.--A foreign bank may waive the applicability 
     of this paragraph with respect to any application under 
     paragraph (1).''.
       (c) Termination of Foreign Bank Offices in the United 
     States.--Section 7(e)(1)(A) of the International Banking Act 
     of 1978 (12 U.S.C. 3105(e)(1)(A)) is amended--
       (1) by inserting ``(i)'' after ``(A)'';
       (2) by striking ``or'' at the end and inserting ``and''; 
     and
       (3) by adding at the end the following new clause:
       ``(ii) the appropriate authorities in the home country of 
     the foreign bank are not making demonstrable progress in 
     establishing arrangements for the comprehensive supervision 
     or regulation of such foreign bank on a consolidated basis; 
     or''.

     SEC. 2215. DISPOSITION OF FORECLOSED ASSETS.

       Section 4(c)(2) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1843(c)(2)) is amended--
       (1) by striking ``for not more than one year at a time''; 
     and
       (2) by striking ``but no such extensions shall extend 
     beyond a date five years'' and inserting ``and, in the case 
     of a bank holding company which has not disposed of such 
     shares within 5 years after the date on which such shares 
     were acquired, the Board may, upon the application of such 
     company, grant additional exemptions if, in the judgment of 
     the Board, such extension would not be detrimental to the 
     public interest and, either the bank holding company has made 
     a good faith attempt to dispose of such shares during such 5-
     year period, or the disposal of such shares during such 5-
     year period would have been detrimental to the company, 
     except that the aggregate duration of such extensions shall 
     not extend beyond 10 years''.

     SEC. 2216. EXEMPTION AUTHORITY FOR ANTITYING PROVISION.

       (a) Federal Reserve Board Authority.--Section 106(b)(1) of 
     the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 
     1972(1)) is amended in the last sentence, by inserting ``and 
     the prohibitions of section 4(f)(9) and 4(h)(2) of the Bank 
     Holding Company Act of 1956'' after ``prohibition''.
       (b) OTS Authority.--Section 5(q) of the Home Owners' Loan 
     Act (12 U.S.C. 1464(q)) is amended by adding at the end the 
     following new paragraph:
       ``(6) Exceptions.--The Director may, by regulation or 
     order, permit such exceptions to the prohibitions of this 
     subsection as the Director considers will not be contrary to 
     the purposes of this subsection and which conform to 
     exceptions granted by the Board of Governors of the Federal 
     Reserve System pursuant to section 106(b) of the Bank Holding 
     Company Act Amendments of 1970.''.

     SEC. 2217. FDIC APPROVAL OF NEW STATE BANK POWERS.

       Section 24 of the Federal Deposit Insurance Act (12 U.S.C. 
     1831a) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately;
       (B) by striking ``In general.--'' and inserting the 
     following: ``Permissible activities.--
       ``(1) In general.--''; and
       (C) by adding at the end the following new paragraph:
       ``(2) Processing period.--
       ``(A) In general.--The Corporation shall make a 
     determination under paragraph (1)(A) not later than 60 days 
     after receipt of a completed application that may be required 
     under this subsection.
       ``(B) Extension of time period.--The Corporation may extend 
     the 60-day period referred to in subparagraph (A) for not 
     more than 30 additional days, and shall notify the applicant 
     of any such extension.''; and
       (2) in subsection (d), by adding at the end the following 
     new paragraph:
       ``(3) Processing period.--
       ``(A) In general.--The Corporation shall make a 
     determination under paragraph (1)(A) not later than 60 days 
     after receipt of a completed application that may be required 
     under this subsection.
       ``(B) Extension of time period.--The Corporation may extend 
     the 60-day period referred to in subparagraph (A) for not 
     more than 30 additional days, and shall notify the applicant 
     of any such extension.''.

         CHAPTER 2--ELIMINATING UNNECESSARY REGULATORY BURDENS

     SEC. 2221. SMALL BANK EXAMINATION CYCLE.

       Section 10(d) of the Federal Deposit Insurance Act (12 
     U.S.C. 1820(d)) is amended--
       (1) by redesignating the second paragraph designated as 
     paragraph (8) as paragraph (10), and by inserting that 
     paragraph, as redesignated, immediately after paragraph (9); 
     and
       (2) in paragraph (10), as redesignated, by striking 
     ``$175,000,000'' and inserting ``$250,000,000''.

     SEC. 2222. REQUIRED REVIEW OF REGULATIONS.

       (a) In General.--Not less frequently than once every 10 
     years, the Council and each appropriate Federal banking 
     agency represented on the Council shall conduct a review of 
     all regulations prescribed by the Council or by any such 
     appropriate Federal banking agency, respectively, in order to 
     identify outdated or otherwise unnecessary regulatory 
     requirements imposed on insured depository institutions.
       (b) Process.--In conducting the review under subsection 
     (a), the Council or the appropriate Federal banking agency 
     shall--
       (1) categorize the regulations described in subsection (a) 
     by type (such as consumer regulations, safety and soundness 
     regulations, or such other designations as determined by the 
     Council, or the appropriate Federal banking agency); and
       (2) at regular intervals, provide notice and solicit public 
     comment on a particular category or categories of 
     regulations, requesting commentators to identify areas of the 
     regulations that are outdated, unnecessary, or unduly 
     burdensome.
       (c) Complete Review.--The Council or the appropriate 
     Federal banking agency shall ensure that the notice and 
     comment period described in subsection (b)(2) is conducted 
     with respect to all regulations described in subsection (a) 
     not less frequently than once every 10 years.
       (d) Regulatory Response.--The Council or the appropriate 
     Federal banking agency shall--
       (1) publish in the Federal Register a summary of the 
     comments received under this section, identifying significant 
     issues raised and providing comment on such issues; and
       (2) eliminate unnecessary regulations to the extent that 
     such action is appropriate.
       (e) Report to Congress.--Not later than 30 days after 
     carrying out subsection (d)(1), the Council shall submit to 
     the Congress a report, which shall include--
       (1) a summary of any significant issues raised by public 
     comments received by the Council and the appropriate Federal 
     banking agencies under this section and the relative merits 
     of such issues; and
       (2) an analysis of whether the appropriate Federal banking 
     agency involved is able to address the regulatory burdens 
     associated with such issues by regulation, or whether such 
     burdens must be addressed by legislative action.

     SEC. 2223. REPEAL OF IDENTIFICATION OF NONBANK FINANCIAL 
                   INSTITUTION CUSTOMERS.

       Subchapter II of chapter 53 of title 31, United States 
     Code, is amended--
       (1) by striking section 5327;
       (2) in the chapter analysis, by striking the item relating 
     to section 5327; and
       (3) in section 5321(a), by striking paragraph (7).

     SEC. 2224. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

       (a) FDIA.--Section 477 of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991 (12 U.S.C. 251) is 
     repealed.
       (b) FIRREA.--Section 918 of the Financial Institutions 
     Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833 
     note) is repealed.
       (c) ILS.--Section 913 of the International Lending 
     Supervision Act of 1983 (12 U.S.C. 3912) is repealed.

     SEC. 2225. INCREASE IN HOME MORTGAGE DISCLOSURE EXEMPTION 
                   THRESHOLD.

       (a) In General.--Section 309 of the Home Mortgage 
     Disclosure Act of 1975 (12 U.S.C. 2808) is amended--
       (1) by striking ``This title'' and inserting ``(a) In 
     General.--This title'';
       (2) in the 3d sentence, by inserting ``(as determined 
     without regard to the adjustment made by subsection (b))'' 
     before the period; and
       (2) by adding at the end the following new subsection:
       ``(b) CPI Adjustments.--
       ``(1) In general.--Subject to paragraph (2), the dollar 
     amount applicable with respect to institutions described in 
     section 303(2)(A) under the 2d sentence of subsection (a) 
     shall be adjusted annually after December 31, 1996, by the 
     annual percentage increase in the Consumer Price Index for 
     Urban Wage Earners and Clerical Workers published by the 
     Bureau of Labor Statistics.
       ``(2) 1-time adjustment for prior inflation.--The first 
     adjustment made under paragraph (1) after the date of the 
     enactment of the Economic Growth and Regulatory Paperwork 
     Reduction Act of 1996 shall be the percentage by which--
       ``(A) the Consumer Price Index described in such paragraph 
     for the calendar year 1996, exceeds
       ``(B) such Consumer Price Index for the calendar year 1975.
       ``(3) Rounding.--The dollar amount applicable under 
     paragraph (1) for any calendar year shall be the amount 
     determined in accordance with subparagraphs (A) and (B) of 
     paragraph (2) and rounded to the nearest multiple of 
     $1,000,000.''.
       (b) Opportunity To Reduce Compliance Burden.--Section 304 
     of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) 
     is amended by adding at the end the following new subsection:
       ``(m) Opportunity To Reduce Compliance Burden.--
       ``(1) In general.--
       ``(A) Satisfaction of public availability requirements.--A 
     depository institution shall be deemed to have satisfied the 
     public availability requirements of subsection (a) if the 
     institution compiles the information required under

[[Page H11755]]

     that subsection at the home office of the institution and 
     provides notice at the branch locations specified in 
     subsection (a) that such information is available from the 
     home office of the institution upon written request.
       ``(B) Provision of information upon request.--Not later 
     than 15 days after the receipt of a written request for any 
     information required to be compiled under subsection (a), the 
     home office of the depository institution receiving the 
     request shall provide the information pertinent to the 
     location of the branch in question to the person requesting 
     the information.
       ``(2) Form of information.--In complying with paragraph 
     (1), a depository institution shall, in the sole discretion 
     of the institution, provide the person requesting the 
     information with--
       ``(A) a paper copy of the information requested; or
       ``(B) if acceptable to the person, the information through 
     a form of electronic medium, such as a computer disk.''.

     SEC. 2226. ELIMINATION OF STOCK LOAN REPORTING REQUIREMENT.

       Section 7(j) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(j)) is amended--
       (1) in paragraph (9)(A)--
       (A) by striking ``financial institution and any affiliate 
     of any financial institution'' and inserting ``foreign bank, 
     or any affiliate thereof,''; and
       (B) by striking ``by the financial institution and such 
     institution's affiliates'' and inserting ``by the foreign 
     bank or any affiliate thereof'';
       (2) in paragraph (9)(B)--
       (A) by striking ``paragraph--'' and inserting ``paragraph, 
     the following definitions shall apply:'';
       (B) by striking clause (i) and inserting the following:
       ``(i) Foreign bank.--The terms `foreign bank' and 
     `affiliate' have the same meanings as in section 1 of the 
     International Banking Act of 1978.''; and
       (C) in clause (iii), by striking ``financial institution'' 
     and inserting ``foreign bank or any affiliate thereof'';
       (3) in paragraph (9)(C)--
       (A) by striking ``financial institution or any of its 
     affiliates'' and inserting ``foreign bank or any affiliate 
     thereof''; and
       (B) by striking ``financial institution or its affiliates'' 
     and inserting ``foreign bank or any affiliate thereof'';
       (4) in paragraph (9)(D)--
       (A) in clause (i)--
       (i) by striking ``the financial institution and all 
     affiliates of the institution'' and inserting ``the foreign 
     bank and all affiliates thereof''; and
       (ii) by striking ``financial institution or any such 
     affiliate'' and inserting ``foreign bank or affiliate 
     thereof'';
       (B) in clause (ii), by striking ``financial institution and 
     any affiliate of such institution'' and inserting ``foreign 
     bank and any affiliate thereof''; and
       (C) in clause (iii), by striking ``financial institution'' 
     and inserting ``foreign bank or any affiliate thereof''; and
       (5) in paragraph (9)(E)--
       (A) in clause (i)--
       (i) by striking ``a financial institution and the 
     affiliates of such institution'' and inserting ``a foreign 
     bank or any affiliate thereof''; and
       (ii) by striking ``institution or affiliate'' each place 
     such term appears and inserting ``foreign bank or any 
     affiliate thereof''; and
       (B) in clause (ii), by striking ``financial institution and 
     any affiliate of such institution'' and inserting ``foreign 
     bank and any affiliate thereof''.

     SEC. 2227. CREDIT AVAILABILITY ASSESSMENT.

       (a) Study.--
       (1) In general.--Not later than 12 months after the date of 
     enactment of this Act, and once every 60 months thereafter, 
     the Board, in consultation with the Director of the Office of 
     Thrift Supervision, the Comptroller of the Currency, the 
     Board of Directors of the Corporation, the Administrator of 
     the National Credit Union Administration, the Administrator 
     of the Small Business Administration, and the Secretary of 
     Commerce, shall conduct a study and submit a report to the 
     Congress detailing the extent of small business lending by 
     all creditors.
       (2) Contents of study.--The study required under paragraph 
     (1) shall identify, to the extent practicable, those factors 
     which provide policymakers with insights into the small 
     business credit market, including--
       (A) the demand for small business credit, including 
     consideration of the impact of economic cycles on the levels 
     of such demand;
       (B) the availability of credit to small businesses;
       (C) the range of credit options available to small 
     businesses, such as those available from insured depository 
     institutions and other providers of credit;
       (D) the types of credit products used to finance small 
     business operations, including the use of traditional loans, 
     leases, lines of credit, home equity loans, credit cards, and 
     other sources of financing;
       (E) the credit needs of small businesses, including, if 
     appropriate, the extent to which such needs differ, based 
     upon product type, size of business, cash flow requirements, 
     characteristics of ownership or investors, or other aspects 
     of such business;
       (F) the types of risks to creditors in providing credit to 
     small businesses; and
       (G) such other factors as the Board deems appropriate.
       (b) Use of Existing Data.--The studies required by this 
     section shall not increase the regulatory or paperwork burden 
     on regulated financial institutions, other sources of small 
     business credit, or small businesses.

              CHAPTER 3--REGULATORY MICROMANAGEMENT RELIEF

     SEC. 2241. NATIONAL BANK DIRECTORS.

       Section 5146 of the Revised Statutes of the United States 
     (12 U.S.C. 72) is amended in the first sentence, by striking 
     ``except'' and all that follows through the end of the 
     sentence and inserting the following: ``except that the 
     Comptroller may, in the discretion of the Comptroller, waive 
     the requirement of residency.''.

     SEC. 2242. PAPERWORK REDUCTION REVIEW.

       Section 303(a) of the Riegle Community Development and 
     Regulatory Improvement Act of 1994 (12 U.S.C. 4803(a)) is 
     amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) review the extent to which existing regulations 
     require insured depository institutions and insured credit 
     unions to produce unnecessary internal written policies and 
     eliminate such requirements, where appropriate;''.

     SEC. 2243. STATE BANK REPRESENTATION ON BOARD OF DIRECTORS OF 
                   THE FDIC.

       Section 2(a)(1)(C) of the Federal Deposit Insurance Act (12 
     U.S.C. 1812(a)(1)(C)) is amended by inserting before the 
     period ``, 1 of whom shall have State bank supervisory 
     experience''.

     SEC. 2244. CONSULTATION AMONG EXAMINERS.

       (a) In General.--Section 10 of the Federal Deposit 
     Insurance Act (12 U.S.C. 1820) is amended by adding at the 
     end the following new subsection:
       ``(j) Consultation Among Examiners.--
       ``(1) In general.--Each appropriate Federal banking agency 
     shall take such action as may be necessary to ensure that 
     examiners employed by the agency--
       ``(A) consult on examination activities with respect to any 
     depository institution; and
       ``(B) achieve an agreement and resolve any inconsistencies 
     in the recommendations to be given to such institution as a 
     consequence of any examinations.
       ``(2) Examiner-in-charge.--Each appropriate Federal banking 
     agency shall consider appointing an examiner-in-charge with 
     respect to a depository institution to ensure consultation on 
     examination activities among all of the examiners of that 
     agency involved in examinations of the institution.''.
       (b) Coordinated and Unified Examination Flexibility.--
     Section 10(d)(6)(B) of the Federal Deposit Insurance Act (12 
     U.S.C. 1820(d)(6)(B)) is amended by inserting ``or State bank 
     supervisors'' after ``one of the Federal agencies''.
Subtitle C--Regulatory Impact on Cost of Credit and Credit Availability

     SEC. 2301. AUDIT COSTS.

       (a) Auditor Attestations.--Section 36 of the Federal 
     Deposit Insurance Act (12 U.S.C. 1831m) is amended by 
     striking subsection (e) and inserting the following:
       ``(e) [Repealed]''.
       (b) Independent Audit Committees.--Section 36(g)(1) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1831m(g)(1)) is 
     amended--
       (1) in subparagraph (A), by inserting ``, except as 
     provided in subparagraph (D)'' after ``management of the 
     institution''; and
       (2) by adding at the end the following new subparagraph:
       ``(D) Exemption authority.--
       ``(i) In general.--An appropriate Federal banking agency 
     may, by order or regulation, permit the independent audit 
     committee of an insured depository institution to be made up 
     of less than all, but no fewer than a majority of, outside 
     directors, if the agency determines that the institution has 
     encountered hardships in retaining and recruiting a 
     sufficient number of competent outside directors to serve on 
     the internal audit committee of the institution.
       ``(ii) Factors to be considered.--In determining whether an 
     insured depository institution has encountered hardships 
     referred to in clause (i), the appropriate Federal banking 
     agency shall consider factors such as the size of the 
     institution, and whether the institution has made a good 
     faith effort to elect or name additional competent outside 
     directors to the board of directors of the institution who 
     may serve on the internal audit committee.''.
       (c) Public Availability.--Section 36(a)(3) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by 
     adding at the end the following: ``Notwithstanding the 
     preceding sentence, the Corporation and the appropriate 
     Federal banking agencies may designate certain information as 
     privileged and confidential and not available to the 
     public.''.

     SEC. 2302. INCENTIVES FOR SELF-TESTING.

       (a) Equal Credit Opportunity.--
       (1) In general.--The Equal Credit Opportunity Act (15 
     U.S.C. 1691 et seq.) is amended by inserting after section 
     704 the following new section:

     ``SEC. 704A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

       ``(a) Privileged Information.--
       ``(1) Conditions for privilege.--A report or result of a 
     self-test (as that term is defined by regulations of the 
     Board) shall be considered to be privileged under paragraph 
     (2) if a creditor--
       ``(A) conducts, or authorizes an independent third party to 
     conduct, a self-test of any aspect of a credit transaction by 
     a creditor, in order to determine the level or effectiveness 
     of compliance with this title by the creditor; and
       ``(B) has identified any possible violation of this title 
     by the creditor and has taken, or is taking, appropriate 
     corrective action to address any such possible violation.
       ``(2) Privileged self-test.--If a creditor meets the 
     conditions specified in subparagraphs (A) and (B) of 
     paragraph (1) with respect to a self-test described in that 
     paragraph, any report or results of that self-test--
       ``(A) shall be privileged; and

[[Page H11756]]

       ``(B) may not be obtained or used by any applicant, 
     department, or agency in any--
       ``(i) proceeding or civil action in which one or more 
     violations of this title are alleged; or
       ``(ii) examination or investigation relating to compliance 
     with this title.
       ``(b) Results of Self-Testing.--
       ``(1) In general.--No provision of this section may be 
     construed to prevent an applicant, department, or agency from 
     obtaining or using a report or results of any self-test in 
     any proceeding or civil action in which a violation of this 
     title is alleged, or in any examination or investigation of 
     compliance with this title if--
       ``(A) the creditor or any person with lawful access to the 
     report or results--
       ``(i) voluntarily releases or discloses all, or any part 
     of, the report or results to the applicant, department, or 
     agency, or to the general public; or
       ``(ii) refers to or describes the report or results as a 
     defense to charges of violations of this title against the 
     creditor to whom the self-test relates; or
       ``(B) the report or results are sought in conjunction with 
     an adjudication or admission of a violation of this title for 
     the sole purpose of determining an appropriate penalty or 
     remedy.
       ``(2) Disclosure for determination of penalty or remedy.--
     Any report or results of a self-test that are disclosed for 
     the purpose specified in paragraph (1)(B)--
       ``(A) shall be used only for the particular proceeding in 
     which the adjudication or admission referred to in paragraph 
     (1)(B) is made; and
       ``(B) may not be used in any other action or proceeding.
       ``(c) Adjudication.--An applicant, department, or agency 
     that challenges a privilege asserted under this section may 
     seek a determination of the existence and application of that 
     privilege in--
       ``(1) a court of competent jurisdiction; or
       ``(2) an administrative law proceeding with appropriate 
     jurisdiction.''.
       (2) Regulations.--
       (A) In general.--Not later than 6 months after the date of 
     enactment of this Act, in consultation with the Secretary of 
     Housing and Urban Development and the agencies referred to in 
     section 704 of the Equal Credit Opportunity Act, and after 
     providing notice and an opportunity for public comment, the 
     Board shall prescribe final regulations to implement section 
     704A of the Equal Credit Opportunity Act, as added by this 
     section.
       (B) Self-test.--
       (i) Definition.--The regulations prescribed under 
     subparagraph (A) shall include a definition of the term 
     ``self-test'' for purposes of section 704A of the Equal 
     Credit Opportunity Act, as added by this section.
       (ii) Requirement for self-test.--The regulations prescribed 
     under subparagraph (A) shall specify that a self-test shall 
     be sufficiently extensive to constitute a determination of 
     the level and effectiveness of compliance by a creditor with 
     the Equal Credit Opportunity Act.
       (iii) Substantial similarity to certain fair housing act 
     regulations.--The regulations prescribed under subparagraph 
     (A) shall be substantially similar to the regulations 
     prescribed by the Secretary of Housing and Urban Development 
     to carry out section 814A(d) of the Fair Housing Act, as 
     added by this section.
       (3) Clerical amendment.--The table of sections for title 
     VII of the Consumer Credit Protection Act is amended by 
     inserting after the item relating to section 704 the 
     following new item:

``704A. Incentives for self-testing and self-correction.''.
       (b) Fair Housing.--
       (1) In general.--The Fair Housing Act (42 U.S.C. 3601 et 
     seq.) is amended by inserting after section 814 the following 
     new section:

     ``SEC. 814A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

       ``(a) Privileged Information.--
       ``(1) Conditions for privilege.--A report or result of a 
     self-test (as that term is defined by regulation of the 
     Secretary) shall be considered to be privileged under 
     paragraph (2) if any person--
       ``(A) conducts, or authorizes an independent third party to 
     conduct, a self-test of any aspect of a residential real 
     estate related lending transaction of that person, or any 
     part of that transaction, in order to determine the level or 
     effectiveness of compliance with this title by that person; 
     and
       ``(B) has identified any possible violation of this title 
     by that person and has taken, or is taking, appropriate 
     corrective action to address any such possible violation.
       ``(2) Privileged self-test.--If a person meets the 
     conditions specified in subparagraphs (A) and (B) of 
     paragraph (1) with respect to a self-test described in that 
     paragraph, any report or results of that self-test--
       ``(A) shall be privileged; and
       ``(B) may not be obtained or used by any applicant, 
     department, or agency in any--
       ``(i) proceeding or civil action in which one or more 
     violations of this title are alleged; or
       ``(ii) examination or investigation relating to compliance 
     with this title.
       ``(b) Results of Self-Testing.--
       ``(1) In general.--No provision of this section may be 
     construed to prevent an aggrieved person, complainant, 
     department, or agency from obtaining or using a report or 
     results of any self-test in any proceeding or civil action in 
     which a violation of this title is alleged, or in any 
     examination or investigation of compliance with this title 
     if--
       ``(A) the person to whom the self-test relates or any 
     person with lawful access to the report or the results--
       ``(i) voluntarily releases or discloses all, or any part 
     of, the report or results to the aggrieved person, 
     complainant, department, or agency, or to the general public; 
     or
       ``(ii) refers to or describes the report or results as a 
     defense to charges of violations of this title against the 
     person to whom the self-test relates; or
       ``(B) the report or results are sought in conjunction with 
     an adjudication or admission of a violation of this title for 
     the sole purpose of determining an appropriate penalty or 
     remedy.
       ``(2) Disclosure for determination of penalty or remedy.--
     Any report or results of a self-test that are disclosed for 
     the purpose specified in paragraph (1)(B)--
       ``(A) shall be used only for the particular proceeding in 
     which the adjudication or admission referred to in paragraph 
     (1)(B) is made; and
       ``(B) may not be used in any other action or proceeding.
       ``(c) Adjudication.--An aggrieved person, complainant, 
     department, or agency that challenges a privilege asserted 
     under this section may seek a determination of the existence 
     and application of that privilege in--
       ``(1) a court of competent jurisdiction; or
       ``(2) an administrative law proceeding with appropriate 
     jurisdiction.''.
       (2) Regulations.--
       (A) In general.--Not later than 6 months after the date of 
     enactment of this Act, in consultation with the Board and 
     after providing notice and an opportunity for public comment, 
     the Secretary of Housing and Urban Development shall 
     prescribe final regulations to implement section 814A of the 
     Fair Housing Act, as added by this section.
       (B) Self-test.--
       (i) Definition.--The regulations prescribed by the 
     Secretary under subparagraph (A) shall include a definition 
     of the term ``self-test'' for purposes of section 814A of the 
     Fair Housing Act, as added by this section.
       (ii) Requirement for self-test.--The regulations prescribed 
     by the Secretary under subparagraph (A) shall specify that a 
     self-test shall be sufficiently extensive to constitute a 
     determination of the level and effectiveness of the 
     compliance by a person engaged in residential real estate 
     related lending activities with the Fair Housing Act.
       (iii) Substantial similarity to certain equal credit 
     opportunity act regulations.--The regulations prescribed 
     under subparagraph (A) shall be substantially similar to the 
     regulations prescribed by the Board to carry out section 704A 
     of the Equal Credit Opportunity Act, as added by this 
     section.
       (c) Applicability.--
       (1) In general.--Except as provided in paragraph (2), the 
     privilege provided for in section 704A of the Equal Credit 
     Opportunity Act or section 814A of the Fair Housing Act (as 
     those sections are added by this section) shall apply to a 
     self-test (as that term is defined pursuant to the 
     regulations prescribed under subsection (a)(2) or (b)(2) of 
     this section, as appropriate) conducted before, on, or after 
     the effective date of the regulations prescribed under 
     subsection (a)(2) or (b)(2), as appropriate.
       (2) Exception.--The privilege referred to in paragraph (1) 
     does not apply to such a self-test conducted before the 
     effective date of the regulations prescribed under subsection 
     (a) or (b), as appropriate, if--
       (A) before that effective date, a complaint against the 
     creditor or person engaged in residential real estate related 
     lending activities (as the case may be) was--
       (i) formally filed in any court of competent jurisdiction; 
     or
       (ii) the subject of an ongoing administrative law 
     proceeding;
       (B) in the case of section 704A of the Equal Credit 
     Opportunity Act, the creditor has waived the privilege 
     pursuant to subsection (b)(1)(A)(i) of that section; or
       (C) in the case of section 814A of the Fair Housing Act, 
     the person engaged in residential real estate related lending 
     activities has waived the privilege pursuant to subsection 
     (b)(1)(A)(i) of that section.

     SEC. 2303. QUALIFIED THRIFT INVESTMENT AMENDMENTS.

       (a) Credit Cards.--Section 5(b) of the Home Owners' Loan 
     Act (12 U.S.C. 1464(b)) is amended--
       (1) by striking paragraph (4); and
       (2) by redesignating paragraph (5) as paragraph (4).
       (b) Loans or Investments Without Percentage of Assets 
     Limitation.--Section 5(c)(1) of the Home Owners' Loan Act (12 
     U.S.C. 1464(c)(1)) is amended by adding at the end the 
     following new subparagraphs:
       ``(T) Credit card loans.--Loans made through credit cards 
     or credit card accounts.
       ``(U) Educational loans.--Loans made for the payment of 
     educational expenses.''.
       (c) Commercial and Other Loans.--Section 5(c)(2)(A) of the 
     Home Owners' Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended to 
     read as follows:
       ``(A) Commercial and other loans.--Secured or unsecured 
     loans for commercial, corporate, business, or agricultural 
     purposes. The aggregate amount of loans made under this 
     subparagraph may not exceed 20 percent of the total assets of 
     the Federal savings association, and amounts in excess of 10 
     percent of such total assets may be used under this 
     subparagraph only for small business loans, as that term is 
     defined by the Director.''.
       (d) Loans or Investments Limited to 5 Percent of Assets.--
     Section 5(c)(3) of the Home Owners' Loan Act (12 U.S.C. 
     1464(c)(3)) is amended--
       (1) by striking subparagraph (A); and
       (2) by redesignating subparagraphs (B), (C), and (D) as 
     subparagraphs (A), (B), and (C), respectively.
       (e) Qualified Thrift Lender Test.--Section 10(m)(1) of the 
     Home Owners' Loan Act (12 U.S.C. 1467a(m)(1)) is amended--
       (1) by redesignating subparagraph (B) as clause (ii);

[[Page H11757]]

       (2) in subparagraph (A), by striking ``(A) the savings'' 
     and inserting ``(B)(i) the savings''; and
       (3) by inserting after ``if--'' the following new 
     subparagraph:
       ``(A) the savings association qualifies as a domestic 
     building and loan association, as such term is defined in 
     section 7701(a)(19) of the Internal Revenue Code of 1986; 
     or''.
       (f) Branching.--Section 5(r) of the Home Owners' Loan Act 
     (12 U.S.C. 1464(r)) is amended--
       (1) in paragraph (1)--
       (A) in the first sentence--
       (i) by inserting before the period ``, or qualifies as a 
     qualified thrift lender, as determined under section 10(m) of 
     this Act''; and
       (ii) by striking ``(c)'' and inserting ``(C)''; and
       (B) in the second sentence, by inserting before the period 
     ``or as a qualified thrift lender, as determined under 
     section 10(m) of this Act, as applicable''; and
       (2) in paragraph (2), by striking subparagraph (C) and 
     inserting the following:
       ``(C) the law of the State where the branch is located, or 
     is to be located, would permit establishment of the branch if 
     the association was a savings association or savings bank 
     chartered by the State in which its home office is located; 
     or''.
       (g) Definition.--Section 10(m)(4) of the Home Owners' Loan 
     Act (12 U.S.C. 1467a(m)(4)) is amended--
       (1) by striking ``subsection--'' and inserting 
     ``subsection, the following definitions shall apply:'';
       (2) in subparagraph (C)--
       (A) in clause (ii), by adding at the end the following new 
     subclause:

       ``(VII) Loans for educational purposes, loans to small 
     businesses, and loans made through credit cards or credit 
     card accounts.''; and

       (B) in clause (iii), by striking subclause (VI) and 
     inserting the following:

       ``(VI) Loans for personal, family, or household purposes 
     (other than loans for personal, family, or household purposes 
     described in clause (ii)(VII)).''; and

       (3) by adding at the end the following new subparagraphs:
       ``(D) Credit card.--The Director shall issue such 
     regulations as may be necessary to define the term `credit 
     card'.
       ``(E) Small business.--The Director shall issue such 
     regulations as may be necessary to define the term `small 
     business'.''.

     SEC. 2304. LIMITED PURPOSE BANKS.

       (a) Growth Cap Relief.--Section 4(f)(3)(B) of the Bank 
     Holding Company Act of 1956 (12 U.S.C. 1843(f)(3)(B)) is 
     amended--
       (1) in clause (ii), by adding ``or'' at the end;
       (2) in clause (iii), by striking ``; or'' at the end and 
     inserting a period; and
       (3) by striking clause (iv).
       (b) Limited Purpose Bank Exception.--Section 2(c)(2)(F) of 
     the Bank Holding Company Act of 1956 (12 U.S.C. 
     1841(c)(2)(F)) is amended by inserting ``, including an 
     institution that accepts collateral for extensions of credit 
     by holding deposits under $100,000, and by other means'' 
     after ``An institution''.

     SEC. 2305. AMENDMENT TO FAIR DEBT COLLECTION PRACTICES ACT.

       (a) In General.--Section 807(11) of the Fair Debt 
     Collection Practices Act (15 U.S.C. 1692e(11)) is amended to 
     read as follows:
       ``(11) The failure to disclose in the initial written 
     communication with the consumer and, in addition, if the 
     initial communication with the consumer is oral, in that 
     initial oral communication, that the debt collector is 
     attempting to collect a debt and that any information 
     obtained will be used for that purpose, and the failure to 
     disclose in subsequent communications that the communication 
     is from a debt collector, except that this paragraph shall 
     not apply to a formal pleading made in connection with a 
     legal action.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect 90 days after the date of enactment of this 
     Act and shall apply to all communications made after that 
     date of enactment.

     SEC. 2306. INCREASE IN CERTAIN CREDIT UNION LOAN CEILINGS.

       Section 107(5)(A) of the Federal Credit Union Act (12 
     U.S.C. 1757(5)(A)) is amended--
       (1) in clause (iv), by striking ``$10,000'' and inserting 
     ``$20,000''; and
       (2) in clause (v), by striking ``$10,000'' and inserting 
     ``$20,000''.

     SEC. 2307. BANK INVESTMENTS IN EDGE ACT AND AGREEMENT 
                   CORPORATIONS.

       The 10th undesignated paragraph of section 25A of the 
     Federal Reserve Act (12 U.S.C. 618) is amended by striking 
     the last sentence and inserting the following: ``Any national 
     bank may invest in the stock of any corporation organized 
     under this section. The aggregate amount of stock held by any 
     national bank in all corporations engaged in business of the 
     kind described in this section or section 25 shall not exceed 
     an amount equal to 10 percent of the capital and surplus of 
     such bank unless the Board determines that the investment of 
     an additional amount by the bank would not be unsafe or 
     unsound and, in any case, shall not exceed an amount equal to 
     20 percent of the capital and surplus of such bank.''.
                      Subtitle D--Consumer Credit

                   CHAPTER 1--CREDIT REPORTING REFORM

     SEC. 2401. SHORT TITLE.

       This chapter may be cited as the ``Consumer Credit 
     Reporting Reform Act of 1996''.

     SEC. 2402. DEFINITIONS.

       (a) Adverse Action.--Section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a) is amended by adding at the 
     end the following new subsection:
       ``(k) Adverse Action.--
       ``(1) Actions included.--The term `adverse action'--
       ``(A) has the same meaning as in section 701(d)(6) of the 
     Equal Credit Opportunity Act; and
       ``(B) means--
       ``(i) a denial or cancellation of, an increase in any 
     charge for, or a reduction or other adverse or unfavorable 
     change in the terms of coverage or amount of, any insurance, 
     existing or applied for, in connection with the underwriting 
     of insurance;
       ``(ii) a denial of employment or any other decision for 
     employment purposes that adversely affects any current or 
     prospective employee;
       ``(iii) a denial or cancellation of, an increase in any 
     charge for, or any other adverse or unfavorable change in the 
     terms of, any license or benefit described in section 
     604(a)(3)(D); and
       ``(iv) an action taken or determination that is--

       ``(I) made in connection with an application that was made 
     by, or a transaction that was initiated by, any consumer, or 
     in connection with a review of an account under section 
     604(a)(3)(F)(ii); and
       ``(II) adverse to the interests of the consumer.

       ``(2) Applicable findings, decisions, commentary, and 
     orders.--For purposes of any determination of whether an 
     action is an adverse action under paragraph (1)(A), all 
     appropriate final findings, decisions, commentary, and orders 
     issued under section 701(d)(6) of the Equal Credit 
     Opportunity Act by the Board of Governors of the Federal 
     Reserve System or any court shall apply.''.
       (b) Firm Offer of Credit or Insurance.--Section 603 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681a) (as amended by 
     subsection (a) of this section) is amended by adding at the 
     end the following new subsection:
       ``(l) Firm Offer of Credit or Insurance.--The term `firm 
     offer of credit or insurance' means any offer of credit or 
     insurance to a consumer that will be honored if the consumer 
     is determined, based on information in a consumer report on 
     the consumer, to meet the specific criteria used to select 
     the consumer for the offer, except that the offer may be 
     further conditioned on one or more of the following:
       ``(1) The consumer being determined, based on information 
     in the consumer's application for the credit or insurance, to 
     meet specific criteria bearing on credit worthiness or 
     insurability, as applicable, that are established--
       ``(A) before selection of the consumer for the offer; and
       ``(B) for the purpose of determining whether to extend 
     credit or insurance pursuant to the offer.
       ``(2) Verification--
       ``(A) that the consumer continues to meet the specific 
     criteria used to select the consumer for the offer, by using 
     information in a consumer report on the consumer, information 
     in the consumer's application for the credit or insurance, or 
     other information bearing on the credit worthiness or 
     insurability of the consumer; or
       ``(B) of the information in the consumer's application for 
     the credit or insurance, to determine that the consumer meets 
     the specific criteria bearing on credit worthiness or 
     insurability.
       ``(3) The consumer furnishing any collateral that is a 
     requirement for the extension of the credit or insurance that 
     was--
       ``(A) established before selection of the consumer for the 
     offer of credit or insurance; and
       ``(B) disclosed to the consumer in the offer of credit or 
     insurance.''.
       (c) Credit or Insurance Transaction That Is Not Initiated 
     by the Consumer.--Section 603 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681a) (as amended by subsection (b) of this 
     section) is amended by adding at the end the following new 
     subsection:
       ``(m) Credit or Insurance Transaction That Is Not Initiated 
     by the Consumer.--The term `credit or insurance transaction 
     that is not initiated by the consumer' does not include the 
     use of a consumer report by a person with which the consumer 
     has an account or insurance policy, for purposes of--
       ``(1) reviewing the account or insurance policy; or
       ``(2) collecting the account.''.
       (d) State.--Section 603 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681a) (as amended by subsection (c) of this 
     section) is amended by adding at the end the following new 
     subsection:
       ``(n) State.--The term `State' means any State, the 
     Commonwealth of Puerto Rico, the District of Columbia, and 
     any territory or possession of the United States.''.
       (e) Definition of Consumer Report.--Section 603(d) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended--
       (1) by striking ``(d) The term'' and inserting the 
     following:
       ``(d) Consumer Report.--
       ``(1) In general.--The term'';
       (2) by striking ``for (1) credit'' and inserting the 
     following: ``for--
       ``(A) credit'';
       (3) by striking ``purposes, or (2)'' and all that follows 
     through ``section 604.'' and inserting the following: 
     ``purposes;
       ``(B) employment purposes; or
       ``(C) any other purpose authorized under section 604.''; 
     and
       (4) by striking the second sentence and inserting the 
     following:
       ``(2) Exclusions.--The term `consumer report' does not 
     include--
       ``(A) any--
       ``(i) report containing information solely as to 
     transactions or experiences between the consumer and the 
     person making the report;
       ``(ii) communication of that information among persons 
     related by common ownership or affiliated by corporate 
     control; or

[[Page H11758]]

       ``(iii) any communication of other information among 
     persons related by common ownership or affiliated by 
     corporate control, if it is clearly and conspicuously 
     disclosed to the consumer that the information may be 
     communicated among such persons and the consumer is given the 
     opportunity, before the time that the information is 
     initially communicated, to direct that such information not 
     be communicated among such persons;
       ``(B) any authorization or approval of a specific extension 
     of credit directly or indirectly by the issuer of a credit 
     card or similar device;
       ``(C) any report in which a person who has been requested 
     by a third party to make a specific extension of credit 
     directly or indirectly to a consumer conveys his or her 
     decision with respect to such request, if the third party 
     advises the consumer of the name and address of the person to 
     whom the request was made, and such person makes the 
     disclosures to the consumer required under section 615; or
       ``(D) a communication described in subsection (o).''.
       (f) Exclusion of Certain Communications by Employment 
     Agencies From Definition of Consumer Report.--Section 603 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681a) is amended by 
     adding at the end the following new subsection:
       ``(o) Excluded Communications.--A communication is 
     described in this subsection if it is a communication--
       ``(1) that, but for subsection (d)(2)(E), would be an 
     investigative consumer report;
       ``(2) that is made to a prospective employer for the 
     purpose of--
       ``(A) procuring an employee for the employer; or
       ``(B) procuring an opportunity for a natural person to work 
     for the employer;
       ``(3) that is made by a person who regularly performs such 
     procurement;
       ``(4) that is not used by any person for any purpose other 
     than a purpose described in subparagraph (A) or (B) of 
     paragraph (2); or
       ``(5) with respect to which--
       ``(A) the consumer who is the subject of the 
     communication--
       ``(i) consents orally or in writing to the nature and scope 
     of the communication, before the collection of any 
     information for the purpose of making the communication;
       ``(ii) consents orally or in writing to the making of the 
     communication to a prospective employer, before the making of 
     the communication; and
       ``(iii) in the case of consent under clause (i) or (ii) 
     given orally, is provided written confirmation of that 
     consent by the person making the communication, not later 
     than 3 business days after the receipt of the consent by that 
     person;
       ``(B) the person who makes the communication does not, for 
     the purpose of making the communication, make any inquiry 
     that if made by a prospective employer of the consumer who is 
     the subject of the communication would violate any applicable 
     Federal or State equal employment opportunity law or 
     regulation; and
       ``(C) the person who makes the communication--
       ``(i) discloses in writing to the consumer who is the 
     subject of the communication, not later than 5 business days 
     after receiving any request from the consumer for such 
     disclosure, the nature and substance of all information in 
     the consumer's file at the time of the request, except that 
     the sources of any information that is acquired solely for 
     use in making the communication and is actually used for no 
     other purpose, need not be disclosed other than under 
     appropriate discovery procedures in any court of competent 
     jurisdiction in which an action is brought; and
       ``(ii) notifies the consumer who is the subject of the 
     communication, in writing, of the consumer's right to request 
     the information described in clause (i).''.
       (g) Consumer Reporting Agency That Compiles and Maintains 
     Files on a Nationwide Basis.--Section 603 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681a) (as amended by subsection (f) 
     of this section) is amended by adding at the end the 
     following new subsection:
       ``(p) Consumer Reporting Agency That Compiles and Maintains 
     Files on Consumers on a Nationwide Basis.--The term `consumer 
     reporting agency that compiles and maintains files on 
     consumers on a nationwide basis' means a consumer reporting 
     agency that regularly engages in the practice of assembling 
     or evaluating, and maintaining, for the purpose of furnishing 
     consumer reports to third parties bearing on a consumer's 
     credit worthiness, credit standing, or credit capacity, each 
     of the following regarding consumers residing nationwide:
       ``(1) Public record information.
       ``(2) Credit account information from persons who furnish 
     that information regularly and in the ordinary course of 
     business.''.

     SEC. 2403. FURNISHING CONSUMER REPORTS; USE FOR EMPLOYMENT 
                   PURPOSES.

       (a) Furnishing Consumer Reports for Business 
     Transactions.--Section 604 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681b) is amended--
       (1) by inserting ``(a) In General.--'' before ``A consumer 
     reporting agency''; and
       (2) in subsection (a)(3) (as so designated by paragraph (1) 
     of this subsection), by striking subparagraph (E) and 
     inserting the following:
       ``(E) intends to use the information, as a potential 
     investor or servicer, or current insurer, in connection with 
     a valuation of, or an assessment of the credit or prepayment 
     risks associated with, an existing credit obligation; or
       ``(F) otherwise has a legitimate business need for the 
     information--
       ``(i) in connection with a business transaction that is 
     initiated by the consumer; or
       ``(ii) to review an account to determine whether the 
     consumer continues to meet the terms of the account.''.
       (b) Furnishing and Using Consumer Reports for Employment 
     Purposes.--Section 604 of the Fair Credit Reporting Act (15 
     U.S.C. 1681b) is amended by adding at the end the following 
     new subsection:
       ``(b) Conditions for Furnishing and Using Consumer Reports 
     for Employment Purposes.--
       ``(1) Certification from user.--A consumer reporting agency 
     may furnish a consumer report for employment purposes only 
     if--
       ``(A) the person who obtains such report from the agency 
     certifies to the agency that--
       ``(i) the person has complied with paragraph (2) with 
     respect to the consumer report, and the person will comply 
     with paragraph (3) with respect to the consumer report if 
     paragraph (3) becomes applicable; and
       ``(ii) information from the consumer report will not be 
     used in violation of any applicable Federal or State equal 
     employment opportunity law or regulation; and
       ``(B) the consumer reporting agency provides with the 
     report a summary of the consumer's rights under this title, 
     as prescribed by the Federal Trade Commission under section 
     609(c)(3).
       ``(2) Disclosure to consumer.--A person may not procure a 
     consumer report, or cause a consumer report to be procured, 
     for employment purposes with respect to any consumer, 
     unless--
       ``(A) a clear and conspicuous disclosure has been made in 
     writing to the consumer at any time before the report is 
     procured or caused to be procured, in a document that 
     consists solely of the disclosure, that a consumer report may 
     be obtained for employment purposes; and
       ``(B) the consumer has authorized in writing the 
     procurement of the report by that person.
       ``(3) Conditions on use for adverse actions.--In using a 
     consumer report for employment purposes, before taking any 
     adverse action based in whole or in part on the report, the 
     person intending to take such adverse action shall provide to 
     the consumer to whom the report relates--
       ``(A) a copy of the report; and
       ``(B) a description in writing of the rights of the 
     consumer under this title, as prescribed by the Federal Trade 
     Commission under section 609(c)(3).''.

     SEC. 2404. USE OF CONSUMER REPORTS FOR PRESCREENING; 
                   PROHIBITION ON UNAUTHORIZED OR UNCERTIFIED USE 
                   OF INFORMATION.

       (a) In General.--Section 604 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681b) (as amended by section 2403 of this 
     chapter) is amended--
       (1) in subsection (a), by striking ``A consumer reporting 
     agency'' and inserting ``Subject to subsection (c), any 
     consumer reporting agency''; and
       (2) by adding at the end the following new subsections:
       ``(c) Furnishing Reports in Connection With Credit or 
     Insurance Transactions That Are Not Initiated by the 
     Consumer.--
       ``(1) In general.--A consumer reporting agency may furnish 
     a consumer report relating to any consumer pursuant to 
     subparagraph (A) or (C) of subsection (a)(3) in connection 
     with any credit or insurance transaction that is not 
     initiated by the consumer only if--
       ``(A) the consumer authorizes the agency to provide such 
     report to such person; or
       ``(B)(i) the transaction consists of a firm offer of credit 
     or insurance;
       ``(ii) the consumer reporting agency has complied with 
     subsection (e); and
       ``(iii) there is not in effect an election by the consumer, 
     made in accordance with subsection (e), to have the 
     consumer's name and address excluded from lists of names 
     provided by the agency pursuant to this paragraph.
       ``(2) Limits on information received under paragraph 
     (1)(b).--A person may receive pursuant to paragraph (1)(B) 
     only--
       ``(A) the name and address of a consumer;
       ``(B) an identifier that is not unique to the consumer and 
     that is used by the person solely for the purpose of 
     verifying the identity of the consumer; and
       ``(C) other information pertaining to a consumer that does 
     not identify the relationship or experience of the consumer 
     with respect to a particular creditor or other entity.
       ``(3) Information regarding inquiries.--Except as provided 
     in section 609(a)(5), a consumer reporting agency shall not 
     furnish to any person a record of inquiries in connection 
     with a credit or insurance transaction that is not initiated 
     by a consumer.
       ``(d) Reserved.
       ``(e) Election of Consumer To Be Excluded From Lists.--
       ``(1) In general.--A consumer may elect to have the 
     consumer's name and address excluded from any list provided 
     by a consumer reporting agency under subsection (c)(1)(B) in 
     connection with a credit or insurance transaction that is not 
     initiated by the consumer by notifying the agency in 
     accordance with paragraph (2) that the consumer does not 
     consent to any use of a consumer report relating to the 
     consumer in connection with any credit or insurance 
     transaction that is not initiated by the consumer.
       ``(2) Manner of notification.--A consumer shall notify a 
     consumer reporting agency under paragraph (1)--
       ``(A) through the notification system maintained by the 
     agency under paragraph (5); or
       ``(B) by submitting to the agency a signed notice of 
     election form issued by the agency for purposes of this 
     subparagraph.
       ``(3) Response of agency after notification through 
     system.--Upon receipt of notification of the election of a 
     consumer under paragraph (1) through the notification system 
     maintained by the agency under paragraph (5), a consumer 
     reporting agency shall--
       ``(A) inform the consumer that the election is effective 
     only for the 2-year period following the

[[Page H11759]]

     election if the consumer does not submit to the agency a 
     signed notice of election form issued by the agency for 
     purposes of paragraph (2)(B); and
       ``(B) provide to the consumer a notice of election form, if 
     requested by the consumer, not later than 5 business days 
     after receipt of the notification of the election through the 
     system established under paragraph (5), in the case of a 
     request made at the time the consumer provides notification 
     through the system.
       ``(4) Effectiveness of election.--An election of a consumer 
     under paragraph (1)--
       ``(A) shall be effective with respect to a consumer 
     reporting agency beginning 5 business days after the date on 
     which the consumer notifies the agency in accordance with 
     paragraph (2);
       ``(B) shall be effective with respect to a consumer 
     reporting agency--
       ``(i) subject to subparagraph (C), during the 2-year period 
     beginning 5 business days after the date on which the 
     consumer notifies the agency of the election, in the case of 
     an election for which a consumer notifies the agency only in 
     accordance with paragraph (2)(A); or
       ``(ii) until the consumer notifies the agency under 
     subparagraph (C), in the case of an election for which a 
     consumer notifies the agency in accordance with paragraph 
     (2)(B);
       ``(C) shall not be effective after the date on which the 
     consumer notifies the agency, through the notification system 
     established by the agency under paragraph (5), that the 
     election is no longer effective; and
       ``(D) shall be effective with respect to each affiliate of 
     the agency.
       ``(5) Notification system.--
       ``(A) In general.--Each consumer reporting agency that, 
     under subsection (c)(1)(B), furnishes a consumer report in 
     connection with a credit or insurance transaction that is not 
     initiated by a consumer shall--
       ``(i) establish and maintain a notification system, 
     including a toll-free telephone number, which permits any 
     consumer whose consumer report is maintained by the agency to 
     notify the agency, with appropriate identification, of the 
     consumer's election to have the consumer's name and address 
     excluded from any such list of names and addresses provided 
     by the agency for such a transaction; and
       ``(ii) publish by not later than 365 days after the date of 
     enactment of the Consumer Credit Reporting Reform Act of 
     1996, and not less than annually thereafter, in a publication 
     of general circulation in the area served by the agency--

       ``(I) a notification that information in consumer files 
     maintained by the agency may be used in connection with such 
     transactions; and
       ``(II) the address and toll-free telephone number for 
     consumers to use to notify the agency of the consumer's 
     election under clause (i).

       ``(B) Establishment and maintenance as compliance.--
     Establishment and maintenance of a notification system 
     (including a toll-free telephone number) and publication by a 
     consumer reporting agency on the agency's own behalf and on 
     behalf of any of its affiliates in accordance with this 
     paragraph is deemed to be compliance with this paragraph by 
     each of those affiliates.
       ``(6) Notification system by agencies that operate 
     nationwide.--Each consumer reporting agency that compiles and 
     maintains files on consumers on a nationwide basis shall 
     establish and maintain a notification system for purposes of 
     paragraph (5) jointly with other such consumer reporting 
     agencies.''.
       (b) Use of Information Obtained From Reports.--Section 604 
     of the Fair Credit Reporting Act (15 U.S.C. 1681b) (as 
     amended by subsection (a) of this section) is amended by 
     adding at the end the following new subsection:
       ``(f) Certain Use or Obtaining of Information Prohibited.--
     A person shall not use or obtain a consumer report for any 
     purpose unless--
       ``(1) the consumer report is obtained for a purpose for 
     which the consumer report is authorized to be furnished under 
     this section; and
       ``(2) the purpose is certified in accordance with section 
     607 by a prospective user of the report through a general or 
     specific certification.''.
       (c) FTC Guidelines Regarding Prescreening for Insurance 
     Transactions.--The Federal Trade Commission may issue such 
     guidelines as it deems necessary with respect to the use of 
     consumer reports in connection with insurance transactions 
     that are not initiated by the consumer pursuant to section 
     604(c) of the Fair Credit Reporting Act, as added by 
     subsection (a) of this section.

     SEC. 2405. CONSUMER CONSENT REQUIRED TO FURNISH CONSUMER 
                   REPORT CONTAINING MEDICAL INFORMATION.

       Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
     1681b) is amended by adding at the end the following new 
     subsection:
       ``(g) Furnishing Reports Containing Medical Information.--A 
     consumer reporting agency shall not furnish for employment 
     purposes, or in connection with a credit or insurance 
     transaction or a direct marketing transaction, a consumer 
     report that contains medical information about a consumer, 
     unless the consumer consents to the furnishing of the 
     report.''.

     SEC. 2406. OBSOLETE INFORMATION AND INFORMATION CONTAINED IN 
                   CONSUMER REPORTS.

       (a) Amendment to Large-Dollar Exception.--Section 605 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681c) is amended--
       (1) by inserting ``Information Excluded From Consumer 
     Reports.--'' after ``(a)'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``$50,000'' and inserting 
     ``$150,000'';
       (B) in paragraph (2), by striking ``$50,000'' and inserting 
     ``$150,000''; and
       (C) in paragraph (3), by striking ``$20,000'' and inserting 
     ``$75,000''.
       (b) Clarification of Reporting Period.--Section 605 of the 
     Fair Credit Reporting Act (15 U.S.C. 1681c) (as amended by 
     subsection (a) of this section) is amended by adding at the 
     end the following new subsection:
       ``(c) Running of Reporting Period.--
       ``(1) In general.--The 7-year period referred to in 
     paragraphs (4) and (6) of subsection (a) shall begin, with 
     respect to any delinquent account that is placed for 
     collection (internally or by referral to a third party, 
     whichever is earlier), charged to profit and loss, or 
     subjected to any similar action, upon the expiration of the 
     180-day period beginning on the date of the commencement of 
     the delinquency which immediately preceded the collection 
     activity, charge to profit and loss, or similar action.
       ``(2) Effective date.--Paragraph (1) shall apply only to 
     items of information added to the file of a consumer on or 
     after the date that is 455 days after the date of enactment 
     of the Consumer Credit Reporting Reform Act of 1996.''.
       (c) Additional Information on Bankruptcy Filings 
     Required.--Section 605 of the Fair Credit Reporting Act (15 
     U.S.C. 1681c) is amended by adding at the end the following 
     new subsection:
       ``(d) Information Required To Be Disclosed.--Any consumer 
     reporting agency that furnishes a consumer report that 
     contains information regarding any case involving the 
     consumer that arises under title 11, United States Code, 
     shall include in the report an identification of the chapter 
     of such title 11 under which such case arises if provided by 
     the source of the information. If any case arising or filed 
     under title 11, United States Code, is withdrawn by the 
     consumer before a final judgment, the consumer reporting 
     agency shall include in the report that such case or filing 
     was withdrawn upon receipt of documentation certifying such 
     withdrawal.''.
       (d) Indication of Closure of Account; Indication of Dispute 
     by Consumer.--Section 605 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681c) is amended by adding at the end the 
     following new subsections:
       ``(e) Indication of Closure of Account by Consumer.--If a 
     consumer reporting agency is notified pursuant to section 
     623(a)(4) that a credit account of a consumer was voluntarily 
     closed by the consumer, the agency shall indicate that fact 
     in any consumer report that includes information related to 
     the account.
       ``(f) Indication of Dispute by Consumer.--If a consumer 
     reporting agency is notified pursuant to section 623(a)(3) 
     that information regarding a consumer who was furnished to 
     the agency is disputed by the consumer, the agency shall 
     indicate that fact in each consumer report that includes the 
     disputed information.''.
       (e) Conforming Amendments.--
       (1) Section 605 of the Fair Credit Reporting Act (15 U.S.C. 
     1681c) is amended in the section heading, by striking 
     ``obsolete information'' and inserting ``requirements 
     relating to information contained in consumer reports''.
       (2) The table of sections for the Fair Credit Reporting Act 
     (15 U.S.C. 1681a et seq.) is amended by striking the item 
     relating to section 605 and inserting the following:

``605. Requirements relating to information contained in consumer 
              reports.''.

     SEC. 2407. COMPLIANCE PROCEDURES.

       (a) Disclosure of Consumer Reports by Users.--Section 607 
     of the Fair Credit Reporting Act (15 U.S.C. 1681e) is amended 
     by adding at the end the following new subsection:
       ``(c) Disclosure of Consumer Reports by Users Allowed.--A 
     consumer reporting agency may not prohibit a user of a 
     consumer report furnished by the agency on a consumer from 
     disclosing the contents of the report to the consumer, if 
     adverse action against the consumer has been taken by the 
     user based in whole or in part on the report.''.
       (b) Notice to Users and Providers of Information To Ensure 
     Compliance.--Section 607 of the Fair Credit Reporting Act (15 
     U.S.C. 1681e) is amended by adding after subsection (c) (as 
     added by subsection (a) of this section) the following new 
     subsection:
       ``(d) Notice to Users and Furnishers of Information.--
       ``(1) Notice requirement.--A consumer reporting agency 
     shall provide to any person--
       ``(A) who regularly and in the ordinary course of business 
     furnishes information to the agency with respect to any 
     consumer; or
       ``(B) to whom a consumer report is provided by the agency;

     a notice of such person's responsibilities under this title.
       ``(2) Content of notice.--The Federal Trade Commission 
     shall prescribe the content of notices under paragraph (1), 
     and a consumer reporting agency shall be in compliance with 
     this subsection if it provides a notice under paragraph (1) 
     that is substantially similar to the Federal Trade Commission 
     prescription under this paragraph.''.
       (c) Record of Identity of Users and Purposes Certified by 
     Users of Reports.--Section 607 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681e) is amended by adding after subsection 
     (d) (as added by subsection (b) of this section) the 
     following new subsection:
       ``(e) Procurement of Consumer Report for Resale.--
       ``(1) Disclosure.--A person may not procure a consumer 
     report for purposes of reselling the report (or any 
     information in the report) unless the person discloses to the 
     consumer reporting agency that originally furnishes the 
     report--
       ``(A) the identity of the end-user of the report (or 
     information); and
       ``(B) each permissible purpose under section 604 for which 
     the report is furnished to the end-user of the report (or 
     information).
       ``(2) Responsibilities of procurers for resale.--A person 
     who procures a consumer report for purposes of reselling the 
     report (or any information in the report) shall--

[[Page H11760]]

       ``(A) establish and comply with reasonable procedures 
     designed to ensure that the report (or information) is resold 
     by the person only for a purpose for which the report may be 
     furnished under section 604, including by requiring that each 
     person to which the report (or information) is resold and 
     that resells or provides the report (or information) to any 
     other person--
       ``(i) identifies each end user of the resold report (or 
     information);
       ``(ii) certifies each purpose for which the report (or 
     information) will be used; and
       ``(iii) certifies that the report (or information) will be 
     used for no other purpose; and
       ``(B) before reselling the report, make reasonable efforts 
     to verify the identifications and certifications made under 
     subparagraph (A).''.

     SEC. 2408. CONSUMER DISCLOSURES.

       (a) All Information in Consumer's File Required To Be 
     Disclosed.--Section 609(a)(1) of the Fair Credit Reporting 
     Act (15 U.S.C. 1681g(a)(1)) is amended to read as follows:
       ``(1) All information in the consumer's file at the time of 
     the request, except that nothing in this paragraph shall be 
     construed to require a consumer reporting agency to disclose 
     to a consumer any information concerning credit scores or any 
     other risk scores or predictors relating to the consumer.''.
       (b) More Information Concerning Recipients of Reports 
     Required.--Section 609(a)(3) of the Fair Credit Reporting Act 
     (15 U.S.C. 1681g(a)) is amended to read as follows:
       ``(3)(A) Identification of each person (including each end-
     user identified under section 607(e)(1)) that procured a 
     consumer report--
       ``(i) for employment purposes, during the 2-year period 
     preceding the date on which the request is made; or
       ``(ii) for any other purpose, during the 1-year period 
     preceding the date on which the request is made.
       ``(B) An identification of a person under subparagraph (A) 
     shall include--
       ``(i) the name of the person or, if applicable, the trade 
     name (written in full) under which such person conducts 
     business; and
       ``(ii) upon request of the consumer, the address and 
     telephone number of the person.''.
       (c) Information Regarding Inquiries.--Section 609(a) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by 
     adding at the end the following new paragraph:
       ``(5) A record of all inquiries received by the agency 
     during the 1-year period preceding the request that 
     identified the consumer in connection with a credit or 
     insurance transaction that was not initiated by the 
     consumer.''.
       (d) Summary of Rights Required To Be Included With 
     Disclosure.--
       (1) In general.--Section 609 of the Fair Credit Reporting 
     Act (15 U.S.C. 1681g) is amended by adding at the end the 
     following new subsection:
       ``(c) Summary of Rights Required To Be Included With 
     Disclosure.--
       ``(1) Summary of rights.--A consumer reporting agency shall 
     provide to a consumer, with each written disclosure by the 
     agency to the consumer under this section--
       ``(A) a written summary of all of the rights that the 
     consumer has under this title; and
       ``(B) in the case of a consumer reporting agency that 
     compiles and maintains files on consumers on a nationwide 
     basis, a toll-free telephone number established by the 
     agency, at which personnel are accessible to consumers during 
     normal business hours.
       ``(2) Specific items required to be included.--The summary 
     of rights required under paragraph (1) shall include--
       ``(A) a brief description of this title and all rights of 
     consumers under this title;
       ``(B) an explanation of how the consumer may exercise the 
     rights of the consumer under this title;
       ``(C) a list of all Federal agencies responsible for 
     enforcing any provision of this title and the address and any 
     appropriate phone number of each such agency, in a form that 
     will assist the consumer in selecting the appropriate agency;
       ``(D) a statement that the consumer may have additional 
     rights under State law and that the consumer may wish to 
     contact a State or local consumer protection agency or a 
     State attorney general to learn of those rights; and
       ``(E) a statement that a consumer reporting agency is not 
     required to remove accurate derogatory information from a 
     consumer's file, unless the information is outdated under 
     section 605 or cannot be verified.
       ``(3) Form of summary of rights.--For purposes of this 
     subsection and any disclosure by a consumer reporting agency 
     required under this title with respect to consumers' rights, 
     the Federal Trade Commission (after consultation with each 
     Federal agency referred to in section 621(b)) shall prescribe 
     the form and content of any such disclosure of the rights of 
     consumers required under this title. A consumer reporting 
     agency shall be in compliance with this subsection if it 
     provides disclosures under paragraph (1) that are 
     substantially similar to the Federal Trade Commission 
     prescription under this paragraph.
       ``(4) Effectiveness.--No disclosures shall be required 
     under this subsection until the date on which the Federal 
     Trade Commission prescribes the form and content of such 
     disclosures under paragraph (3).''.
       (2) Technical amendment.--Section 606(a)(1)(B) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681d(a)(1)(B)) is amended by 
     inserting ``and the written summary of the rights of the 
     consumer prepared pursuant to section 609(c)'' before the 
     semicolon.
       (e) Form of Disclosures.--
       (1) In general.--Subsections (a) and (b) of section 610 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681h) are amended 
     to read as follows:
       ``(a) In General.--
       ``(1) Proper identification.--A consumer reporting agency 
     shall require, as a condition of making the disclosures 
     required under section 609, that the consumer furnish proper 
     identification.
       ``(2) Disclosure in writing.--Except as provided in 
     subsection (b), the disclosures required to be made under 
     section 609 shall be provided under that section in writing.
       ``(b) Other Forms of Disclosure.--
       ``(1) In general.--If authorized by a consumer, a consumer 
     reporting agency may make the disclosures required under 
     609--
       ``(A) other than in writing; and
       ``(B) in such form as may be--
       ``(i) specified by the consumer in accordance with 
     paragraph (2); and
       ``(ii) available from the agency.
       ``(2) Form.--A consumer may specify pursuant to paragraph 
     (1) that disclosures under section 609 shall be made--
       ``(A) in person, upon the appearance of the consumer at the 
     place of business of the consumer reporting agency where 
     disclosures are regularly provided, during normal business 
     hours, and on reasonable notice;
       ``(B) by telephone, if the consumer has made a written 
     request for disclosure by telephone;
       ``(C) by electronic means, if available from the agency; or
       ``(D) by any other reasonable means that is available from 
     the agency.''.
       (2) Simplified disclosure.--Not later than 90 days after 
     the date of enactment of this Act, each consumer reporting 
     agency shall develop a form on which such consumer reporting 
     agency shall make the disclosures required under section 
     609(a) of the Fair Credit Reporting Act, for the purpose of 
     maximizing the comprehensibility and standardization of such 
     disclosures.
       (3) Goals.--The Federal Trade Commission shall take 
     appropriate action to assure that the goals of 
     comprehensibility and standardization are achieved in 
     accordance with paragraph (2).
       (4) Defamation.--Section 610(e) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681h(e)) is amended by inserting 
     ``or based on information disclosed by a user of a consumer 
     report to or for a consumer against whom the user has taken 
     adverse action, based in whole or in part on the report'' 
     before ``except''.
       (5) Conforming amendments.--The Fair Credit Reporting Act 
     (15 U.S.C. 1681 et seq.) is amended--
       (A) in section 609(a), in the matter preceding paragraph 
     (1), by striking ``and proper identification of any 
     consumer'' and inserting ``, and subject to section 
     610(a)(1)'';
       (B) in section 610, in the section heading, by inserting 
     ``AND FORM'' after ``CONDITIONS''; and
       (C) in the table of sections at the beginning of that Act, 
     in the item relating to section 610, by inserting ``and 
     form'' after ``conditions''.

     SEC. 2409. PROCEDURES IN CASE OF THE DISPUTED ACCURACY OF ANY 
                   INFORMATION IN A CONSUMER'S FILE.

       (a) In General.--Section 611(a) of the Fair Credit 
     Reporting Act (15 U.S.C. 1681i(a)) is amended to read as 
     follows:
       ``(a) Reinvestigations of Disputed Information.--
       ``(1) Reinvestigation required.--
       ``(A) In general.--If the completeness or accuracy of any 
     item of information contained in a consumer's file at a 
     consumer reporting agency is disputed by the consumer and the 
     consumer notifies the agency directly of such dispute, the 
     agency shall reinvestigate free of charge and record the 
     current status of the disputed information, or delete the 
     item from the file in accordance with paragraph (5), before 
     the end of the 30-day period beginning on the date on which 
     the agency receives the notice of the dispute from the 
     consumer.
       ``(B) Extension of period to reinvestigate.--Except as 
     provided in subparagraph (C), the 30-day period described in 
     subparagraph (A) may be extended for not more than 15 
     additional days if the consumer reporting agency receives 
     information from the consumer during that 30-day period that 
     is relevant to the reinvestigation.
       ``(C) Limitations on extension of period to 
     reinvestigate.--Subparagraph (B) shall not apply to any 
     reinvestigation in which, during the 30-day period described 
     in subparagraph (A), the information that is the subject of 
     the reinvestigation is found to be inaccurate or incomplete 
     or the consumer reporting agency determines that the 
     information cannot be verified.
       ``(2) Prompt notice of dispute to furnisher of 
     information.--
       ``(A) In general.--Before the expiration of the 5-business-
     day period beginning on the date on which a consumer 
     reporting agency receives notice of a dispute from any 
     consumer in accordance with paragraph (1), the agency shall 
     provide notification of the dispute to any person who 
     provided any item of information in dispute, at the address 
     and in the manner established with the person. The notice 
     shall include all relevant information regarding the dispute 
     that the agency has received from the consumer.
       ``(B) Provision of other information from consumer.--The 
     consumer reporting agency shall promptly provide to the 
     person who provided the information in dispute all relevant 
     information regarding the dispute that is received by the 
     agency from the consumer after the period referred to in 
     subparagraph (A) and before the end of the period referred to 
     in paragraph (1)(A).
       ``(3) Determination that dispute is frivolous or 
     irrelevant.--
       ``(A) In general.--Notwithstanding paragraph (1), a 
     consumer reporting agency may terminate a reinvestigation of 
     information disputed by a consumer under that paragraph if 
     the agency reasonably determines that the dispute by the 
     consumer is frivolous or irrelevant, including by reason of a 
     failure by a consumer to provide sufficient information to 
     investigate the disputed information.

[[Page H11761]]

       ``(B) Notice of determination.--Upon making any 
     determination in accordance with subparagraph (A) that a 
     dispute is frivolous or irrelevant, a consumer reporting 
     agency shall notify the consumer of such determination not 
     later than 5 business days after making such determination, 
     by mail or, if authorized by the consumer for that purpose, 
     by any other means available to the agency.
       ``(C) Contents of notice.--A notice under subparagraph (B) 
     shall include--
       ``(i) the reasons for the determination under subparagraph 
     (A); and
       ``(ii) identification of any information required to 
     investigate the disputed information, which may consist of a 
     standardized form describing the general nature of such 
     information.
       ``(4) Consideration of consumer information.--In conducting 
     any reinvestigation under paragraph (1) with respect to 
     disputed information in the file of any consumer, the 
     consumer reporting agency shall review and consider all 
     relevant information submitted by the consumer in the period 
     described in paragraph (1)(A) with respect to such disputed 
     information.
       ``(5) Treatment of inaccurate or unverifiable 
     information.--
       ``(A) In general.--If, after any reinvestigation under 
     paragraph (1) of any information disputed by a consumer, an 
     item of the information is found to be inaccurate or 
     incomplete or cannot be verified, the consumer reporting 
     agency shall promptly delete that item of information from 
     the consumer's file or modify that item of information, as 
     appropriate, based on the results of the reinvestigation.
       ``(B) Requirements relating to reinsertion of previously 
     deleted material.--
       ``(i) Certification of accuracy of information.--If any 
     information is deleted from a consumer's file pursuant to 
     subparagraph (A), the information may not be reinserted in 
     the file by the consumer reporting agency unless the person 
     who furnishes the information certifies that the information 
     is complete and accurate.
       ``(ii) Notice to consumer.--If any information that has 
     been deleted from a consumer's file pursuant to subparagraph 
     (A) is reinserted in the file, the consumer reporting agency 
     shall notify the consumer of the reinsertion in writing not 
     later than 5 business days after the reinsertion or, if 
     authorized by the consumer for that purpose, by any other 
     means available to the agency.
       ``(iii) Additional information.--As part of, or in addition 
     to, the notice under clause (ii), a consumer reporting agency 
     shall provide to a consumer in writing not later than 5 
     business days after the date of the reinsertion--

       ``(I) a statement that the disputed information has been 
     reinserted;
       ``(II) the business name and address of any furnisher of 
     information contacted and the telephone number of such 
     furnisher, if reasonably available, or of any furnisher of 
     information that contacted the consumer reporting agency, in 
     connection with the reinsertion of such information; and
       ``(III) a notice that the consumer has the right to add a 
     statement to the consumer's file disputing the accuracy or 
     completeness of the disputed information.

       ``(C) Procedures to prevent reappearance.--A consumer 
     reporting agency shall maintain reasonable procedures 
     designed to prevent the reappearance in a consumer's file, 
     and in consumer reports on the consumer, of information that 
     is deleted pursuant to this paragraph (other than information 
     that is reinserted in accordance with subparagraph (B)(i)).
       ``(D) Automated reinvestigation system.--Any consumer 
     reporting agency that compiles and maintains files on 
     consumers on a nationwide basis shall implement an automated 
     system through which furnishers of information to that 
     consumer reporting agency may report the results of a 
     reinvestigation that finds incomplete or inaccurate 
     information in a consumer's file to other such consumer 
     reporting agencies.
       ``(6) Notice of results of reinvestigation.--
       ``(A) In general.--A consumer reporting agency shall 
     provide written notice to a consumer of the results of a 
     reinvestigation under this subsection not later than 5 
     business days after the completion of the reinvestigation, by 
     mail or, if authorized by the consumer for that purpose, by 
     other means available to the agency.
       ``(B) Contents.--As part of, or in addition to, the notice 
     under subparagraph (A), a consumer reporting agency shall 
     provide to a consumer in writing before the expiration of the 
     5-day period referred to in subparagraph (A)--
       ``(i) a statement that the reinvestigation is completed;
       ``(ii) a consumer report that is based upon the consumer's 
     file as that file is revised as a result of the 
     reinvestigation;
       ``(iii) a notice that, if requested by the consumer, a 
     description of the procedure used to determine the accuracy 
     and completeness of the information shall be provided to the 
     consumer by the agency, including the business name and 
     address of any furnisher of information contacted in 
     connection with such information and the telephone number of 
     such furnisher, if reasonably available;
       ``(iv) a notice that the consumer has the right to add a 
     statement to the consumer's file disputing the accuracy or 
     completeness of the information; and
       ``(v) a notice that the consumer has the right to request 
     under subsection (d) that the consumer reporting agency 
     furnish notifications under that subsection.
       ``(7) Description of reinvestigation procedure.--A consumer 
     reporting agency shall provide to a consumer a description 
     referred to in paragraph (6)(B)(iv) by not later than 15 days 
     after receiving a request from the consumer for that 
     description.
       ``(8) Expedited dispute resolution.--If a dispute regarding 
     an item of information in a consumer's file at a consumer 
     reporting agency is resolved in accordance with paragraph 
     (5)(A) by the deletion of the disputed information by not 
     later than 3 business days after the date on which the agency 
     receives notice of the dispute from the consumer in 
     accordance with paragraph (1)(A), then the agency shall not 
     be required to comply with paragraphs (2), (6), and (7) with 
     respect to that dispute if the agency--
       ``(A) provides prompt notice of the deletion to the 
     consumer by telephone;
       ``(B) includes in that notice, or in a written notice that 
     accompanies a confirmation and consumer report provided in 
     accordance with subparagraph (C), a statement of the 
     consumer's right to request under subsection (d) that the 
     agency furnish notifications under that subsection; and
       ``(C) provides written confirmation of the deletion and a 
     copy of a consumer report on the consumer that is based on 
     the consumer's file after the deletion, not later than 5 
     business days after making the deletion.''.
       (b) Conforming Amendment.--Section 611(d) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681i(d)) is amended by 
     striking ``The consumer reporting agency shall clearly'' and 
     all that follows through the end of the subsection.

     SEC. 2410. CHARGES FOR CERTAIN DISCLOSURES.

       Section 612 of the Fair Credit Reporting Act (15 U.S.C. 
     1681j) is amended to read as follows:

     ``SEC. 612. CHARGES FOR CERTAIN DISCLOSURES.

       ``(a) Reasonable Charges Allowed for Certain Disclosures.--
       ``(1) In general.--Except as provided in subsections (b), 
     (c), and (d), a consumer reporting agency may impose a 
     reasonable charge on a consumer--
       ``(A) for making a disclosure to the consumer pursuant to 
     section 609, which charge--
       ``(i) shall not exceed $8; and
       ``(ii) shall be indicated to the consumer before making the 
     disclosure; and
       ``(B) for furnishing, pursuant to section 611(d), following 
     a reinvestigation under section 611(a), a statement, 
     codification, or summary to a person designated by the 
     consumer under that section after the 30-day period beginning 
     on the date of notification of the consumer under paragraph 
     (6) or (8) of section 611(a) with respect to the 
     reinvestigation, which charge--
       ``(i) shall not exceed the charge that the agency would 
     impose on each designated recipient for a consumer report; 
     and
       ``(ii) shall be indicated to the consumer before furnishing 
     such information.
       ``(2) Modification of amount.--The Federal Trade Commission 
     shall increase the amount referred to in paragraph (1)(A)(i) 
     on January 1 of each year, based proportionally on changes in 
     the Consumer Price Index, with fractional changes rounded to 
     the nearest fifty cents.
       ``(b) Free Disclosure After Adverse Notice to Consumer.--
     Each consumer reporting agency that maintains a file on a 
     consumer shall make all disclosures pursuant to section 609 
     without charge to the consumer if, not later than 60 days 
     after receipt by such consumer of a notification pursuant to 
     section 615, or of a notification from a debt collection 
     agency affiliated with that consumer reporting agency stating 
     that the consumer's credit rating may be or has been 
     adversely affected, the consumer makes a request under 
     section 609.
       ``(c) Free Disclosure Under Certain Other Circumstances.--
     Upon the request of the consumer, a consumer reporting agency 
     shall make all disclosures pursuant to section 609 once 
     during any 12-month period without charge to that consumer if 
     the consumer certifies in writing that the consumer--
       ``(1) is unemployed and intends to apply for employment in 
     the 60-day period beginning on the date on which the 
     certification is made;
       ``(2) is a recipient of public welfare assistance; or
       ``(3) has reason to believe that the file on the consumer 
     at the agency contains inaccurate information due to fraud.
       ``(d) Other Charges Prohibited.--A consumer reporting 
     agency shall not impose any charge on a consumer for 
     providing any notification required by this title or making 
     any disclosure required by this title, except as authorized 
     by subsection (a).''.

     SEC. 2411. DUTIES OF USERS OF CONSUMER REPORTS.

       (a) Duties of Users Taking Adverse Actions.--Section 615(a) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681m(a)) is 
     amended to read as follows:
       ``(a) Duties of Users Taking Adverse Actions on the Basis 
     of Information Contained in Consumer Reports.--If any person 
     takes any adverse action with respect to any consumer that is 
     based in whole or in part on any information contained in a 
     consumer report, the person shall--
       ``(1) provide oral, written, or electronic notice of the 
     adverse action to the consumer;
       ``(2) provide to the consumer orally, in writing, or 
     electronically--
       ``(A) the name, address, and telephone number of the 
     consumer reporting agency (including a toll-free telephone 
     number established by the agency if the agency compiles and 
     maintains files on consumers on a nationwide basis) that 
     furnished the report to the person; and
       ``(B) a statement that the consumer reporting agency did 
     not make the decision to take the adverse action and is 
     unable to provide the consumer the specific reasons why the 
     adverse action was taken; and
       ``(3) provide to the consumer an oral, written, or 
     electronic notice of the consumer's right--
       ``(A) to obtain, under section 612, a free copy of a 
     consumer report on the consumer from the consumer reporting 
     agency referred to in paragraph (2), which notice shall 
     include an indication of the 60-day period under that section 
     for obtaining such a copy; and

[[Page H11762]]

       ``(B) to dispute, under section 611, with a consumer 
     reporting agency the accuracy or completeness of any 
     information in a consumer report furnished by the agency.''.
       (b) Duties of Users Making Certain Credit Solicitations.--
     Section 615 of the Fair Credit Reporting Act (15 U.S.C. 
     1681m) is amended by adding at the end the following new 
     subsection:
       ``(d) Duties of Users Making Written Credit or Insurance 
     Solicitations on the Basis of Information Contained in 
     Consumer Files.--
       ``(1) In general.--Any person who uses a consumer report on 
     any consumer in connection with any credit or insurance 
     transaction that is not initiated by the consumer, that is 
     provided to that person under section 604(c)(1)(B), shall 
     provide with each written solicitation made to the consumer 
     regarding the transaction a clear and conspicuous statement 
     that--
       ``(A) information contained in the consumer's consumer 
     report was used in connection with the transaction;
       ``(B) the consumer received the offer of credit or 
     insurance because the consumer satisfied the criteria for 
     credit worthiness or insurability under which the consumer 
     was selected for the offer;
       ``(C) if applicable, the credit or insurance may not be 
     extended if, after the consumer responds to the offer, the 
     consumer does not meet the criteria used to select the 
     consumer for the offer or any applicable criteria bearing on 
     credit worthiness or insurability or does not furnish any 
     required collateral;
       ``(D) the consumer has a right to prohibit information 
     contained in the consumer's file with any consumer reporting 
     agency from being used in connection with any credit or 
     insurance transaction that is not initiated by the consumer; 
     and
       ``(E) the consumer may exercise the right referred to in 
     subparagraph (D) by notifying a notification system 
     established under section 604(e).
       ``(2) Disclosure of address and telephone number.--A 
     statement under paragraph (1) shall include the address and 
     toll-free telephone number of the appropriate notification 
     system established under section 604(e).
       ``(3) Maintaining criteria on file.--A person who makes an 
     offer of credit or insurance to a consumer under a credit or 
     insurance transaction described in paragraph (1) shall 
     maintain on file the criteria used to select the consumer to 
     receive the offer, all criteria bearing on credit worthiness 
     or insurability, as applicable, that are the basis for 
     determining whether or not to extend credit or insurance 
     pursuant to the offer, and any requirement for the furnishing 
     of collateral as a condition of the extension of credit or 
     insurance, until the expiration of the 3-year period 
     beginning on the date on which the offer is made to the 
     consumer.
       ``(4) Authority of federal agencies regarding unfair or 
     deceptive acts or practices not affected.--This section is 
     not intended to affect the authority of any Federal or State 
     agency to enforce a prohibition against unfair or deceptive 
     acts or practices, including the making of false or 
     misleading statements in connection with a credit or 
     insurance transaction that is not initiated by the 
     consumer.''.
       (c) Duties of Users Making Other Solicitations.--Section 
     615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is 
     amended by adding at the end the following new subsection:
       ``(e)

                           *   *   *   *   *

       (d) Conforming Amendment.--Section 615(c) of the Fair 
     Credit Reporting Act (15 U.S.C. 1681m(c)) is amended by 
     striking ``subsections (a) and (b)'' and inserting ``this 
     section''.
       (e) Duties of Person Taking Certain Actions Based on 
     Information Provided by Affiliate.--Section 615(b) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681m(b)) is amended--
       (1) by striking ``(b) Whenever credit'' and inserting the 
     following:
       ``(b) Adverse Action Based on Information Obtained From 
     Third Parties Other Than Consumer Reporting Agencies.--
       ``(1) In general.--Whenever credit'';
       (2) by adding at the end the following new paragraph:
       ``(2) Duties of person taking certain actions based on 
     information provided by affiliate.--
       ``(A) Duties, generally.--If a person takes an action 
     described in subparagraph (B) with respect to a consumer, 
     based in whole or in part on information described in 
     subparagraph (C), the person shall--
       ``(i) notify the consumer of the action, including a 
     statement that the consumer may obtain the information in 
     accordance with clause (ii); and
       ``(ii) upon a written request from the consumer received 
     within 60 days after transmittal of the notice required by 
     clause (i), disclose to the consumer the nature of the 
     information upon which the action is based by not later than 
     30 days after receipt of the request.
       ``(B) Action described.--An action referred to in 
     subparagraph (A) is an adverse action described in section 
     603(k)(1)(A), taken in connection with a transaction 
     initiated by the consumer, or any adverse action described in 
     clause (i) or (ii) of section 603(k)(1)(B).
       ``(C) Information described.--Information referred to in 
     subparagraph (A)--
       ``(i) except as provided in clause (ii), is information 
     that--

       ``(I) is furnished to the person taking the action by a 
     person related by common ownership or affiliated by common 
     corporate control to the person taking the action; and
       ``(II) bears on the credit worthiness, credit standing, 
     credit capacity, character, general reputation, personal 
     characteristics, or mode of living of the consumer; and

       ``(ii) does not include--

       ``(I) information solely as to transactions or experiences 
     between the consumer and the person furnishing the 
     information; or
       ``(II) information in a consumer report.''.

     SEC. 2412. CIVIL LIABILITY.

       (a) Civil Liability for Willful Noncompliance.--Section 616 
     of the Fair Credit Reporting Act (15 U.S.C. 1681n) is amended 
     by striking ``Any consumer reporting agency or user of 
     information which'' and inserting ``(a) In General.--Any 
     person who''.
       (b) Minimum Civil Liability for Willful Noncompliance.--
     Section 616(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 
     1681n(1)), as so designated by subsection (a) of this 
     section, is amended to read as follows:
       ``(1)(A) any actual damages sustained by the consumer as a 
     result of the failure or damages of not less than $100 and 
     not more than $1,000; or
       ``(B) in the case of liability of a natural person for 
     obtaining a consumer report under false pretenses or 
     knowingly without a permissible purpose, actual damages 
     sustained by the consumer as a result of the failure or 
     $1,000, whichever is greater;''.
       (c) Civil Liability for Knowing Noncompliance.--Section 616 
     of the Fair Credit Reporting Act (15 U.S.C. 1681n) is amended 
     by adding at the end the following new subsection:
       ``(b) Civil Liability for Knowing Noncompliance.--Any 
     person who obtains a consumer report from a consumer 
     reporting agency under false pretenses or knowingly without a 
     permissible purpose shall be liable to the consumer reporting 
     agency for actual damages sustained by the consumer reporting 
     agency or $1,000, whichever is greater.''.
       (d) Civil Liability for Negligent Noncompliance.--Section 
     617 of the Fair Credit Reporting Act (15 U.S.C. 1681o) is 
     amended by striking ``Any consumer reporting agency or user 
     of information which'' and inserting ``(a) In General.--Any 
     person who''.
       (e) Attorney's Fees.--
       (1) Willful noncompliance.--Section 616 of the Fair Credit 
     Reporting Act (15 U.S.C. 1681n) is amended by adding at the 
     end the following new subsection:
       ``(c) Attorney's Fees.--Upon a finding by the court that an 
     unsuccessful pleading, motion, or other paper filed in 
     connection with an action under this section was filed in bad 
     faith or for purposes of harassment, the court shall award to 
     the prevailing party attorney's fees reasonable in relation 
     to the work expended in responding to the pleading, motion, 
     or other paper.''.
       (2) Negligent noncompliance.--Section 617 of the Fair 
     Credit Reporting Act (15 U.S.C. 1681o) is amended by adding 
     at the end the following new subsection:
       ``(b) Attorney's Fees.--On a finding by the court that an 
     unsuccessful pleading, motion, or other paper filed in 
     connection with an action under this section was filed in bad 
     faith or for purposes of harassment, the court shall award to 
     the prevailing party attorney's fees reasonable in relation 
     to the work expended in responding to the pleading, motion, 
     or other paper.''.

     SEC. 2413. RESPONSIBILITIES OF PERSONS WHO FURNISH 
                   INFORMATION TO CONSUMER REPORTING AGENCIES.

       (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 
     1681 et seq.) is amended--
       (1) by redesignating section 623 as section 624; and
       (2) by inserting after section 622 the following:

     ``SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO 
                   CONSUMER REPORTING AGENCIES.

       ``(a) Duty of Furnishers of Information To Provide Accurate 
     Information.--
       ``(1) Prohibition.--
       ``(A) Reporting information with actual knowledge of 
     errors.--A person shall not furnish any information relating 
     to a consumer to any consumer reporting agency if the person 
     knows or consciously avoids knowing that the information is 
     inaccurate.
       ``(B) Reporting information after notice and confirmation 
     of errors.--A person shall not furnish information relating 
     to a consumer to any consumer reporting agency if--
       ``(i) the person has been notified by the consumer, at the 
     address specified by the person for such notices, that 
     specific information is inaccurate; and
       ``(ii) the information is, in fact, inaccurate.
       ``(C) No address requirement.--A person who clearly and 
     conspicuously specifies to the consumer an address for 
     notices referred to in subparagraph (B) shall not be subject 
     to subparagraph (A); however, nothing in subparagraph (B) 
     shall require a person to specify such an address.
       ``(2) Duty to correct and update information.--A person 
     who--
       ``(A) regularly and in the ordinary course of business 
     furnishes information to one or more consumer reporting 
     agencies about the person's transactions or experiences with 
     any consumer; and
       ``(B) has furnished to a consumer reporting agency 
     information that the person determines is not complete or 
     accurate,

     shall promptly notify the consumer reporting agency of that 
     determination and provide to the agency any corrections to 
     that information, or any additional information, that is 
     necessary to make the information provided by the person to 
     the agency complete and accurate, and shall not thereafter 
     furnish to the agency any of the information that remains not 
     complete or accurate.
       ``(3) Duty to provide notice of dispute.--If the 
     completeness or accuracy of any information furnished by any 
     person to any consumer reporting agency is disputed to such 
     person by a

[[Page H11763]]

     consumer, the person may not furnish the information to any 
     consumer reporting agency without notice that such 
     information is disputed by the consumer.
       ``(4) Duty to provide notice of closed accounts.--A person 
     who regularly and in the ordinary course of business 
     furnishes information to a consumer reporting agency 
     regarding a consumer who has a credit account with that 
     person shall notify the agency of the voluntary closure of 
     the account by the consumer, in information regularly 
     furnished for the period in which the account is closed.
       ``(5) Duty to provide notice of delinquency of accounts.--A 
     person who furnishes information to a consumer reporting 
     agency regarding a delinquent account being placed for 
     collection, charged to profit or loss, or subjected to any 
     similar action shall, not later than 90 days after furnishing 
     the information, notify the agency of the month and year of 
     the commencement of the delinquency that immediately preceded 
     the action.
       ``(b) Duties of Furnishers of Information Upon Notice of 
     Dispute.--
       ``(1) In general.--After receiving notice pursuant to 
     section 611(a)(2) of a dispute with regard to the 
     completeness or accuracy of any information provided by a 
     person to a consumer reporting agency, the person shall--
       ``(A) conduct an investigation with respect to the disputed 
     information;
       ``(B) review all relevant information provided by the 
     consumer reporting agency pursuant to section 611(a)(2);
       ``(C) report the results of the investigation to the 
     consumer reporting agency; and
       ``(D) if the investigation finds that the information is 
     incomplete or inaccurate, report those results to all other 
     consumer reporting agencies to which the person furnished the 
     information and that compile and maintain files on consumers 
     on a nationwide basis.
       ``(2) Deadline.--A person shall complete all 
     investigations, reviews, and reports required under paragraph 
     (1) regarding information provided by the person to a 
     consumer reporting agency, before the expiration of the 
     period under section 611(a)(1) within which the consumer 
     reporting agency is required to complete actions required by 
     that section regarding that information.
       ``(c) Limitation on Liability.--Sections 616 and 617 do not 
     apply to any failure to comply with subsection (a), except as 
     provided in section 621(c)(1)(B).
       ``(d) Limitation on Enforcement.--Subsection (a) shall be 
     enforced exclusively under section 621 by the Federal 
     agencies and officials and the State officials identified in 
     that section.''.
       (b) Conforming Amendment.--The table of sections at the 
     beginning of the Fair Credit Reporting Act (15 U.S.C. 1681a 
     et seq.) is amended by striking the item relating to section 
     623 and inserting the following:

``623. Responsibilities of furnishers of information to consumer 
              reporting agencies.
``624. Relation to State laws.''.

     SEC. 2414. INVESTIGATIVE CONSUMER REPORTS.

       Section 606 of the Fair Credit Reporting Act (15 U.S.C. 
     1681d) is amended--
       (1) in subsection (a)(1), by striking ``or'' at the end and 
     inserting ``and'';
       (2) by striking subsection (a)(2) and inserting the 
     following:
       ``(2) the person certifies or has certified to the consumer 
     reporting agency that--
       ``(A) the person has made the disclosures to the consumer 
     required by paragraph (1); and
       ``(B) the person will comply with subsection (b).'';
       (3) in subsection (b), by striking ``shall'' the second 
     place such term appears; and
       (4) by adding at the end the following new subsection:
       ``(d) Prohibitions.--
       ``(1) Certification.--A consumer reporting agency shall not 
     prepare or furnish an investigative consumer report unless 
     the agency has received a certification under subsection 
     (a)(2) from the person who requested the report.
       ``(2) Inquiries.--A consumer reporting agency shall not 
     make an inquiry for the purpose of preparing an investigative 
     consumer report on a consumer for employment purposes if the 
     making of the inquiry by an employer or prospective employer 
     of the consumer would violate any applicable Federal or State 
     equal employment opportunity law or regulation.
       ``(3) Certain public record information.--Except as 
     otherwise provided in section 613, a consumer reporting 
     agency shall not furnish an investigative consumer report 
     that includes information that is a matter of public record 
     and that relates to an arrest, indictment, conviction, civil 
     judicial action, tax lien, or outstanding judgment, unless 
     the agency has verified the accuracy of the information 
     during the 30-day period ending on the date on which the 
     report is furnished.
       ``(4) Certain adverse information.--A consumer reporting 
     agency shall not prepare or furnish an investigative consumer 
     report on a consumer that contains information that is 
     adverse to the interest of the consumer and that is obtained 
     through a personal interview with a neighbor, friend, or 
     associate of the consumer or with another person with whom 
     the consumer is acquainted or who has knowledge of such item 
     of information, unless--
       ``(A) the agency has followed reasonable procedures to 
     obtain confirmation of the information, from an additional 
     source that has independent and direct knowledge of the 
     information; or
       ``(B) the person interviewed is the best possible source of 
     the information.''.

     SEC. 2415. INCREASED CRIMINAL PENALTIES FOR OBTAINING 
                   INFORMATION UNDER FALSE PRETENSES.

       (a) Obtaining Information Under False Pretenses.--Section 
     619 of the Fair Credit Reporting Act (15 U.S.C. 1681q) is 
     amended by striking ``fined not more than $5,000 or 
     imprisoned not more than one year, or both'' and inserting 
     ``fined under title 18, United States Code, imprisoned for 
     not more than 2 years, or both''.
       (b) Unauthorized Disclosures by Officers or Employees.--
     Section 620 of the Fair Credit Reporting Act (15 U.S.C. 
     1681r) is amended by striking ``fined not more than $5,000 or 
     imprisoned not more than one year, or both'' and inserting 
     ``fined under title 18, United States Code, imprisoned for 
     not more than 2 years, or both''.

     SEC. 2416. ADMINISTRATIVE ENFORCEMENT.

       (a) Available Enforcement Powers.--Section 621(a) of the 
     Fair Credit Reporting Act (15 U.S.C. 1681s(a)) is amended--
       (1) by inserting ``(1)'' after ``(a)'';
       (2) by adding at the end the following new paragraph:
       ``(2)(A) In the event of a knowing violation, which 
     constitutes a pattern or practice of violations of this 
     title, the Commission may commence a civil action to recover 
     a civil penalty in a district court of the United States 
     against any person that violates this title. In such action, 
     such person shall be liable for a civil penalty of not more 
     than $2,500 per violation.
       ``(B) In determining the amount of a civil penalty under 
     subparagraph (A), the court shall take into account the 
     degree of culpability, any history of prior such conduct, 
     ability to pay, effect on ability to continue to do business, 
     and such other matters as justice may require.
       ``(3) Notwithstanding paragraph (2), a court may not impose 
     any civil penalty on a person for a violation of section 
     623(a)(1) unless the person has been enjoined from committing 
     the violation, or ordered not to commit the violation, in an 
     action or proceeding brought by or on behalf of the Federal 
     Trade Commission, and has violated the injunction or order, 
     and the court may not impose any civil penalty for any 
     violation occurring before the date of the violation of the 
     injunction or order.
       ``(4) Neither the Commission nor any other agency referred 
     to in subsection (b) may prescribe trade regulation rules or 
     other regulations with respect to this title.''.
       (b) Agencies Responsible for Enforcement.--Section 621 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681s) is amended--
       (1) in subsection (a), by inserting ``Enforcement by 
     Federal Trade Commission.--'' before ``Compliance with the 
     requirements'';
       (2) in subsection (b), by striking the matter preceding 
     paragraph (1) and inserting the following:
       ``(b) Enforcement by Other Agencies.--Compliance with the 
     requirements imposed under this title with respect to 
     consumer reporting agencies, persons who use consumer reports 
     from such agencies, persons who furnish information to such 
     agencies, and users of information that are subject to 
     subsection (d) or (e) of section 615 shall be enforced 
     under--''; and
       (3) in subsection (c), by adding at the end the following: 
     ``Notwithstanding the preceding, no agency referred to in 
     subsection (b) may conduct an examination of a bank, savings 
     association, or credit union regarding compliance with the 
     provisions of this title, except in response to a complaint 
     (or if the agency otherwise has knowledge) that the bank, 
     savings association, or credit union has violated a provision 
     of this title, in which case, the agency may conduct an 
     examination as necessary to investigate the complaint. If an 
     agency determines during an investigation in response to a 
     complaint that a violation of this title has occurred, the 
     agency may, during its next 2 regularly scheduled 
     examinations of the bank, savings association, or credit 
     union, examine for compliance with this title.''.

     SEC. 2417. STATE ENFORCEMENT OF FAIR CREDIT REPORTING ACT.

       Section 621 of the Fair Credit Reporting Act (15 U.S.C. 
     1681s) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) State Action for Violations.--
       ``(1) Authority of states.--In addition to such other 
     remedies as are provided under State law, if the chief law 
     enforcement officer of a State, or an official or agency 
     designated by a State, has reason to believe that any person 
     has violated or is violating this title, the State--
       ``(A) may bring an action to enjoin such violation in any 
     appropriate United States district court or in any other 
     court of competent jurisdiction;
       ``(B) subject to paragraph (5), may bring an action on 
     behalf of the residents of the State to recover--
       ``(i) damages for which the person is liable to such 
     residents under sections 616 and 617 as a result of the 
     violation;
       ``(ii) in the case of a violation of section 623(a), 
     damages for which the person would, but for section 623(c), 
     be liable to such residents as a result of the violation; or
       ``(iii) damages of not more than $1,000 for each willful or 
     negligent violation; and
       ``(C) in the case of any successful action under 
     subparagraph (A) or (B), shall be awarded the costs of the 
     action and reasonable attorney fees as determined by the 
     court.
       ``(2) Rights of federal regulators.--The State shall serve 
     prior written notice of any action under paragraph (1) upon 
     the Federal Trade Commission or the appropriate Federal 
     regulator determined under subsection (b) and provide the 
     Commission or appropriate Federal regulator with a copy of 
     its complaint, except in any case in which such prior notice 
     is not feasible, in which case the State shall serve such

[[Page H11764]]

     notice immediately upon instituting such action. The Federal 
     Trade Commission or appropriate Federal regulator shall have 
     the right--
       ``(A) to intervene in the action;
       ``(B) upon so intervening, to be heard on all matters 
     arising therein;
       ``(C) to remove the action to the appropriate United States 
     district court; and
       ``(D) to file petitions for appeal.
       ``(3) Investigatory powers.--For purposes of bringing any 
     action under this subsection, nothing in this subsection 
     shall prevent the chief law enforcement officer, or an 
     official or agency designated by a State, from exercising the 
     powers conferred on the chief law enforcement officer or such 
     official by the laws of such State to conduct investigations 
     or to administer oaths or affirmations or to compel the 
     attendance of witnesses or the production of documentary and 
     other evidence.
       ``(4) Limitation on state action while federal action 
     pending.--If the Federal Trade Commission or the appropriate 
     Federal regulator has instituted a civil action or an 
     administrative action under section 8 of the Federal Deposit 
     Insurance Act for a violation of this title, no State may, 
     during the pendency of such action, bring an action under 
     this section against any defendant named in the complaint of 
     the Commission or the appropriate Federal regulator for any 
     violation of this title that is alleged in that complaint.
       ``(5) Limitations on state actions for violation of section 
     623(a)(1).--
       ``(A) Violation of injunction required.--A State may not 
     bring an action against a person under paragraph (1)(B) for a 
     violation of section 623(a)(1), unless--
       ``(i) the person has been enjoined from committing the 
     violation, in an action brought by the State under paragraph 
     (1)(A); and
       ``(ii) the person has violated the injunction.
       ``(B) Limitation on damages recoverable.--In an action 
     against a person under paragraph (1)(B) for a violation of 
     section 623(a)(1), a State may not recover any damages 
     incurred before the date of the violation of an injunction on 
     which the action is based.''.

     SEC. 2418. FEDERAL RESERVE BOARD AUTHORITY.

       Section 621 of the Fair Credit Reporting Act (15 U.S.C. 
     1681s) is amended by adding at the end the following new 
     subsection:
       ``(e) Interpretive Authority.--The Board of Governors of 
     the Federal Reserve System may issue interpretations of any 
     provision of this title as such provision may apply to any 
     persons identified under paragraph (1), (2), and (3) of 
     subsection (b), or to the holding companies and affiliates of 
     such persons, in consultation with Federal agencies 
     identified in paragraphs (1), (2), and (3) of subsection 
     (b).''.

     SEC. 2419. PREEMPTION OF STATE LAW.

       Section 624 of the Fair Credit Reporting Act (as 
     redesignated by section 2413(a) of this chapter) is amended--
       (1) by striking ``This title'' and inserting ``(a) In 
     General.--Except as provided in subsections (b) and (c), this 
     title''; and
       (2) by adding at the end the following new subsection:
       ``(b) General Exceptions.--No requirement or prohibition 
     may be imposed under the laws of any State--
       ``(1) with respect to any subject matter regulated under--
       ``(A) subsection (c) or (e) of section 604, relating to the 
     prescreening of consumer reports;
       ``(B) section 611, relating to the time by which a consumer 
     reporting agency must take any action, including the 
     provision of notification to a consumer or other person, in 
     any procedure related to the disputed accuracy of information 
     in a consumer's file, except that this subparagraph shall not 
     apply to any State law in effect on the date of enactment of 
     the Consumer Credit Reporting Reform Act of 1996;
       ``(C) subsections (a) and (b) of section 615, relating to 
     the duties of a person who takes any adverse action with 
     respect to a consumer;
       ``(D) section 615(d), relating to the duties of persons who 
     use a consumer report of a consumer in connection with any 
     credit or insurance transaction that is not initiated by the 
     consumer and that consists of a firm offer of credit or 
     insurance;
       ``(E) section 605, relating to information contained in 
     consumer reports, except that this subparagraph shall not 
     apply to any State law in effect on the date of enactment of 
     the Consumer Credit Reporting Reform Act of 1996; or
       ``(F) section 623, relating to the responsibilities of 
     persons who furnish information to consumer reporting 
     agencies, except that this paragraph shall not apply--
       ``(i) with respect to section 54A(a) of chapter 93 of the 
     Massachusetts Annotated Laws (as in effect on the date of 
     enactment of the Consumer Credit Reporting Reform Act of 
     1996); or
       ``(ii) with respect to section 1785.25(a) of the California 
     Civil Code (as in effect on the date of enactment of the 
     Consumer Credit Reporting Reform Act of 1996);
       ``(2) with respect to the exchange of information among 
     persons affiliated by common ownership or common corporate 
     control, except that this paragraph shall not apply with 
     respect to subsection (a) or (c)(1) of section 2480e of title 
     9, Vermont Statutes Annotated (as in effect on the date of 
     enactment of the Consumer Credit Reporting Reform Act of 
     1996); or
       ``(3) with respect to the form and content of any 
     disclosure required to be made under section 609(c).
       ``(c) Definition of Firm Offer of Credit or Insurance.--
     Notwithstanding any definition of the term `firm offer of 
     credit or insurance' (or any equivalent term) under the laws 
     of any State, the definition of that term contained in 
     section 603(l) shall be construed to apply in the enforcement 
     and interpretation of the laws of any State governing 
     consumer reports.
       ``(d) Limitations.--Subsections (b) and (c)--
       ``(1) do not affect any settlement, agreement, or consent 
     judgment between any State Attorney General and any consumer 
     reporting agency in effect on the date of enactment of the 
     Consumer Credit Reporting Reform Act of 1996; and
       ``(2) do not apply to any provision of State law (including 
     any provision of a State constitution) that--
       ``(A) is enacted after January 1, 2004;
       ``(B) states explicitly that the provision is intended to 
     supplement this title; and
       ``(C) gives greater protection to consumers than is 
     provided under this title.''.

     SEC. 2420. EFFECTIVE DATE.

       (a) In General.--Except as otherwise specifically provided 
     in this chapter, the amendments made by this chapter shall 
     become effective 365 days after the date of enactment of this 
     Act.
       (b) Early Compliance.--Any person or other entity that is 
     subject to the requirements of this chapter may, at its 
     option, comply with any provision of this chapter before the 
     date on which that provision becomes effective under this 
     chapter, in which case, each of the corresponding provisions 
     of this chapter shall be fully applicable to such person or 
     entity.

     SEC. 2421. RELATIONSHIP TO OTHER LAW.

       Nothing in this chapter or the amendments made by this 
     chapter shall be considered to supersede or otherwise affect 
     section 2721 of title 18, United States Code, with respect to 
     motor vehicle records for surveys, marketing, or 
     solicitations.

     SEC. 2422. FEDERAL RESERVE BOARD STUDY.

       (a) Study Required.--The Board of Governors of the Federal 
     Reserve System, in consultation with the other Federal 
     banking agencies (as defined in section 3 of the Federal 
     Deposit Insurance Act) and the Federal Trade Commission, 
     shall conduct a study of whether organizations which, as of 
     the date of the enactment of this Act, are not subject to the 
     Fair Credit Reporting Act as consumer reporting agencies (as 
     defined in section 603 of such Act) are engaged in the 
     business of making sensitive consumer identification 
     information, including social security numbers, mothers' 
     maiden names, prior addresses, and dates of birth, available 
     to the general public.
       (b) Determination of Potential for Fraud.--If the Board of 
     Governors of the Federal Reserve System determines that 
     organizations referred to in subsection (a) are engaged in 
     the business of making sensitive consumer identification 
     information available to the general public, the Board shall 
     determine--
       (1) whether such activities create undue potential for 
     fraud and risk of loss to insured depository institutions (as 
     defined in section 3 of the Federal Deposit Insurance Act); 
     and
       (2) if so, whether changes in Federal law are necessary to 
     address such risks of fraud and loss.
       (c) Report to Congress.--Before the end of the 6-month 
     period beginning on the date of the enactment of this Act, 
     the Board of Governors of the Federal Reserve System shall 
     submit a report to the Congress containing--
       (1) the findings and conclusion of the Board in connection 
     with the study required under subsections (a) and (b); and
       (2) recommendations for such legislative or administrative 
     action as the Board determines to be appropriate.

                 CHAPTER 2--CREDIT REPAIR ORGANIZATIONS

     SEC. 2451. REGULATION OF CREDIT REPAIR ORGANIZATIONS.

       Title IV of the Consumer Credit Protection Act (Public Law 
     90-321, 82 Stat. 164) is amended to read as follows:
                ``TITLE IV--CREDIT REPAIR ORGANIZATIONS
``Sec.
``401. Short title.
``402. Findings and purposes.
``403. Definitions.
``404. Prohibited practices.
``405. Disclosures.
``406. Credit repair organizations contracts.
``407. Right to cancel contract.
``408. Noncompliance with this title.
``409. Civil liability.
``410. Administrative enforcement.
``411. Statute of limitations.
``412. Relation to State law.
``413. Effective date.

     ``SEC. 401. SHORT TITLE.

       ``This title may be cited as the `Credit Repair 
     Organizations Act'.

     ``SEC. 402. FINDINGS AND PURPOSES.

       ``(a) Findings.--The Congress makes the following findings:
       ``(1) Consumers have a vital interest in establishing and 
     maintaining their credit worthiness and credit standing in 
     order to obtain and use credit. As a result, consumers who 
     have experienced credit problems may seek assistance from 
     credit repair organizations which offer to improve the credit 
     standing of such consumers.
       ``(2) Certain advertising and business practices of some 
     companies engaged in the business of credit repair services 
     have worked a financial hardship upon consumers, particularly 
     those of limited economic means and who are inexperienced in 
     credit matters.
       ``(b) Purposes.--The purposes of this title are--
       ``(1) to ensure that prospective buyers of the services of 
     credit repair organizations are provided with the information 
     necessary to make an informed decision regarding the purchase 
     of such services; and
       ``(2) to protect the public from unfair or deceptive 
     advertising and business practices by credit repair 
     organizations.

[[Page H11765]]

     ``SEC. 403. DEFINITIONS.

       ``For purposes of this title, the following definitions 
     apply:
       ``(1) Consumer.--The term `consumer' means an individual.
       ``(2) Consumer credit transaction.--The term `consumer 
     credit transaction' means any transaction in which credit is 
     offered or extended to an individual for personal, family, or 
     household purposes.
       ``(3) Credit repair organization.--The term `credit repair 
     organization'--
       ``(A) means any person who uses any instrumentality of 
     interstate commerce or the mails to sell, provide, or perform 
     (or represent that such person can or will sell, provide, or 
     perform) any service, in return for the payment of money or 
     other valuable consideration, for the express or implied 
     purpose of--
       ``(i) improving any consumer's credit record, credit 
     history, or credit rating; or
       ``(ii) providing advice or assistance to any consumer with 
     regard to any activity or service described in clause (i); 
     and
       ``(B) does not include--
       ``(i) any nonprofit organization which is exempt from 
     taxation under section 501(c)(3) of the Internal Revenue Code 
     of 1986;
       ``(ii) any creditor (as defined in section 103 of the Truth 
     in Lending Act), with respect to any consumer, to the extent 
     the creditor is assisting the consumer to restructure any 
     debt owed by the consumer to the creditor; or
       ``(iii) any depository institution (as that term is defined 
     in section 3 of the Federal Deposit Insurance Act) or any 
     Federal or State credit union (as those terms are defined in 
     section 101 of the Federal Credit Union Act), or any 
     affiliate or subsidiary of such a depository institution or 
     credit union.
       ``(4) Credit.--The term `credit' has the meaning given to 
     such term in section 103(e) of this Act.

     ``SEC. 404. PROHIBITED PRACTICES.

       ``(a) In General.--No person may--
       ``(1) make any statement, or counsel or advise any consumer 
     to make any statement, which is untrue or misleading (or 
     which, upon the exercise of reasonable care, should be known 
     by the credit repair organization, officer, employee, agent, 
     or other person to be untrue or misleading) with respect to 
     any consumer's credit worthiness, credit standing, or credit 
     capacity to--
       ``(A) any consumer reporting agency (as defined in section 
     603(f) of this Act); or
       ``(B) any person--
       ``(i) who has extended credit to the consumer; or
       ``(ii) to whom the consumer has applied or is applying for 
     an extension of credit;
       ``(2) make any statement, or counsel or advise any consumer 
     to make any statement, the intended effect of which is to 
     alter the consumer's identification to prevent the display of 
     the consumer's credit record, history, or rating for the 
     purpose of concealing adverse information that is accurate 
     and not obsolete to--
       ``(A) any consumer reporting agency;
       ``(B) any person--
       ``(i) who has extended credit to the consumer; or
       ``(ii) to whom the consumer has applied or is applying for 
     an extension of credit;
       ``(3) make or use any untrue or misleading representation 
     of the services of the credit repair organization; or
       ``(4) engage, directly or indirectly, in any act, practice, 
     or course of business that constitutes or results in the 
     commission of, or an attempt to commit, a fraud or deception 
     on any person in connection with the offer or sale of the 
     services of the credit repair organization.
       ``(b) Payment in Advance.--No credit repair organization 
     may charge or receive any money or other valuable 
     consideration for the performance of any service which the 
     credit repair organization has agreed to perform for any 
     consumer before such service is fully performed.

     ``SEC. 405. DISCLOSURES.

       ``(a) Disclosure Required.--Any credit repair organization 
     shall provide any consumer with the following written 
     statement before any contract or agreement between the 
     consumer and the credit repair organization is executed:
      `` `Consumer Credit File Rights Under State and Federal Law
       `` `You have a right to dispute inaccurate information in 
     your credit report by contacting the credit bureau directly. 
     However, neither you nor any ``credit repair'' company or 
     credit repair organization has the right to have accurate, 
     current, and verifiable information removed from your credit 
     report. The credit bureau must remove accurate, negative 
     information from your report only if it is over 7 years old. 
     Bankruptcy information can be reported for 10 years.
       `` `You have a right to obtain a copy of your credit report 
     from a credit bureau. You may be charged a reasonable fee. 
     There is no fee, however, if you have been turned down for 
     credit, employment, insurance, or a rental dwelling because 
     of information in your credit report within the preceding 60 
     days. The credit bureau must provide someone to help you 
     interpret the information in your credit file. You are 
     entitled to receive a free copy of your credit report if you 
     are unemployed and intend to apply for employment in the next 
     60 days, if you are a recipient of public welfare assistance, 
     or if you have reason to believe that there is inaccurate 
     information in your credit report due to fraud.
       `` `You have a right to sue a credit repair organization 
     that violates the Credit Repair Organization Act. This law 
     prohibits deceptive practices by credit repair organizations.
       `` `You have the right to cancel your contract with any 
     credit repair organization for any reason within 3 business 
     days from the date you signed it.
       `` `Credit bureaus are required to follow reasonable 
     procedures to ensure that the information they report is 
     accurate. However, mistakes may occur.
       `` `You may, on your own, notify a credit bureau in writing 
     that you dispute the accuracy of information in your credit 
     file. The credit bureau must then reinvestigate and modify or 
     remove inaccurate or incomplete information. The credit 
     bureau may not charge any fee for this service. Any pertinent 
     information and copies of all documents you have concerning 
     an error should be given to the credit bureau.
       `` `If the credit bureau's reinvestigation does not resolve 
     the dispute to your satisfaction, you may send a brief 
     statement to the credit bureau, to be kept in your file, 
     explaining why you think the record is inaccurate. The credit 
     bureau must include a summary of your statement about 
     disputed information with any report it issues about you.
       `` `The Federal Trade Commission regulates credit bureaus 
     and credit repair organizations. For more information 
     contact:

                    `` `The Public Reference Branch

                      `` `Federal Trade Commission

                      `` `Washington, D.C. 20580'.

       ``(b) Separate Statement Requirement.--The written 
     statement required under this section shall be provided as a 
     document which is separate from any written contract or other 
     agreement between the credit repair organization and the 
     consumer or any other written material provided to the 
     consumer.
       ``(c) Retention of Compliance Records.--
       ``(1) In general.--The credit repair organization shall 
     maintain a copy of the statement signed by the consumer 
     acknowledging receipt of the statement.
       ``(2) Maintenance for 2 years.--The copy of any consumer's 
     statement shall be maintained in the organization's files for 
     2 years after the date on which the statement is signed by 
     the consumer.

     ``SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.

       ``(a) Written Contracts Required.--No services may be 
     provided by any credit repair organization for any consumer--
       ``(1) unless a written and dated contract (for the purchase 
     of such services) which meets the requirements of subsection 
     (b) has been signed by the consumer; or
       ``(2) before the end of the 3-business-day period beginning 
     on the date the contract is signed.
       ``(b) Terms and Conditions of Contract.--No contract 
     referred to in subsection (a) meets the requirements of this 
     subsection unless such contract includes (in writing)--
       ``(1) the terms and conditions of payment, including the 
     total amount of all payments to be made by the consumer to 
     the credit repair organization or to any other person;
       ``(2) a full and detailed description of the services to be 
     performed by the credit repair organization for the consumer, 
     including--
       ``(A) all guarantees of performance; and
       ``(B) an estimate of--
       ``(i) the date by which the performance of the services (to 
     be performed by the credit repair organization or any other 
     person) will be complete; or
       ``(ii) the length of the period necessary to perform such 
     services;
       ``(3) the credit repair organization's name and principal 
     business address; and
       ``(4) a conspicuous statement in bold face type, in 
     immediate proximity to the space reserved for the consumer's 
     signature on the contract, which reads as follows: `You may 
     cancel this contract without penalty or obligation at any 
     time before midnight of the 3rd business day after the date 
     on which you signed the contract. See the attached notice of 
     cancellation form for an explanation of this right.'.

     ``SEC. 407. RIGHT TO CANCEL CONTRACT.

       ``(a) In General.--Any consumer may cancel any contract 
     with any credit repair organization without penalty or 
     obligation by notifying the credit repair organization of the 
     consumer's intention to do so at any time before midnight of 
     the 3rd business day which begins after the date on which the 
     contract or agreement between the consumer and the credit 
     repair organization is executed or would, but for this 
     subsection, become enforceable against the parties.
       ``(b) Cancellation Form and Other Information.--Each 
     contract shall be accompanied by a form, in duplicate, which 
     has the heading `Notice of Cancellation' and contains in bold 
     face type the following statement:
       `` `You may cancel this contract, without any penalty or 
     obligation, at any time before midnight of the 3rd day which 
     begins after the date the contract is signed by you.
       `` `To cancel this contract, mail or deliver a signed, 
     dated copy of this cancellation notice, or any other written 
     notice to [ name of credit repair organization ] at [ address 
     of credit repair organization ] before midnight on [ date ]
       `` `I hereby cancel this transaction,
       [ date ]
       [ purchaser's signature ].'.
       ``(c) Consumer Copy of Contract Required.--Any consumer who 
     enters into any contract with any credit repair organization 
     shall be given, by the organization--
       ``(1) a copy of the completed contract and the disclosure 
     statement required under section 405; and
       ``(2) a copy of any other document the credit repair 
     organization requires the consumer to sign,
     at the time the contract or the other document is signed.

     ``SEC. 408. NONCOMPLIANCE WITH THIS TITLE.

       ``(a) Consumer Waivers Invalid.--Any waiver by any consumer 
     of any protection provided by or any right of the consumer 
     under this title--

[[Page H11766]]

       ``(1) shall be treated as void; and
       ``(2) may not be enforced by any Federal or State court or 
     any other person.
       ``(b) Attempt To Obtain Waiver.--Any attempt by any person 
     to obtain a waiver from any consumer of any protection 
     provided by or any right of the consumer under this title 
     shall be treated as a violation of this title.
       ``(c) Contracts Not in Compliance.--Any contract for 
     services which does not comply with the applicable provisions 
     of this title--
       ``(1) shall be treated as void; and
       ``(2) may not be enforced by any Federal or State court or 
     any other person.

     ``SEC. 409. CIVIL LIABILITY.

       ``(a) Liability Established.--Any person who fails to 
     comply with any provision of this title with respect to any 
     other person shall be liable to such person in an amount 
     equal to the sum of the amounts determined under each of the 
     following paragraphs:
       ``(1) Actual damages.--The greater of--
       ``(A) the amount of any actual damage sustained by such 
     person as a result of such failure; or
       ``(B) any amount paid by the person to the credit repair 
     organization.
       ``(2) Punitive damages.--
       ``(A) Individual actions.--In the case of any action by an 
     individual, such additional amount as the court may allow.
       ``(B) Class actions.--In the case of a class action, the 
     sum of--
       ``(i) the aggregate of the amount which the court may allow 
     for each named plaintiff; and
       ``(ii) the aggregate of the amount which the court may 
     allow for each other class member, without regard to any 
     minimum individual recovery.
       ``(3) Attorneys' fees.--In the case of any successful 
     action to enforce any liability under paragraph (1) or (2), 
     the costs of the action, together with reasonable attorneys' 
     fees.
       ``(b) Factors To Be Considered in Awarding Punitive 
     Damages.--In determining the amount of any liability of any 
     credit repair organization under subsection (a)(2), the court 
     shall consider, among other relevant factors--
       ``(1) the frequency and persistence of noncompliance by the 
     credit repair organization;
       ``(2) the nature of the noncompliance;
       ``(3) the extent to which such noncompliance was 
     intentional; and
       ``(4) in the case of any class action, the number of 
     consumers adversely affected.

     ``SEC. 410. ADMINISTRATIVE ENFORCEMENT.

       ``(a) In General.--Compliance with the requirements imposed 
     under this title with respect to credit repair organizations 
     shall be enforced under the Federal Trade Commission Act by 
     the Federal Trade Commission.
       ``(b) Violations of This Title Treated as Violations of 
     Federal Trade Commission Act.--
       ``(1) In general.--For the purpose of the exercise by the 
     Federal Trade Commission of the Commission's functions and 
     powers under the Federal Trade Commission Act, any violation 
     of any requirement or prohibition imposed under this title 
     with respect to credit repair organizations shall constitute 
     an unfair or deceptive act or practice in commerce in 
     violation of section 5(a) of the Federal Trade Commission 
     Act.
       ``(2) Enforcement authority under other law.--All functions 
     and powers of the Federal Trade Commission under the Federal 
     Trade Commission Act shall be available to the Commission to 
     enforce compliance with this title by any person subject to 
     enforcement by the Federal Trade Commission pursuant to this 
     subsection, including the power to enforce the provisions of 
     this title in the same manner as if the violation had been a 
     violation of any Federal Trade Commission trade regulation 
     rule, without regard to whether the credit repair 
     organization--
       ``(A) is engaged in commerce; or
       ``(B) meets any other jurisdictional tests in the Federal 
     Trade Commission Act.
       ``(c) State Action for Violations.--
       ``(1) Authority of states.--In addition to such other 
     remedies as are provided under State law, whenever the chief 
     law enforcement officer of a State, or an official or agency 
     designated by a State, has reason to believe that any person 
     has violated or is violating this title, the State--
       ``(A) may bring an action to enjoin such violation;
       ``(B) may bring an action on behalf of its residents to 
     recover damages for which the person is liable to such 
     residents under section 409 as a result of the violation; and
       ``(C) in the case of any successful action under 
     subparagraph (A) or (B), shall be awarded the costs of the 
     action and reasonable attorney fees as determined by the 
     court.
       ``(2) Rights of commission.--
       ``(A) Notice to commission.--The State shall serve prior 
     written notice of any civil action under paragraph (1) upon 
     the Federal Trade Commission and provide the Commission with 
     a copy of its complaint, except in any case where such prior 
     notice is not feasible, in which case the State shall serve 
     such notice immediately upon instituting such action.
       ``(B) Intervention.--The Commission shall have the right--
       ``(i) to intervene in any action referred to in 
     subparagraph (A);
       ``(ii) upon so intervening, to be heard on all matters 
     arising in the action; and
       ``(iii) to file petitions for appeal.
       ``(3) Investigatory powers.--For purposes of bringing any 
     action under this subsection, nothing in this subsection 
     shall prevent the chief law enforcement officer, or an 
     official or agency designated by a State, from exercising the 
     powers conferred on the chief law enforcement officer or such 
     official by the laws of such State to conduct investigations 
     or to administer oaths or affirmations or to compel the 
     attendance of witnesses or the production of documentary and 
     other evidence.
       ``(4) Limitation.--Whenever the Federal Trade Commission 
     has instituted a civil action for violation of this title, no 
     State may, during the pendency of such action, bring an 
     action under this section against any defendant named in the 
     complaint of the Commission for any violation of this title 
     that is alleged in that complaint.

     ``SEC. 411. STATUTE OF LIMITATIONS.

       ``Any action to enforce any liability under this title may 
     be brought before the later of--
       ``(1) the end of the 5-year period beginning on the date of 
     the occurrence of the violation involved; or
       ``(2) in any case in which any credit repair organization 
     has materially and willfully misrepresented any information 
     which--
       ``(A) the credit repair organization is required, by any 
     provision of this title, to disclose to any consumer; and
       ``(B) is material to the establishment of the credit repair 
     organization's liability to the consumer under this title,
     the end of the 5-year period beginning on the date of the 
     discovery by the consumer of the misrepresentation.

     ``SEC. 412. RELATION TO STATE LAW.

       ``This title shall not annul, alter, affect, or exempt any 
     person subject to the provisions of this title from complying 
     with any law of any State except to the extent that such law 
     is inconsistent with any provision of this title, and then 
     only to the extent of the inconsistency.

     ``SEC. 413. EFFECTIVE DATE.

       ``This title shall apply after the end of the 6-month 
     period beginning on the date of the enactment of the Credit 
     Repair Organizations Act, except with respect to contracts 
     entered into by a credit repair organization before the end 
     of such period.''.

     SEC. 2452. CREDIT WORTHINESS.

       It is the sense of the Senate that--
       (1) individuals should generally be judged for credit 
     worthiness based on their own credit worthiness and not on 
     the zip code or neighborhood in which they live; and
       (2) the Federal Trade Commission, after consultation with 
     the appropriate Federal banking agency, should report to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate as to whether and how the location of the residence of 
     an applicant for unsecured credit is considered by many 
     companies and financial institutions in deciding whether an 
     applicant should be granted credit.
Subtitle E--Asset Conservation, Lender Liability, and Deposit Insurance 
                               Protection

     SEC. 2501. SHORT TITLE.

       This subtitle may be cited as the ``Asset Conservation, 
     Lender Liability, and Deposit Insurance Protection Act of 
     1996''.

     SEC. 2502. CERCLA LENDER AND FIDUCIARY LIABILITY LIMITATIONS 
                   AMENDMENTS.

       (a) In General.--Section 107 of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9607) is amended by adding at the end the 
     following:
       ``(n) Liability of Fiduciaries.--
       ``(1) In general.--The liability of a fiduciary under any 
     provision of this Act for the release or threatened release 
     of a hazardous substance at, from, or in connection with a 
     vessel or facility held in a fiduciary capacity shall not 
     exceed the assets held in the fiduciary capacity.
       ``(2) Exclusion.--Paragraph (1) does not apply to the 
     extent that a person is liable under this Act independently 
     of the person's ownership of a vessel or facility as a 
     fiduciary or actions taken in a fiduciary capacity.
       ``(3) Limitation.--Paragraphs (1) and (4) do not limit the 
     liability pertaining to a release or threatened release of a 
     hazardous substance if negligence of a fiduciary causes or 
     contributes to the release or threatened release.
       ``(4) Safe harbor.--A fiduciary shall not be liable in its 
     personal capacity under this Act for--
       ``(A) undertaking or directing another person to undertake 
     a response action under subsection (d)(1) or under the 
     direction of an on scene coordinator designated under the 
     National Contingency Plan;
       ``(B) undertaking or directing another person to undertake 
     any other lawful means of addressing a hazardous substance in 
     connection with the vessel or facility;
       ``(C) terminating the fiduciary relationship;
       ``(D) including in the terms of the fiduciary agreement a 
     covenant, warranty, or other term or condition that relates 
     to compliance with an environmental law, or monitoring, 
     modifying or enforcing the term or condition;
       ``(E) monitoring or undertaking 1 or more inspections of 
     the vessel or facility;
       ``(F) providing financial or other advice or counseling to 
     other parties to the fiduciary relationship, including the 
     settlor or beneficiary;
       ``(G) restructuring, renegotiating, or otherwise altering 
     the terms and conditions of the fiduciary relationship;
       ``(H) administering, as a fiduciary, a vessel or facility 
     that was contaminated before the fiduciary relationship 
     began; or
       ``(I) declining to take any of the actions described in 
     subparagraphs (B) through (H).
       ``(5) Definitions.--As used in this Act:
       ``(A) Fiduciary.--The term `fiduciary'--
       ``(i) means a person acting for the benefit of another 
     party as a bona fide--

       ``(I) trustee;
       ``(II) executor;
       ``(III) administrator;
       ``(IV) custodian;
       ``(V) guardian of estates or guardian ad litem;
       ``(VI) receiver;
       ``(VII) conservator;

[[Page H11767]]

       ``(VIII) committee of estates of incapacitated persons;
       ``(IX) personal representative;
       ``(X) trustee (including a successor to a trustee) under an 
     indenture agreement, trust agreement, lease, or similar 
     financing agreement, for debt securities, certificates of 
     interest or certificates of participation in debt securities, 
     or other forms of indebtedness as to which the trustee is 
     not, in the capacity of trustee, the lender; or
       ``(XI) representative in any other capacity that the 
     Administrator, after providing public notice, determines to 
     be similar to the capacities described in subclauses (I) 
     through (X); and

       ``(ii) does not include--

       ``(I) a person that is acting as a fiduciary with respect 
     to a trust or other fiduciary estate that was organized for 
     the primary purpose of, or is engaged in, actively carrying 
     on a trade or business for profit, unless the trust or other 
     fiduciary estate was created as part of, or to facilitate, 1 
     or more estate plans or because of the incapacity of a 
     natural person; or
       ``(II) a person that acquires ownership or control of a 
     vessel or facility with the objective purpose of avoiding 
     liability of the person or of any other person.

       ``(B) Fiduciary capacity.--The term `fiduciary capacity' 
     means the capacity of a person in holding title to a vessel 
     or facility, or otherwise having control of or an interest in 
     the vessel or facility, pursuant to the exercise of the 
     responsibilities of the person as a fiduciary.
       ``(6) Savings clause.--Nothing in this subsection--
       ``(A) affects the rights or immunities or other defenses 
     that are available under this Act or other law that is 
     applicable to a person subject to this subsection; or
       ``(B) creates any liability for a person or a private right 
     of action against a fiduciary or any other person.
       ``(7) No effect on certain persons.--Nothing in this 
     subsection applies to a person if the person--
       ``(A)(i) acts in a capacity other than that of a fiduciary 
     or in a beneficiary capacity; and
       ``(ii) in that capacity, directly or indirectly benefits 
     from a trust or fiduciary relationship; or
       ``(B)(i) is a beneficiary and a fiduciary with respect to 
     the same fiduciary estate; and
       ``(ii) as a fiduciary, receives benefits that exceed 
     customary or reasonable compensation, and incidental 
     benefits, permitted under other applicable law.
       ``(8) Limitation.--This subsection does not preclude a 
     claim under this Act against--
       ``(A) the assets of the estate or trust administered by the 
     fiduciary; or
       ``(B) a nonemployee agent or independent contractor 
     retained by a fiduciary.''.
       (b) Definition of Owner or Operator.--Section 101(20) of 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601(20)) is amended by 
     adding at the end the following:
       ``(E) Exclusion of lenders not participants in 
     management.--
       ``(i) Indicia of ownership to protect security.--The term 
     `owner or operator' does not include a person that is a 
     lender that, without participating in the management of a 
     vessel or facility, holds indicia of ownership primarily to 
     protect the security interest of the person in the vessel or 
     facility.
       ``(ii) Foreclosure.--The term `owner or operator' does not 
     include a person that is a lender that did not participate in 
     management of a vessel or facility prior to foreclosure, 
     notwithstanding that the person--

       ``(I) forecloses on the vessel or facility; and
       ``(II) after foreclosure, sells, re-leases (in the case of 
     a lease finance transaction), or liquidates the vessel or 
     facility, maintains business activities, winds up operations, 
     undertakes a response action under section 107(d)(1) or under 
     the direction of an on-scene coordinator appointed under the 
     National Contingency Plan, with respect to the vessel or 
     facility, or takes any other measure to preserve, protect, or 
     prepare the vessel or facility prior to sale or disposition,

     if the person seeks to sell, re-lease (in the case of a lease 
     finance transaction), or otherwise divest the person of the 
     vessel or facility at the earliest practicable, commercially 
     reasonable time, on commercially reasonable terms, taking 
     into account market conditions and legal and regulatory 
     requirements.
       ``(F) Participation in management.--For purposes of 
     subparagraph (E)--
       ``(i) the term `participate in management'--

       ``(I) means actually participating in the management or 
     operational affairs of a vessel or facility; and
       ``(II) does not include merely having the capacity to 
     influence, or the unexercised right to control, vessel or 
     facility operations;

       ``(ii) a person that is a lender and that holds indicia of 
     ownership primarily to protect a security interest in a 
     vessel or facility shall be considered to participate in 
     management only if, while the borrower is still in possession 
     of the vessel or facility encumbered by the security 
     interest, the person--

       ``(I) exercises decisionmaking control over the 
     environmental compliance related to the vessel or facility, 
     such that the person has undertaken responsibility for the 
     hazardous substance handling or disposal practices related to 
     the vessel or facility; or
       ``(II) exercises control at a level comparable to that of a 
     manager of the vessel or facility, such that the person has 
     assumed or manifested responsibility--

       ``(aa) for the overall management of the vessel or facility 
     encompassing day-to-day decisionmaking with respect to 
     environmental compliance; or
       ``(bb) over all or substantially all of the operational 
     functions (as distinguished from financial or administrative 
     functions) of the vessel or facility other than the function 
     of environmental compliance;
       ``(iii) the term `participate in management' does not 
     include performing an act or failing to act prior to the time 
     at which a security interest is created in a vessel or 
     facility; and
       ``(iv) the term `participate in management' does not 
     include--

       ``(I) holding a security interest or abandoning or 
     releasing a security interest;
       ``(II) including in the terms of an extension of credit, or 
     in a contract or security agreement relating to the 
     extension, a covenant, warranty, or other term or condition 
     that relates to environmental compliance;
       ``(III) monitoring or enforcing the terms and conditions of 
     the extension of credit or security interest;
       ``(IV) monitoring or undertaking 1 or more inspections of 
     the vessel or facility;
       ``(V) requiring a response action or other lawful means of 
     addressing the release or threatened release of a hazardous 
     substance in connection with the vessel or facility prior to, 
     during, or on the expiration of the term of the extension of 
     credit;

       ``(VI) providing financial or other advice or counseling in 
     an effort to mitigate, prevent, or cure default or diminution 
     in the value of the vessel or facility;
       ``(VII) restructuring, renegotiating, or otherwise agreeing 
     to alter the terms and conditions of the extension of credit 
     or security interest, exercising forbearance;
       ``(VIII) exercising other remedies that may be available 
     under applicable law for the breach of a term or condition of 
     the extension of credit or security agreement; or
       ``(IX) conducting a response action under section 107(d) or 
     under the direction of an on-scene coordinator appointed 
     under the National Contingency Plan,

     if the actions do not rise to the level of participating in 
     management (within the meaning of clauses (i) and (ii)).
       ``(G) Other terms.--As used in this Act:
       ``(i) Extension of credit.--The term `extension of credit' 
     includes a lease finance transaction--

       ``(I) in which the lessor does not initially select the 
     leased vessel or facility and does not during the lease term 
     control the daily operations or maintenance of the vessel or 
     facility; or
       ``(II) that conforms with regulations issued by the 
     appropriate Federal banking agency or the appropriate State 
     bank supervisor (as those terms are defined in section 3 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813) or with 
     regulations issued by the National Credit Union 
     Administration Board, as appropriate.

       ``(ii) Financial or administrative function.--The term 
     `financial or administrative function' includes a function 
     such as that of a credit manager, accounts payable officer, 
     accounts receivable officer, personnel manager, comptroller, 
     or chief financial officer, or a similar function.
       ``(iii) Foreclosure; foreclose.--The terms `foreclosure' 
     and `foreclose' mean, respectively, acquiring, and to 
     acquire, a vessel or facility through--

       ``(I)(aa) purchase at sale under a judgment or decree, 
     power of sale, or nonjudicial foreclosure sale;
       ``(bb) a deed in lieu of foreclosure, or similar conveyance 
     from a trustee; or
       ``(cc) repossession,

     if the vessel or facility was security for an extension of 
     credit previously contracted;

       ``(II) conveyance pursuant to an extension of credit 
     previously contracted, including the termination of a lease 
     agreement; or
       ``(III) any other formal or informal manner by which the 
     person acquires, for subsequent disposition, title to or 
     possession of a vessel or facility in order to protect the 
     security interest of the person.

       ``(iv) Lender.--The term `lender' means--

       ``(I) an insured depository institution (as defined in 
     section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
     1813));
       ``(II) an insured credit union (as defined in section 101 
     of the Federal Credit Union Act (12 U.S.C. 1752));
       ``(III) a bank or association chartered under the Farm 
     Credit Act of 1971 (12 U.S.C. 2001 et seq.);
       ``(IV) a leasing or trust company that is an affiliate of 
     an insured depository institution;
       ``(V) any person (including a successor or assignee of any 
     such person) that makes a bona fide extension of credit to or 
     takes or acquires a security interest from a nonaffiliated 
     person;
       ``(VI) the Federal National Mortgage Association, the 
     Federal Home Loan Mortgage Corporation, the Federal 
     Agricultural Mortgage Corporation, or any other entity that 
     in a bona fide manner buys or sells loans or interests in 
     loans;
       ``(VII) a person that insures or guarantees against a 
     default in the repayment of an extension of credit, or acts 
     as a surety with respect to an extension of credit, to a 
     nonaffiliated person; and
       ``(VIII) a person that provides title insurance and that 
     acquires a vessel or facility as a result of assignment or 
     conveyance in the course of underwriting claims and claims 
     settlement.

       ``(v) Operational function.--The term `operational 
     function' includes a function such as that of a facility or 
     plant manager, operations manager, chief operating officer, 
     or chief executive officer.
       ``(vi) Security interest.--The term `security interest' 
     includes a right under a mortgage, deed of trust, assignment, 
     judgment lien, pledge, security agreement, factoring 
     agreement, or lease and any other right accruing to a person 
     to secure the repayment of money, the performance of a duty, 
     or any other obligation by a nonaffiliated person.''.

     SEC. 2503. CONFORMING AMENDMENT.

       Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C. 
     6991b(h)) is amended by striking paragraph (9) and inserting 
     the following:

[[Page H11768]]

       ``(9) Definition of owner or operator.--
       ``(A) In general.--As used in this subtitle, the terms 
     `owner' and `operator' do not include a person that, without 
     participating in the management of an underground storage 
     tank and otherwise not engaged in petroleum production, 
     refining, or marketing, holds indicia of ownership primarily 
     to protect the person's security interest.
       ``(B) Security interest holders.--The provisions regarding 
     holders of security interests in subparagraphs (E) through 
     (G) of section 101(20) and the provisions regarding 
     fiduciaries at section 107(n) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 shall apply in determining a person's liability as an 
     owner or operator of an underground storage tank for the 
     purposes of this subtitle.
       ``(C) Effect on rule.--Nothing in subparagraph (B) shall be 
     construed as modifying or affecting the final rule issued by 
     the Administrator on September 7, 1995 (60 Fed. Reg. 46,692), 
     or as limiting the authority of the Administrator to amend 
     the final rule, in accordance with applicable law. The final 
     rule in effect on the date of enactment of this subparagraph 
     shall prevail over any inconsistent provision regarding 
     holders of security interests in subparagraphs (E) through 
     (G) of section 101(20) or any inconsistent provision 
     regarding fiduciaries in section 107(n) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980. Any amendment to the final rule shall be consistent 
     with the provisions regarding holders of security interests 
     in subparagraphs (E) through (G) of section 101(20) and the 
     provisions regarding fiduciaries in section 107(n) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980. This subparagraph does not preclude 
     judicial review of any amendment of the final rule made after 
     the date of enactment of this subparagraph.''.

     SEC. 2504. LENDER LIABILITY RULE.

       (a) In General.--Effective on the date of enactment of this 
     Act, the portion of the final rule issued by the 
     Administrator of the Environmental Protection Agency on April 
     29, 1992 (57 Fed. Reg. 18,344), prescribing section 300.1105 
     of title 40, Code of Federal Regulations, shall be deemed to 
     have been validly issued under authority of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9601 et seq.) and to have been effective 
     according to the terms of the final rule. No additional 
     judicial proceedings shall be necessary or may be held with 
     respect to such portion of the final rule. Any reference in 
     that portion of the final rule to section 300.1100 of title 
     40, Code of Federal Regulations, shall be deemed to be a 
     reference to the amendments made by this subtitle.
       (b) Judicial Review.--Notwithstanding section 113(a) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9613(a)), no court shall 
     have jurisdiction to review the portion of the final rule 
     issued by the Administrator of the Environmental Protection 
     Agency on April 29, 1992 (57 Fed. Reg. 18,344) that 
     prescribed section 300.1105 of title 40, Code of Federal 
     Regulations.
       (c) Amendment.--No provision of this section shall be 
     construed as limiting the authority of the President or a 
     delegee of the President to amend the portion of the final 
     rule issued by the Administrator of the Environmental 
     Protection Agency on April 29, 1992 (57 Fed. Reg. 18,344), 
     prescribing section 300.1105 of title 40, Code of Federal 
     Regulations, consistent with the amendments made by this 
     subtitle and other applicable law.
       (d) Judicial Review.--No provision of this section shall be 
     construed as precluding judicial review of any amendment of 
     section 300.1105 of title 40, Code of Federal Regulations, 
     made after the date of enactment of this Act.

     SEC. 2505. EFFECTIVE DATE.

       The amendments made by this subtitle shall be applicable 
     with respect to any claim that has not been finally 
     adjudicated as of the date of enactment of this Act.
                       Subtitle F--Miscellaneous

     SEC. 2601. FEDERAL RESERVE BOARD STUDY.

       (a) Study of Electronic Stored Value Products.--
       (1) Study.--The Board shall conduct a study of electronic 
     stored value products which evaluates whether provisions of 
     the Electronic Fund Transfer Act could be applied to such 
     products without adversely impacting the cost, development, 
     and operation of such products.
       (2) Considerations.--In conducting its study under 
     paragraph (1), the Board shall consider whether alternatives 
     to regulation under the Electronic Fund Transfer Act, such as 
     allowing competitive market forces to shape the development 
     and operation of electronic stored value products, could more 
     efficiently achieve the objectives embodied in that Act.
       (b) Report.--The Board shall submit a report of its study 
     under subsection (a) to the Congress not later than 6 months 
     after the date of enactment of this Act.
       (c) Action To Finalize.--The Board shall take no action to 
     finalize any amendments to regulations under the Electronic 
     Fund Transfer Act that would regulate electronic stored value 
     products until the later of--
       (1) 3 months after the date on which the report is 
     submitted to the Congress under subsection (b); or
       (2) 9 months after the date of enactment of this Act.

     SEC. 2602. TREATMENT OF CLAIMS ARISING FROM BREACH OF 
                   CONTRACTS EXECUTED BY THE RECEIVER OR 
                   CONSERVATOR.

       Section 11(d) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(d)) is amended by adding at the end the following 
     new paragraph:
       ``(20) Treatment of claims arising from breach of contracts 
     executed by the receiver or conservator.--Notwithstanding any 
     other provision of this subsection, any final and 
     unappealable judgment for monetary damages entered against a 
     receiver or conservator for an insured depository institution 
     for the breach of an agreement executed or approved by such 
     receiver or conservator after the date of its appointment 
     shall be paid as an administrative expense of the receiver or 
     conservator. Nothing in this paragraph shall be construed to 
     limit the power of a receiver or conservator to exercise any 
     rights under contract or law, including to terminate, breach, 
     cancel, or otherwise discontinue such agreement.''.

     SEC. 2603. CRIMINAL SANCTIONS FOR FICTITIOUS FINANCIAL 
                   INSTRUMENTS AND COUNTERFEITING.

       (a) Increased Penalties for Counterfeiting Violations.--
     Sections 474 and 474A of title 18, United States Code, are 
     amended by striking ``class C felony'' each place that term 
     appears and inserting ``class B felony''.
       (b) Criminal Penalty for Production, Sale, Transportation, 
     Possession of Fictitious Financial Instruments Purporting to 
     be Those of the States, of Political Subdivisions, and of 
     Private Organizations.--
       (1) In general.--Chapter 25 of title 18, United States 
     Code, is amended by inserting after section 513, the 
     following new section:

     ``Sec. 514. Fictitious obligations

       ``(a) Whoever, with the intent to defraud--
       ``(1) draws, prints, processes, produces, publishes, or 
     otherwise makes, or attempts or causes the same, within the 
     United States;
       ``(2) passes, utters, presents, offers, brokers, issues, 
     sells, or attempts or causes the same, or with like intent 
     possesses, within the United States; or
       ``(3) utilizes interstate or foreign commerce, including 
     the use of the mails or wire, radio, or other electronic 
     communication, to transmit, transport, ship, move, transfer, 
     or attempts or causes the same, to, from, or through the 
     United States,
     any false or fictitious instrument, document, or other item 
     appearing, representing, purporting, or contriving through 
     scheme or artifice, to be an actual security or other 
     financial instrument issued under the authority of the United 
     States, a foreign government, a State or other political 
     subdivision of the United States, or an organization, shall 
     be guilty of a class B felony.
       ``(b) For purposes of this section, any term used in this 
     section that is defined in section 513(c) has the same 
     meaning given such term in section 513(c).
       ``(c) The United States Secret Service, in addition to any 
     other agency having such authority, shall have authority to 
     investigate offenses under this section.''.
       (2) Technical amendment.--The analysis for chapter 25 of 
     title 18, United States Code, is amended by inserting after 
     the item relating to section 513 the following:

``514. Fictitious obligations.''.

     SEC. 2604. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

       (a) Repeal.--Effective as of the end of the 5-year period 
     beginning on the date of the enactment of this Act, section 
     271 of the Truth in Savings Act (12 U.S.C. 4310) is repealed.
       (b) On-Premises Displays.--Section 263(c) of the Truth in 
     Savings Act (12 U.S.C. 4302(c)) is amended--
       (1) by striking paragraph (2);
       (2) by striking ``(1) In general.--''; and
       (3) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively, and indenting 
     appropriately.
       (c) Depository Institution Definition.--Section 274(6) of 
     the Truth in Savings Act (12 U.S.C. 4313(6)) is amended by 
     inserting before the period ``, but does not include any 
     nonautomated credit union that was not required to comply 
     with the requirements of this title as of the date of 
     enactment of the Economic Growth and Regulatory Paperwork 
     Reduction Act of 1996, pursuant to the determination of the 
     National Credit Union Administration Board''.
       (d) Time Deposits.--Section 266(a)(3) of the Truth in 
     Savings Act (12 U.S.C. 4305(a)(3)) is amended by inserting 
     ``has a maturity of more than 30 days'' after ``deposit 
     which''.

     SEC. 2605. CONSUMER LEASING ACT AMENDMENTS.

       (a) Congressional Findings and Declaration of Purposes.--
       (1) Findings.--The Congress finds that--
       (A) competition among the various financial institutions 
     and other firms engaged in the business of consumer leasing 
     is greatest when there is informed use of leasing;
       (B) the informed use of leasing results from an awareness 
     of the cost of leasing by consumers; and
       (C) there has been a continued trend toward leasing 
     automobiles and other durable goods for consumer use as an 
     alternative to installment credit sales and that leasing 
     product advances have occurred such that lessors have been 
     unable to provide consistent industry-wide disclosures to 
     fully account for the competitive progress that has occurred.
       (2) Purposes.--The purposes of this section are--
       (A) to assure a simple, meaningful disclosure of leasing 
     terms so that the consumer will be able to compare more 
     readily the various leasing terms available to the consumer 
     and avoid the uninformed use of leasing, and to protect the 
     consumer against inaccurate and unfair leasing practices;
       (B) to provide for adequate cost disclosures that reflect 
     the marketplace without impairing competition and the 
     development of new leasing products; and
       (C) to provide the Board with the regulatory authority to 
     assure a simplified, meaningful definition and disclosure of 
     the terms of certain

[[Page H11769]]

     leases of personal property for personal, family, or 
     household purposes so as to--
       (i) enable the lessee to compare more readily the various 
     lease terms available to the lessee;
       (ii) enable comparison of lease terms with credit terms, as 
     appropriate; and
       (iii) assure meaningful and accurate disclosures of lease 
     terms in advertisements.
       (b) Regulations.--
       (1) In general.--Chapter 5 of the Truth in Lending Act (15 
     U.S.C. 1667 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 187. REGULATIONS.

       ``(a) Regulations Authorized.--
       ``(1) In general.--The Board shall prescribe regulations to 
     update and clarify the requirements and definitions 
     applicable to lease disclosures and contracts, and any other 
     issues specifically related to consumer leasing, to the 
     extent that the Board determines such action to be 
     necessary--
       ``(A) to carry out this chapter;
       ``(B) to prevent any circumvention of this chapter; or
       ``(C) to facilitate compliance with the requirements of the 
     chapter.
       ``(2) Classifications, adjustments.--Any regulations 
     prescribed under paragraph (1) may contain classifications 
     and differentiations, and may provide for adjustments and 
     exceptions for any class of transactions, as the Board 
     considers appropriate.
       ``(b) Model Disclosure.--
       ``(1) Publication.--The Board shall establish and publish 
     model disclosure forms to facilitate compliance with the 
     disclosure requirements of this chapter and to aid the 
     consumer in understanding the transaction to which the 
     subject disclosure form relates.
       ``(2) Use of automated equipment.--In establishing model 
     forms under this subsection, the Board shall consider the use 
     by lessors of data processing or similar automated equipment.
       ``(3) Use optional.--A lessor may utilize a model 
     disclosure form established by the Board under this 
     subsection for purposes of compliance with this chapter, at 
     the discretion of the lessor.
       ``(4) Effect of use.--Any lessor who properly uses the 
     material aspects of any model disclosure form established by 
     the Board under this subsection shall be deemed to be in 
     compliance with the disclosure requirements to which the form 
     relates.''.
       (2) Effective date.--
       (A) In general.--Any regulation of the Board, or any 
     amendment or interpretation of any regulation of the Board 
     issued pursuant to section 187 of the Truth in Lending Act 
     (as added by paragraph (1) of this subsection), shall become 
     effective on the first October 1 that follows the date of 
     promulgation of that regulation, amendment, or interpretation 
     by not less than 6 months.
       (B) Longer period.--The Board may, at the discretion of the 
     Board, extend the time period referred to in subparagraph (A) 
     in accordance with subparagraph (C), to permit lessors to 
     adjust their disclosure forms to accommodate the requirements 
     of section 127 of the Truth in Lending Act (as added by 
     paragraph (1) of this subsection).
       (C) Shorter period.--The Board may shorten the time period 
     referred to in subparagraph (A), if the Board makes a 
     specific finding that such action is necessary to comply with 
     the findings of a court or to prevent an unfair or deceptive 
     practice.
       (D) Compliance before effective date.--Any lessor may 
     comply with any means of disclosure provided for in section 
     127 of the Truth in Lending Act (as added by paragraph (1) of 
     this subsection) before the effective date of such 
     requirement.
       (E) Definitions.--For purposes of this subsection, the term 
     ``lessor'' has the same meaning as in section 181 of the 
     Truth in Lending Act.
       (3) Clerical amendment.--The table of sections for chapter 
     5 of title I of the Truth in Lending Act (15 U.S.C. 1601 et 
     seq.) is amended by inserting after the item relating to 
     section 186 the following new item:

``187. Regulations.''.

       (c) Consumer Lease Advertising.--Section 184 of the Truth 
     in Lending Act (15 U.S.C. 1667c) is amended--
       (1) by striking subsections (a) and (c);
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting before subsection (c), as so redesignated, 
     the following:
       ``(a) In General.--If an advertisement for a consumer lease 
     includes a statement of the amount of any payment or a 
     statement that any or no initial payment is required, the 
     advertisement shall clearly and conspicuously state, as 
     applicable--
       ``(1) the transaction advertised is a lease;
       ``(2) the total amount of any initial payments required on 
     or before consummation of the lease or delivery of the 
     property, whichever is later;
       ``(3) that a security deposit is required;
       ``(4) the number, amount, and timing of scheduled payments; 
     and
       ``(5) with respect to a lease in which the liability of the 
     consumer at the end of the lease term is based on the 
     anticipated residual value of the property, that an extra 
     charge may be imposed at the end of the lease term.
       ``(b) Advertising Medium Not Liable.--No owner or employee 
     of any entity that serves as a medium in which an 
     advertisement appears or through which an advertisement is 
     disseminated, shall be liable under this section.''.

     SEC. 2606. STUDY OF CORPORATE CREDIT UNIONS.

       (a) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Administration.--The term ``Administration'' means the 
     National Credit Union Administration.
       (2) Board.--The term ``Board'' means the National Credit 
     Union Administration Board.
       (3) Corporate credit union.--The term ``corporate credit 
     union'' has the meaning given such term by rule or regulation 
     of the Board.
       (4) Fund.--The term ``Fund'' means the National Credit 
     Union Share Insurance Fund established under section 203 of 
     the Federal Credit Union Act.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (b) Study.--
       (1) In general.--The Secretary, in consultation with the 
     Board, the Corporation, the Comptroller of the Currency, and 
     the Administration, shall conduct a study and evaluation of--
       (A) the oversight and supervisory practices of the 
     Administration concerning the Fund, including the treatment 
     of amounts deposited in the Fund pursuant to section 202(c) 
     of the Federal Credit Union Act, including analysis of--
       (i) whether those amounts should be--

       (I) refundable; or
       (II) treated as expenses; and

       (ii) the use of those amounts in determining equity capital 
     ratios;
       (B) the potential for, and potential effects of, 
     administration of the Fund by an entity other than the 
     Administration;
       (C) the 10 largest corporate credit unions in the United 
     States, conducted in cooperation with appropriate employees 
     of other Federal agencies with expertise in the examination 
     of federally insured financial institutions, including--
       (i) the investment practices of those credit unions; and
       (ii) the financial stability, financial operations, and 
     financial controls of those credit unions;
       (D) the regulations of the Administration; and
       (E) the supervision of corporate credit unions by the 
     Administration.
       (c) Report.--Not later than 12 months after the date of 
     enactment of this Act, the Secretary shall submit to the 
     appropriate committees of the Congress, a report that 
     includes the results of the study and evaluation conducted 
     under subsection (b), together with any recommendations that 
     the Secretary considers to be appropriate.

     SEC. 2607. REPORT ON THE RECONCILIATION OF DIFFERENCES 
                   BETWEEN REGULATORY ACCOUNTING PRINCIPLES AND 
                   GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

       Not later than 180 days after the date of enactment of this 
     Act, each appropriate Federal banking agency shall submit to 
     the Committee on Banking and Financial Services of the House 
     of Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate, a report describing both the 
     actions that have been taken by the agency and the actions 
     that will be taken by the agency to eliminate or conform 
     inconsistent or duplicative accounting and reporting 
     requirements applicable to reports or statements filed with 
     any such agency by insured depository institutions, as 
     required by section 121 of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991.

     SEC. 2608. STATE-BY-STATE AND METROPOLITAN AREA-BY-
                   METROPOLITAN AREA STUDY OF BANK FEES.

       Section 1002(b)(2)(A) of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) 
     is amended to read as follows:
       ``(A) a description of any discernible trend, in the Nation 
     as a whole, in each of the 50 States, and in each 
     consolidated metropolitan statistical area or primary 
     metropolitan statistical area (as defined by the Director of 
     the Office of Management and Budget), in the cost and 
     availability of retail banking services (including fees 
     imposed for providing such services), that delineates 
     differences between insured depository institutions on the 
     basis of both the size of the institution and any engagement 
     of the institution in multistate activity; and''.

     SEC. 2609. PROSPECTIVE APPLICATION OF GOLD CLAUSES IN 
                   CONTRACTS.

       Section 5118(d)(2) of title 31, United States Code, is 
     amended by adding at the end the following: ``This paragraph 
     shall apply to any obligation issued on or before October 27, 
     1977, notwithstanding any assignment or novation of such 
     obligation after October 27, 1977, unless all parties to the 
     assignment or novation specifically agree to include a gold 
     clause in the new agreement. Nothing in the preceding 
     sentence shall be construed to affect the enforceability of a 
     Gold Clause contained in any obligation issued after October 
     27, 1977 if the enforceability of that Gold Clause has been 
     finally adjudicated before the date of enactment of the 
     Economic Growth and Regulatory Paperwork Reduction Act of 
     1996.''.

     SEC. 2610. QUALIFIED FAMILY PARTNERSHIPS.

       Section 2 of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1841) is amended--
       (1) in subsection (b), by inserting ``, and shall not 
     include a qualified family partnership'' after ``by any 
     State''; and
       (2) in subsection (o), by adding at the end the following:
       ``(10) Qualified family partnership.--The term `qualified 
     family partnership' means a general or limited partnership 
     that the Board determines--
       ``(A) does not directly control any bank, except through a 
     registered bank holding company;
       ``(B) does not control more than 1 registered bank holding 
     company;
       ``(C) does not engage in any business activity, except 
     indirectly through ownership of other business entities;
       ``(D) has no investments other than those permitted for a 
     bank holding company pursuant to section 4(c);
       ``(E) is not obligated on any debt, either directly or as a 
     guarantor;

[[Page H11770]]

       ``(F) has partners, all of whom are either--
       ``(i) individuals related to each other by blood, marriage 
     (including former marriage), or adoption; or
       ``(ii) trusts for the primary benefit of individuals 
     related as described in clause (i); and
       ``(G) has filed with the Board a statement that includes--
       ``(i) the basis for the eligibility of the partnership 
     under subparagraph (F);
       ``(ii) a list of the existing activities and investments of 
     the partnership;
       ``(iii) a commitment to comply with this paragraph;
       ``(iv) a commitment to comply with section 7 of the Federal 
     Deposit Insurance Act with respect to any acquisition of 
     control of an insured depository institution occurring after 
     date of enactment of this paragraph; and
       ``(v) a commitment to be subject, to the same extent as if 
     the qualified family partnership were a bank holding 
     company--

       ``(I) to examination by the Board to assure compliance with 
     this paragraph; and
       ``(II) to section 8 of the Federal Deposit Insurance 
     Act.''.

     SEC. 2611. COOPERATIVE EFFORTS BETWEEN DEPOSITORY 
                   INSTITUTIONS AND FARMERS AND RANCHERS IN 
                   DROUGHT-STRICKEN AREAS.

       (a) Findings.--The Congress hereby finds the following:
       (1) Severe drought is being experienced in the Plains and 
     the Southwest portions of our country.
       (2) Soil erosion is becoming a critical issue as the dry 
     season approaches and summer winds may rob these fields of 
     nutrient-rich topsoil.
       (3) Without immediate assistance, ranchers and farmers 
     would be forced to cull their herds bringing tremendous 
     volatility in the beef market.
       (4) The American people will feel the impact of this 
     drought in their pocketbooks through higher prices for grain 
     products.
       (5) The communities in drought-stricken areas are suffering 
     and borrowers may have difficulty meeting their obligations 
     to financial institutions.
       (6) Congress has already passed the Depository Institutions 
     Disaster Relief Act of 1992 which allows financial 
     institutions to make emergency exceptions to the appraisal 
     requirement in times of national disasters.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that financial institutions and Federal bank regulators 
     should work cooperatively with farmers and ranchers in 
     communities affected by drought conditions to allow financial 
     obligations to be met without imposing undue burdens.

     SEC. 2612. STREAMLINING PROCESS FOR DETERMINING NEW 
                   NONBANKING ACTIVITIES.

       Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1843(c)(8)) is amended by striking ``and opportunity 
     for hearing'' and inserting the following: ``(and opportunity 
     for hearing in the case of an acquisition of a savings 
     association)''.

     SEC. 2613. AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE AS 
                   LIMITED LIABILITY COMPANIES.

       (a) Amendment to Short Title.--Section 1 of the Bank 
     Service Corporation Act (12 U.S.C. 1861(a)) is amended by 
     striking subsection (a) and inserting the following new 
     subsection:
       ``(a) Short Title.--This Act may be cited as the `Bank 
     Service Company Act'.'';
       (b) Amendments to Definitions.--Section 1(b) of the Bank 
     Service Corporation Act (12 U.S.C. 1861(b)) is amended--
       (1) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) the term `bank service company' means--
       ``(A) any corporation--
       ``(i) which is organized to perform services authorized by 
     this Act; and
       ``(ii) all of the capital stock of which is owned by 1 or 
     more insured banks; and
       ``(B) any limited liability company--
       ``(i) which is organized to perform services authorized by 
     this Act; and
       ``(ii) all of the members of which are 1 or more insured 
     banks.'';
       (2) in paragraph (6)--
       (A) by striking ``corporation'' and inserting ``company''; 
     and
       (B) by striking ``and'' after the semicolon;
       (3) by redesignating paragraph (7) as paragraph (8) and 
     inserting after paragraph (6) the following new paragraph:
       ``(7) the term `limited liability company' means any 
     company, partnership, trust, or similar business entity 
     organized under the law of a State (as defined in section 3 
     of the Federal Deposit Insurance Act) which provides that a 
     member or manager of such company is not personally liable 
     for a debt, obligation, or liability of the company solely by 
     reason of being, or acting as, a member or manager of such 
     company; and''; and
       (4) in paragraph (8) (as so redesignated)--
       (A) by striking ``corporation'' each place such term 
     appears and inserting ``company''; and
       (B) by striking ``capital stock'' and inserting ``equity''.
       (c) Amendments to Section 2.--Section 2 of the Bank Service 
     Corporation Act (12 U.S.C. 1862) is amended--
       (1) by striking ``corporation'' and inserting ``company'';
       (2) by striking ``corporations'' and inserting 
     ``companies''; and
       (3) in the heading for such section, by striking 
     ``corporation'' and inserting ``company''.
       (d) Amendments to Section 3.--Section 3 of the Bank Service 
     Corporation Act (12 U.S.C. 1863) is amended--
       (1) by striking ``corporation'' each place such term 
     appears and inserting ``company''; and
       (2) in the heading for such section, by striking 
     ``corporation'' and inserting ``company''.
       (e) Amendments to Section 4.--Section 4 of the Bank Service 
     Corporation Act (12 U.S.C. 1864) is amended--
       (1) by striking ``corporation'' each place such term 
     appears and inserting ``company'';
       (2) in subsection (b), by inserting ``or members'' after 
     ``shareholders'' each place such term appears;
       (3) in subsections (c) and (d), by inserting ``or member'' 
     after ``shareholder'' each place such term appears;
       (4) in subsection (e)--
       (A) by inserting ``or members'' after ``national bank and 
     State bank shareholders'';
       (B) by striking ``its national bank shareholder or 
     shareholders'' and inserting ``any shareholder or member of 
     the company which is a national bank'';
       (C) by striking ``its State bank shareholder or 
     shareholders'' and inserting ``any shareholder or member of 
     the company which is a State bank'';
       (D) by striking ``such State bank or banks'' and inserting 
     ``any such State bank''; and
       (E) by inserting ``or members'' after ``State bank and 
     national bank shareholders''; and
       (5) in the heading for such section, by striking 
     ``corporation'' and inserting ``company''.
       (f) Amendments to Section 5.--Section 5 of the Bank Service 
     Corporation Act (12 U.S.C. 1865) is amended--
       (1) by striking ``corporation'' each place such term 
     appears and inserting ``company''; and
       (2) in the heading for such section, by striking 
     ``corporations'' and inserting ``companies''.
       (g) Amendments to Section 6.--Section 6 of the Bank Service 
     Corporation Act (12 U.S.C. 1866) is amended--
       (1) by striking ``corporation'' each place such term 
     appears and inserting ``company'';
       (2) by inserting ``or is not a member of'' after ``does not 
     own stock in'';
       (3) by striking ``the nonstockholding institution'' and 
     inserting ``such depository institution'';
       (4) by inserting ``or is a member of'' after ``that owns 
     stock in'';
       (5) in paragraphs (1) and (2), by inserting ``or 
     nonmember'' after ``nonstockholding''; and
       (6) in the heading for such section by inserting ``or 
     nonmembers'' after ``nonstockholders''.
       (h) Amendments to Section 7.--Section 7 of the Bank Service 
     Corporation Act (12 U.S.C. 1867) is amended--
       (1) by striking ``corporation'' each place such term 
     appears and inserting ``company'';
       (2) in subsection (a)--
       (A) by inserting ``or principal member'' after ``principal 
     shareholder''; and
       (B) by inserting ``or member'' after ``other shareholder''; 
     and
       (3) in the heading for such section, by striking 
     ``corporations'' and inserting ``companies''.

     SEC. 2614. RETIREMENT CERTIFICATES OF DEPOSITS.

       (a) In General.--Section 3(l)(5) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1813(l)(5) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) any liability of an insured depository institution 
     that arises under an annuity contract, the income of which is 
     tax deferred under section 72 of the Internal Revenue Code of 
     1986.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to any liability of an insured depository that 
     arises under an annuity contract issued on or after the date 
     of enactment of this Act.

     SEC. 2615. PROHIBITIONS ON CERTAIN DEPOSITORY INSTITUTION 
                   ASSOCIATIONS WITH GOVERNMENT-SPONSORED 
                   ENTERPRISES.

       (a) Credit Unions.--Section 201 of the Federal Credit Union 
     Act (12 U.S.C. 1781) is amended by adding at the end the 
     following new subsection:
       ``(e) Prohibition on Certain Associations.--
       ``(1) In general.--No insured credit union may be sponsored 
     by or accept financial support, directly or indirectly, from 
     any Government-sponsored enterprise, if the credit union 
     includes the customers of the Government-sponsored enterprise 
     in the field of membership of the credit union.
       ``(2) Routine business financing.--Paragraph (1) shall not 
     apply with respect to advances or other forms of financial 
     assistance generally provided by a Government-sponsored 
     enterprise in the ordinary course of business of the 
     enterprise.
       ``(3) Government-sponsored enterprise defined.--For 
     purposes of this subsection, the term `Government-sponsored 
     enterprise' has the meaning given to such term in section 
     1404(e)(1)(A) of the Financial Institutions Reform, Recovery, 
     and Enforcement Act of 1989.
       ``(4) Employee credit union.--No provision of this 
     subsection shall be construed as prohibiting any employee of 
     a Government-sponsored enterprise from becoming a member of a 
     credit union whose field of membership is the employees of 
     such enterprise.''.
       (b) Banks and Savings Associations.--Section 18 of the 
     Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by 
     adding at the end the following new subsection:
       ``(s) Prohibition on Certain Affiliations.--
       ``(1) In general.--No depository institution may be an 
     affiliate of, be sponsored by, or accept financial support, 
     directly or indirectly, from any Government-sponsored 
     enterprise.
       ``(2) Exception for members of a federal home loan bank.--
     Paragraph (1) shall not apply with respect to the membership 
     of a depository institution in a Federal home loan bank.
       ``(3) Routine business financing.--Paragraph (1) shall not 
     apply with respect to advances or other forms of financial 
     assistance

[[Page H11771]]

     provided by a Government-sponsored enterprise pursuant to the 
     statutes governing such enterprise.
       ``(4) Government-sponsored enterprise defined.--For 
     purposes of this subsection, the term `Government-sponsored 
     enterprise' has the meaning given to such term in section 
     1404(e)(1)(A) of the Financial Institutions Reform, Recovery, 
     and Enforcement Act of 1989.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply on and after January 1, 1996.
                  Subtitle G--Deposit Insurance Funds

     SEC. 2701. SHORT TITLE.

       This subtitle may be cited as the ``Deposit Insurance Funds 
     Act of 1996''.

     SEC. 2702. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.

       (a) In General.--Except as provided in subsection (f), the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation shall impose a special assessment on the SAIF-
     assessable deposits of each insured depository institution in 
     accordance with assessment regulations of the Corporation at 
     a rate applicable to all such institutions that the Board of 
     Directors, in its sole discretion, determines (after taking 
     into account the adjustments described in subsections (g), 
     (h), and (j)) will cause the Savings Association Insurance 
     Fund to achieve the designated reserve ratio on the first 
     business day of the 1st month beginning after the date of the 
     enactment of this Act.
       (b) Factors To Be Considered.--In carrying out subsection 
     (a), the Board of Directors shall base its determination on--
       (1) the monthly Savings Association Insurance Fund balance 
     most recently calculated;
       (2) data on insured deposits reported in the most recent 
     reports of condition filed not later than 70 days before the 
     date of enactment of this Act by insured depository 
     institutions; and
       (3) any other factors that the Board of Directors deems 
     appropriate.
       (c) Date of Determination.--For purposes of subsection (a), 
     the amount of the SAIF-assessable deposits of an insured 
     depository institution shall be determined as of March 31, 
     1995.
       (d) Date Payment Due.--Except as provided in subsection 
     (g), the special assessment imposed under this section shall 
     be--
       (1) due on the first business day of the 1st month 
     beginning after the date of the enactment of this Act; and
       (2) paid to the Corporation on the later of--
       (A) the first business day of the 1st month beginning after 
     such date of enactment; or
       (B) such other date as the Corporation shall prescribe, but 
     not later than 60 days after the date of enactment of this 
     Act.
       (e) Assessment Deposited in SAIF.--Notwithstanding any 
     other provision of law, the proceeds of the special 
     assessment imposed under this section shall be deposited in 
     the Savings Association Insurance Fund.
       (f) Exemptions for Certain Institutions.--
       (1) Exemption for weak institutions.--The Board of 
     Directors may, by order, in its sole discretion, exempt any 
     insured depository institution that the Board of Directors 
     determines to be weak, from paying the special assessment 
     imposed under this section if the Board of Directors 
     determines that the exemption would reduce risk to the 
     Savings Association Insurance Fund.
       (2) Guidelines required.--Not later than 30 days after the 
     date of enactment of this Act, the Board of Directors shall 
     prescribe guidelines setting forth the criteria that the 
     Board of Directors will use in exempting institutions under 
     paragraph (1). Such guidelines shall be published in the 
     Federal Register.
       (3) Exemption for certain newly chartered and other defined 
     institutions.--
       (A) In general.--In addition to the institutions exempted 
     from paying the special assessment under paragraph (1), the 
     Board of Directors shall exempt any insured depository 
     institution from payment of the special assessment if the 
     institution--
       (i) was in existence on October 1, 1995, and held no SAIF-
     assessable deposits before January 1, 1993;
       (ii) is a Federal savings bank which--

       (I) was established de novo in April 1994 in order to 
     acquire the deposits of a savings association which was in 
     default or in danger of default; and
       (II) received minority interim capital assistance from the 
     Resolution Trust Corporation under section 21A(w) of the 
     Federal Home Loan Bank Act in connection with the acquisition 
     of any such savings association; or

       (iii) is a savings association, the deposits of which are 
     insured by the Savings Association Insurance Fund, which--

       (I) before January 1, 1987, was chartered as a Federal 
     savings bank insured by the Federal Savings and Loan 
     Insurance Corporation for the purpose of acquiring all or 
     substantially all of the assets and assuming all or 
     substantially all of the deposit liabilities of a national 
     bank in a transaction consummated after July 1, 1986; and
       (II) as of the date of that transaction, had assets of less 
     than $150,000,000.

       (B) Definition.--For purposes of this paragraph, an 
     institution shall be deemed to have held SAIF-assessable 
     deposits before January 1, 1993, if--
       (i) it directly held SAIF-assessable deposits before that 
     date; or
       (ii) it succeeded to, acquired, purchased, or otherwise 
     holds any SAIF-assessable deposits as of the date of 
     enactment of this Act that were SAIF-assessable deposits 
     before January 1, 1993.
       (4) Exempt institutions required to pay assessments at 
     former rates.--
       (A) Payments to saif and dif.--Any insured depository 
     institution that the Board of Directors exempts under this 
     subsection from paying the special assessment imposed under 
     this section shall pay semiannual assessments--
       (i) during calendar years 1996, 1997, and 1998, into the 
     Savings Association Insurance Fund, based on SAIF-assessable 
     deposits of that institution, at assessment rates calculated 
     under the schedule in effect for Savings Association 
     Insurance Fund members on June 30, 1995; and
       (ii) during calendar year 1999--

       (I) into the Deposit Insurance Fund, based on SAIF-
     assessable deposits of that institution as of December 31, 
     1998, at assessment rates calculated under the schedule in 
     effect for Savings Association Insurance Fund members on June 
     30, 1995; or
       (II) in accordance with clause (i), if the Bank Insurance 
     Fund and the Savings Association Insurance Fund are not 
     merged into the Deposit Insurance Fund.

       (B) Optional pro rata payment of special assessment.--This 
     paragraph shall not apply with respect to any insured 
     depository institution (or successor insured depository 
     institution) that has paid, during any calendar year from 
     1997 through 1999, upon such terms as the Corporation may 
     announce, an amount equal to the product of--
       (i) 16.7 percent of the special assessment that the 
     institution would have been required to pay under subsection 
     (a), if the Board of Directors had not exempted the 
     institution; and
       (ii) the number of full semiannual periods remaining 
     between the date of the payment and December 31, 1999.
       (g) Special Election for Certain Institutions Facing 
     Hardship as a Result of the Special Assessment.--
       (1) Election authorized.--If--
       (A) an insured depository institution, or any depository 
     institution holding company which, directly or indirectly, 
     controls such institution, is subject to terms or covenants 
     in any debt obligation or preferred stock outstanding on 
     September 13, 1995; and
       (B) the payment of the special assessment under subsection 
     (a) would pose a significant risk of causing such depository 
     institution or holding company to default or violate any such 
     term or covenant,
     the depository institution may elect, with the approval of 
     the Corporation, to pay such special assessment in accordance 
     with paragraphs (2) and (3) in lieu of paying such assessment 
     in the manner required under subsection (a).
       (2) 1st assessment.--An insured depository institution 
     which makes an election under paragraph (1) shall pay an 
     assessment in an amount equal to 50 percent of the amount of 
     the special assessment that would otherwise apply under 
     subsection (a), by the date on which such special assessment 
     is payable under subsection (d).
       (3) 2d assessment.--An insured depository institution which 
     makes an election under paragraph (1) shall pay a 2d 
     assessment, by the date established by the Board of Directors 
     in accordance with paragraph (4), in an amount equal to the 
     product of 51 percent of the rate determined by the Board of 
     Directors under subsection (a) for determining the amount of 
     the special assessment and the SAIF-assessable deposits of 
     the institution on March 31, 1996, or such other date in 
     calendar year 1996 as the Board of Directors determines to be 
     appropriate.
       (4) Due date of 2d assessment.--The date established by the 
     Board of Directors for the payment of the assessment under 
     paragraph (3) by a depository institution shall be the 
     earliest practicable date which the Board of Directors 
     determines to be appropriate, which is at least 15 days after 
     the date used by the Board of Directors under paragraph (3).
       (5) Supplemental special assessment.--An insured depository 
     institution which makes an election under paragraph (1) shall 
     pay a supplemental special assessment, at the same time the 
     payment under paragraph (3) is made, in an amount equal to 
     the product of--
       (A) 50 percent of the rate determined by the Board of 
     Directors under subsection (a) for determining the amount of 
     the special assessment; and
       (B) 95 percent of the amount by which the SAIF-assessable 
     deposits used by the Board of Directors for determining the 
     amount of the 1st assessment under paragraph (2) exceeds, if 
     any, the SAIF-assessable deposits used by the Board for 
     determining the amount of the 2d assessment under paragraph 
     (3).
       (h) Adjustment of Special Assessment for Certain Bank 
     Insurance Fund Member Banks.--
       (1) In general.--For purposes of computing the special 
     assessment imposed under this section with respect to a Bank 
     Insurance Fund member bank, the amount of any deposits of any 
     insured depository institution which section 5(d)(3) of the 
     Federal Deposit Insurance Act treats as insured by the 
     Savings Association Insurance Fund shall be reduced by 20 
     percent--
       (A) if the adjusted attributable deposit amount of the Bank 
     Insurance Fund member bank is less than 50 percent of the 
     total domestic deposits of that member bank as of June 30, 
     1995; or
       (B) if, as of June 30, 1995, the Bank Insurance Fund 
     member--
       (i) had an adjusted attributable deposit amount equal to 
     less than 75 percent of the total assessable deposits of that 
     member bank;
       (ii) had total assessable deposits greater than 
     $5,000,000,000; and
       (iii) was owned or controlled by a bank holding company 
     that owned or controlled insured depository institutions 
     having an aggregate amount of deposits insured or treated as 
     insured by the Bank Insurance Fund greater than the aggregate 
     amount of deposits insured or treated as insured by the 
     Savings Association Insurance Fund.
       (2) Adjusted attributable deposit amount.--For purposes of 
     this subsection, the ``adjusted attributable deposit amount'' 
     shall be determined in accordance with section 5(d)(3)(C) of 
     the Federal Deposit Insurance Act.

[[Page H11772]]

       (i) Adjustment to the Adjusted Attributable Deposit Amount 
     for Certain Bank Insurance Fund Member Banks.--Section 
     5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
     1815(d)(3)) is amended--
       (1) in subparagraph (C), by striking ``The adjusted 
     attributable deposit amount'' and inserting ``Except as 
     provided in subparagraph (K), the adjusted attributable 
     deposit amount''; and
       (2) by adding at the end the following new subparagraph:
       ``(K) Adjustment of adjusted attributable deposit amount.--
     The amount determined under subparagraph (C)(i) for deposits 
     acquired by March 31, 1995, shall be reduced by 20 percent 
     for purposes of computing the adjusted attributable deposit 
     amount for the payment of any assessment for any semiannual 
     period that begins after the date of the enactment of the 
     Deposit Insurance Funds Act of 1996 (other than the special 
     assessment imposed under section 2702(a) of such Act), for a 
     Bank Insurance Fund member bank that, as of June 30, 1995--
       ``(i) had an adjusted attributable deposit amount that was 
     less than 50 percent of the total deposits of that member 
     bank; or
       ``(ii)(I) had an adjusted attributable deposit amount equal 
     to less than 75 percent of the total assessable deposits of 
     that member bank;
       ``(II) had total assessable deposits greater than 
     $5,000,000,000; and
       ``(III) was owned or controlled by a bank holding company 
     that owned or controlled insured depository institutions 
     having an aggregate amount of deposits insured or treated as 
     insured by the Bank Insurance Fund greater than the aggregate 
     amount of deposits insured or treated as insured by the 
     Savings Association Insurance Fund.''.
       (j) Adjustment of Special Assessment for Certain Savings 
     Associations.--
       (1) Special assessment reduction.--For purposes of 
     computing the special assessment imposed under this section, 
     in the case of any converted association, the amount of any 
     deposits of such association which were insured by the 
     Savings Association Insurance Fund as of March 31, 1995, 
     shall be reduced by 20 percent.
       (2) Converted association.--For purposes of this 
     subsection, the term ``converted association'' means--
       (A) any Federal savings association--
       (i) that is a member of the Savings Association Insurance 
     Fund and that has deposits subject to assessment by that fund 
     which did not exceed $4,000,000,000, as of March 31, 1995; 
     and
       (ii) that had been, or is a successor by merger, 
     acquisition, or otherwise to an institution that had been, a 
     State savings bank, the deposits of which were insured by the 
     Federal Deposit Insurance Corporation before August 9, 1989, 
     that converted to a Federal savings association pursuant to 
     section 5(i) of the Home Owners' Loan Act before January 1, 
     1985;
       (B) a State depository institution that is a member of the 
     Savings Association Insurance Fund that had been a State 
     savings bank before October 15, 1982, and was a Federal 
     savings association on August 9, 1989;
       (C) an insured bank that--
       (i) was established de novo in order to acquire the 
     deposits of a savings association in default or in danger of 
     default;
       (ii) did not open for business before acquiring the 
     deposits of such savings association; and
       (iii) was a Savings Association Insurance Fund member 
     before the date of enactment of this Act; and
       (D) an insured bank that--
       (i) resulted from a savings association before December 19, 
     1991, in accordance with section 5(d)(2)(G) of the Federal 
     Deposit Insurance Act; and
       (ii) had an increase in its capital in conjunction with the 
     conversion in an amount equal to more than 75 percent of the 
     capital of the institution on the day before the date of the 
     conversion.

     SEC. 2703. FINANCING CORPORATION FUNDING.

       (a) In General.--Section 21 of the Federal Home Loan Bank 
     Act (12 U.S.C. 1441) is amended--
       (1) in subsection (f)(2)--
       (A) in the matter immediately preceding subparagraph (A)--
       (i) by striking ``To the extent the amounts available 
     pursuant to paragraph (1) are insufficient to cover the 
     amount of interest payments, issuance costs, and custodial 
     fees,'' and inserting ``In addition to the amounts obtained 
     pursuant to paragraph (1),'';
       (ii) by striking ``Savings Association Insurance Fund 
     member'' and inserting ``insured depository institution''; 
     and
       (iii) by striking ``members'' and inserting 
     ``institutions''; and
       (B) by striking ``, except that--'' and all that follows 
     through the end of the paragraph and inserting ``, except 
     that--
       ``(A) the assessments imposed on insured depository 
     institutions with respect to any BIF-assessable deposit shall 
     be assessed at a rate equal to \1/5\ of the rate of the 
     assessments imposed on insured depository institutions with 
     respect to any SAIF-assessable deposit; and
       ``(B) no limitation under clause (i) or (iii) of section 
     7(b)(2)(A) of the Federal Deposit Insurance Act shall apply 
     for purposes of this paragraph.''; and
       (2) in subsection (k)--
       (A) by striking ``section--'' and inserting ``section, the 
     following definitions shall apply:'';
       (B) by striking paragraph (1);
       (C) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively; and
       (D) by adding at the end the following new paragraphs:
       ``(3) Insured depository institution.--The term `insured 
     depository institution' has the same meaning as in section 3 
     of the Federal Deposit Insurance Act
       ``(4) Deposit terms.--
       ``(A) BIF-assessable deposits.--The term `BIF-assessable 
     deposit' means a deposit that is subject to assessment for 
     purposes of the Bank Insurance Fund under the Federal Deposit 
     Insurance Act (including a deposit that is treated as a 
     deposit insured by the Bank Insurance Fund under section 
     5(d)(3) of the Federal Deposit Insurance Act).
       ``(B) SAIF-assessable deposit.--The term `SAIF-assessable 
     deposit' has the meaning given to such term in section 2710 
     of the Deposit Insurance Funds Act of 1996.''.
       (b) Conforming Amendment.--Section 7(b)(2) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is amended by 
     striking subparagraph (D).
       (c) Effective Date.--
       (1) In general.--Subsections (a) and (c) and the amendments 
     made by such subsections shall apply with respect to 
     semiannual periods which begin after December 31, 1996.
       (2) Termination of certain assessment rates.--Subparagraph 
     (A) of section 21(f)(2) of the Federal Home Loan Bank Act (as 
     amended by subsection (a)) shall not apply after the earlier 
     of--
       (A) December 31, 1999; or
       (B) the date as of which the last savings association 
     ceases to exist.
       (d) Prohibition on Deposit Shifting.--
       (1) In general.--Effective as of the date of the enactment 
     of this Act and ending on the date provided in subsection 
     (c)(2) of this section, the Comptroller of the Currency, the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation, the Board of Governors of the Federal Reserve 
     System, and the Director of the Office of Thrift Supervision 
     shall take appropriate actions, including enforcement 
     actions, denial of applications, or imposition of entrance 
     and exit fees as if such transactions qualified as conversion 
     transactions pursuant to section 5(d) of the Federal Deposit 
     Insurance Act, to prevent insured depository institutions and 
     depository institution holding companies from facilitating or 
     encouraging the shifting of deposits from SAIF-assessable 
     deposits to BIF-assessable deposits (as defined in section 
     21(k) of the Federal Home Loan Bank Act) for the purpose of 
     evading the assessments imposed on insured depository 
     institutions with respect to SAIF-assessable deposits under 
     section 7(b) of the Federal Deposit Insurance Act and section 
     21(f)(2) of the Federal Home Loan Bank Act.
       (2) Regulations.--The Board of Directors of the Federal 
     Deposit Insurance Corporation may issue regulations, 
     including regulations defining terms used in paragraph (1), 
     to prevent the shifting of deposits described in such 
     paragraph.
       (3) Rule of construction.--No provision of this subsection 
     shall be construed as prohibiting conduct or activity of any 
     insured depository institution which--
       (A) is undertaken in the ordinary course of business of 
     such depository institution; and
       (B) is not directed towards the depositors of an insured 
     depository institution affiliate (as defined in section 2(k) 
     of the Bank Holding Company Act of 1956) of such depository 
     institution.

     SEC. 2704. MERGER OF BIF AND SAIF.

       (a) In General.--
       (1) Merger.--The Bank Insurance Fund and the Savings 
     Association Insurance Fund shall be merged into the Deposit 
     Insurance Fund established by section 11(a)(4) of the Federal 
     Deposit Insurance Act, as amended by this section.
       (2) Disposition of assets and liabilities.--All assets and 
     liabilities of the Bank Insurance Fund and the Savings 
     Association Insurance Fund shall be transferred to the 
     Deposit Insurance Fund.
       (3) No separate existence.--The separate existence of the 
     Bank Insurance Fund and the Savings Association Insurance 
     Fund shall cease.
       (b) Special Reserve of the Deposit Insurance Fund.--
       (1) In general.--Immediately before the merger of the Bank 
     Insurance Fund and the Savings Association Insurance Fund, if 
     the reserve ratio of the Savings Association Insurance Fund 
     exceeds the designated reserve ratio, the amount by which 
     that reserve ratio exceeds the designated reserve ratio shall 
     be placed in the Special Reserve of the Deposit Insurance 
     Fund, established under section 11(a)(5) of the Federal 
     Deposit Insurance Act, as amended by this section.
       (2) Definition.--For purposes of this subsection, the term 
     ``reserve ratio'' means the ratio of the net worth of the 
     Savings Association Insurance Fund to the aggregate estimated 
     amount of deposits insured by the Savings Association 
     Insurance Fund.
       (c) Effective Date.--This section and the amendments made 
     by this section shall become effective on January 1, 1999, if 
     no insured depository institution is a savings association on 
     that date.
       (d) Technical and Conforming Amendments.--
       (1) Deposit insurance fund.--Section 11(a)(4) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is 
     amended--
       (A) by redesignating subparagraph (B) as subparagraph (C);
       (B) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Establishment.--There is established the Deposit 
     Insurance Fund, which the Corporation shall--
       ``(i) maintain and administer;
       ``(ii) use to carry out its insurance purposes in the 
     manner provided by this subsection; and
       ``(iii) invest in accordance with section 13(a).
       ``(B) Uses.--The Deposit Insurance Fund shall be available 
     to the Corporation for use with respect to Deposit Insurance 
     Fund members.''; and
       (C) by striking ``(4) General provisions relating to 
     funds.--'' and inserting the following:

[[Page H11773]]

       ``(4) Establishment of the deposit insurance fund.--''.
       (2) Other references.--Section 11(a)(4)(C) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as 
     redesignated by paragraph (1) of this subsection) is amended 
     by striking ``Bank Insurance Fund and the Savings Association 
     Insurance Fund'' and inserting ``Deposit Insurance Fund''.
       (3) Deposits into fund.--Section 11(a)(4) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by 
     adding at the end the following new subparagraph:
       ``(D) Deposits.--All amounts assessed against insured 
     depository institutions by the Corporation shall be deposited 
     in the Deposit Insurance Fund.''.
       (4) Special reserve of deposits.--Section 11(a)(5) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is 
     amended to read as follows:
       ``(5) Special reserve of deposit insurance fund.--
       ``(A) Establishment.--
       ``(i) In general.--There is established a Special Reserve 
     of the Deposit Insurance Fund, which shall be administered by 
     the Corporation and shall be invested in accordance with 
     section 13(a).
       ``(ii) Limitation.--The Corporation shall not provide any 
     assessment credit, refund, or other payment from any amount 
     in the Special Reserve.
       ``(B) Emergency use of special reserve.--Notwithstanding 
     subparagraph (A)(ii), the Corporation may, in its sole 
     discretion, transfer amounts from the Special Reserve to the 
     Deposit Insurance Fund, for the purposes set forth in 
     paragraph (4), only if--
       ``(i) the reserve ratio of the Deposit Insurance Fund is 
     less than 50 percent of the designated reserve ratio; and
       ``(ii) the Corporation expects the reserve ratio of the 
     Deposit Insurance Fund to remain at less than 50 percent of 
     the designated reserve ratio for each of the next 4 calendar 
     quarters.
       ``(C) Exclusion of special reserve in calculating reserve 
     ratio.--Notwithstanding any other provision of law, any 
     amounts in the Special Reserve shall be excluded in 
     calculating the reserve ratio of the Deposit Insurance Fund 
     under section 7.''.
       (5) Federal home loan bank act.--Section 21B(f)(2)(C)(ii) 
     of the Federal Home Loan Bank Act (12 U.S.C. 
     1441b(f)(2)(C)(ii)) is amended--
       (A) in subclause (I), by striking ``to Savings Associations 
     Insurance Fund members'' and inserting ``to insured 
     depository institutions, and their successors, which were 
     Savings Association Insurance Fund members on September 1, 
     1995''; and
       (B) in subclause (II), by striking ``to Savings 
     Associations Insurance Fund members'' and inserting ``to 
     insured depository institutions, and their successors, which 
     were Savings Association Insurance Fund members on September 
     1, 1995''.
       (6) Repeals.--
       (A) Section 3.--Section 3(y) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1813(y)) is amended to read as 
     follows:
       ``(y) Definitions Relating to the Deposit Insurance Fund.--
       ``(1) Deposit insurance fund.--The term `Deposit Insurance 
     Fund' means the fund established under section 11(a)(4).
       ``(2) Reserve ratio.--The term `reserve ratio' means the 
     ratio of the net worth of the Deposit Insurance Fund to 
     aggregate estimated insured deposits held in all insured 
     depository institutions.
       ``(3) Designated reserve ratio.--The designated reserve 
     ratio of the Deposit Insurance Fund for each year shall be--
       ``(A) 1.25 percent of estimated insured deposits; or
       ``(B) a higher percentage of estimated insured deposits 
     that the Board of Directors determines to be justified for 
     that year by circumstances raising a significant risk of 
     substantial future losses to the fund.
       (B) Section 7.--Section 7 of the Federal Deposit Insurance 
     Act (12 U.S.C. 1817) is amended--
       (i) by striking subsection (l);
       (ii) by redesignating subsections (m) and (n) as 
     subsections (l) and (m), respectively;
       (iii) in subsection (b)(2), by striking subparagraphs (B) 
     and (F), and by redesignating subparagraphs (C), (E), (G), 
     and (H) as subparagraphs (B) through (E), respectively.
       (C) Section 11.--Section 11(a) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1821(a)) is amended--
       (i) by striking paragraphs (6) and (7); and
       (ii) by redesignating paragraph (8) as paragraph (6).
       (7) Section 5136 of the revised statutes.--The paragraph 
     designated the ``Eleventh'' of section 5136 of the Revised 
     Statutes of the United States (12 U.S.C. 24) is amended in 
     the 5th sentence, by striking ``affected deposit insurance 
     fund'' and inserting ``Deposit Insurance Fund''.
       (8) Investments promoting public welfare; limitations on 
     aggregate investments.--The 23d undesignated paragraph of 
     section 9 of the Federal Reserve Act (12 U.S.C. 338a) is 
     amended in the 4th sentence, by striking ``affected deposit 
     insurance fund'' and inserting ``Deposit Insurance Fund''.
       (9) Advances to critically undercapitalized depository 
     institutions.--Section 10B(b)(3)(A)(ii) of the Federal 
     Reserve Act (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by 
     striking ``any deposit insurance fund in'' and inserting 
     ``the Deposit Insurance Fund of''.
       (10) Amendments to the balanced budget and emergency 
     deficit control act of 1985.--Section 255(g)(1)(A) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 905(g)(1)(A)) is amended--
       (A) by striking ``Bank Insurance Fund'' and inserting 
     ``Deposit Insurance Fund''; and
       (B) by striking ``Federal Deposit Insurance Corporation, 
     Savings Association Insurance Fund;''.
       (11) Further amendments to the federal home loan bank 
     act.--The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) 
     is amended--
       (A) in section 11(k) (12 U.S.C. 1431(k))--
       (i) in the subsection heading, by striking ``SAIF'' and 
     inserting ``the Deposit Insurance Fund''; and
       (ii) by striking ``Savings Association Insurance Fund'' 
     each place such term appears and inserting ``Deposit 
     Insurance Fund'';
       (B) in section 21A(b)(4)(B) (12 U.S.C. 1441a(b)(4)(B)), by 
     striking ``affected deposit insurance fund'' and inserting 
     ``Deposit Insurance Fund'';
       (C) in section 21A(b)(6)(B) (12 U.S.C. 1441a(b)(6)(B))--
       (i) in the subparagraph heading, by striking ``SAIF-insured 
     banks'' and inserting ``Charter conversions''; and
       (ii) by striking ``Savings Association Insurance Fund 
     member'' and inserting ``savings association'';
       (D) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C. 
     1441a(b)(10)(A)(iv)(II)), by striking ``Savings Association 
     Insurance Fund'' and inserting ``Deposit Insurance Fund'';
       (E) in section 21B(e) (12 U.S.C. 1441b(e))--
       (i) in paragraph (5), by inserting ``as of the date of 
     funding'' after ``Savings Association Insurance Fund 
     members'' each place such term appears;
       (ii) by striking paragraph (7); and
       (iii) by redesignating paragraph (8) as paragraph (7); and
       (F) in section 21B(k) (12 U.S.C. 1441b(k))--
       (i) by striking paragraph (8); and
       (ii) by redesignating paragraphs (9) and (10) as paragraphs 
     (8) and (9), respectively.
       (12) Amendments to the home owners' loan act.--The Home 
     Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--
       (A) in section 5--
       (i) in subsection (c)(5)(A), by striking ``that is a member 
     of the Bank Insurance Fund'';
       (ii) in subsection (c)(6), by striking ``As used in this 
     subsection--'' and inserting ``For purposes of this 
     subsection, the following definitions shall apply:'';
       (iii) in subsection (o)(1), by striking ``that is a Bank 
     Insurance Fund member'';
       (iv) in subsection (o)(2)(A), by striking ``a Bank 
     Insurance Fund member until such time as it changes its 
     status to a Savings Association Insurance Fund member'' and 
     inserting ``insured by the Deposit Insurance Fund'';
       (v) in subsection (t)(5)(D)(iii)(II), by striking 
     ``affected deposit insurance fund'' and inserting ``Deposit 
     Insurance Fund'';
       (vi) in subsection (t)(7)(C)(i)(I), by striking ``affected 
     deposit insurance fund'' and inserting ``Deposit Insurance 
     Fund''; and
       (vii) in subsection (v)(2)(A)(i), by striking ``, the 
     Savings Association Insurance Fund'' and inserting ``or the 
     Deposit Insurance Fund''; and
       (B) in section 10--
       (i) in subsection (e)(1)(A)(iii)(VII), by adding ``or'' at 
     the end;
       (ii) in subsection (e)(1)(A)(iv), by adding ``and'' at the 
     end;
       (iii) in subsection (e)(1)(B), by striking ``Savings 
     Association Insurance Fund or Bank Insurance Fund'' and 
     inserting ``Deposit Insurance Fund'';
       (iv) in subsection (e)(2), by striking ``Savings 
     Association Insurance Fund or the Bank Insurance Fund'' and 
     inserting ``Deposit Insurance Fund''; and
       (v) in subsection (m)(3), by striking subparagraph (E), and 
     by redesignating subparagraphs (F), (G), and (H) as 
     subparagraphs (E), (F), and (G), respectively.
       (13) Amendments to the national housing act.--The National 
     Housing Act (12 U.S.C. 1701 et seq.) is amended--
       (A) in section 317(b)(1)(B) (12 U.S.C. 1723i(b)(1)(B)), by 
     striking ``Bank Insurance Fund for banks or through the 
     Savings Association Insurance Fund for savings associations'' 
     and inserting ``Deposit Insurance Fund''; and
       (B) in section 526(b)(1)(B)(ii) (12 U.S.C. 1735f-
     14(b)(1)(B)(ii)), by striking ``Bank Insurance Fund for banks 
     and through the Savings Association Insurance Fund for 
     savings associations'' and inserting ``Deposit Insurance 
     Fund''.
       (14) Further amendments to the federal deposit insurance 
     act.--The Federal Deposit Insurance Act (12 U.S.C. 1811 et 
     seq.) is amended--
       (A) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by striking 
     subparagraph (B) and inserting the following:
       ``(B) includes any former savings association.'';
       (B) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking 
     ``the Bank Insurance Fund or the Savings Association 
     Insurance Fund;'' and inserting ``Deposit Insurance Fund,'';
       (C) in section 5(d) (12 U.S.C. 1815(d)), by striking 
     paragraphs (2) and (3);
       (D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))--
       (i) in subparagraph (A), by striking ``reserve ratios in 
     the Bank Insurance Fund and the Savings Association Insurance 
     Fund'' and inserting ``the reserve ratio of the Deposit 
     Insurance Fund'';
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(2) Fee credited to the deposit insurance fund.--The fee 
     paid by the depository institution under paragraph (1) shall 
     be credited to the Deposit Insurance Fund.'';
       (iii) by striking ``(1) Uninsured institutions.--''; and
       (iv) by redesignating subparagraphs (A) and (C) as 
     paragraphs (1) and (3), respectively, and moving the margins 
     2 ems to the left;
       (E) in section 5(e) (12 U.S.C. 1815(e))--
       (i) in paragraph (5)(A), by striking ``Bank Insurance Fund 
     or the Savings Association Insurance Fund'' and inserting 
     ``Deposit Insurance Fund'';

[[Page H11774]]

       (ii) by striking paragraph (6); and
       (iii) by redesignating paragraphs (7), (8), and (9) as 
     paragraphs (6), (7), and (8), respectively;
       (F) in section 6(5) (12 U.S.C. 1816(5)), by striking ``Bank 
     Insurance Fund or the Savings Association Insurance Fund'' 
     and inserting ``Deposit Insurance Fund'';
       (G) in section 7(b) (12 U.S.C. 1817(b))--
       (i) in paragraph (1)(D), by striking ``each deposit 
     insurance fund'' and inserting ``the Deposit Insurance 
     Fund'';
       (ii) in clauses (i)(I) and (iv) of paragraph (2)(A), by 
     striking ``each deposit insurance fund'' each place such term 
     appears and inserting ``the Deposit Insurance Fund'';
       (iii) in paragraph (2)(A)(iii), by striking ``a deposit 
     insurance fund'' and inserting ``the Deposit Insurance 
     Fund'';
       (iv) by striking clause (iv) of paragraph (2)(A);
       (v) in paragraph (2)(C) (as redesignated by paragraph 
     (6)(B) of this subsection)--

       (I) by striking ``any deposit insurance fund'' and 
     inserting ``the Deposit Insurance Fund''; and
       (II) by striking ``that fund'' each place such term appears 
     and inserting ``the Deposit Insurance Fund'';

       (vi) in paragraph (2)(D) (as redesignated by paragraph 
     (6)(B) of this subsection)--

       (I) in the subparagraph heading, by striking ``funds 
     achieve'' and inserting ``fund achieves''; and
       (II) by striking ``a deposit insurance fund'' and inserting 
     ``the Deposit Insurance Fund'';

       (vii) in paragraph (3)--

       (I) in the paragraph heading, by striking ``funds'' and 
     inserting ``fund'';

       (II) by striking ``members of that fund'' where such term 
     appears in the portion of subparagraph (A) which precedes 
     clause (i) of such subparagraph and inserting ``insured 
     depository institutions'';
       (III) by striking ``that fund'' each place such term 
     appears (other than in connection with term amended in 
     subclause (II) of this clause) and inserting ``the Deposit 
     Insurance Fund'';
       (IV) in subparagraph (A), by striking ``Except as provided 
     in paragraph (2)(F), if'' and inserting ``If'';
       (V) in subparagraph (A), by striking ``any deposit 
     insurance fund'' and inserting ``the Deposit Insurance 
     Fund''; and
       (VI) by striking subparagraphs (C) and (D) and inserting 
     the following:

       ``(C) Amending schedule.--The Corporation may, by 
     regulation, amend a schedule prescribed under subparagraph 
     (B).''; and
       (viii) in paragraph (6)--

       (I) by striking ``any such assessment'' and inserting ``any 
     such assessment is necessary'';
       (II) by striking ``(A) is necessary--'';
       (III) by striking subparagraph (B);
       (IV) by redesignating clauses (i), (ii), and (iii) as 
     subparagraphs (A), (B), and (C), respectively, and moving the 
     margins 2 ems to the left; and
       (V) in subparagraph (C) (as redesignated), by striking ``; 
     and'' and inserting a period;

       (H) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by striking 
     ``, except that--'' and all that follows through the end of 
     the paragraph and inserting a period;
       (I) in section 11(i)(3) (12 U.S.C. 1821(i)(3))--
       (i) by striking subparagraph (B);
       (ii) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (iii) in subparagraph (B) (as redesignated), by striking 
     ``subparagraphs (A) and (B)'' and inserting ``subparagraph 
     (A)'';
       (J) in section 11A(a) (12 U.S.C. 1821a(a))--
       (i) in paragraph (2), by striking ``liabilities.--'' and 
     all that follows through ``Except'' and inserting 
     ``liabilities.--Except'';
       (ii) by striking paragraph (2)(B); and
       (iii) in paragraph (3), by striking ``the Bank Insurance 
     Fund, the Savings Association Insurance Fund,'' and inserting 
     ``the Deposit Insurance Fund'';
       (K) in section 11A(b) (12 U.S.C. 1821a(b)), by striking 
     paragraph (4);
       (L) in section 11A(f) (12 U.S.C. 1821a(f)), by striking 
     ``Savings Association Insurance Fund'' and inserting 
     ``Deposit Insurance Fund'';
       (M) in section 13 (12 U.S.C. 1823)--
       (i) in subsection (a)(1), by striking ``Bank Insurance 
     Fund, the Savings Association Insurance Fund,'' and inserting 
     ``Deposit Insurance Fund, the Special Reserve of the Deposit 
     Insurance Fund,'';
       (ii) in subsection (c)(4)(E)--

       (I) in the subparagraph heading, by striking ``funds'' and 
     inserting ``fund''; and
       (II) in clause (i), by striking ``any insurance fund'' and 
     inserting ``the Deposit Insurance Fund'';

       (iii) in subsection (c)(4)(G)(ii)--

       (I) by striking ``appropriate insurance fund'' and 
     inserting ``Deposit Insurance Fund'';
       (II) by striking ``the members of the insurance fund (of 
     which such institution is a member)'' and inserting ``insured 
     depository institutions'';
       (III) by striking ``each member's'' and inserting ``each 
     insured depository institution's''; and
       (IV) by striking ``the member's'' each place such term 
     appears and inserting ``the institution's'';

       (iv) in subsection (c), by striking paragraph (11);
       (v) in subsection (h), by striking ``Bank Insurance Fund'' 
     and inserting ``Deposit Insurance Fund'';
       (vi) in subsection (k)(4)(B)(i), by striking ``Savings 
     Association Insurance Fund'' and inserting ``Deposit 
     Insurance Fund''; and
       (vii) in subsection (k)(5)(A), by striking ``Savings 
     Association Insurance Fund'' and inserting ``Deposit 
     Insurance Fund'';
       (N) in section 14(a) (12 U.S.C. 1824(a)) in the 5th 
     sentence--
       (i) by striking ``Bank Insurance Fund or the Savings 
     Association Insurance Fund'' and inserting ``Deposit 
     Insurance Fund''; and
       (ii) by striking ``each such fund'' and inserting ``the 
     Deposit Insurance Fund'';
       (O) in section 14(b) (12 U.S.C. 1824(b)), by striking 
     ``Bank Insurance Fund or Savings Association Insurance Fund'' 
     and inserting ``Deposit Insurance Fund'';
       (P) in section 14(c) (12 U.S.C. 1824(c)), by striking 
     paragraph (3);
       (Q) in section 14(d) (12 U.S.C. 1824(d))--
       (i) by striking ``BIF'' each place such term appears and 
     inserting ``DIF''; and
       (ii) by striking ``Bank Insurance Fund'' each place such 
     term appears and inserting ``Deposit Insurance Fund'';
       (R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))--
       (i) by striking ``the Bank Insurance Fund or Savings 
     Association Insurance Fund, respectively'' each place such 
     term appears and inserting ``the Deposit Insurance Fund''; 
     and
       (ii) in subparagraph (B), by striking ``the Bank Insurance 
     Fund or the Savings Association Insurance Fund, 
     respectively'' and inserting ``the Deposit Insurance Fund'';
       (S) in section 17(a) (12 U.S.C. 1827(a))--
       (i) in the subsection heading, by striking ``BIF, SAIF,'' 
     and inserting ``the Deposit Insurance Fund''; and
       (ii) in paragraph (1), by striking ``the Bank Insurance 
     Fund, the Savings Association Insurance Fund,'' each place 
     such term appears and inserting ``the Deposit Insurance 
     Fund'';
       (T) in section 17(d) (12 U.S.C. 1827(d)), by striking ``the 
     Bank Insurance Fund, the Savings Association Insurance 
     Fund,'' each place such term appears and inserting ``the 
     Deposit Insurance Fund'';
       (U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))--
       (i) by striking ``Savings Association Insurance Fund'' each 
     place such term appears and inserting ``Deposit Insurance 
     Fund''; and
       (ii) in subparagraph (C), by striking ``or the Bank 
     Insurance Fund'';
       (V) in section 18(p) (12 U.S.C. 1828(p)), by striking 
     ``deposit insurance funds'' and inserting ``Deposit Insurance 
     Fund'';
       (W) in section 24 (12 U.S.C. 1831a) in subsections (a)(1) 
     and (d)(1)(A), by striking ``appropriate deposit insurance 
     fund'' each place such term appears and inserting ``Deposit 
     Insurance Fund'';
       (X) in section 28 (12 U.S.C. 1831e), by striking ``affected 
     deposit insurance fund'' each place such term appears and 
     inserting ``Deposit Insurance Fund'';
       (Y) by striking section 31 (12 U.S.C. 1831h);
       (Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by striking 
     ``affected deposit insurance fund'' and inserting ``Deposit 
     Insurance Fund'';
       (AA) in section 38(a) (12 U.S.C. 1831o(a)) in the 
     subsection heading, by striking ``Funds'' and inserting 
     ``Fund'';
       (BB) in section 38(k) (12 U.S.C. 1831o(k))--
       (i) in paragraph (1), by striking ``a deposit insurance 
     fund'' and inserting ``the Deposit Insurance Fund''; and
       (ii) in paragraph (2)(A)--

       (I) by striking ``A deposit insurance fund'' and inserting 
     ``The Deposit Insurance Fund''; and
       (II) by striking ``the deposit insurance fund's outlays'' 
     and inserting ``the outlays of the Deposit Insurance Fund''; 
     and

       (CC) in section 38(o) (12 U.S.C. 1831o(o))--
       (i) by striking ``Associations.--'' and all that follows 
     through ``Subsections (e)(2)'' and inserting 
     ``Associations.--Subsections (e)(2)'';
       (ii) by redesignating subparagraphs (A), (B), and (C) as 
     paragraphs (1), (2), and (3), respectively, and moving the 
     margins 2 ems to the left; and
       (iii) in paragraph (1) (as redesignated), by redesignating 
     clauses (i) and (ii) as subparagraphs (A) and (B), 
     respectively, and moving the margins 2 ems to the left.
       (15) Amendments to the financial institutions reform, 
     recovery, and enforcement act of 1989.--The Financial 
     Institutions Reform, Recovery, and Enforcement Act is 
     amended--
       (A) in section 951(b)(3)(B) (12 U.S.C. 1833a(b)(3)(B)), by 
     striking ``Bank Insurance Fund, the Savings Association 
     Insurance Fund,'' and inserting ``Deposit Insurance Fund''; 
     and
       (B) in section 1112(c)(1)(B) (12 U.S.C. 3341(c)(1)(B)), by 
     striking ``Bank Insurance Fund, the Savings Association 
     Insurance Fund,'' and inserting ``Deposit Insurance Fund''.
       (16) Amendment to the bank enterprise act of 1991.--Section 
     232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C. 
     1834(a)(1)) is amended by striking ``section 7(b)(2)(H)'' and 
     inserting ``section 7(b)(2)(G)''.
       (17) Amendment to the bank holding company act of 1956.--
     Section 2(j)(2) of the Bank Holding Company Act of 1956 (12 
     U.S.C. 1841(j)(2)) is amended by striking ``Savings 
     Association Insurance Fund'' and inserting ``Deposit 
     Insurance Fund''.

     SEC. 2705. CREATION OF SAIF SPECIAL RESERVE.

       Section 11(a)(6) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(a)(6)) is amended by adding at the end the 
     following new subparagraph:
       ``(L) Establishment of saif special reserve.--
       ``(i) Establishment.--If, on January 1, 1999, the reserve 
     ratio of the Savings Association Insurance Fund exceeds the 
     designated reserve ratio, there is established a Special 
     Reserve of the Savings Association Insurance Fund, which 
     shall be administered by the Corporation and shall be 
     invested in accordance with section 13(a).
       ``(ii) Amounts in special reserve.--If, on January 1, 1999, 
     the reserve ratio of the Savings Association Insurance Fund 
     exceeds the designated reserve ratio, the amount by which the 
     reserve ratio exceeds the designated reserve ratio shall be 
     placed in the Special Reserve of the Savings Association 
     Insurance Fund established by clause (i).

[[Page H11775]]

       ``(iii) Limitation.--The Corporation shall not provide any 
     assessment credit, refund, or other payment from any amount 
     in the Special Reserve of the Savings Association Insurance 
     Fund.
       ``(iv) Emergency use of special reserve.--Notwithstanding 
     clause (iii), the Corporation may, in its sole discretion, 
     transfer amounts from the Special Reserve of the Savings 
     Association Insurance Fund to the Savings Association 
     Insurance Fund for the purposes set forth in paragraph (4), 
     only if--
       ``(I) the reserve ratio of the Savings Association 
     Insurance Fund is less than 50 percent of the designated 
     reserve ratio; and
       ``(II) the Corporation expects the reserve ratio of the 
     Savings Association Insurance Fund to remain at less than 50 
     percent of the designated reserve ratio for each of the next 
     4 calendar quarters.
       ``(v) Exclusion of special reserve in calculating reserve 
     ratio.--Notwithstanding any other provision of law, any 
     amounts in the Special Reserve of the Savings Association 
     Insurance Fund shall be excluded in calculating the reserve 
     ratio of the Savings Association Insurance Fund.''.

     SEC. 2706. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN 
                   EXCESS OF DESIGNATED RESERVE AMOUNT.

       Subsection (e) of section 7 of the Federal Deposit 
     Insurance Act (12 U.S.C. 1817(e)) is amended to read as 
     follows:
       ``(e) Refunds.--
       ``(1) Overpayments.--In the case of any payment of an 
     assessment by an insured depository institution in excess of 
     the amount due to the Corporation, the Corporation may--
       ``(A) refund the amount of the excess payment to the 
     insured depository institution; or
       ``(B) credit such excess amount toward the payment of 
     subsequent semiannual assessments until such credit is 
     exhausted.
       ``(2) Balance in insurance fund in excess of designated 
     reserve.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     if, as of the end of any semiannual assessment period 
     beginning after the date of the enactment of the Deposit 
     Insurance Funds Act of 1996, the amount of the actual 
     reserves in--
       ``(i) the Bank Insurance Fund (until the merger of such 
     fund into the Deposit Insurance Fund pursuant to section 2704 
     of the Deposit Insurance Funds Act of 1996); or
       ``(ii) the Deposit Insurance Fund (after the establishment 
     of such fund),
     exceeds the balance required to meet the designated reserve 
     ratio applicable with respect to such fund, such excess 
     amount shall be refunded to insured depository institutions 
     by the Corporation on such basis as the Board of Directors 
     determines to be appropriate, taking into account the factors 
     considered under the risk-based assessment system.
       ``(B) Refund not to exceed previous semiannual 
     assessment.--The amount of any refund under this paragraph to 
     any member of a deposit insurance fund for any semiannual 
     assessment period may not exceed the total amount of 
     assessments paid by such member to the insurance fund with 
     respect to such period.
       ``(C) Refund limitation for certain institutions.--No 
     refund may be made under this paragraph with respect to the 
     amount of any assessment paid for any semiannual assessment 
     period by any insured depository institution described in 
     clause (v) of subsection (b)(2)(A).''.

     SEC. 2707. ASSESSMENT RATES FOR SAIF MEMBERS MAY NOT BE LESS 
                   THAN ASSESSMENT RATES FOR BIF MEMBERS.

       Section 7(b)(2)(C) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(b)(2)(E), as redesignated by section 2704(d)(6) 
     of this subtitle) is amended--
       (1) by striking ``and'' at the end of clause (i);
       (2) by striking the period at the end of clause (ii) and 
     inserting ``; and''; and
       (3) by adding at the end the following new clause:
       ``(iii) notwithstanding any other provision of this 
     subsection, during the period beginning on the date of 
     enactment of the Deposit Insurance Funds Act of 1996, and 
     ending on December 31, 1998, the assessment rate for a 
     Savings Association Insurance Fund member may not be less 
     than the assessment rate for a Bank Insurance Fund member 
     that poses a comparable risk to the deposit insurance 
     fund.''.

     SEC. 2708. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN 
                   THE RESERVE RATIO OF A DEPOSIT INSURANCE FUND.

       (a) In General.--Section 7(b)(2)(A)(i) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended 
     in the matter preceding subclause (I) by inserting ``when 
     necessary, and only to the extent necessary'' after ``insured 
     depository institutions''.
       (b) Limitation on Assessment.--Section 7(b)(2)(A)(iii) of 
     the Federal Deposit Insurance Act (12 U.S.C. 
     1817(b)(2)(A)(iii)) is amended to read as follows:
       ``(iii) Limitation on assessment.--Except as provided in 
     clause (v), the Board of Directors shall not set semiannual 
     assessments with respect to a deposit insurance fund in 
     excess of the amount needed--

       ``(I) to maintain the reserve ratio of the fund at the 
     designated reserve ratio; or
       ``(II) if the reserve ratio is less than the designated 
     reserve ratio, to increase the reserve ratio to the 
     designated reserve ratio.''.

       (c) Exception to Limitation on Assessments.--Section 
     7(b)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
     1817(b)(2)(A)) is amended by adding at the end the following 
     new clause:
       ``(v) Exception to limitation on assessments.--The Board of 
     Directors may set semiannual assessments in excess of the 
     amount permitted under clauses (i) and (iii) with respect to 
     insured depository institutions that exhibit financial, 
     operational, or compliance weaknesses ranging from moderately 
     severe to unsatisfactory, or are not well capitalized, as 
     that term is defined in section 38.''.

     SEC. 2709. TREASURY STUDY OF COMMON DEPOSITORY INSTITUTION 
                   CHARTER.

       (a) Study Required.--The Secretary of the Treasury shall 
     conduct a study of all issues which the Secretary considers 
     to be relevant with respect to the development of a common 
     charter for all insured depository institutions (as defined 
     in section 3 of the Federal Deposit Insurance Act) and the 
     abolition of separate and distinct charters between banks and 
     savings associations.
       (b) Report to the Congress.--
       (1) In general.--The Secretary of the Treasury shall submit 
     a report to the Congress on or before March 31, 1997, 
     containing the findings and conclusions of the Secretary in 
     connection with the study conducted pursuant to subsection 
     (a).
       (2) Detailed analysis and recommendations.--The report 
     under paragraph (1) shall include--
       (A) a detailed analysis of each issue the Secretary 
     considered relevant to the subject of the study;
       (B) recommendations of the Secretary with regard to the 
     establishment of a common charter for insured depository 
     institutions (as defined in section 3 of the Federal Deposit 
     Insurance Act); and
       (C) such recommendations for legislative and administrative 
     action as the Secretary determines to be appropriate to 
     implement the recommendations of the Secretary under 
     subparagraph (B).

     SEC. 2710. DEFINITIONS.

       For purposes of this subtitle, the following definitions 
     shall apply:
       (1) Bank insurance fund.--The term ``Bank Insurance Fund'' 
     means the fund established pursuant to section (11)(a)(5)(A) 
     of the Federal Deposit Insurance Act, as that section existed 
     on the day before the date of enactment of this Act.
       (2) BIF member, saif member.--The terms ``Bank Insurance 
     Fund member'' and ``Savings Association Insurance Fund 
     member'' have the same meanings as in section 7(l) of the 
     Federal Deposit Insurance Act.
       (3) Various banking terms.--The terms ``bank'', ``Board of 
     Directors'', ``Corporation'', ``deposit'', ``insured 
     depository institution'', ``Federal savings association'', 
     ``savings association'', ``State savings bank'', and ``State 
     depository institution'' have the same meanings as in section 
     3 of the Federal Deposit Insurance Act.
       (4) Deposit insurance fund.--The term ``Deposit Insurance 
     Fund'' means the fund established under section 11(a)(4) of 
     the Federal Deposit Insurance Act (as amended by section 
     2704(d) of this subtitle).
       (5) Depository institution holding company.--The term 
     ``depository institution holding company'' has the same 
     meaning as in section 3 of the Federal Deposit Insurance Act.
       (6) Designated reserve ratio.--The term ``designated 
     reserve ratio'' has the same meaning as in section 
     7(b)(2)(A)(iv) of the Federal Deposit Insurance Act.
       (7) SAIF.--The term ``Savings Association Insurance Fund'' 
     means the fund established pursuant to section 11(a)(6)(A) of 
     the Federal Deposit Insurance Act, as that section existed on 
     the day before the date of enactment of this Act.
       (8) SAIF-assessable deposit.--The term ``SAIF-assessable 
     deposit''--
       (A) means a deposit that is subject to assessment for 
     purposes of the Savings Association Insurance Fund under the 
     Federal Deposit Insurance Act (including a deposit that is 
     treated as insured by the Savings Association Insurance Fund 
     under section 5(d)(3) of the Federal Deposit Insurance Act); 
     and
       (B) includes any deposit described in subparagraph (A) 
     which is assumed after March 31, 1995, if the insured 
     depository institution, the deposits of which are assumed, is 
     not an insured depository institution when the special 
     assessment is imposed under section 2702(a).

     SEC. 2711. DEDUCTION FOR SPECIAL ASSESSMENTS.

       For purposes of subtitle A of the Internal Revenue Code of 
     1986--
       (1) the amount allowed as a deduction under section 162 of 
     such Code for a taxable year shall include any amount paid 
     during such year by reason of an assessment under section 
     2702 of this subtitle, and
       (2) section 172(f) of such Code shall not apply to any 
     deduction described in paragraph (1).
               TITLE III--SPECTRUM ALLOCATION PROVISIONS

     SEC. 3001. COMPETITIVE BIDDING FOR SPECTRUM.

       (a) Commission Obligation To Make Additional Spectrum 
     Available.--The Federal Communications Commission shall--
       (1) reallocate the use of frequencies at 2305-2320 
     megahertz and 2345-2360 megahertz to wireless services that 
     are consistent with international agreement concerning 
     spectrum allocations: and
       (2) assign the use of such frequencies by competitive 
     bidding pursuant to section 309(j) of the Communications Act 
     of 1934 (47 U.S.C. 309(j)).
       (b) Additional Requirements.--In making the bands of 
     frequencies described in subsection (a) available for 
     competitive bidding, the Commission shall--
       (1) seek to promote the most efficient use of the spectrum: 
     and
       (2) take into account the needs of public safety radio 
     services.
       (c) Expedited Procedures.--The Commission shall commence 
     the competitive bidding for the assignment of the frequencies 
     described in subsection (a)(1) no later than April 15, 1997. 
     The

[[Page H11776]]

     rule governing such frequencies shall be effective 
     immediately upon publication in the Federal Register 
     notwithstanding section 553(d). 801(a)(3). and 806(a) of 
     title 5. United States Code. Chapter 6 of such title, and 
     sections 3507 and 3512 of title 44. United States Code, shall 
     not apply to the rules and competitive bidding procedures 
     governing such frequencies. Notwithstanding section 309(b) of 
     the Communications Act of 1934 (47 U.S.C. 309(b)), no 
     application for an instrument of authorization for such 
     frequencies shall be granted by the Commission earlier than 7 
     days following issuance of public notice by the Commission of 
     the acceptance for filing of such application or of any 
     substantial amendment thereto. Notwithstanding section 
     309(d)(1) of such Act (47 U.S.C. 309(d)(1)), the Commission 
     may specify a period (no less than 5 days following issuance 
     of such public notice) for the filing of petitions to deny 
     any application for an instrument of authorization for such 
     frequencies.
       (d) Deadline for Collection.--The Commission shall conduct 
     the competitive bidding under subsection (a)(2) in a manner 
     that ensures that all proceeds of the bidding are deposited 
     in accordance with section 309(j)(8) of the Communications 
     Act of 1934 not later September 30, 1997.
                 TITLE IV--ADJUSTMENT OF PAYCO BALANCES

     SEC. 4001. ADJUSTMENT OF PAYGO BALANCES.

       For purpose of section 252 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, on the calendar day 
     after the Director of the Office of Management and budget 
     issues the final sequestration report for fiscal year 1997, 
     the Director and the Director of the Congressional Budget 
     Office shall change the balances (as computed pursuant to 
     section 252(b) of that Act) of direct spending and receipts 
     legislation--
       (1) for fiscal year 1997 to zero if such balance for the 
     fiscal year is not an increase in the deficit.

                   TITLE V--ADDITIONAL APPROPRIATIONS

CHAPTER 1--DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG 
                  ADMINISTRATION, AND RELATED AGENCIES

                       Department of Agriculture


      cooperative state research, education, and extension service

                          extension activities

       For an additional amount for payments for cooperative 
     extension work by the colleges receiving the benefits of the 
     second Morrill Act (7 U.S.C. 321-326, 328) and Tuskegee 
     University, $753,000.


                 natural resources conservation service

               watershed and flood prevention operations

       For an additional amount to repair damages to the waterways 
     and watersheds resulting from the effects of Hurricanes Fran 
     and Hortense and other natural disasters, $63,000,000, to 
     remain available until expended: Provided, That the entire 
     amount is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended.


                          farm service agency

                     emergency conservation program

       For an additional amount for emergency expenses resulting 
     from the effects of Hurricanes Fran and Hortense and other 
     natural disasters, $25,000,000, to remain available until 
     expended: Provided, That the entire amount is designated by 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.

                               CHAPTER 2

                          DISTRICT OF COLUMBIA


      education facilities improvement in the district of columbia

                             (by transfer)

       Sec. 5201. The District of Columbia Financial 
     Responsibility and Management Assistance Authority (referred 
     to in this section as the ``Authority'') shall have the 
     authority to contract with a private entity (or entities) to 
     carry out a program of school facility repair of public 
     schools and public charter schools located in public school 
     facilities in the District of Columbia, in consultation with 
     the General Services Administration: Provided, That an amount 
     estimated to be $40,700,000 is hereby transferred and 
     otherwise made available to the Authority until expended for 
     contracting as provided under this section, to be derived 
     from transfers and reallocations as follows: (1) funds made 
     available under the heading ``PUBLIC EDUCATION SYSTEM'' in 
     Public Law 104-194 for school repairs in a restricted line 
     item; (2) all capital financing authority made available from 
     public school capital improvements in Public Law 104-194; and 
     (3) all capital financing authority made available for public 
     school capital improvements which are or remain available 
     from Public Law 104-134 or any previous appropriations Act 
     for the District of Columbia: Provided further, That the 
     General Services Administration, in consultation with the 
     District of Columbia Public Schools and the District of 
     Columbia Council and subject to the approval of the Authority 
     and the Committees on Appropriations of the Senate and the 
     House of Representatives, shall provide program management 
     services to assist in the short-term management of the 
     repairs and capital improvements: Provided further, That 
     contracting authorized under this section shall be conducted 
     in accordance with Federal procurement rules and regulations 
     and guidelines or such guidelines as prescribed by the 
     Authority.


          special rules regarding general obligation bond act

       Sec. 5202. Waiver of Congressional Review.--Notwithstanding 
     section 7602(c)(1) of the District of Columbia Self-
     Government and Governmental Reorganization Act (sec. 1-
     233(c)(1), D.C. Code), the General Obligation Bond Act of 
     1996 (D.C. Bill 11-840), if enacted by the Council of the 
     District of Columbia, shall take effect on the date of the 
     enactment of such Act or the date of the enactment of this 
     Act, whichever is later.


  amendments to financial responsibility and management assistance act

       Sec. 5203. (a) Caluculation of 7-Day Review Period for 
     Council Acts.--Section 203(a)(5) of the District of Columbia 
     Financial Responsibility and Management Assistance Act of 
     1995 (sec. 47-392.3(a)(5), D.C. Code) is amended--
       (1) by inserting ``(excluding Saturdays, Sundays, and legal 
     holidays)'' after ``7-day period'' the first place it 
     appears; and
       (2) by striking ``the date the Council submits the Act to 
     the Authority'' and inserting ``the first day (excluding 
     Saturdays, Sundays, and legal holidays) after the Authority 
     receives the Act from the Council''.
       (b) Specification of Penalty for Prohibited Acts.--Section 
     103(i)(1) of such Act (sec. 47-391.3(i)(1), D.C. Code) is 
     amended by striking the period at the end and inserting the 
     following: ``, and shall be fined not more than $1,000, 
     imprisoned for not more than 1 year, or both.''.
       (c) Waiver of Privacy Act Requirements for Obtaining 
     Official Data.--Section 103(c)(1) of such Act (sec. 47-
     391.3(c)(1), D.C. Code) is amended by striking ``Act) and 
     552b'' and inserting ``Act), 552a (the Privacy Act of 1974), 
     and 552b''.
       (d) Permitting Authority review of Rulemaking.--Section 
     203(b) of such Act (sec. 47-392.3(b), D.C. Code) is amended 
     by adding at the end the following new paragraph:
       ``(5) Application to rules and regulations.--The provisions 
     of this subsection shall apply with respect to a rule or 
     regulation issued or proposed to be issued by the Mayor (or 
     the head of any department or agency of the District 
     government) in the same manner as such provisions apply to a 
     contract or lease.''.
       (e) Deposit of All District Borrowing With Authority.--
       (1) IN general.--Section 204 of such Act (sec. 47-392.4, 
     D.C. Code) is amended--
       (A) by redesignating subsections (d) and (e) as subsections 
     (e) and (f); and
       (B) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Deposit of Borrowed Funds With Authority.--If the 
     District government borrows funds during a control year, the 
     funds shall be deposited into an escrow account held by the 
     Authority, to be allocated by the Authority to the Mayor at 
     such intervals and in accordance with such terms and 
     conditions as it considers appropriate, consistent with the 
     financial plan and budget for the year and with any other 
     withholding of funds by the Authority pursuant to this 
     Act.''.
       (2) Conforming amendments.--(A) Section 204(e) of such Act, 
     as redesignated by paragraph (1)(A), is amended by inserting 
     after ``(b)(1)'' the following: ``or the escrow account 
     described in subsection (d)''.
       (B) Section 206(d)(1) of such Act is amended by striking 
     ``204(b)'' and inserting ``204(b), section 204(d),''.
       (f) Granting Authority Power to Issue General Orders.--
     Section 207 of such Act (sec. 47-392.7, D.C. Code) is amended 
     by adding at the end the following new subsection:
       ``(d) Additional Power to Issue Orders, Rules, and 
     Regulations.--
       ``(1) In general.--In addition to the authority described 
     in subsection (c), the Authority may at any time issue such 
     orders, rules, or regulations as it considers appropriate to 
     carry out the purposes of this Act and the amendments made by 
     this Act, to the extent that the issuance of such an order, 
     rule, or regulation is within the authority of the Mayor or 
     the head of any department or agency of the District 
     government, and any such order, rule, or regulation shall be 
     legally binding to the same extent as if issued by the Mayor 
     or the head of any such department or agency.
       ``(2) Notification.--Upon issuing an order, rule, or 
     regulation pursuant to this subsection, the Authority shall 
     notify the Mayor, the Council, the President, and Congress.
       ``(3) No judicial review or decision to issue order.--The 
     decision by the Authority to issue an order, rule, or 
     regulation pursuant to this subsection shall be final and 
     shall not be subject to judicial review.''.


      Prohibiting Funding for Terminated Employees or Contractors

       Sec. 5204. (a) In General.--Except as provided in 
     subsection (b), none of the funds made available to the 
     District of Columbia during any fiscal year (beginning with 
     fiscal year 1996) may be used to pay the salary or wages of 
     any individual whose employment by the District government is 
     no longer required as determined by the District of Columbia 
     Financial Responsibility and Management Assistance Authority, 
     or to pay any expenses associated with a contractor or 
     consultant of the District government whose contract or 
     arrangement with the District government is no longer 
     required as determined by the Authority.
       (b) Exception for Payments for Services Already Provided.--
     Funds made available to the District of Columbia may be used 
     to pay an individual for employment already performed at the 
     time of the Authority's determination, or to

[[Page H11777]]

     pay a contractor or consultant for services already provided 
     at the time of the Authority's determination, to the extent 
     permitted by the District of Columbia Financial 
     Responsibility and Management Assistance Authority.
       (c) District Government Defined.--In this section, the term 
     ``District government'' has the meaning given such term in 
     section 305(5) of the District of Columbia Financial 
     Responsibility and Management Assistance Act of 1995.


      amendments to district of columbia school reform act of 1995

       Sec. 5205. (a) Process for Filing Charter Petitions.--
     Section 2201 of the District of Columbia School Reform Act of 
     1995 (Public Law 104-134; 110 Stat. 1321-115) is amended by 
     adding at the end the following:
       ``(d) Limitations on Filing.--
       ``(1) Multiple chartering authorities.--An eligible 
     applicant may not file the same petition to establish a 
     public charter school with more than 1 eligible chartering 
     authority during a calendar year.
       ``(2) Multiple petitions.--An eligible applicant may not 
     file more than 1 petition to establish a public charter 
     school during a calendar year.''.
       (b) Contents of Petition.--Section 2202(6)(B) of the 
     District of Columbia School Reform Act of 1995 (110 Stat. 
     1321-116) is amended to read as follows:
       ``(B) either--
       ``(i)(I) an identification of a facility for the school, 
     including a description of the site where the school will be 
     located, any buildings on the site, and any buildings 
     proposed to be constructed on the site, and (II) information 
     demonstrating that the eligible applicant has acquired title 
     to, or otherwise secured the use of, the facility; or
       ``(ii) a timetable by which an identification described in 
     clause (i)(I) will be made, and the information described in 
     clause (i)(II) will be submitted, to the eligible chartering 
     authority;''.
       (c) Process for Approving or Denying Public Charter School 
     Petitions.--Section 2203 of the District of Columbia School 
     Reform Act of 1995 (110 Stat. 1321-118) is amended--
       (1) by amending subsection (d) to read as follows:
       ``(d) Approval.--
       ``(1) In general.--Subject to subsection (i) and paragraph 
     (2), an eligible chartering authority shall approve a 
     petition to establish a public charter school, if--
       ``(A) the eligible chartering authority determines that the 
     petition satisfies the requirements of this subtitle;
       ``(B) the eligible applicant who filed the petition agrees 
     to satisfy any condition or requirement, consistent with this 
     subtitle and other applicable law, that is set forth in 
     writing by the eligible chartering authority as an amendment 
     to the petition:
       ``(C) the eligible chartering authority determines that the 
     public charter school has the ability to meet the educational 
     objectives out-lined in the petition; and
       ``(D) the approval will not cause the eligible chartering 
     authority to exceed a limit under subsection (i).
       ``(2) Conditional approval.--
       ``(A) In general.--In the case of a petition that does not 
     contain the identification and information required under 
     section 2202(6)(B)(i), but does contain the timetable 
     required under section 2202(6)(B)(ii), an eligible chartering 
     authority may only approve the petition on a conditional 
     basis, subject to the eligible applicant's submitting the 
     identification and information described in section 
     2202(6)(B)(i) in accordance with such timetable, or any other 
     timetable specified in writing by the eligible chartering 
     authority in an amendment to the petition.
       ``(B) Effect of conditional approval.--For purposes of 
     subsections (e), (h), (i), and (j), a petition conditionally 
     approved under this paragraph shall be treated the same as a 
     petition approved under paragraph (1), except that on the 
     date that such a conditionally approved petition ceases to be 
     conditionally approved because the eligible applicant has not 
     timely submitted the identification and information described 
     in section 2202(6)(B)(i), the approval of the petition shall 
     cease to be counted for purposes of subsection (i).'';
       (2) in subsection (h), by striking ``(d)(2),'' each place 
     such term appears and inserting ``(d),'';
       (3) by amending subsection (i) to read as follows:
       ``(i) Number of Petitions.--
       ``(1) First year.--During calendar year 1996, not more than 
     10 petitions to establish public charter schools may be 
     approved under this subtitle.
       ``(2) Subsequent years.--
       ``(A) In general.--Subject to subparagraph (B), during 
     calendar year 1997, and during each subsequent calendar year, 
     each eligible chartering authority shall not approve more 
     than 10 petitions to establish a public charter school under 
     this subtitle. Any such petition shall be approved during the 
     period that beings on January 1 and ends on April 1.
       ``(B) Exception.--If, by April 1 of any calendar year after 
     1996, an eligible chartering authority has approved fewer 
     than 10 petitions during such calendar year, any other 
     eligible chartering authority may approve more than 10 
     petitions during such calendar year, but only if--
       ``(i) the eligible chartering authority completes the 
     approval of any such additional petition before June 1 of the 
     year; and
       ``(ii) the approval of any such additional petition will 
     not cause the total number of petitions approved by all 
     eligible chartering authorities during the calendar year to 
     exceed 20.''; and
       (4) by amending subsection (j) to read as follows:
       ``(j) Authority of Eligible Chartering Authority.--
       ``(1) In general.--Except as provided in paragraph (2), and 
     except for officers or employees of the eligible chartering 
     authority with which a petition to establish a public charter 
     school is filed, no governmental entity, elected official, or 
     employee of the District of Columbia shall make, participate 
     in making, or intervene in the making of, the decision to 
     approve or deny such a petition.
       ``(2) Availability of Review.--A decision by an eligible 
     chartering authority to deny a petition to establish a public 
     charter school shall be subject to judicial review by an 
     appropriate court of the District of Columbia,''.
       (d) District of Columbia Public School Services to Public 
     Charter Schools.--Section 2209 of the District of Columbia 
     School Reform Act of 1995 (110 Stat. 1321-125) is amended--
       (1) by inserting ``(a) In general.--'' before ``The 
     Superintendent''; and
       (2) by adding at the end the following:
       ``(b) Preference in Leasing or Purchasing Public School 
     Facilities.--
       ``(1) Former public school property.--
       ``(A) In general.--Notwithstanding any other provision of 
     law relating to the disposition of a facility or property 
     described in subparagraph (B), the Mayor and the District of 
     Columbia Government shall give preference to an eligible 
     applicant whose petition to establish a public charter school 
     has been conditionally approved under section 2203(d)(2), or 
     a Board of Trustees, with respect to the purchase or lease of 
     a facility or property described in subparagraph (B), 
     provided that doing so will not result in a significant loss 
     of revenue that might be obtained from other dispositions or 
     uses of the facility or property.
       ``(B) Property described.--A facility or property referred 
     to in subparagraph (A) is a facility, or real property--
       ``(i) that formerly was under the jurisdiction of the Board 
     of Education;
       ``(ii) that the Board of Education has determined is no 
     longer needed for purposes of operating a District of 
     Columbia public school; and
       ``(iii) with respect to which the Board of Education has 
     transferred jurisdiction to the Mayor.
       ``(2) Current public school property.--
       ``(A) In general.--Notwithstanding any other provision of 
     law relating to the disposition of a facility or property 
     described in subparagraph (B), the Mayor and the District of 
     Columbia Government shall give preference to an eligible 
     applicant whose petition to establish a public charter school 
     has been conditionally approved under section 2203(d)(2), or 
     a Board of Trustees, in leasing, or otherwise contracting for 
     the use of, a facility or property described in subparagraph 
     (B).
       ``(B) Property described.--A facility or property referred 
     to in subparagraph (A) is a facility, real property, or a 
     designated area of a facility or real property, that--
       ``(i) is under the jurisdiction of the Board of Education; 
     and
       ``(ii) is available for use because the Board of Education 
     is not using, for educational, administrative, or other 
     purposes, the facility, real property, or designated area.''.
       (e) Charter Renewal.--Section 2212 of the District of 
     Columbia School Reform Act of 1995 (110 Stat. 1321-129) is 
     amended--
       (1) by amending subsection (a) to read as follows:
       ``(a) Terms.--
       ``(1) Initial term.--A charter granted to a public charter 
     school shall remain in force for a 15-year period.
       ``(2) Renewals.--A charter may be renewed for an unlimited 
     number of times, each time for a 15-year period.
       ``(3) Review.--An eligible chartering authority that grants 
     or renews a charter pursuant to paragraph (1) or (2) shall 
     review the charter--
       ``(A) at least once every 5 years to determine whether the 
     charter should be revoked for the reasons described in 
     subsection (a)(1)(A) or (b) of section 2213 in accordance 
     with the procedures for such revocation established under 
     section 2213(c); and
       ``(B) once every 5 years, beginning on the date that is 5 
     years after the date on which the charter is granted or 
     renewed, to determine whether the charter should be revoked 
     for the reasons described in section 2213(a)(1)(B) in 
     accordance with the procedures for such revocation 
     established under section 2213(c).''; and
       (2) by amending subsection (d)(6) to read as follows:
       ``(6) Judicial review.--A decision by an eligible 
     chartering authority to deny an application to renew a 
     charter shall be subject to judicial review by an appropriate 
     court of the District of Columbia.''.
       (f) Charter Revocation.--Section 2213(a) of the District of 
     Columbia School Reform Act of 1995 (110 Stat. 1321-130) is 
     amended to read as follows:
       ``(a) Charter or Law Violations; Failure to Meet Goals.--
       ``(1) In general.--Subject to paragraph (2), an eligible 
     chartering authority that has granted a charter to a public 
     charter school may revoke the charter if the eligible 
     chartering authority determines that the school--
       ``(A) committed a violation of applicable laws or a 
     material violation of the conditions, terms, standards, or 
     procedures set forth in the charter, including violations 
     relating to the education of children with disabilities; or
       ``(B) failed to meet the goals and student academic 
     achievement expectations set fort in the charter.
       ``(2) Speical rule.--An eligible chartering authority may 
     not revoke a charter under paragraph (1)(B), except pursuant 
     to a determination made through a review conducted under 
     section 2212(a)(3)(B).''.

[[Page H11778]]

       (g) Public Charter School Board.--Paragraphhs (3) and (4) 
     of section 2214(a) of the District of Columbia School Reform 
     Act of 1995 (110 Stat. 1321-132) are amended to read as 
     follows:
       ``(3) Vacancies.--
       ``(A) Other than from expiration of term.--Where a vacancy 
     occurs in the membership of the Board for reasons other than 
     the expiration of the term of a member of the Board, the 
     Secretary of Education, not later than 30 days after the 
     vacancy occurs, shall present to the Mayor a list of 3 people 
     the Secretary determines are qualified to serve on the Board. 
     The Mayor, in consultation with the District of Columbia 
     Council shall, appoint 1 person from the list to serve on the 
     Board. The Secretary shall recommend, and the Mayor shall 
     appoint, such member of the Board taking into consideration 
     the criteria described in paragraph (2). Any member appointed 
     to fill a vacancy occurring prior to the expiration of the 
     term of a predecessor shall be appointed only for the 
     remainder of the term.
       (h) Technical Amendment.--Section 2561(b) of the District 
     of Columbia School Reform Act of 1995 (Public Law 104-134), 
     as amended by section 148 of the District of Columbia 
     Appropriations Act, 1997 (Public Law 104-194), is amended to 
     read as follows:
       ``(b) Limitation.--A waiver under subsection (a) shall not 
     apply to the Davis-Bacon Act (40 U.S.C. 276a et seq.) or 
     Executive Order 11246 or other civil rights standards.''.
       (B) Expiration of term.--Not later than the date that is 60 
     days before the expiration of the term of a member of the 
     Board, the Secretary of Education shall present to the Mayor, 
     with respect to each such impending vacancy, a list of 3 
     people the Secretary determines are qualified to serve on the 
     Board. The Mayor, in consultation with the District of 
     Columbia Council, shall appoint 1 person from each such list 
     to serve on the Board. The Secretary shall recommend, and the 
     mayor shall appoint, any member of the Board taking into 
     consideration the criteria described in paragraph (2).
       ``(4) Time limit for appointments.--If, at any time, the 
     Mayor does not appoint members to the Board sufficient to 
     bring the Board's membership to 7 within 30 days after 
     receiving a recommendation from the Secretary of Education 
     under paragraph (2) or (3), the Secretary, not later than 10 
     days after the final date for such mayoral appointment, shall 
     make such appointments as are necessary to bring the 
     membership of the Board to 7.''.


          disposition of certain school property by authority

       Sec. 5206. (a) In General.--Subtitle C of title II of the 
     District of Columbia Financial Responsibility and Management 
     Assistance Act of 1995 is amended by adding at the end the 
     following new section:

     ``SEC. 225. DISPOSITION OF CERTAIN SCHOOL PROPERTY.

       ``(a) Power to Disposer.--Notwithstanding any other 
     provision of law relating to the disposition of a facility or 
     property described in subsection (d), the Authority may 
     dispose (by sale, lease, or otherwise) of any facility or 
     property described in subsection (d).
       ``(b) Preference for Public Charter School.--In disposing 
     of a facility or property under this section, the Authority 
     shall give preference to an eligible applicant (as defined in 
     section 2002 of the District of Columbia School Reform Act of 
     1995) whose petition to establish a public charter school has 
     been conditionally approved under section 2203(d)(2) of such 
     Act, or a Board of Trustees (as defined in section 2002 of 
     such Act) of such a public charter school, if doing so will 
     not result in a significant loss of revenue that might be 
     obtained from other dispositions or uses of the facility or 
     property.
       ``(c) Use of Proceeds From Disposition for School Repair 
     and Maintenance.--
       ``(1) In general.--The Authority shall deposit any proceeds 
     of the disposition of a facility or property under this 
     section in the Board of Education Real Property Maintenance 
     and Improvement Fund (as established by the Real Property 
     Disposal Act of 1990), to be used for the construction, 
     maintenance, improvement, rehabilitation, or repair of 
     buildings and grounds which are used for educational purposes 
     for public and public charter school students in the District 
     of Columbia.
       ``(2) Consultation.--In disposing of a facility or property 
     under this section, the Authority shall consult with the 
     Superintendent of Schools of the District of Columbia, the 
     Mayor, the Council, the Administrator of General Services, 
     and education and community leaders involved in planning for 
     an agency or authority that will design and administer a 
     comprehensive long-term program for repair and improvement of 
     District of Columbia public school facilities (as described 
     in section 2552(a) of the District of Columbia School Reform 
     Act of 1995).
       ``(3) Legal effect of sale.--The Authority may dispose of a 
     facility or property under this section by executing a proper 
     deed and any other legal instrument for conveyance of title 
     to the facility or property, and such deed shall convey good 
     and valid title to the purchaser of the facility or property.
       ``(d) Facility or Property Described.--A facility or 
     property described in this subsection is a facility or 
     property which is described in section 2209(b)(1)(B) of the 
     District of Columbia School Reform Act of 1995 and with 
     respect to which the Authority has made the following 
     determinations:
       ``(1) The property is no longer needed for purposes of 
     operating a District of Columbia public school as defined in 
     section 2002 of the District of Columbia School Reform Act of 
     1995).
       ``(2) The disposition of the property is in the best 
     interests of education in the District of Columbia.
       ``(3) The Mayor (or any other department or agency of the 
     District government) has failed to make substantial progress 
     toward disposing the property during the 90-day period which 
     begins on the date the Board of Education transfers 
     jurisdiction over the property to the Mayor (or, in the case 
     of property which is described in section 2209(b)(1)(B) of 
     such Act as of the date of the enactment of this section, 
     during the 90-day period which begins on the date of the 
     enactment of this section).''.
       (b) Control Over Board of Education Real Property 
     Maintenance and Improvement Fund.--
       (1) In general.--Section 2(b) of the Board of Education 
     Real Property Disposal Act of 1990 (sec. 9-402(b), D.C. Code) 
     is amended--
       (A) by amending the second sentence to read as follows: 
     ``Subject to paragraph (6), the District of Columbia 
     Financial Responsibility and Management Assistance Authority 
     shall administer the Fund and receive all payments in to the 
     Fund that are required by law.''; and
       (B) by adding at the end the following new paragraph:
       ``(6) Upon the establishment of an agency or authority 
     within the district of Columbia government to administer a 
     public schools facilities revitalization plan pursuant to 
     section 2552(a)(2) of the District of Columbia School Reform 
     Act of 1995, such agency or authority shall administer the 
     Fund and receive all payments into the Fund that are required 
     by law.''.
       (2) Conforming amendments.--Section 2(b) of the Board of 
     Education Real Property Disposal Act of 1990 (sec. 9-402(b), 
     D.C. Code) is amended--
       (A) in the third sentence of paragraph (1), by striking ``; 
     provided that the Board'' and all that follows and inserting 
     a period; and
       (B) by striking paragraph (5).
       (c) Clerical Amendment.--The table of contents of subtitle 
     C of title II of the District of Columbia Financial 
     Responsibility and Management Assistance Act of 1995 is 
     amended by adding at the end the following new item:

``Sec. 225: Disposition of certain school property.''.

                               CHAPTER 3

                      ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                   Operation and Maintenance, General

       For an additional amount for ``Operation and Maintenance, 
     General'' for emergency expenses resulting from Hurricane 
     Fran and other natural disasters of 1996, $19,000,000 to 
     remain available until expended: Provided: That such amount 
     is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended.

                           GENERAL PROVISION

       Sec. 5301. None of the funds appropriated in the Energy and 
     Water Department Appropriations Act, 1997 may be made 
     available to the Tennessee Valley Authority if the Tennessee 
     Valley Authority is imposing a performance deposit in 
     connection with residential shoreline alteration permits.

                               CHAPTER 4

                           LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

                         Salaries and Expenses


                              (rescission)

       Immediately upon enactment of this Act, of the funds 
     appropriated in the Legislative Branch Appropriations Act, 
     1996, for the House of Representatives under the heading 
     ``SALARIES AND EXPENSES'', there is rescinded $500,000, 
     specified for the following heading and account:
       (1) ``ALLOWANCES AND EXPENSES'', $500,000, as follows: (A) 
     ``Government contributions to employees' life insurance fund, 
     retirement funds, Social Security fund, Medicare fund, health 
     benefits fund, and worker's and unemployment compensation.''

                              JOINT ITEMS

                          Capitol Police Board

                             Capitol Police


                                salaries

                              (rescission)

       Immediately upon enactment of this Act, of the funds 
     appropriated under this heading in Public Law 104-53, 
     $3,000,000 are rescinded.


                            general expenses

       For an additional amount for the Capitol Police Board for 
     necessary expenses for the design and installation of 
     security systems for the Capitol buildings and grounds, 
     $3,250,000, which shall remain available until expended.

                        ARCHITECT OF THE CAPITOL

                     Capitol Buildings and Grounds


                           capitol buildings

       For an additional amount for ``Capitol Buildings and 
     Grounds, Capitol Buildings'', $250,000, to remain available 
     until expended, for architectural and engineering services 
     related to the design and installation of security systems 
     for Capitol buildings and grounds.


                        senate office buildings

       Of the funds appropriated under the heading, ``ARCHITECT OF 
     THE CAPITOL, Capitol Buildings and Grounds, Senate office 
     buildings'' in Public Law 104-53, $650,000 shall remain 
     available until September 30, 1997 for furniture, 
     furnishings, and equipment for the Senate employees' child 
     care center.

                           GENERAL PROVISIONS


               congressional award act amendments of 1996

       Sec. 5401. (a) Extension of Requirements Regarding 
     Financial Operations of Congressional Award Program; 
     Noncompliance With

[[Page H11779]]

     Requirements.--Section 5(c)(2)(A) of the Congressional Award 
     Act (2 U.S.C. 804(c)(2)(A)) is amended by striking ``and 
     1994'' and inserting ``1994, 1995, 1996, 1997, and 1998''.
       (b) Termination.--Section 9 of the Congressional Award Act 
     (2 U.S.C. 808) is amended by striking ``October 1, 1995'' and 
     inserting ``October 1, 1999''.
       (c) Saving Provisions.--During the period of October 1, 
     1995, through the date of the enactment of this section, all 
     actions and functions of the Congressional Award Board under 
     the Congressional Award Act shall have the same effect as 
     though no lapse or termination of the Congressional Award 
     Board ever occurred.


     bill emerson hall in the house of representatives page school

       Sec. 5402. The Founders Hall instructional area in the 
     House of Representatives Page School, located in the Thomas 
     Jefferson Building of the Library of Congress, shall be known 
     and designated as ``Bill Emerson Hall''.

                               CHAPTER 5

                      DEPARTMENT OF TRANSPORTATION

                    Federal Aviation Administration


                               operations

                    (Airport and Airway Trust Fund)

       For additional operating expenses of the Federal Aviation 
     Administration for airport security activities $57,900,000, 
     to be derived from the Airport and Airway Trust Fund and to 
     remain available until September 30, 1998: Provided, That of 
     the funds provided, $8,900,000 shall be for establishment of 
     additional explosive detection K-9 teams at airports; 
     $5,500,000 shall be for airport vulnerability assessments; 
     $18,000,000 shall be for the hire of additional aviation 
     security personnel: and $25,500,000 shall be for the hire of 
     additional aviation safety inspectors and contract weather 
     observers, air traffic controller training, and 
     implementation of recommendations of the Federal Aviation 
     Administration's ``Ninety Day Safety Review'', dated 
     September 16, 1996: Provided further, That such amount is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.


                        facilities and equipment

                    (airport and airway trust fund)

       For additional necessary expenses for ``Facilities and 
     Equipment'', $147,700,000, to be derived from the Airport and 
     Airway Trust Fund and to remain available until September 30, 
     1999: Provided, That of the funds provided, $144,200,000 
     shall only be for non-competitive contracts or cooperative 
     agreements with air carriers and airport authorities, which 
     provide for the Federal Aviation Administration to purchase 
     and assist in installation of advanced security equipment for 
     the use of such entities and $3,500,000 shall be for 
     accelerated development and deployment of the Online Aviation 
     Safety Information System: Provided further, That such amount 
     is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended.


                 research, engineering, and development

                    (airport and airway trust fund)

       For an additional amount for ``Research, Engineering, and 
     Development'', $21,000,000, to be derived from the Airport 
     and Airway Trust Fund and to remain available until September 
     30, 1999: Provided, That the funds provided shall only be for 
     aviation security research and operational testing of 
     document trace scanners and explosive detection portals for 
     airport passengers: Provided further, That such amount is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.


                       grants-in-aid for airports

                    (airport and airway trust fund)

                 (rescission of contract authorization)

       Of the available contract authority balances under this 
     heading, $50,000,000 are rescinded.

                     Federal Highway Administration


                     highway-related safety grants

                          (highway trust fund)

                 (rescission of contract authorization)

       Of the available contract authority balances under this 
     heading, $9,100,000 are rescinded.


                          federal-aid highways

                          (highway trust fund)

       For an additional amount for ``Emergency Relief Program'' 
     for emergency expenses resulting from Hurricanes Fran and 
     Hortense and for other disasters, as authorized by 23 U.S.C. 
     125, $82,000,000, to be derived from the Highway Trust Fund 
     and to remain available until expended: Provided, That the 
     entire amount is designated by Congress as an emergency 
     requirement pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.


                      motor carrier safety grants

                          (highway trust fund)

                 (rescission of contract authorization)

       Of the available contract authority balances under this 
     heading, $12,300,000 are rescinded.

             National Highway Traffic Safety Administration


                     highway traffic safety grants

                          (highway trust fund)

                 (rescission of contract authorization)

       Of the available contract authority balances under this 
     heading, $11,800,000 are rescinded.

                    Federal Railroad Administration


                 northeast corridor improvement program

       For additional necessary expenses related to Northeast 
     Corridor improvements authorized by title VII of the Railroad 
     Revitalization and Regulatory Reform Act of 1976, as amended 
     (45 U.S.C. 851 et seq.) and 49 U.S.C. 24909, $60,000,000, to 
     remain available until September 30, 1999.


                     direct loan financing program

       Notwithstanding any other provision of law, $58,680,000, 
     for direct loans not to exceed $400,000,000 consistent with 
     the purposes of section 505 of the Railroad Revitalization 
     and Regulatory Reform Act of 1976 (45 U.S.C. 825) as in 
     effect on September 30, 1988, to the Alameda Corridor 
     Transportation Authority to continue the Alameda Corridor 
     Project, including replacement of at-grade rail lines with a 
     below-grade corridor and widening of the adjacent major 
     highway: Provided, That loans not to exceed the following 
     amounts shall be made on or after the first day of the fiscal 
     year indicated:

Fiscal year 1997...........................................$140,000,000
Fiscal year 1998...........................................$140,000,000
Fiscal year 1999...........................................$120,000,000

       Provided further, That any loan authorized under this 
     section shall be structured with a maximum 30-year repayment 
     after completion of construction at an annual interest rate 
     of not to exceed the 30-year United States Treasury rate and 
     on such terms and conditions as deemed appropriate by the 
     Secretary of Transportation: Provided further, That specific 
     provisions of section 505 (a), (b) and (d) through (h) shall 
     not apply: Provided further, That the Alameda Corridor 
     Transportation Authority shall be deemed to be a financially 
     responsible person for purposes of section 505 of the Act.


         grants to the national railroad passenger corporation

       For additional expenses necessary for ``Grants to the 
     National Railroad Passenger Corporation'', $22,500,000 for 
     operating losses, to remain available until September 30, 
     1997: Provided, That amounts made available shall only be 
     used to continue service on routes the National Railroad 
     Passenger Corporation currently plans to terminate.

              Research and Special Programs Administration


                     Research and special programs

       For additional expenses necessary for ``Research and 
     Special Programs'' to conduct vulnerability and threat 
     assessments of the nation's transportation system, 
     $3,000,000, to remain available until September 30, 1999; 
     Provided, That the entire amount is designated by Congress as 
     an emergency requirement pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.

                  National Transportation Safety Board


                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $6,000,000, to reimburse other federal agencies for 
     previously incurred costs of recovering wreckage from TWA 
     flight 800, and for other costs related to the TWA 800 
     accident investigation: Provided, That the entire amount is 
     designated by Congress as an emergency requirement pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.


                             emergency fund

       For necessary expenses of the National Transportation 
     Safety Board for accident investigations, including hire of 
     passenger motor vehicles and aircraft; services as authorized 
     by 5 U.S.C. 3109, but at rates for individuals not to exceed 
     the per diem rate equivalent to the rate for a GS-18; 
     uniforms, or allowances therefor, as authorized by law (5 
     U.S.C. 5901-5902), $1,000,000: Provided, That the entire 
     amount is designated by Congress as an emergency requirement 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended.

                           GENERAL PROVISIONS

       Sec. 5501. In fiscal year 1997, the Administrator of the 
     Federal Aviation Administration may establish at individual 
     airports such consortia of government and aviation industry 
     representatives as the Administrator may designate to provide 
     advice on matters related to aviation security and safety: 
     Provided, That such consortia shall not be considered Federal 
     advisory committees.
       Sec. 5502. In cases where an emergency ocean condition 
     causes erosion of a bank protecting a scenic highway or 
     byway, fiscal year 1996 or fiscal year 1997 Federal Highway 
     Administration Emergency Relief funds can be used to halt the 
     erosion and stabilize the bank if such action is necessary to 
     protect the highway from imminent failure and is less 
     expensive than highway relocation.
       Sec. 5503. Of the funds deducted under 23 U.S.C. subsection 
     104(a) for fiscal year 1997, $30,000,000 shall be available 
     for allocation to States authorized by section 1069(y) of 
     Public Law 102-240.
       Sec. 5504. Conveyance of Property in Traverse City, 
     Michigan. (a) Authority To Convey.--The Secretary of 
     Transportation (or any other official having control over the 
     property described in subsection (b)) shall expeditiously 
     convey to the Traverse City Area Public School District in 
     Traverse City, Michigan, without consideration, all right, 
     title, and interest of the United States in and to the 
     property identified, described, and determined by the 
     Secretary under subsection (b), subject to all easements and 
     other interests in the property held by any other person.
       (b) Identification of Property.--The Secretary shall 
     identify, describe, and determine the property to be conveyed 
     pursuant to this section.
       (c) Reversionary Interest.--In addition to any term or 
     condition established pursuant to

[[Page H11780]]

     subsection (a) or (d), any conveyance of property described 
     in subsection (b) shall be subject to the condition that all 
     right, title, and interest in and to the property so conveyed 
     shall immediately revert to the United States if the 
     property, or any part thereof, ceases to be used by the 
     Traverse City Area Public School District.
       (d) Terms of Conveyance.--The conveyance of property under 
     this section shall be subject to such conditions as the 
     Secretary considers to be necessary to assure that--
       (1) the pump room located on the property shall continue to 
     be operated and maintained by the United States for as long 
     as it is needed for this purpose;
       (2) the United States shall have an easement of access to 
     the property for the purpose of operating and maintaining the 
     pump room; and
       (3) the United States shall have the right, at any time, to 
     enter the property without notice for the purpose of 
     operating and maintaining the pump room.
       Sec. 5505. Authority To Convey Whitefish Point Light 
     Station Land. (a) Authority To Convey.--
       (1) In general.--Except as otherwise provided in this 
     section, the Secretary of the Interior (in this section 
     referred to as the ``Secretary'') may convey, by an 
     appropriate means of conveyance, all right, title, and 
     interest of the United States in 1 of the 3 parcels 
     comprising the land on which the United States Coast Guard 
     Whitefish Point Light Station is situated (in this section 
     referred to as the ``Property''), to each of the Great Lakes 
     Shipwreck Historical Society, located in Sault Ste. Marie, 
     Michigan, the United States Fish and Wildlife Service, and 
     the Michigan Audubon Society (each of which is referred to in 
     this section as a ``recipient''), subject to all easements, 
     conditions, reservations, exceptions, and restrictions 
     contained in prior conveyances of record.
       (2) Limitation.--Notwithstanding paragraph (1), the 
     Secretary shall retain for the United States all right, 
     title, and interest in--
       (A) any historical artifact, including any lens or lantern, 
     and
       (B) the light, antennas, sound signal, towers, associated 
     lighthouse equipment, and any electronic navigation 
     equipment, which are active aids to navigation,
     which is located on the Property, or which related to the 
     Property.
       (3) Identification of the property.--The Secretary may 
     identify, describe, and determine the parcels to be conveyed 
     pursuant to this section.
       (4) Rights of access.--If necessary to ensure access to a 
     public roadway for a parcel conveyed under this section, the 
     Secretary shall convey with the parcel an appropriate 
     appurtenant easement over another parcel conveyed under this 
     section.
       (5) Easement for public along shoreline.--In each 
     conveyance under this section of property located on the 
     shoreline of Lake Superior, the Secretary shall retain for 
     the public, for public walkway purposes, a right-of-way along 
     the shoreline that extends 30 feet inland from the mean high 
     water line.
       (b) Terms and Conditions.--
       (1) In general.--Any conveyance pursuant to subsection (a) 
     shall be made--
       (A) without payment of consideration; and
       (B) subject to such terms and conditions as the Secretary 
     considers appropriate.
       (2) Maintenance of navigation functions.--The Secretary 
     shall ensure that any conveyance pursuant to this section is 
     subject to such conditions as the Secretary considers to be 
     necessary to assure that--
       (A) the light, antennas, sound signal, towers, and 
     associated lighthouse equipment, and any electronic 
     navigation equipment, which are located on the Property and 
     which are active aids to navigation shall continue to be 
     operated and maintained by the United States for as long as 
     they are needed for this purpose;
       (B) the recipients may not interfere or allow interference 
     in any manner with such aids to navigation without express 
     written permission from the United States;
       (C) there is reserved to the United States the right to 
     relocate, replace, or add any aids to navigation, or make any 
     changes on any portion of the Property as may be necessary 
     for navigation purposes;
       (D) the United States shall have the right, at any time, to 
     enter the Property without notice for the purpose of 
     maintaining aids to navigation;
       (E) the United States shall have--
     (i) an easement of access to and across the Property for the 
     purpose of maintaining the aids to navigation and associated 
     equipment in use on the Property; and
       (ii) an easement for an arc of visibility; and
       (F) the United States shall not be responsible for the cost 
     and expense of maintenance, repair, and upkeep of the 
     Property.
       (3) Maintenance obligation.--The recipients shall not have 
     any obligation to maintain any active aid to navigation 
     equipment on any parcel conveyed pursuant to this section.
       (c) Property To Be Maintained in Accordance With Certain 
     Laws.--Each recipient shall maintain the parcel conveyed to 
     the recipient pursuant to subsection (a) in accordance with 
     the provisions of the National Historic Preservation Act (16 
     U.S.C. 470 et seq.), and other applicable laws.
       (d) Maintenance Standard.--Each recipient shall maintain 
     the parcel conveyed to the recipient pursuant to subsection 
     (a), at its own cost and expense, in a proper, substantial, 
     and workmanlike manner, including the easements of access, 
     the easement for an arc of visibility, the nuisance easement, 
     and the underground easement.
       (e) Shared Use and Occupancy Agreement.--The Secretary 
     shall require, as a condition of each conveyance of property 
     under this section, that all of the recipients have entered 
     into the same agreement governing the shared use and 
     occupancy of the existing Whitefish Point Light Station 
     facilities. The agreement shall be drafted by the recipients 
     and shall include--
       (1) terms governing building occupancy and access of 
     recipient staff and public visitors to public restrooms, the 
     auditorium, and the parking lot; and
       (2) terms requiring that each recipient shall be 
     responsible for paying a pro rata share of the costs of 
     operating and maintaining the existing Whitefish Point Light 
     Station facilities, that is based on the level of use and 
     occupancy of the facilities by the recipient.
       (f) Limitations on Developing and Impairing Uses.--It shall 
     be a term of each conveyance under this section that--
       (1) no development of new facilities or expansion of 
     existing facilities or infrastructure on property conveyed 
     under this section may occur, except for purposes of 
     implementing the Whitefish Point Comprehensive Plan of 
     October 1992 or for a gift shop, unless--
       (A) each of the recipients consents to the development or 
     expansion in writing;
       (B) there has been a reasonable opportunity for public 
     comment on the development or expansion, and full 
     consideration has been given to such public comment as 
     provided; and
       (C) the development or expansion is consistent with 
     preservation of the Property in its predominantly natural, 
     scenic, historic, and forested condition; and
       (2) any use of the Property or any structure located on the 
     property which may impair or interfere with the conservation 
     values of the Property is expressly prohibited.
       (g) Revisory Interest.--
       (1) In general.--All right, title, and interests in and to 
     property and interests conveyed under this section shall 
     revert to the United States and thereafter be administered by 
     the Secretary of Interior acting through the Director of the 
     United States Fish and Wildlife Service, if--
       (A) in the case of such property and interests conveyed to 
     the Great Lakes Shipwreck Historical Society, the property or 
     interests cease to be used for the purpose of historical 
     interpretation;
       (B) in the case of such property and interests conveyed to 
     the Michigan Audubon Society, the property or interests cease 
     to be used for the purpose of environmental protection, 
     research, and interpretation; or
       (C) in the case any property and interest conveyed to a 
     recipient referred to in subparagraph (A) or (B)--
       (i) there is any violation of any term or condition of the 
     conveyance to that recipient; or
       (ii) the recipient has ceased to exist.
       (2) Authority to enforce reversionary interest.--The 
     Secretary of the Interior, acting through the Director of the 
     United States Fish and Wildlife Service, shall have the 
     authority--
       (A) to determine for the United States whether any act or 
     omission of a recipient results in a revision of property and 
     interests under paragraph (1); and
       (B) to initiate a civil action to enforce that revision, 
     after notifying the recipient of the intent of the Secretary 
     of the Interior to initiate that action.
       (3) Maintenance of navigation functions.--In the event of a 
     revision of property under this subsection, the Secretary of 
     the Interior shall administer the property subject to any 
     conditions the Secretary of Transportation considers to be 
     necessary to maintain the navigation functions.
       Sec. 5506. Conveyance of Lighthouses. (a) Authority To 
     Convey.--
       (1) In general.--The Secretary of Transportation or the 
     Secretary of the Interior, as appropriate, shall convey, by 
     an appropriate means of conveyance, all right, title, and 
     interest of the United States in and to each of the following 
     properties:
       (A) Saint Helena Island Light Stanton, located in MacKinac 
     County, Moran Township, Michigan, to the Great Lakes 
     Lighthouse Keepers Association.
       (B) Presque Isle Light Stanton, located in Presque Isle 
     Township, Michigan, to Presque Isle Township, Presque Isle 
     County, Michigan.
       (2) Identification of property.--The Secretary may 
     identify, describe, and determine the property to be conveyed 
     under this subsection.
       (3) Exception.--The Secretary may not convey any historical 
     artifact, including any lens or lantern, located on the 
     property at or before the time of the conveyance.
       (b) Terms of Conveyance.--
       (1) In general.--The conveyance of property under this 
     section shall be made--
       (A) without payment of consideration; and
       (B) subject to the conditions required by this section and 
     other terms and conditions the Secretary may consider 
     appropriate.
       (2) Reversionary interest.--In addition to any term or 
     condition established under this section, the conveyance of 
     property under this subsection shall be subject to the 
     condition that all right, title, and interest in the property 
     shall immediately revert to the United States if--
       (A) the property, or any part of the property--
       (i) ceases to be used as a nonprofit center for the 
     interpretation and preservation of maritime history;
       (ii) ceases to be maintained in a manner that ensures its 
     present or future use as a Coast Guard aid to navigation; or
       (iii) ceases to be maintained in a manner consistent with 
     the provisions of the National Historic Preservation Act of 
     1966 (16 U.S.C. 470 et seq.); or
       (B) at least 30 days before that reversion, the Secretary 
     of Transportation provides written notice to the owner that 
     the property is needed for national security purposes.
       (3) Maintenance of navigation functions.--A conveyance of 
     property under this section

[[Page H11781]]

     shall be made subject to the conditions that the Secretary of 
     Transportation considers to be necessary to assure that--
       (A) the lights, antennas, sound signal, electronic 
     navigation equipment, and associated lighthouse equipment 
     located on the property conveyed, which are active aids to 
     navigation, shall continue to be operated and maintained by 
     the United States for as long as they are needed for this 
     purpose;
       (B) the owner of the property may not interfere or allow 
     interference in any manner with aids to navigation without 
     express written permission from the Secretary of 
     Transportation;
       (C) there is reserved to the United States the right to 
     relocate, replace or add any aid to navigation or make any 
     changes to the property as may be necessary for navigational 
     purposes;
       (D) the United States shall have the right, at any time, to 
     enter the property without notice for the purpose of 
     maintaining aids to navigation; and
       (E) the United States shall have an easement of access to 
     and across the property for the purpose of maintaining the 
     aids to navigation in use on the property.
       (4) Obligation limitation.--The owner of property conveyed 
     under this section is not required to maintain any active aid 
     to navigation equipment on the property.
       (5) Property to be maintained in accordance with certain 
     laws.--The owner of property conveyed under this section 
     shall maintain the property in accordance with the National 
     Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.) and 
     other applicable laws.
       (c) Maintenance Standard.--The owner of any property 
     conveyed under this section, at its own cost and expense, 
     shall maintain the property in a proper, substantial, and 
     workmanlike manner.
       (d) Definitions.--For purposes of this section:
       (1) the term ``owner'' means the person identified in 
     subsection a(1)(A) and (B), and includes any successor of 
     assign of that person.
       (2) The term ``Presque Isle Light Station'' includes the 
     light tower, attached dwelling, detached dwelling, 3-car 
     garage, and any other improvements on that parcel of land.

                               CHAPTER 6

                       Department of the Treasury

              Community Development Financial Institutions


   COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT

       For an additional amount for ``Community Development 
     Financial Institutions Fund Program Account'' for grants, 
     loans, and technical assistance to qualifying community 
     development lenders, $5,000,000, to remain available until 
     September 30, 1998, of which $850,000 may be used for the 
     cost of direct loans: Provided, That the cost of direct 
     loans, including the cost of modifying such loans, shall be 
     as defined in section 502 of the Congressional Budget Act of 
     1974.

                    Environmental Protection Agency


                         SCIENCE AND TECHNOLOGY

       For an additional amount for ``Science and Technology'', 
     $10,000,000, to remain available until September 30, 1998, to 
     conduct health effects research to carry out the purposes of 
     the Safe Drinking Water Act Amendments of 1996, Public Law 
     104-182.


                 ENVIRONMENTAL PROGRAMS AND MANAGEMENT

       For an additional amount for ``Environmental Programs and 
     Management'', $42,221,000, to remain available until 
     September 30, 1998, of which $30,000,000 is to carry out the 
     purposes of the Safe Drinking Water Act Amendments of 1996, 
     Public Law 104-182, and the purposes of the Food Quality 
     Protection Act of 1996, Public Law 104-170, and of which 
     $10,221,000 is for pesticide residue data collection for use 
     in risk assessment activities.


                   STATE AND TRIBAL ASSISTANCE GRANTS

       For an additional amount for ``State and Tribal Assistance 
     Grants'', $35,000,000, to remain available until expended, 
     for a grant to the City of Boston, Massachusetts, subject to 
     an appropriate cost share as determined by the Administrator, 
     for the construction of wastewater treatment facilities.

                  Federal Emergency Management Agency


                         SALARIES AND EXPENSES

       For an additional amount for ``Salaries and Expenses'' to 
     increase Federal, State, and local preparedness for 
     mitigating and responding to the consequences of terrorism, 
     $3,000,000.


              EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

       For an additional amount for ``Emergency Management 
     Planning and Assistance'' to increase Federal, State, and 
     local preparedness for mitigating and responding to the 
     consequences of terrorism, $12,000,000.


                     NATIONAL FLOOD INSURANCE FUND

       Section 1309(a)(2) of the National Flood Insurance Act (42 
     U.S.C. 4016(a)(2)), is amended by striking ``$1,000,000,000'' 
     and inserting in lieu thereof ``$1,500,000,000 through 
     September 30, 1997, and $1,000,000,000 thereafter''.

                Department of Health and Human Services


                       OFFICE OF CONSUMER AFFAIRS

       For necessary expenses of the Office of Consumer Affairs, 
     including services authorized by 5 U.S.C. 3109, but at rates 
     for individuals not to exceed the per diem rate equivalent to 
     the rate for GS-18, $1,500,000: Provided, That none of the 
     funds provided under this heading may be made available for 
     any other activities within the Department of Health and 
     Human Services.

             National Aeronautics and Space Administration


                  SCIENCE, AERONAUTICS AND TECHNOLOGY

       For an additional amount for ``Science, Aeronautics and 
     Technology'', $5,000,000, to remain available until September 
     30, 1998.

                               CHAPTER 7

                   International Security Assistance


    Nonproliferation, Anti-terrorism, Demining and Related Programs

       For an additional amount for nonproliferation, anti-
     terrorism and related programs and activities, $18,000,000, 
     to carry out the provisions of chapter 8 of part II of the 
     Foreign Assistance Act of 1961 for anti-terrorism assistance.


                   Foreign Military Financing Program

       For an additional amount for grants to enable the President 
     to carry out the provisions of section 23 of the Arms Export 
     Control Act, $60,000,000.


                        Peacekeeping Operations

       For necessary expenses to carry out the provisions of 
     section 551 of the Foreign Assistance Act of 1961, 
     $65,000,000: Provided, That none of the funds appropriated 
     under this paragraph shall be obligated or expended except as 
     provided through the regular notification procedures of the 
     Committees on Appropriations.

                               CHAPTER 8

                           GENERAL PROVISIONS

       Sec. 5801. Of the amounts made available in Title IV of the 
     Department of Defense Appropriations Act, 1997, under the 
     heading ``Research, Development, Test and Evaluation, 
     Defense-Wide'', $56,232,000 shall be made available only for 
     the Corps Surface-to-Air Missile (CORPS SAM) program.
       Sec. 5802. There is hereby established on the books of the 
     Treasury an account, ``Support for International Sporting 
     Competitions, Defense'' (hereinafter referred to in this 
     section as the ``Account'') to be available until expended 
     for logistical and security support for international 
     sporting competitions (other than pay and non-travel-related 
     allowances of members of the Armed Forces of the United 
     States, except for members of the reserve components thereof 
     called or ordered to active duty in connection with providing 
     such support): Provided, That there shall be credited to the 
     Account: (a) unobligated balances of the funds appropriated 
     in Public Laws 103-335 and 104-61 under the headings ``Summer 
     Olympics''; (b) any reimbursements received by the Department 
     of Defense in connection with support to the 1993 World 
     University Games; the 1994 World Cup Games; and the 1996 
     Games of the XXVI Olympiad held in Atlanta, Georgia; (c) any 
     reimbursements received by the Department of Defense after 
     the date of enactment of this act for logistical and security 
     support provided to international sporting competitions; and 
     (d) amounts specifically appropriated to the Account, all to 
     remain available until expended: Provided further, that none 
     of the funds made available to the Account may be obligated 
     until 45 days after the congressional defense committees have 
     been notified in writing by the Secretary of Defense as to 
     the purpose for which these funds will be obligated.
       Sec. 5803. In addition to the amounts made available in 
     Title IV of the Department of Defense Appropriations Act, 
     1997, under the heading ``Research, Development, Test and 
     Evaluation, Defense-Wide'', $100,000,000 is hereby 
     appropriated and made available only for the Dual-Use 
     Applications Program.

          DIVISION B--OREGON RESOURCE CONSERVATION ACT OF 1996

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Oregon Resource Conservation 
     act of 1996''.

       TITLE I--OPAL CREEK WILDERNESS AND SCENIC RECREATION AREA

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Opal Creek Wilderness and 
     Opal Creek Scenic Recreation Area Act of 1996''.

     SEC. 102. DEFINITIONS.

       In this title:
       (1) Bull of the woods wilderness.--The term ``Bull of the 
     Woods Wilderness'' means the land designated as wilderness by 
     section 3(4) of the Oregon Wilderness Act of 1984 (Public Law 
     98-328; 16 U.S.C. 1132 note).
       (2) Opal creek wilderness.--The term ``Opal Creek 
     Wilderness'' means certain land in the Willamette National 
     Forest in the State of Oregon comprising approximately 12,800 
     acres, as generally depicted on the map entitled ``Proposed 
     Opal Creek Wilderness and Scenic Recreation Area'', dated 
     July 1996.
       (3) Scenic recreation area.--The term ``Scenic Recreation 
     Area'' means the Opal Creek Scenic Recreation Area, 
     comprising approximately 13,000 acres, as generally depicted 
     on the map entitled ``Proposed Opal Creek Wilderness and 
     Scenic Recreation Area'', dated July 1996 and established 
     under section 104(a)(3) of this title.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. 103. PURPOSES.

       The purposes of this title are:
       (1) to establish a wilderness and scenic recreation area to 
     protect and provide for the enhancement of the natural, 
     scenic, recreational, historic, and cultural resources of the 
     area in the vicinity of Opal Creek;
       (2) to protect and support the economy of the communities 
     in the Santiam Canyon; and
       (3) to provide increased protection for an important 
     drinking water source for communities served by the north 
     Santiam River.

     SEC. 104. ESTABLISHMENT OF OPAL CREEK WILDERNESS AND SCENIC 
                   RECREATION AREA.

       (a) Establishment.--On a determination by the Secretary 
     under subsection (b)--
       (1) the Opal Creek Wilderness, as depicted on the map 
     described in section 102(2), is hereby designated as 
     wilderness, subject to the provisions of the Wilderness Act 
     of 1964, shall become a component of the National Wilderness 
     System, and shall be known as the Opal Creek Wilderness;
       (2) the part of the Bull of the Woods Wilderness that is 
     located in the Willamette National

[[Page H11782]]

     Forest shall be incorporated into the Opal Creek Wildnerness; 
     and
       (3) the Secretary shall establish the Opal Creek Scenic 
     Recreation Area in the Willamette National Forest in the 
     State of Oregon, comprising approximately 13,000 acres, as 
     generally depicted on the map described in section 102(3).
       (b) Conditions.--The designations in subsection (a) shall 
     not take effect unless the Secretary makes a determination, 
     not later that 2 years after the date of enactment of this 
     title, that the following conditions have been met:
       (1) the following have been donated to the United States in 
     an acceptable condition and without encumbrances--
       (A) all right, title, and interest in the following 
     patented parcels of land--
       (i) Santiam number 1, mineral survey number 992, as 
     described in patent number 39-92-0002, dated December 11, 
     1991;
       (ii) Ruth Quartz Mine number 2, mineral survey number 994, 
     as described in patent number 39-91-0012, dated February 12, 
     1991;
       (iii) Morning Star Lode, mineral survey number 993, as 
     described in patent number 36-91-0011, dated February 12, 
     1991;
       (B) all right, title, and interest held by any entity other 
     than the Times Mirror Land and Timber Company, its successors 
     and assigns, in and to lands located in section 18, township 
     8 south, range 5 east, Marion County, Oregon, Eureka numbers 
     6, 7, 8, and 13 mining claims; and
       (C) an easement across the Hewitt, Starvation, and Poor Boy 
     Mill Sites, mineral survey number 990, as described in patent 
     number 36-91-0017, dated May 9, 1991. In the sole discretion 
     of the Secretary, such easement may be limited to 
     administrative use if an alternative access route, adequate 
     and appropriate for public use, is provided.
       (2) a binding agreement has been executed by the Secretary 
     and the owners of record as of March 29, 1996, of the 
     following interests, specifying the terms and conditions for 
     the disposition of such interests to the United States 
     Government--
       (A) the lode mining claims know as Princess Lode, Black 
     Prince Lode, and King number 4 Lode, embracing portions of 
     sections 29 and 32, township 8 south, range 5 east, 
     Willamette Meridian, Marion County, Oregon, the claims being 
     more particularly described in the field notes and depicted 
     on the plat of mineral survey number 887, Oregon; and
       (B) Ruth Quartz Mine number 1, mineral survey number 994, 
     as described in patent number 39-91-0012, dated February 12, 
     1991.
       (c) Additions to the Wilderness and Scenic Recreation 
     Areas.--
       (1) Lands or interests in lands conveyed to the United 
     States under this section shall be included in and become 
     part of, as appropriate, Opal Creek Wilderness or the Opal 
     Creek Scenic Recreation Area.
       (2) On acquiring all or substantially all of the land 
     located in section 36, township 8 south, range 4 east, of the 
     Willamette Meridian, Marion County, Oregon, commonly known as 
     the Rosboro section, by exchange, purchase from a willing 
     seller, or by donation, the Secretary shall expand the 
     boundary of the Scenic Recreation Area to include such land.
       (3) On acquiring all or substantially all of the land 
     located in section 18, township 8 south, range 5 east, 
     Marion, Oregon, commonly known as the Times Mirror property, 
     by exchange, purchase from a willing seller, or by donation, 
     such land shall be included in and become a part of the Opal 
     Creek Wilderness.

     SEC. 105. ADMINISTRATION OF THE SCENIC RECREATION AREA.

       (a) In General.--The Secretary shall administer the Scenic 
     Recreation Area in accordance with this title and the laws 
     (including regulations) applicable to the National Forest 
     System.
       (b) Opal Creek Management Plan.--
       (1) In general.--Not later than 2 years after the date of 
     establishment of the Scenic Recreation Area, the Secretary, 
     in consultation with the advisory committee established under 
     section 106(a), shall prepare a comprehensive Opal Creek 
     Management Plan (Management Plan) for the Scenic Recreation 
     Area.
       (2) Incorporation in land and resource management plan.--
     Upon its completion, the Opal Creek Management Plan shall 
     become part of the land and resource management plan for the 
     Willamette National Forest and supersede any conflicting 
     provision in such land and resource management plan. Nothing 
     in this paragraph shall be construed to supersede the 
     requirements of the Endangered Species Act or the National 
     Forest Management Act or regulations promulgated under those 
     Acts, or any other law.
       (3) Requirements.--The Opal Creek Management Plan shall 
     provide for a broad range of and uses, including--
       (A) recreation;
       (B) harvesting of nontraditional forest products, such as 
     gathering mushrooms and material to make baskets; and
       (C) educational and research opportunities.
       (4) Plan amendments.--The Secretary may amend the Opal 
     Creek Management Plan as the Secretary may determine to be 
     necessary, consistent with the procedures and purposes of 
     this title.
       (c) Recreation.--
       (1) Recognition.--Congress recognizes recreation as an 
     appropriate use of the Scenic Recreation Area.
       (2) Minimum levels.--The management plan shall permit 
     recreation activities at not less than the levels in 
     existence on the date of enactment of this title.
       (3) Higher levels.--The management plan may provide for 
     levels of recreation use higher than the levels in existence 
     on the date of enactment of this title if such uses are 
     consistent with the protection of the resource values of 
     Scenic Recreation Area.
       (4) The management plan may include public trail access 
     through section 28, township 8 south, range 5 east, 
     Willamette Meridian, to Battle Axe Creek, Opal Pool and other 
     areas in the Opal Creek Wilderness and the Opal Creek Scenic 
     Recreation Area.
       (d) Transportation Planning.--
       (1) In general.--Except as provided in this subparagraph, 
     motorized vehicles shall not be permitted in the Scenic 
     Recreation Area. To maintain reasonable motorized and other 
     access to recreation sites and facilities in existence on the 
     date of enactment of this title, the Secretary shall prepare 
     a transportation plan for the Scenic Recreation Area that:
       (A) evaluates the road network within the Scenic Recreation 
     Area to determine which roads should be retained and which 
     roads should be closed;
       (B) provides guidelines for transportation and access 
     consistent with this title;
       (C) considers the access needs of persons with disabilities 
     in preparing the transportation plan for the Scenic 
     Recreation Area;
       (D) allows forest road 2209 beyond the gate to the Scenic 
     Recreation Area, as depicted on the map described in 102(2), 
     to be used by motorized vehicles only for administrative 
     purposes and for access by private inholders, subject to such 
     terms and conditions as the Secretary may determine to be 
     necessary; and
       (E) restricts construction on or improvements to forest 
     road 2209 beyond the gate to the Scenic Recreation Area to 
     maintaining the character of the road as it existed upon the 
     date of enactment of this title, which shall not include 
     paving or widening. In order to comply with subsection 107(b) 
     of this title, the Secretary may make improvements to forest 
     road 2209 and its bridge structures consistent with the 
     character of the road as it existed on the date of enactment 
     of this title.
       (e) Hunting and Fishing.--
       (1) In general.--Subject to applicable Federal and State 
     law, the Secretary shall permit hunting and fishing in the 
     Scenic Recreation Area.
       (2) Limitation.--The Secretary may designate zones in 
     which, and establish periods when, no hunting or fishing 
     shall be permitted for reasons of public safety, 
     administration, or public use and enjoyment of the Scenic 
     Recreation Area.
       (3) Consultation.--Except during an emergency, as 
     determined by the Secretary, the Secretary shall consult with 
     the Oregon State Department of Fish and Wildlife before 
     issuing any regulation under this subsection.
       (f) Timber Cutting.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall prohibit the cutting and/or selling of trees in the 
     Scenic Recreation Area.
       (2) Permitted cutting.--
       (A) In general.--Subject to subparagraph (B), the Secretary 
     may allow the cutting of trees in the Scenic Recreation Area 
     only--
       (i) for public safety, such as to control the continued 
     spread of a forest fire in the Scenic Recreation Area or on 
     land adjacent to the Scenic Recreation Area;
       (ii) for activities related to administration of the Scenic 
     Recreation Area, consistent with the Opal Creek Management 
     Plan; or
       (iii) for removal of hazard trees along trails and 
     roadways.
       (B) Salvage sales.--The Secretary may not allow a salvage 
     sale in the Scenic Recreation Area.
       (g) Withdrawal.--
       (1) Subject to valid existing rights, all lands in the 
     Scenic Recreation Area are withdrawn from--
       (i) any form of entry, appropriation, or disposal under the 
     public land laws;
       (ii) location, entry, and patent under the mining laws; and
       (iii) disposition under the mineral and geothermal leasing 
     laws.
       (h) Bornite Project.--
       (1) Nothing in this title shall be construed to interfere 
     with or approve any exploration, mining, or mining-related 
     activity in the Bornite Project Area, depicted on the map 
     described in subsection 102(3), conducted in accordance with 
     applicable laws.
       (2) Nothing in this title shall be construed to interfere 
     with the ability of the Secretary to approve and issue, or 
     deny, special use permits in connection with exploration, 
     mining, and mining-related activities in the Bornite Project 
     Area.
       (3) Motorized vehicles, roads, structures, and utilities 
     (including but not limited to power lines and water lines) 
     may be allowed inside the Scenic Recreation Area to serve the 
     activities conducted on land within the Bornite Project.
       (4) After the date of enactment of this title, no patent or 
     claim shall be issued for any mining claim under the general 
     mining laws located within the Bornite Project Area.
       (i) Water Impoundments.--Notwithstanding the Federal Power 
     Act (16 U.S.C. 791a et seq.), the Federal Energy Regulatory 
     Commission may not license the construction of any dam, water 
     conduit, reservoir, powerhouse, transmission line, or other 
     project work in the Scenic Recreation Area, except as may be 
     necessary to comply with the provisions of subsection 105(h) 
     with regard to the Bornite Project.
       (j) Cultural and Historic Resource Inventory.--
       (1) In general.--Not later than 1 year after the date of 
     establishment of the Scenic Recreation Area, the Secretary 
     shall review and revise the inventory of the cultural and 
     historic resources on the public land in the Scenic 
     Recreation Area developed pursuant to the Oregon Wilderness 
     act of 1984 (Public Law 98-328; 16 U.S.C. 1132).
       (2) Interpretation.--Interpretive activities shall be 
     developed under the management plan in consultation with 
     State and local historic preservation organizations and shall 
     include a balanced and factual interpretation of the 
     cultural, ecological, and industrial history of forestry and 
     mining in the Scenic Recreation Area.

[[Page H11783]]

       (k) Participation.--So that the knowledge, expertise, and 
     views of all agencies and groups may contribute affirmatively 
     to the most sensitive present and future use of the Scenic 
     Recreation Area and its various subareas for the benefit of 
     the public:
       (1) Advisory Council.--The Secretary shall consult on a 
     periodic and regular basis with the advisory council 
     established under section 106 with respect to matters 
     relating to management of the Scenic Recreation Area.
       (2) Public participation.--The Secretary shall seek the 
     views of private groups, individuals, and the public 
     concerning the Scenic Recreation Area.
       (3) Other agencies.--The Secretary shall seek the views and 
     assistance of, and cooperate with, any other Federal, State, 
     or local agency with any responsibility for the zoning, 
     planning, or natural resources of the Scenic Recreation Area.
       (4) Nonprofit agencies and organizations.--The Secretary 
     shall seek the views of any nonprofit agency or organization 
     that may contribute information or expertise about the 
     resources and the management of the Scenic Recreation Area.

     SEC. 106. ADVISORY COUNCIL.

       (a) Establishment.--Not later than 90 days after the 
     establishment of the Scenic Recreation Area, the Secretary 
     shall establish an advisory council for the Scenic Recreation 
     Area.
       (b) Membership.--The advisory council shall consist of not 
     more than 13 members, of whom--
       (1) 1 member shall represent Marion County, Oregon, and 
     shall be designated by the governing body of the county;
       (2) 1 member shall represent the State of Oregon and shall 
     be designated by the Governor of Oregon; and
       (3) 1 member shall represent the city of Salem, and shall 
     be designated by the mayor of Salem, Oregon;
       (4) 1 member from a city within a 25-mile radius of the 
     Opal Creek Scenic Recreation Area, to be designated by the 
     Governor of the State of Oregon from a list of candidates 
     provided by the mayors of the cities located within a 25-mile 
     radius of the Opal Creek Scenic Recreation Area; and
       (5) not more than 9 members shall be appointed by the 
     Secretary from among persons who, individually or through 
     association with a national or local organization, have an 
     interest in the administration of the Scenic Recreation Area, 
     including, but not limited to, representatives of the timber 
     industry, environmental organizations, the mining industry, 
     inholders in the Opal Creek Wilderness and Scenic Recreation 
     Area, economic development interests and Indian Tribes.
       (c) Staggered Terms.--Members of the advisory council shall 
     serve for staggered terms of three years.
       (d) Chairman.--The Secretary shall designate one member of 
     the advisory council as chairman.
       (e) Vacancies.--The Secretary shall fill a vacancy on the 
     advisory council in the same manner as the original 
     appointment.
       (f) Compensation.--Members of the advisory council shall 
     receive no compensation for service on the advisory council.

     SEC. 107. GENERAL PROVISIONS.

       (a) Land Acquisition.--
       (1) In general.--Subject to the other provisions of this 
     title the Secretary may acquire any lands or interests in 
     land in the Scenic Recreation Area or the Opal Creek 
     Wilderness that the Secretary determines are needed to carry 
     out this title.
       (2) Public land.--Any lands or interests in land owned by a 
     State or a political subdivision of a State may be acquired 
     only by donation or exchange.
       (3) Condemnation.--Within the boundaries of the Opal Creek 
     Wilderness or the Scenic Recreation Area, the Secretary may 
     not acquire any privately owned land or interest in land 
     without the consent of the owner unless the Secretary finds 
     that--
       (A) the nature of land use has changed significantly, or 
     the landowner has demonstrated intent to change the land use 
     significantly, from the use that existed on the date of the 
     enactment of this title; and
       (B) acquisition by the Secretary of the land or interest in 
     land is essential to ensure use of the land or interest in 
     land in accordance with the purposes of this title or the 
     management plan prepared under section 105(b).
       (4) Nothing in this title shall be construed to enhance or 
     diminish the condemnation authority available to the 
     Secretary outside the boundaries of the Opal Creek Wilderness 
     of the Scenic Recreation Area.
       (b) Environmental Response Actions and Cost Recovery.--
       (1) Response actions.-- Nothing in this title shall limit 
     the authority of the Secretary or a responsible party to 
     conduct an environmental response action in the Scenic 
     Recreation Area in connection with the release, threatened 
     release, or cleanup of a hazardous substance, pollutant, or 
     contaminant, including a response action conducted under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.c. 9601 et seq.).
       (2) Liability.-- Nothing in this title shall limit the 
     authority of the Secretary or a responsible party to recover 
     costs related to the release, threatened release, or cleanup 
     of any hazardous substance or pollutant or contaminant in the 
     Scenic Recreation Area.
       (c) Maps and Description.--
       (1) In general.-- As soon as practicable after the date of 
     enactment of this title, the Secretary shall file a map and a 
     boundary description for the Opal Creek Wilderness and for 
     the Scenic Recreation Area with the Committee on Resources of 
     the House of Representatives and the Committee on Energy and 
     Natural Resources of the Senate.
       (2) Force and effect.-- The boundary description and map 
     shall have the same force and effect as if the description 
     and map were included in this title, except that the 
     Secretary may correct clerical and typographical errors in 
     the boundary description and map.
       (3) Availability.-- The map and boundary description shall 
     be on file and available for public inspection in the Office 
     of the Chief of the Forest Service, Department of 
     Agriculture.
       (d) Nothing in this title shall interfere with any activity 
     for which a special use permit has been issued, has not been 
     revoked, and has not expired, before the date of enactment of 
     this title, subject to the terms of the permit.

     SEC. 108. ROSBORO LAND EXCHANGE.

       (a) Authorization.--Notwithstanding any other law, if the 
     Rosboro Lumber Company (referred to in this section as 
     ``Rosboro'') offers and conveys marketable title to the 
     United States to the land described in subsection (b), the 
     Secretary of Agriculture shall convey all right, title and 
     interest held by the United States to sufficient lands 
     described in subsection (c) to Rosboro, in the order in which 
     they appear in subsection (c), as necessary to satisfy the 
     equal value requirements of subsection (d).
       (b) Land to be Offered by Rosboro.--The land referred to in 
     subsection (a) as the land to be offered by Rosboro shall 
     comprise Section 36, Township 8 South, range 4 east, 
     Willamette Meridian.
       (c) Land To Be Conveyed by the United States.--The land 
     referred to in subsection (a) as the land to be conveyed by 
     the United States shall comprise sufficient land from the 
     following prioritized list to be of equal value under 
     subparagraph (d):
       (1) Section 5, Township 17 South, Range 4 East, Lot 7 
     (37.63 acres).
       (2) Section 2, Township 17 South, Range 4 East, Lot 3 
     (29.28 acres).
       (3) Section 13, Township 17 South, Range 4 East, S\1/2\ 
     SE\1/4\ (80 acres).
       (4) Section 2, Township 17 South, Range 4 East, SW\1/2\ 
     SW\1/4\ (40 acres).
       (5) Section 2, Township 17 South, Range 4 East, NW\1/4\ 
     SE\1/4\ (40 acres).
       (6) Section 8, Township 17 South, Range 4 East, SE\1/4\ 
     SW\1/4\ (40 acres).
       (7) Section 11, Township 17 South, Range 4 East, W\1/2\ 
     NW\1/4\ (80 acres).
       (d) Equal Value.--The land and interests in land exchanged 
     under this section shall be of equal market value as 
     determined by nationally recognized appraisal standards, 
     including, to the extent appropriate, the Uniform Standards 
     for Federal Land Acquisition, the Uniform Standards of 
     Professional Appraisal Practice, or shall be equalized by way 
     of payment of cash pursuant to the provisions of section 
     206(d) of the Federal Land Policy and Management Act of 1976 
     (43 U.S.C. 1716(d)), and other applicable law. The appraisal 
     shall consider access costs for the parcels involved.
       (c) Timetable.--
       (1) The exchange directed by this section shall be 
     consummated not later than 120 days after the date Rosboro 
     offers and conveys the property described in subsection (b) 
     to the United States.
       (2) The authority provided by this section shall lapse if 
     Rosboro fails to offer the land described in subsection (b) 
     within two years after the date of enactment of this title.
       (f) Rosboro shall have the right to challenge in United 
     States District Court for the District of Oregon a 
     determination of marketability under subsection (a) and a 
     determination of value for the lands described in subsections 
     (b) and (c) by the Secretary of Agriculture. The Court shall 
     have the authority to order the Secretary to complete the 
     transaction contemplated in this Section.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 109. DESIGNATION OF ELKHORN CREEK AS A WILD AND SCENIC 
                   RIVER.

       Section 3(a) of the Wild and Scenic Rivers Act (16 U.S.C. 
     1274(a)) is amended by adding at the end the following:
       ``( )(A) Elkhorn creek.--The 6.4 mile segment traversing 
     federally administered lands from that point along the 
     Willamette National Forest boundary on the common section 
     line between Sections 12 and 13, Township 9 South, Range 4 
     East, Willamette Meridian, to that point where the segment 
     leaves federal ownership along the Bureau of Land Management 
     boundary in Section 1, Township 9 South, Range 3 East, 
     Willamette Meridian, in the following classes:
       ``(i) a 5.8-mile wild river area, extending from that point 
     along the Willamette National Forest boundary on the common 
     section line between Sections 12 and 13, Township 9 South, 
     Range 4 East, Willamette Meridian, to its confluence with 
     Buck Creek in Section 1, Township 9 South, Range 3 East, 
     Willamette Meridian, to be administered as agreed on by the 
     Secretaries of Agriculture and the Interior, or as directed 
     by the President; and
       ``(ii) a 0.6-mile scenic river area, extending from the 
     confluence with Buck Creek in Section 1, Township 9 South, 
     Range 3 East, Willamette Meridian, to that point where the 
     segment leaves federal ownership along the Bureau of Land 
     Management boundary in Section 1, Township 9 South, Range 3 
     East, Willamette Meridian, to be administered by the 
     Secretary of Interior, or as directed by the President.
       ``(B) Notwithstanding section 3(b) of this Act, the lateral 
     boundaries of both the wild river area and the scenic river 
     area along Elkhorn Creek shall include an average of not more 
     than 640 acres per mile measured from the ordinary high water 
     mark on both sides of the river.''

     SEC. 110. ECONOMIC DEVELOPMENT.

       (a) Economic Development Plan.--As a condition for 
     receiving funding under subsection (b)

[[Page H11784]]

     of this section, the State of Oregon, in consultation with 
     Marion County and the Secretary of Agriculture, shall develop 
     a plan for economic development projects for which grants 
     under this section may be used in a manner consistent with 
     this title and to benefit local communities in the vicinity 
     of the Opal Creek area. Such plan shall be based on an 
     economic opportunity study and other appropriate information.
       (b) Funds Provided to the States for Grants.--Upon 
     completion of the Opal Creek Management Plan, and receipt of 
     the plan referred to in subsection (a) of this section, the 
     Secretary shall provide, subject to appropriations, 
     $15,000,000, to the State of Oregon. Such funds shall be used 
     to make grants or loans for economic development projects 
     that further the purposes of this title and benefit the local 
     communities in the vicinity of Opal Creek.
       (c) Report.--The State of Oregon shall--
       (1) prepare and provide the Secretary and Congress with an 
     annual report on the use of the funds made available under 
     this section;
       (2) make available to the Secretary and to Congress, upon 
     request, all accounts, financial records, and other 
     information related to grants and loans made available 
     pursuant to this section; and
       (3) as loans are repaid, make additional grants and loans 
     with the money made available for obligation by such 
     repayments.

                     TITLE II--UPPER KLAMATH BASIN

     SEC. 201. UPPER KLAMATH BASIN ECOLOGICAL RESTORATION 
                   PROJECTS.

       (a) Definitions.--In this section:
       (1) Ecosystem restoration office.--The term ``Ecosystem 
     Restoration Office'' means the Klamath Basin Ecosystem 
     Restoration Office operated cooperatively by the United 
     States Fish and Wildlife Service, Bureau of Reclamation, 
     Bureau of Land Management, and Forest Service.
       (2) Working group.--The term ``Working Group'' means the 
     Upper Klamath Basin Working Group, established before the 
     date of enactment of this title, consisting of members 
     nominated by their represented groups, including:
       (A) 3 tribal members;
       (B) 1 representative of the city of Klamath Falls, Oregon;
       (C) 1 representative of Klamath County, Oregon;
       (D) 1 representative of institutions of higher education in 
     the Upper Klamath Basin;
       (E) 4 representatives of the environmental community, 
     including at least one such representative from the State of 
     California with interests in the Klamath Basin National 
     Wildlife Refuge Complex.
       (F) 4 representatives of local businesses and industries, 
     including at least one representative of the wood products 
     industry and one representative of the ocean commercial 
     fishing industry and/or recreational fishing industry based 
     in either Oregon or California;
       (G) 4 representatives of the ranching and farming 
     community, including representatives of Federal lease-land 
     farmers and ranchers and of private and farmers and ranchers 
     in the Upper Klamath Basin;
       (H) 2 representatives from State of Oregon agencies with 
     authority and responsibility in the Klamath River Basin, 
     including one from the Oregon Department of Fish and Wildlife 
     and one from the Oregon Water Resources Department;
       (I) 4 representatives from the local community;
       (J) 1 representative each from the following Federal 
     resource management agencies in the Upper Klamath Basin: Fish 
     and Wildlife Service, Bureau of Reclamation, Bureau of Land 
     Management, Bureau of Indian Affairs, Forest Service, Natural 
     Resources Conservation Service, National Marine Fisheries 
     Service and Ecosystem Restoration Office; and
       (K) 1 representative of the Klamath County Soil and Water 
     Conservation District.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) Task force.--The term ``Task Force'' means the Klamath 
     River Basin Fisheries Task Force as established by the 
     Klamath River Basin Fishery Resource Restoration Act (Public 
     Law 99-552, 16 U.S.C. 460ss-3, et seq.).
       (5) Compact commission.--The term ``Compact Commission'' 
     means the Klamath River Basin Compact Commission created 
     pursuant to the Klamath River Compact Act of 1954.
       (6) Consensus.--The term ``consensus'' means an unanimous 
     agreement by the Working Group members present and consisting 
     of at least a quorum at a regularly scheduled business 
     meeting.
       (7) Quorum.--The term ``quorum'' means one more than half 
     of those qualified Working Group members appointed and 
     eligible to serve.
       (8) Trinity task force.--The term ``Trinity Task Force'' 
     means the Trinity River Restoration Task Force created by 
     Public Law 98-541, as amended by Public Law 104-143.
       (b) In General.--
       (1) The Working Group through the Ecosystem Restoration 
     Office, with technical assistance from the Secretary, will 
     propose ecological restoration projects, economic development 
     and stability projects, and projects designed to reduce the 
     impacts of drought conditions to be undertaken in the Upper 
     Klamath Basin based on a consensus of the Working Group 
     membership.
       (2) The Secretary shall pay, to the greatest extent 
     feasible, up to 50 percent of the cost of performing any 
     project approved by the Secretary or his designee, up to a 
     total amount of $1,000,000 during each of fiscal years 1997 
     through 2001.
       (3) Funds made available under this title through the 
     Department of the Interior or the Department of Agriculture 
     shall be distributed through the Ecosystem Restoration 
     Office.
       (4) The Ecosystem Restoration Office may utilize not more 
     than 15 percent of all Federal funds administered under this 
     section for administrative costs relating to the 
     implementation of this title.
       (5) All funding recommendations developed by the Working 
     Group shall be based on a consensus of Working Group members.
       (c) Coordination.--
       (1) The Secretary shall formulate a cooperative agreement 
     among the Working Group, the Task Force, the Trinity Task 
     Force and the Compact Commission for the purposes of ensuring 
     that projects proposed and funded through the Working Group 
     are consistent with other basin-wide fish and wildlife 
     restoration and conservation plans, including but not limited 
     to plans developed by the Task Force and the Compact 
     Commission.
       (2) To the greatest extent practicable, the Working Group 
     shall provide notice to, and accept input from, two members 
     each of the Task Force, the Trinity Task Force, and the 
     Compact Commission, so appointed by those entities, for the 
     express purpose of facilitating better communication and 
     coordination regarding additional basin-wide fish and 
     wildlife and ecosystem restoration and planning efforts. The 
     roles and relationships of the entities involved shall be 
     clarified in the cooperative agreement.
       (d) Public Meetings.--The Working Group shall conduct all 
     meetings subject to applicable open meeting and public 
     participation laws. The chartering requirements of 5 U.S.C. 
     App 2 ss 1-15 are hereby deemed to have been met by this 
     section.
       (e) Terms and Vacancies.--Working Group members shall serve 
     for 3-year terms, beginning on the date of enactment of this 
     title. Vacancies which occur for any reason after the date of 
     enactment of this title shall be filled by direct appointment 
     of the governor of the State of Oregon, in consultation with 
     the Secretary of the Interior and the Secretary of 
     Agriculture, in accordance with nominations from the 
     appropriate groups, interests, and government agencies 
     outlined in subsection (a)(2).
       (f) Rights, Duties and Authorities Unaffected.--The Working 
     Group will supplement, rather than replace, existing efforts 
     to manage the natural resources of the Klamath Basin. Nothing 
     in this title affects any legal right, duty or authority of 
     any person or agency, including any member of the working 
     group.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this title $1,000,000 for 
     each of fiscal years 1997 through 2002.

                       TITLE III--DESCHUTES BASIN

     SEC. 301. DESCHUTES BASIN ECOSYSTEM RESTORATION PROJECTS.

       (a) Definitions.--In this section:
       (1) Working group.--The term ``Working Group'' means the 
     Deschutes River Basin Working Group established before the 
     date of enactment of this title, consisting of members 
     nominated by their represented groups, including:
       (A) 5 representatives of private interests including one 
     each from hydroelectric production, livestock grazing, 
     timber, land development, and recreation/tourism;
       (B) 4 representatives of private interests including two 
     each from irrigated agriculture and the environmental 
     community;
       (C) 2 representatives form the Confederated Tribes of the 
     Warm Springs Reservation of Oregon;
       (D) 2 representatives from Federal agencies with authority 
     and responsibility in the Deschutes River Basin, including 
     one from the Department of the Interior and one from the 
     Agriculture Department;
       (E) 2 representatives from the State of Oregon agencies 
     with authority and responsibility in the Deschutes River 
     Basin, including one from the Oregon Department of Fish and 
     Wildlife and one from the Oregon Water Resources Department; 
     and
       (F) 4 representatives from county or city governments 
     within the Deschutes River Basin county and/or city 
     governments.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (3) Federal agencies.--The term ``Federal agencies'' means 
     agencies and departments of the United States, including, but 
     not limited to, the Bureau of Reclamation, Bureau of Indian 
     Affairs, Bureau of Land Management, Fish and Wildlife 
     Service, Forest Service, Natural Resources Conservation 
     Service, Farm Services Agency, the National Marine Fisheries 
     Service, and the Bonneville Power Administration.
       (4) Consensus.--The term ``consensus'' means a unanimous 
     agreement by the Working Group members present and 
     constituting at least a quorum at a regularly scheduled 
     business meeting.
       (5) Quorum.--The term ``quorum'' means one more than half 
     of those qualified Working Group members appointed and 
     eligible to serve.
       (b) In General.--
       (1) The Working Group will propose ecological restoration 
     projects on both Federal and non-Federal lands and waters to 
     be undertaken in the Deschutes River Basin based on a 
     consensus of the Working Group, provided that such projects, 
     when involving Federal land or funds, shall be proposed to 
     the Bureau of Reclamation in the Department of the Interior 
     and any other Federal agency with affected land or funds.
       (2) The Working Group will accept donations, grants or 
     other funds and place such funds received into a trust fund, 
     to be expended on ecological restoration projects which, when 
     involving Federal land or funds, are approved by the affected 
     Federal agency.
       (3) The Bureau of Reclamation shall pay from funds 
     authorized under subsection (h) of this title up to 50 
     percent of the cost of performing any project proposed by the 
     Working Group and approved by the Secretary, up to a total 
     amount of $1,000,000 during each of the fiscal years 1997 
     through 2001.
       (4) Non-Federal contributions to project costs for purposes 
     of computing the Federal matching

[[Page H11785]]

     share under paragraph (3) of this subsection may include in-
     kind contributions.
       (5) Funds authorized in subsection (h) of this title shall 
     be maintained in and distributed by the Bureau of Reclamation 
     in the Department of the Interior. The Bureau of Reclamation 
     shall not expend more than 5 percent of amounts appropriated 
     pursuant to subsection (h) for Federal administration of such 
     appropriations pursuant to this title.
       (6) The Bureau of Reclamation is authorized to provide by 
     grant to the Working Group not more than 5 percent of funds 
     appropriated pursuant to subsection (h) of this title for not 
     more than 50 percent of administrative costs relating to the 
     implementation of this title.
       (7) The Federal agencies with authority and responsibility 
     in the Deschutes River Basin shall provide technical 
     assistance to the Working Group and shall designate 
     representatives to serve as members of the Working Group.
       (8) All funding recommendations developed by the Working 
     Group shall be based on a consensus of the Working Group 
     members.
       (c) Public Notice and Participation.--The Working Group 
     shall conduct all meetings subject to applicable open meeting 
     and public participation laws. The chartering requirements of 
     5 U.S.C. App 2 ss 1-15 are hereby deemed to have been met by 
     this section.
       (d) Priorities.--The Working Group shall give priority to 
     voluntary market-based economic incentives for ecosystem 
     restoration including, but not limited to, water leases and 
     purchases; land leases and purchases; tradable discharge 
     permits; and acquisition of timber, grazing, and land 
     development rights to implement plans, programs, measures, 
     and projects.
       (e) Terms and Vacancies.--Members of the Working Group 
     representing governmental agencies or entities shall be named 
     by the represented government agency. Members of the Working 
     Group representing private interests shall be named in 
     accordance with the articles of incorporation and bylaws of 
     the Working Group. Representatives from Federal agencies will 
     serve for terms of 3 years. Vacancies which occur for any 
     reason after the date of enactment of this title shall be 
     filled in accordance with this title.
       (f) Additional Projects.--Where existing authority and 
     appropriations permit, Federal agencies may contribute to the 
     implementation of projects recommended by the Working Group 
     and approved by the Secretary.
       (g) Rights, Duties and Authorities Unaffected.--The Working 
     Group will supplement, rather than replace, existing efforts 
     to manage the natural resources of the Deschutes Basin. 
     Nothing in this title affects any legal right, duty or 
     authority of any person or agency, including any member of 
     the working group.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this title $1,000,000 for 
     each of fiscal years 1997 through 2001.

                     TITLE IV--MOUNT HOOD CORRIDOR

     SEC. 401. LAND EXCHANGE.

       (a) Authorization.--Notwithstanding any other law, if 
     Longview Fibre Company (referred to in this section as 
     ``Longview'') offers and conveys title that is acceptable to 
     the United States to some or all of the land described in 
     subsection (b), the Secretary of the Interior (referred to in 
     this section as the ``Secretary'') shall convey to Longview 
     title to some or all of the land described in subsection (c), 
     as necessary to satisfy the requirements of subsection (d).
       (b) Land To Be Offered by Longview.--The land referred to 
     in subsection (a) as the land to be offered by Longview are 
     those lands depicted on the map entitled ``Mt. Hood Corridor 
     Land Exchange Map'', dated July 18, 1996.
       (c) Land To Be Conveyed by the Secretary.--The land 
     referred to in subsection (a) as the land to be conveyed by 
     the Secretary are those lands depicted on the map entitled 
     ``Mt. Hood Corridor Land Exchange Map'', dated July 18, 1996.
       (d) Equal Value.--The land and interests in land exchanged 
     under this section shall be of equal market value as 
     determined by nationally recognized appraisal standards, 
     including, to the extent appropriate, the Uniform Standards 
     for Federal Land Acquisition, the Uniform Standards of 
     Professional Appraisal Practice, or shall be equalized by way 
     of payment of cash pursuant to the provisions of section 
     206(d) of the Federal Land Policy and Management Act of 1976 
     (43 U.S.C. 1716(d)), and other applicable law.
       (e) Redesignation of Land To Maintain Revenue Flow.--So as 
     to maintain the current flow of revenue from land subject to 
     the Act entitled ``An Act relating to the revested Oregon and 
     California Railroad and reconveyed Coos Bay Wagon Road grant 
     land situated in the State of Oregon'', approved August 28, 
     1937 (43 U.S.C. 1181a et seq.), the Secretary may redesignate 
     public domain land located in and west of Range 9 East, 
     Willamette Meridian, Oregon, as land subject to that Act.
       (f) Timetable.--The exchange directed by this section shall 
     be consummated not later than 1 year after the date of 
     enactment of this title.
       (g) Withdrawal of Lands.--All lands managed by the 
     Department of the Interior, Bureau of Land Management, 
     located in Townships 2 and 3 South, Ranges 6 and 7 East, 
     Willamette Meridian, which can be seen from the right-of-way 
     of U.S. Highway 26 (in this section, such lands are referred 
     to as the ``Mt. Hood Corridor Lands''), shall be managed 
     primarily for the protection or enhancement of scenic 
     qualities. Management prescriptions for other resource values 
     associated with these lands shall be planned and conducted 
     for purposes other than timber harvest, so as not to impair 
     the scenic qualities of the area.
       (h) Timber Cutting.--Timber cutting may be conducted on Mt. 
     Hood Corridor Lands following a resource-damaging 
     catastrophic event. Such cutting may only be conducted to 
     achieve the following resource management objectives, in 
     compliance with the current land use plans--
       (1) to maintain safe conditions for the visiting public;
       (2) to control the continued spread of forest fire;
       (3) for activities related to administration of the Mt. 
     Hood Corridor Lands; or
       (4) for removal of hazard trees along trails and roadways.
       (i) Road Closure.--The forest road gate located on Forest 
     Service Road 2503, located in T. 2 S., R. 6 E., sec. 14, 
     shall remain closed and locked to protect resources and 
     prevent illegal dumping and vandalism. Access to this road 
     shall be limited to--
       (1) Federal and State officers and employees acting in an 
     official capacity;
       (2) employees and contractors conducting authorized 
     activities associated with the telecommunication sites 
     located in T. 2 S., R. 6 E., sec. 14; and
       (3) the general public for recreational purposes, except 
     that all motorized vehicles will be prohibited.
       (j) NEPA Exemption.--The National Environmental Policy Act 
     of 1969 (P.L. 91-190) shall not apply to this section for one 
     year after the date of enactment of this title.
       (k) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

                    TITLE V--COQUILLE TRIBAL FOREST

     SEC. 501. CREATION OF THE COQUILLE FOREST.

       (a) The Coquille Restoration Act (P.L. 101-42) is amended 
     by inserting at the end of section 5 the following:
       ``(d) Creation of the Coquille Forest.--
       ``(1) Definitions.--In this subsection:
       ``(A) the term `Coquille Forest' means certain lands in 
     Coos County, Oregon, comprising approximately 5,400 acres, as 
     generally depicted on the map entitled `Coquille Forest 
     Proposal', dated July 8, 1996.
       ``(B) the term `Secretary' means the Secretary of the 
     Interior.
       ``(C) the term `the Tribe' means the Coquille Tribe of Coos 
     County, Oregon.
       ``(2) Map.--The map described in subparagraph (d)(1)(A), 
     and such additional legal descriptions which are applicable, 
     shall be placed on file at the local District Office of the 
     Bureau of Land Management, the Agency Office of the Bureau of 
     Indian Affairs, and with the Senate Committee on Energy and 
     Natural Resources and the House Committee on Resources.
       ``(3) Interim period.--From the date of enactment of this 
     subsection until two years after the date of enactment of 
     this subsection, the Bureau of Land Management shall:
       ``(A) retain Federal jurisdiction for the management of 
     lands designated under this subsection as the Coquille Forest 
     and continue to distribute revenues from such lands in a 
     manner consistent with existing law; and,
       ``(B) prior to advertising, offering or awarding any timber 
     sale contract on lands designated under this subsection as 
     the Coquille Forest, obtain the approval of the Assistant 
     Secretary for Indian Affairs, acting on behalf of and in 
     consultation with the Tribe.
       (4) Transition planning and designation.--
       ``(A) During the two year interim period provided for in 
     paragraph (3), the Assistant Secretary for Indian Affairs, 
     acting on behalf of and in consultation with the Tribe, is 
     authorized to initiate development of a forest management 
     plan for the Coquille Forest to the Assistant Secretary for 
     Indian Affairs.
       ``(B) Two years after the date of enactment of this 
     subsection, the Secretary shall take the lands identified 
     under subparagraph (d)(1)(A) into trust, and shall hold such 
     lands in trust, in perpetuity, for the Coquille Tribe. Such 
     lands shall be thereafter designated as the Coquille Forest.
       ``(C) So as to maintain the current flow of revenue from 
     land subject to the Act entitled `An Act relating to the 
     revested Oregon and California Railroad and reconveyed Coos 
     Bay Wagon Road grant land situated in the State of Oregon' 
     (the O&C Act), approved August 28, 1937 (43 U.S.C. 1181a et 
     seq.), the Secretary shall redesignate, from public domain 
     lands within the tribe's service area, as defined in this 
     Act, certain lands to be subject to the O&C Act. Lands 
     redesignated under this subparagraph shall not exceed lands 
     sufficient to constitute equivalent timber value as compared 
     to lands constituting the Coquille Forest.
       ``(5) Management.--The Secretary of Interior, acting 
     through the Assistant Secretary for Indian Affairs, shall 
     manage the Coquille Forest under applicable State and Federal 
     forestry and environmental protection laws, and subject to 
     critical habitat designations under the Endangered Species 
     Act, and subject to the standards and guidelines of Federal 
     forest plans on adjacent or nearby Federal lands, now and in 
     the future. The Secretary shall otherwise manage the Coquille 
     Forest in accordance with the laws pertaining to the 
     management of Indian Trust lands and shall distribute 
     revenues in accord with Public Law 101-630, 25 U.S.C. 3107.
       ``(A) Unprocessed logs harvested from the Coquille Forest 
     shall be subject to the same Federal statutory restrictions 
     on export to foreign Nations that apply to unprocessed logs 
     harvested from Federal lands.
       ``(B) Notwithstanding any other provision of law, all sales 
     of timber from land subject to this subsection shall be 
     advertised, offered and awarded according to competitive 
     bidding practices, with sales being awarded to the highest 
     responsible bidder.
       ``(6) Indian self determination act agreement.--No sooner 
     than two years after the date of enactment of this 
     subsection, the Secretary may, upon a satisfactory showing of 
     management competence and pursuant to the Indian

[[Page H11786]]

     Self-Determination Act (25 U.S.C. 450 et seq.), enter into a 
     binding Indian self-determination agreement (agreement) with 
     the Coquille Indian Tribe. Such agreement may provide for the 
     tribe to carry out all or a portion of the forest management 
     for the Coquille Forest.
       ``(A) Prior to entering such an agreement, and as a 
     condition of maintaining such an agreement, the Secretary 
     must find that the Coquille Tribe has entered into a binding 
     memorandum of agreement (MOA) with the State of Oregon, as 
     required under paragraph 7.
       ``(B) The authority of the Secretary to rescind the Indian 
     self-determination agreement shall not be encumbered.
       ``(i) The Secretary shall rescind the agreement upon a 
     demonstration that the tribe and the State of Oregon are no 
     longer engaged in a memorandum of agreement as required under 
     paragraph 7.
       ``(ii) The Secretary may rescind the agreement on a showing 
     that the Tribe has managed the Coquille Forest in a manner 
     inconsistent with this subsection, or the Tribe is no longer 
     managing, or capable of managing, the Coquille Forest in a 
     manner consistent with this subsection.
       ``(7) Memorandum of agreement.--The Coquille Tribe shall 
     enter into a memorandum of agreement (MOA) with the State of 
     Oregon relating to the establishment and management of the 
     Coquille Forest. The MOA shall include, but not be limited 
     to, the terms and conditions for managing the Coquille Forest 
     in a manner consistent with paragraph (5) of this subsection, 
     preserving public access, advancing jointly-held resource 
     management goals, achieving tribal restoration objectives and 
     establishing a coordinated management framework. Further, 
     provisions set forth in the MOA shall be consistent with 
     federal trust responsibility requirements applicable to 
     Indian trust lands and paragraph (5) of this subsection.
       ``(8) Public access.--The Coquille Forest shall remain open 
     to public access for purposes of hunting, fishing, recreation 
     and transportation, except when closure is required by state 
     or federal law, or when the Coquille Indian Tribe and the 
     State of Oregon agree in writing that restrictions on access 
     are necessary or appropriate to prevent harm to natural 
     resources, cultural resources or environmental quality; 
     Provided, That the State of Oregon's agreement shall not be 
     required when immediate action is necessary to protect 
     archaeological resources.
       ``(9) Jurisdiction.--
       ``(A) The United States District Court for the District of 
     Oregon shall have jurisdiction over actions against the 
     Secretary arising out of claims that this subsection has been 
     violated. Consistent with existing precedents on standing to 
     sue, any affected citizen may bring suit against the 
     Secretary for violations of this subsection, except that suit 
     may not be brought against the Secretary for claims that the 
     MOA has been violated. The Court has the authority to hold 
     unlawful and set aside actions pursuant to this subsection 
     that are arbitrary and capricious, an abuse of discretion, or 
     otherwise an abuse of law.
       ``(B) The United States District Court for the District of 
     Oregon shall have jurisdiction over actions between the State 
     of Oregon and the Tribe arising out of claims of breach of 
     the MOA.
       ``(C) Unless otherwise provided for by law, remedies 
     available under this subsection shall be limited to equitable 
     relief and shall not include damages.
       ``(10) State regulatory and civil jurisdiction.--In 
     addition to the jurisdiction described in paragraph 7 of this 
     subsection, the State of Oregon may exercise exclusive 
     regulatory civil jurisdiction, including but not limited to 
     adoption and enforcement of administrative rules and orders, 
     over the following subjects:
       ``(A) management, allocation and administration of fish and 
     wildlife resources, including but not limited to 
     establishment and enforcement of hunting and fishing seasons, 
     bag limits, limits on equipment and methods, issuance of 
     permits and licenses, and approval or disapproval of 
     hatcheries, game farms, and other breeding facilities; 
     Provided, That nothing herein shall be construed to permit 
     the State of Oregon to manage fish or wildlife habitat on 
     Coquille Forest lands;
       ``(B) allocation and administration of water rights, 
     appropriation of water and use of water;
       ``(C) regulation of boating activities, including equipment 
     and registration requirements, and protection of the public's 
     right to use the waterways for purposes of boating or other 
     navigation;
       ``(D) fills and removals from waters of the State, as 
     defined in Oregon law;
       ``(E) protection and management of the State's proprietary 
     interests in the beds and banks of navigable waterways;
       ``(F) regulation of mining, mine reclamation activities, 
     and exploration and drilling for oil and gas deposits;
       ``(G) regulation of water quality, air quality (including 
     smoke management), solid and hazardous waste, and remediation 
     of releases of hazardous substances;
       ``(H) regulation of the use of herbicides and pesticides; 
     and
       ``(I) enforcement of public health and safety standards, 
     including standards for the protection of workers, well 
     construction and codes governing the construction of bridges, 
     buildings, and other structures.
       ``(II) Savings clause, state authority.--
       ``(A) Nothing in this subsection shall be construed to 
     grant tribal authority over private or State-owned lands.
       ``(B) To the extend that the State of Oregon is regulating 
     the foregoing areas pursuant to a delegated Federal authority 
     or a Federal program, nothing in this subsection shall be 
     construed to enlarge or diminish the State's authority under 
     such law.
       ``(C) Where both the State of Oregon and the United States 
     are regulating, nothing herein shall be construed to alter 
     their respective authorities.
       ``(D) To the extent that Federal law authorizes the 
     Coquille Indian Tribe to assume regulatory authority over an 
     area, nothing herein shall be construed to enlarge or 
     diminish the tribe's authority to do so under such law.
       ``(E) Unless and except to the extent that the tribe has 
     assumed jurisdiction over the Coquille Forest pursuant to 
     Federal law, or otherwise with the consent of the State, the 
     State of Oregon shall have jurisdiction and authority to 
     enforce its laws addressing the subjects listed in 
     subparagraph 10 of this subsection on the Coquille Forest 
     against the Coquille Indian Tribe, its members and all other 
     persons and entities, in the same manner and with the same 
     remedies and protections and appeal rights as otherwise 
     provided by general Oregon law. Where the State of Oregon and 
     Coquille Indian Tribe agree regarding the exercise of tribal 
     civil regulatory jurisdiction over activities on the Coquille 
     Forest lands, the tribe may exercise such jurisdiction as it 
     agreed upon.
       ``(12) In the event of a conflict between Federal and State 
     law under this subsection, Federal law shall control.''

                TITLE VI--BULL RUN WATERSHED PROTECTION

       Sec. 601. The first sentence of section 2(a) of Public Law 
     95-200 is amended after ``referred to in this subsection 
     (a)'' by striking ``2(b)'' and inserting in lieu thereof 
     ``2(c)''.
       Sec. 602. The first sentence of section 2(b) of Public Law 
     95-200 is amended after ``the policy set forth in subsection 
     (a)'' by inserting ``and (b)''.
       Sec. 603. Section 2(b) of Public Law 95-200 is redesigned 
     as ``2(c)''.
       Sec. 604 (a) Public Law 95-200 is amended by adding a new 
     subsection 2(b) immediately after subsection 2(a), as 
     follows:
       ``(b) Timber Cutting.--
       (1) In general.--Subject to paragraph (2), the Secretary of 
     Agriculture shall prohibit the cutting of trees in that part 
     of the unit consisting of the hydrographic boundary of the 
     Bull Run River Drainage, including certain lands within the 
     unit and located below the headworks of the city of Portland, 
     Oregon's water storage and delivery project, and as depicted 
     in a map dated July 22, 1996 and entitled ``Bull Run River 
     Drainage''.
       (2) Permitted cutting.--
       (A) In general.--Subject to subparagraph (B), the Secretary 
     of Agriculture shall prohibit the cutting of trees in the 
     area described in paragraph (1).
       (B) Permitted cutting.--Subject to subparagraph (C), the 
     Secretary may only allow the cutting of trees in the area 
     described in paragraph (1)--
       (i) for the protection or enhancement of water quality in 
     the area described in paragraph (1); or
       (ii) for the protection, enhancement, or maintenance of 
     water quantity available from the area described in paragraph 
     (1); or
       (iii) for the construction, expansion, protection or 
     maintenance of municipal water supply facilities; or
       (iv) for the construction, expansion, protection or 
     maintenance of facilities for the transmission of energy 
     through and over the unit or previously authorized 
     hydroelectric facilities or hydroelectric projects associated 
     with municipal water supply facilities.
       (C) Salvage sales.--The Secretary of Agriculture may not 
     authorize a salvage sale in the area described in paragraph 
     (1).''
       (b) Redesignate subsequent subsections of Public Law 95-200 
     accordingly.

     SEC. 605. REPORT TO CONGRESS.

       (a) The Secretary of Agriculture shall, in consultation 
     with the city of Portland and other affected parties, 
     undertake a study of that part of the Little Sandy Watershed 
     that is within the unit (hereinafter referred to as the 
     ``study area''), as depicted on the map described in section 
     604 of this title.
       (b) The study referred to in (a) shall determine--
       (1) the impact of management activities within the study 
     area on the quality of drinking water provided to the 
     Portland Metropolitan area;
       (2) the identify and location of certain ecological 
     features within the study area, including late successional 
     forest characteristics, aquatic and terrestrial wildlife 
     habitat, significant hydrological values, or other 
     outstanding natural features; and
       (3) the location and extent of any significant cultural or 
     other values within the study area.
       (c) The study referred to in subsection (a) shall include 
     both legislative and regulatory recommendations to Congress 
     on the future management of the study area. In formulating 
     such recommendations, the Secretary shall consult with the 
     city of Portland and other affected parties.
       (d) To the greatest extent possible, the Secretary shall 
     use existing data and processes to carry out this study and 
     report.
       (e) The study referred to in subsection (a) shall be 
     submitted to the Senate Committees on Energy and Natural 
     Resources and Agriculture and the House Committees on 
     Resources and Agriculture not later than one year from the 
     date of enactment of this section.
       (f) The Secretary is prohibited from advertising, offering 
     or awarding any timber sale within the study area for a 
     period of two years after the date of enactment of this 
     section.
       (g) Nothing in this section shall in any way affect any 
     State or Federal law governing appropriation, use of or 
     Federal right to water on flowing through National Forest 
     System lands. Nothing in this section is intended to 
     influence the relative strength of competing claims to the

[[Page H11787]]

     waters of the Little Sandy River. Nothing in this section 
     shall be construed to expand or diminish Federal, State, or 
     local jurisdiction, responsibility, interests, or rights in 
     water resources development or control, including rights in 
     and current uses of water resources in the unit.
       Sec. 606. Lands within the Bull Run Management Unit, as 
     defined in Public Law 95-200, but not contained within the 
     Bull Run River Drainage, as defined by this title and as 
     depicted on the map dated July 1996 described in Section 604 
     of this title, shall continue to be managed in accordance 
     with Public Law 95-200.

            TITLE VII--OREGON ISLANDS WILDERNESS, ADDITIONS

     SEC. 701. OREGON ISLANDS WILDERNESS, ADDITIONS.

       (a) In furtherance of the purposes of the Wilderness Act of 
     1964, certain lands within the boundaries of the Oregon 
     Islands National Wildlife Refuge, Oregon, comprising 
     approximately ninety-five acres and as generally depicted on 
     a map entitled ``Oregon Island Wilderness Additions--
     Proposed'' dated August 1996, are hereby designated as 
     wilderness. The map shall be on file and available for public 
     inspection in the offices of the Fish and Wildlife Service, 
     Department of the Interior.
       (b) All other federally owned named, unnamed, surveyed and 
     unsurveyed rocks, reefs, islets and islands lying within 
     three goegraphic miles off the coast of Oregon and above mean 
     high tide, not currently designated as wilderness and also 
     within the Oregon Islands National Wildlife Refuge boundaries 
     under the administration of the United States Fish and 
     Wildlife Service, Department of the Interior, as designated 
     by Executive Order 7035, Proclamation 2416, Public Land 
     Orders 4395, 4475 and 6287, and Public Laws 91-504 and 95-
     450, are hereby designated as wilderness.
       (c) All federally owned named, unnamed, surveyed and 
     unsurveyed rocks, reefs, islets and islands lying within 
     three geographic miles off the coast of Oregon and above mean 
     high tide, and presently under the jurisdiction of the Bureau 
     of Land Management, except Chiefs Island, are hereby 
     designated as wilderness, shall become part of the Oregon 
     Islands National Wildlife Refuge and the Oregon Island 
     Wilderness and shall be under the jurisdiction of the United 
     States Fish and Wildlife Service, Department of the Interior.
       (d) As soon as practicable after this title takes effect, a 
     map of the wilderness area and a description of its 
     boundaries shall be filed with the Senate Committee on Energy 
     and Natural Resources and the House Committee on Resources, 
     and such map shall have the same force and effect as if 
     included in this title: Provided, however, That correcting 
     clerical and typographical errors in the map and land 
     descriptions may be made.
       (e) Public Land Order 6287 of June 16, 1982, which withdrew 
     certain rocks, reefs, islets and islands lying within three 
     geographical miles off the coast of Oregon and above mean 
     high tide, including the ninety-five acres described in 
     subsection (a), as an addition to the Oregon Islands National 
     Wildlife Refuge is hereby made permanent.

              TITLE VIII--UMPQUA RIVER LAND EXCHANGE STUDY

     SEC. 801. UMPQUA RIVER LAND EXCHANGE STUDY: POLICY AND 
                   DIRECTION.

       (a) In General.--The Secretaries of the Interior and 
     Agriculture (Secretaries) are hereby authorized and directed 
     to consult, coordinate, and cooperate with the Umpqua Land 
     Exchange Project (ULEP), affected units and agencies of State 
     and local government, and, as appropriate, the World Forestry 
     Center and National Fish and Wildlife Foundation, to assist 
     ULEP's ongoing efforts in studying and analyzing land 
     exchange opportunities in the Umpqua River Basin and to 
     provide scientific, technical, research, mapping and other 
     assistance and information to such entities. Such 
     consultation, coordination, and cooperation shall at a 
     minimum include, but not be limited to:
       (1) working with ULEP to develop or assemble comprehensive 
     scientific and other information (including comprehensive and 
     integrated mapping) concerning the Umpqua River Basin's 
     resources of forest, plants, wildlife, fisheries (anadromous 
     and other), recreational opportunities, wetlands, riparian 
     habitat, and other physical or natural resources;
       (2) working with ULEP to identify general or specific areas 
     within the basin where land exchanges could promote 
     consolidation of forestland ownership for long-term, 
     sustained timber production; protection and restoration of 
     habitat for plants, fish, and wildlife (including any 
     federally listed threatened or endangered species); 
     protection of drinking water supplies; recovery of threatened 
     and endangered species; protection and restoration of 
     wetlands, riparian lands, and other environmentally sensitive 
     areas; consolidation of land ownership for improved public 
     access and a broad array of recreational uses; consolidation 
     of land ownership to achieve management efficiency and 
     reduced costs of administration; and
       (3) developing a joint report for submission to the 
     Congress which discusses land exchange opportunities in the 
     basin and outlines either a specific land exchange proposal 
     or proposals which may merit consideration by the Secretaries 
     or the Congress, or ideas and recommendations for new 
     authorizations, direction, or changes in existing law or 
     policy to expedite and facilitate the consummation of 
     beneficial land exchanges in the basin via administrative 
     means.
       (b) Matters for Specific Study.--In analyzing land exchange 
     opportunities with ULEP, the Secretaries shall give priority 
     to assisting ULEP's ongoing efforts in:
       (1) studying, identifying, and mapping areas where the 
     consolidation of land ownership via land exchanges could 
     promote the goals of long term species and watershed 
     protection and utilization, including but not limited to the 
     goals of the Endangered Species Act of 1973 more effectively 
     than current land ownership patterns and whether any changes 
     in law or policy applicable to such lands after consummation 
     of an exchange would be advisable or necessary to achieve 
     such goals;
       (2) studying, identifying and mapping areas where land 
     exchanges might be utilized to better satisfy the goals of 
     sustainable timber harvest, including studying whether 
     changes in existing law or policy applicable to such lands 
     after consummation of an exchange would be advisable or 
     necessary to achieve such goals;
       (3) identifying issues and studying options and 
     alternatives, including possible changes in existing law or 
     policy, to insure that combined post-exchange revenues to 
     units of local government from State and local property, 
     severance, and other taxes or levies and shared Federal land 
     receipts will approximate pre-exchange revenues;
       (4) identifying issues and studying whether possible 
     changes in law, special appraisal instruction, or changes in 
     certain Federal appraisal procedures might be advisable or 
     necessary to facilitate the appraisal of potential exchange 
     lands which may have special characteristics or restrictions 
     affecting land values;
       (5) identifying issues and studying options and 
     alternatives, including changes in existing laws or policy, 
     for achieving land exchanges without reducing the net supply 
     of timber available to small businesses;
       (6) identifying, mapping, and recommending potential 
     changes in land use plans, land classifications, or other 
     actions which might be advisable or necessary to expedite, 
     facilitate or consummate land exchanges in certain areas;
       (7) analyzing potential sources for new or enhanced 
     Federal, State, or other funding to promote improved resource 
     protection, species recovery, and management in the basin; 
     and
       (8) identifying and analyzing whether increased efficiency 
     and better land and resource management could occur through 
     either consolidation of Federal forest management under one 
     agency or exchange lands between the Forest Service and the 
     Bureau of Land Management.

     SEC. 802. REPORT TO CONGRESS.

       No later than February 1, 1998, ULEP and the Secretaries 
     shall submit a joint report to the Committee on Resources of 
     the United States House of Representatives and to the 
     Committee on Energy and Natural Resources of the United 
     States Senate concerning their studies, findings, 
     recommendations, mapping and other activities conducted 
     pursuant to this title.

     SEC. 803. AUTHORIZATION OF APPROPRIATIONS.

       In furtherance of the purposes of this title, there is 
     hereby authorized to be appropriated the sum of $2 million, 
     to remain available until expended.
DIVISION C--ILLEGAL IMMIGRATION REFORM AND IMMIGRANT RESPONSIBILITY ACT 
                                OF 1996

     SEC. 1. SHORT TITLE OF DIVISION; AMENDMENTS TO IMMIGRATION 
                   AND NATIONALITY ACT; APPLICATION OF DEFINITIONS 
                   OF SUCH ACT; TABLE OF CONTENTS OF DIVISION; 
                   SEVERABILITY.

       (a) Short Title.--This division may be cited as the 
     ``Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996''.
       (b) Amendments to Immigration and Nationality Act.--Except 
     as otherwise specifically provided--
       (1) whenever in this division an amendment or repeal is 
     expressed as the amendment or repeal of a section or other 
     provision, the reference shall be considered to be made to 
     that section or provision in the Immigration and Nationality 
     Act; and
       (2) amendments to a section or other provision are to such 
     section or other provision before any amendment made to such 
     section or other provision elsewhere in this division.
       (c) Application of Certain Definitions.--Except as 
     otherwise specifically provided in this division, for 
     purposes of titles I and VI of this division, the terms 
     ``alien'', ``Attorney General'', ``border crossing 
     identification card'', ``entry'', ``immigrant'', ``immigrant 
     visa'', ``lawfully admitted for permanent residence'', 
     ``national'', ``naturalization'', ``refugee'', ``State'', and 
     ``United States'' shall have the meaning given such terms in 
     section 101(a) of the Immigration and Nationality Act.
       (d) Table of Contents of Division.--The table of contents 
     of this division is as follows:

Sec. 1. Short title of division; amendments to Immigration and 
              Nationality Act; application of definitions of such Act; 
              table of contents of division; severability.

 TITLE I--IMPROVEMENTS TO BORDER CONTROL, FACILITATION OF LEGAL ENTRY, 
                        AND INTERIOR ENFORCEMENT

             Subtitle A--Improved Enforcement at the Border

Sec. 101. Border patrol agents and support personnel.
Sec. 102. Improvement of barriers at border.
Sec. 103. Improved border equipment and technology.
Sec. 104. Improvement in border crossing identification card.
Sec. 105. Civil penalties for illegal entry.
Sec. 106. Hiring and training standards.
Sec. 107. Report on border strategy.
Sec. 108. Criminal penalties for high speed flights from immigration 
              checkpoints.
Sec. 109. Joint study of automated data collection.
Sec. 110. Automated entry-exit control system.
Sec. 111. Submission of final plan on realignment of border patrol 
              positions from interior stations.
Sec. 112. Nationwide fingerprinting of apprehended aliens.

[[Page H11788]]

                Subtitle B--Facilitation of Legal Entry

Sec. 121. Land border inspectors.
Sec. 122. Land border inspection and automated permit pilot projects.
Sec. 123. Preinspection at foreign airports.
Sec. 124. Training of airline personnel in detection of fraudulent 
              documents.
Sec. 125. Preclearance authority.

                    Subtitle C--Interior Enforcement

Sec. 131. Authorization of appropriations for increase in number of 
              certain investigators.
Sec. 132. Authorization of appropriations for increase in number of 
              investigators of visa overstayers.
Sec. 133. Acceptance of State services to carry out immigration 
              enforcement.
Sec. 134. Minimum State INS presence.

 TITLE II--ENHANCED ENFORCEMENT AND PENALTIES AGAINST ALIEN SMUGGLING; 
                             DOCUMENT FRAUD

 Subtitle A--Enhanced Enforcement and Penalties Against Alien Smuggling

Sec. 201. Wiretap authority for investigations of alien smuggling or 
              document fraud.
Sec. 202. Racketeering offenses relating to alien smuggling.
Sec. 203. Increased criminal penalties for alien smuggling.
Sec. 204. Increased number of assistant United States Attorneys.
Sec. 205. Undercover investigation authority.

                Subtitle B--Deterrence of Document Fraud

Sec. 211. Increased criminal penalties for fraudulent use of 
              government-issued documents.
Sec. 212. New document fraud offenses; new civil penalties for document 
              fraud.
Sec. 213. New criminal penalty for failure to disclose role as preparer 
              of false application for immigration benefits.
Sec. 214. Criminal penalty for knowingly presenting document which 
              fails to contain reasonable basis in law or fact.
Sec. 215. Criminal penalty for false claim to citizenship.
Sec. 216. Criminal penalty for voting by aliens in Federal election.
Sec. 217. Criminal forfeiture for passport and visa related offenses.
Sec. 218. Penalties for involuntary servitude.
Sec. 219. Admissibility of videotaped witness testimony.
Sec. 220. Subpoena authority in document fraud enforcement.

   TITLE III--INSPECTION, APPREHENSION, DETENTION, ADJUDICATION, AND 
             REMOVAL OF INADMISSIBLE AND DEPORTABLE ALIENS

        Subtitle A--Revision of Procedures for Removal of Aliens

Sec. 301. Treating persons present in the United States without 
              authorization as not admitted.
Sec. 302. Inspection of aliens; expedited removal of inadmissible 
              arriving aliens; referral for hearing (revised section 
              235).
Sec. 303. Apprehension and detention of aliens not lawfully in the 
              United States (revised section 236).
Sec. 304. Removal proceedings; cancellation of removal and adjustment 
              of status; voluntary departure (revised and new sections 
              239 to 240C).
Sec. 305. Detention and removal of aliens ordered removed (new section 
              241).
Sec. 306. Appeals from orders of removal (new section 242).
Sec. 307. Penalties relating to removal (revised section 243).
Sec. 308. Redesignation and reorganization of other provisions; 
              additional conforming amendments.
Sec. 309. Effective dates; transition.

                 Subtitle B--Criminal Alien Provisions

Sec. 321. Amended definition of aggravated felony.
Sec. 322. Definition of conviction and term of imprisonment.
Sec. 323. Authorizing registration of aliens on criminal probation or 
              criminal parole.
Sec. 324. Penalty for reentry of deported aliens.
Sec. 325. Change in filing requirement.
Sec. 326. Criminal alien identification system.
Sec. 327. Appropriations for criminal alien tracking center.
Sec. 328. Provisions relating to State criminal alien assistance 
              program.
Sec. 329. Demonstration project for identification of illegal aliens in 
              incarceration facility of Anaheim, California.
Sec. 330. Prisoner transfer treaties.
Sec. 331. Prisoner transfer treaties study.
Sec. 332. Annual report on criminal aliens.
Sec. 333. Penalties for conspiring with or assisting an alien to commit 
              an offense under the Controlled Substances Import and 
              Export Act.
Sec. 334. Enhanced penalties for failure to depart, illegal reentry, 
              and passport and visa fraud.

     Subtitle C--Revision of Grounds for Exclusion and Deportation

Sec. 341. Proof of vaccination requirement for immigrants.
Sec. 342. Incitement of terrorist activity and provision of false 
              documentation to terrorists as a basis for exclusion from 
              the United States.
Sec. 343. Certification requirements for foreign health-care workers.
Sec. 344. Removal of aliens falsely claiming United States citizenship.
Sec. 345. Waiver of exclusion and deportation ground for certain 
              section 274C violators.
Sec. 346. Inadmissibility of certain student visa abusers.
Sec. 347. Removal of aliens who have unlawfully voted.
Sec. 348. Waivers for immigrants convicted of crimes.
Sec. 349. Waiver of misrepresentation ground of inadmissibility for 
              certain alien.
Sec. 350. Offenses of domestic violence and stalking as ground for 
              deportation.
Sec. 351. Clarification of date as of which relationship required for 
              waiver from exclusion or deportation for smuggling.
Sec. 352. Exclusion of former citizens who renounced citizenship to 
              avoid United States taxation.
Sec. 353. References to changes elsewhere in division.

      Subtitle D--Changes in Removal of Alien Terrorist Provisions

Sec. 354. Treatment of classified information.
Sec. 355. Exclusion of representatives of terrorist organizations.
Sec. 356. Standard for judicial review of terrorist organization 
              designations.
Sec. 357. Removal of ancillary relief for voluntary departure.
Sec. 358. Effective date.

                  Subtitle E--Transportation of Aliens

Sec. 361. Definition of stowaway.
Sec. 362. Transportation contracts.

                   Subtitle F--Additional Provisions

Sec. 371. Immigration judges and compensation.
Sec. 372. Delegation of immigration enforcement authority.
Sec. 373. Powers and duties of the Attorney General and the 
              Commissioner.
Sec. 374. Judicial deportation.
Sec. 375. Limitation on adjustment of status.
Sec. 376. Treatment of certain fees.
Sec. 377. Limitation on legalization litigation.
Sec. 378. Rescission of lawful permanent resident status.
Sec. 379. Administrative review of orders.
Sec. 380. Civil penalties for failure to depart.
Sec. 381. Clarification of district court jurisdiction.
Sec. 382. Application of additional civil penalties to enforcement.
Sec. 383. Exclusion of certain aliens from family unity program.
Sec. 384. Penalties for disclosure of information.
Sec. 385. Authorization of additional funds for removal of aliens.
Sec. 386. Increase in INS detention facilities; report on detention 
              space.
Sec. 387. Pilot program on use of closed military bases for the 
              detention of inadmissible or deportable aliens.
Sec. 388. Report on interior repatriation program.

        TITLE IV--ENFORCEMENT OF RESTRICTIONS AGAINST EMPLOYMENT

   Subtitle A--Pilot Programs for Employment Eligibility Confirmation

Sec. 401. Establishment of programs.
Sec. 402. Voluntary election to participate in a pilot program.
Sec. 403. Procedures for participants in pilot programs.
Sec. 404. Employment eligibility confirmation system.
Sec. 405. Reports.

      Subtitle B--Other Provisions Relating to Employer Sanctions

Sec. 411. Limiting liability for certain technical violations of 
              paperwork requirements.
Sec. 412. Paperwork and other changes in the employer sanctions 
              program.
Sec. 413. Report on additional authority or resources needed for 
              enforcement of employer sanctions provisions.
Sec. 414. Reports on earnings of aliens not authorized to work.
Sec. 415. Authorizing maintenance of certain information on aliens.
Sec. 416. Subpoena authority.

      Subtitle C--Unfair Immigration-Related Employment Practices

Sec. 421. Treatment of certain documentary practices as unfair 
              immigration-related employment practices.

              TITLE V--RESTRICTIONS ON BENEFITS FOR ALIENS

  Subtitle A--Eligibility of Aliens for Public Assistance and Benefits

Sec. 501. Exception to ineligibility for public benefits for certain 
              battered aliens.
Sec. 502. Pilot programs on limiting issuance of driver's licenses to 
              illegal aliens.
Sec. 503. Ineligibility of aliens not lawfully present for Social 
              Security benefits.
Sec. 504. Procedures for requiring proof of citizenship for Federal 
              public benefits.
Sec. 505. Limitation on eligibility for preferential treatment of 
              aliens not lawfully present on basis of residence for 
              higher education benefits.
Sec. 506. Study and report on alien student eligibility for 
              postsecondary Federal student financial assistance.
Sec. 507. Verification of immigration status for purposes of Social 
              Security and higher educational assistance.
Sec. 508. No verification requirement for nonprofit charitable 
              organizations.
Sec. 509. GAO study of provision of means-tested public benefits to 
              aliens who are not qualified aliens on behalf of eligible 
              individuals.

[[Page H11789]]

Sec. 510. Transition for aliens currently receiving benefits under the 
              Food Stamp program.

                  Subtitle B--Public Charge Exclusion

Sec. 531. Ground for exclusion.

                   Subtitle C--Affidavits of Support

Sec. 551. Requirements for sponsor's affidavit of support.
Sec. 552. Indigence and battered spouse and child exceptions to Federal 
              attribution of income rule.
Sec. 553. Authority of States and political subdivisions of States to 
              limit assistance to aliens and to distinguish among 
              classes of aliens in providing general cash public 
              assistance.

                  Subtitle D--Miscellaneous Provisions

Sec. 561. Increased maximum criminal penalties for forging or 
              counterfeiting seal of a Federal department or agency to 
              facilitate benefit fraud by an unlawful alien.
Sec. 562. Treatment of expenses subject to emergency medical services 
              exception.
Sec. 563. Reimbursement of States and localities for emergency 
              ambulance services.
Sec. 564. Pilot programs to require bonding.
Sec. 565. Reports.

                     Subtitle E--Housing Assistance

Sec. 571. Short title.
Sec. 572. Prorating of financial assistance.
Sec. 573. Actions in cases of termination of financial assistance.
Sec. 574. Verification of immigration status and eligibility for 
              financial assistance.
Sec. 575. Prohibition of sanctions against entities making financial 
              assistance eligibility determinations.
Sec. 576. Eligibility for public and assisted housing.
Sec. 577. Regulations.

                     Subtitle F--General Provisions

Sec. 591. Effective dates.
Sec. 592. Not applicable to foreign assistance.
Sec. 593. Notification.
Sec. 594. Definitions.

                   TITLE VI--MISCELLANEOUS PROVISIONS

                Subtitle A--Refugees, Parole, and Asylum

Sec. 601. Persecution for resistance to coercive population control 
              methods.
Sec. 602. Limitation on use of parole.
Sec. 603. Treatment of long-term parolees in applying worldwide 
              numerical limitations.
Sec. 604. Asylum reform.
Sec. 605. Increase in asylum officers.
Sec. 606. Conditional repeal of Cuban Adjustment Act.

Subtitle B--Miscellaneous Amendments to the Immigration and Nationality 
                                  Act

Sec. 621. Alien witness cooperation.
Sec. 622. Waiver of foreign country residence requirement with respect 
              to international medical graduates.
Sec. 623. Use of legalization and special agricultural worker 
              information.
Sec. 624. Continued validity of labor certifications and classification 
              petitions for professional athletes.
Sec. 625. Foreign students.
Sec. 626. Services to family members of certain officers and agents 
              killed in the line of duty.

    Subtitle C--Provisions Relating to Visa Processing and Consular 
                               Efficiency

Sec. 631. Validity of period of visas.
Sec. 632. Elimination of consulate shopping for visa overstays.
Sec. 633. Authority to determine visa processing procedures.
Sec. 634. Changes regarding visa application process.
Sec. 635. Visa waiver program.
Sec. 636. Fee for diversity immigrant lottery.
Sec. 637. Eligibility for visas for certain Polish applicants for the 
              1995 diversity immigrant program.

                      Subtitle D--Other Provisions

Sec. 641. Program to collect information relating to nonimmigrant 
              foreign students.
Sec. 642. Communication between government agencies and the Immigration 
              and Naturalization Service.
Sec. 643. Regulations regarding habitual residence.
Sec. 644. Information regarding female genital mutilation.
Sec. 645. Criminalization of female genital mutilation.
Sec. 646. Adjustment of status for certain Polish and Hungarian 
              parolees.
Sec. 647. Support of demonstration projects.
Sec. 648. Sense of Congress regarding American-made products; 
              requirements regarding notice.
Sec. 649. Vessel movement controls during immigration emergency.
Sec. 650. Review of practices of testing entities.
Sec. 651. Designation of a United States customs administrative 
              building.
Sec. 652. Mail-order bride business.
Sec. 653. Review and report on H-2A nonimmigrant workers program.
Sec. 654. Report on allegations of harassment by Canadian customs 
              agents.
Sec. 655. Sense of Congress on discriminatory application of New 
              Brunswick provincial sales tax.
Sec. 656. Improvements in identification-related documents.
Sec. 657. Development of prototype of counterfeit-resistant Social 
              Security card.
Sec. 658. Border Patrol Museum.
Sec. 659. Sense of the Congress regarding the mission of the 
              Immigration and Naturalization Service.
Sec. 660. Authority for National Guard to assist in transportation of 
              certain aliens.

                   Subtitle E--Technical Corrections

Sec. 671. Miscellaneous technical corrections.
       (e) Severability.--If any provision of this division or the 
     application of such provision to any person or circumstances 
     is held to be unconstitutional, the remainder of this 
     division and the application of the provisions of this 
     division to any person or circumstance shall not be affected 
     thereby.
 TITLE I--IMPROVEMENTS TO BORDER CONTROL, FACILITATION OF LEGAL ENTRY, 
                        AND INTERIOR ENFORCEMENT
             Subtitle A--Improved Enforcement at the Border

     SEC. 101. BORDER PATROL AGENTS AND SUPPORT PERSONNEL.

       (a) Increased Number of Border Patrol Agents.--The Attorney 
     General in each of fiscal years 1997, 1998, 1999, 2000, and 
     2001 shall increase by not less than 1,000 the number of 
     positions for full-time, active-duty border patrol agents 
     within the Immigration and Naturalization Service above the 
     number of such positions for which funds were allotted for 
     the preceding fiscal year.
       (b) Increase in Border Patrol Support Personnel.--The 
     Attorney General, in each of fiscal years 1997, 1998, 1999, 
     2000, and 2001, may increase by 300 the number of positions 
     for personnel in support of border patrol agents above the 
     number of such positions for which funds were allotted for 
     the preceding fiscal year.
       (c) Deployment of Border Patrol Agents.--The Attorney 
     General shall, to the maximum extent practicable, ensure that 
     additional border patrol agents shall be deployed among 
     Immigration and Naturalization Service sectors along the 
     border in proportion to the level of illegal crossing of the 
     borders of the United States measured in each sector during 
     the preceding fiscal year and reasonably anticipated in the 
     next fiscal year.
       (d) Forward Deployment.--
       (1) In general.--The Attorney General shall forward deploy 
     existing border patrol agents in those areas of the border 
     identified as areas of high illegal entry into the United 
     States in order to provide a uniform and visible deterrent to 
     illegal entry on a continuing basis. The previous sentence 
     shall not apply to border patrol agents located at 
     checkpoints.
       (2) Preservation of law enforcement functions and 
     capabilities in interior states.--The Attorney General shall, 
     when deploying border patrol personnel from interior stations 
     to border stations, coordinate with, and act in conjunction 
     with, State and local law enforcement agencies to ensure that 
     such deployment does not degrade or compromise the law 
     enforcement capabilities and functions currently performed at 
     interior border patrol stations.
       (3) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Attorney General shall submit to 
     the Committees on the Judiciary of the House of 
     Representatives and of the Senate a report on--
       (A) the progress and effectiveness of the forward 
     deployment under paragraph (1); and
       (B) the measures taken to comply with paragraph (2).

     SEC. 102. IMPROVEMENT OF BARRIERS AT BORDER.

       (a) In General.--The Attorney General, in consultation with 
     the Commissioner of Immigration and Naturalization, shall 
     take such actions as may be necessary to install additional 
     physical barriers and roads (including the removal of 
     obstacles to detection of illegal entrants) in the vicinity 
     of the United States border to deter illegal crossings in 
     areas of high illegal entry into the United States.
       (b) Construction of Fencing and Road Improvements in the 
     Border Area Near San Diego, California.--
       (1) In general.--In carrying out subsection (a), the 
     Attorney General shall provide for the construction along the 
     14 miles of the international land border of the United 
     States, starting at the Pacific Ocean and extending eastward, 
     of second and third fences, in addition to the existing 
     reinforced fence, and for roads between the fences.
       (2) Prompt acquisition of necessary easements.--The 
     Attorney General, acting under the authority conferred in 
     section 103(b) of the Immigration and Nationality Act (as 
     inserted by subsection (d)), shall promptly acquire such 
     easements as may be necessary to carry out this subsection 
     and shall commence construction of fences immediately 
     following such acquisition (or conclusion of portions 
     thereof).
       (3) Safety features.--The Attorney General, while 
     constructing the additional fencing under this subsection, 
     shall incorporate such safety features into the design of the 
     fence system as are necessary to ensure the well-being of 
     border patrol agents deployed within or in near proximity to 
     the system.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this subsection not to exceed 
     $12,000,000. Amounts appropriated under this paragraph are 
     authorized to remain available until expended.
       (c) Waiver.--The provisions of the Endangered Species Act 
     of 1973 and the National Environmental Policy Act of 1969 are 
     waived to the extent the Attorney General determines 
     necessary to ensure expeditious construction of the barriers 
     and roads under this section.
       (d) Land Acquisition Authority.--
       (1) In general.--Section 103 (8 U.S.C. 1103) is amended--
       (A) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively; and
       (B) by inserting after subsection (a) the following:

[[Page H11790]]

       ``(b)(1) The Attorney General may contract for or buy any 
     interest in land, including temporary use rights, adjacent to 
     or in the vicinity of an international land border when the 
     Attorney General deems the land essential to control and 
     guard the boundaries and borders of the United States against 
     any violation of this Act.
       ``(2) The Attorney General may contract for or buy any 
     interest in land identified pursuant to paragraph (1) as soon 
     as the lawful owner of that interest fixes a price for it and 
     the Attorney General considers that price to be reasonable.
       ``(3) When the Attorney General and the lawful owner of an 
     interest identified pursuant to paragraph (1) are unable to 
     agree upon a reasonable price, the Attorney General may 
     commence condemnation proceedings pursuant to the Act of 
     August 1, 1888 (Chapter 728; 25 Stat. 357).
       ``(4) The Attorney General may accept for the United States 
     a gift of any interest in land identified pursuant to 
     paragraph (1).''.
       (2) Conforming amendment.--Section 103(e) (as so 
     redesignated by paragraph (1)(A)) is amended by striking 
     ``subsection (c)'' and inserting ``subsection (d)''.

     SEC. 103. IMPROVED BORDER EQUIPMENT AND TECHNOLOGY.

       The Attorney General is authorized to acquire and use, for 
     the purpose of detection, interdiction, and reduction of 
     illegal immigration into the United States, any Federal 
     equipment (including fixed wing aircraft, helicopters, four-
     wheel drive vehicles, sedans, night vision goggles, night 
     vision scopes, and sensor units) determined available for 
     transfer by any other agency of the Federal Government upon 
     request of the Attorney General.

     SEC. 104. IMPROVEMENT IN BORDER CROSSING IDENTIFICATION CARD.

       (a) In General.--Section 101(a)(6) (8 U.S.C. 1101(a)(6)) is 
     amended by adding at the end the following: ``Such 
     regulations shall provide that (A) each such document include 
     a biometric identifier (such as the fingerprint or handprint 
     of the alien) that is machine readable and (B) an alien 
     presenting a border crossing identification card is not 
     permitted to cross over the border into the United States 
     unless the biometric identifier contained on the card matches 
     the appropriate biometric characteristic of the alien.''.
       (b) Effective Dates.--
       (1) Clause a.--Clause (A) of the sentence added by the 
     amendment made by subsection (a) shall apply to documents 
     issued on or after 18 months after the date of the enactment 
     of this Act.
       (2) Clause b.--Clause (B) of such sentence shall apply to 
     cards presented on or after 3 years after the date of the 
     enactment of this Act.

     SEC. 105. CIVIL PENALTIES FOR ILLEGAL ENTRY.

       (a) In General.--Section 275 (8 U.S.C. 1325) is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) Any alien who is apprehended while entering (or 
     attempting to enter) the United States at a time or place 
     other than as designated by immigration officers shall be 
     subject to a civil penalty of--
       ``(1) at least $50 and not more than $250 for each such 
     entry (or attempted entry); or
       ``(2) twice the amount specified in paragraph (1) in the 
     case of an alien who has been previously subject to a civil 
     penalty under this subsection.

     Civil penalties under this subsection are in addition to, and 
     not in lieu of, any criminal or other civil penalties that 
     may be imposed.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to illegal entries or attempts to enter occurring 
     on or after the first day of the sixth month beginning after 
     the date of the enactment of this Act.

     SEC. 106. HIRING AND TRAINING STANDARDS.

       (a) Review of Hiring Standards.--Not later than 60 days 
     after the date of the enactment of this Act, the Attorney 
     General shall complete a review of all prescreening and 
     hiring standards used by the Commissioner of Immigration and 
     Naturalization, and, where necessary, revise such standards 
     to ensure that they are consistent with relevant standards of 
     professionalism.
       (b) Certification.--At the conclusion of each of fiscal 
     years 1997, 1998, 1999, 2000, and 2001, the Attorney General 
     shall certify in writing to the Committees on the Judiciary 
     of the House of Representatives and of the Senate that all 
     personnel hired by the Commissioner of Immigration and 
     Naturalization for such fiscal year were hired pursuant to 
     the appropriate standards, as revised under subsection (a).
       (c) Review of Training Standards.--
       (1) Review.--Not later than 180 days after the date of the 
     enactment of this Act, the Attorney General shall complete a 
     review of the sufficiency of all training standards used by 
     the Commissioner of Immigration and Naturalization.
       (2) Report.--
       (A) In general.--Not later than 90 days after the 
     completion of the review under paragraph (1), the Attorney 
     General shall submit a report to the Committees on the 
     Judiciary of the House of Representatives and of the Senate 
     on the results of the review, including--
       (i) a description of the status of efforts to update and 
     improve training throughout the Immigration and 
     Naturalization Service; and
       (ii) an estimate of when such efforts are expected to be 
     completed.
       (B) Areas requiring future review.--The report shall 
     disclose those areas of training that the Attorney General 
     determines require further review in the future.

     SEC. 107. REPORT ON BORDER STRATEGY.

       (a) Evaluation of Strategy.--The Comptroller General of the 
     United States shall track, monitor, and evaluate the Attorney 
     General's strategy to deter illegal entry in the United 
     States to determine the efficacy of such strategy.
       (b) Cooperation.--The Attorney General, the Secretary of 
     State, and the Secretary of Defense shall cooperate with the 
     Comptroller General of the United States in carrying out 
     subsection (a).
       (c) Report.--Not later than one year after the date of the 
     enactment of this Act, and every year thereafter for the 
     succeeding 5 years, the Comptroller General of the United 
     States shall submit a report to the Committees on the 
     Judiciary of the House of Representatives and of the Senate 
     on the results of the activities undertaken under subsection 
     (a) during the previous year. Each such report shall include 
     an analysis of the degree to which the Attorney General's 
     strategy has been effective in reducing illegal entry. Each 
     such report shall include a collection and systematic 
     analysis of data, including workload indicators, related to 
     activities to deter illegal entry and recommendations to 
     improve and increase border security at the border and ports 
     of entry.

     SEC. 108. CRIMINAL PENALTIES FOR HIGH SPEED FLIGHTS FROM 
                   IMMIGRATION CHECKPOINTS.

       (a) Findings.--The Congress finds as follows:
       (1) Immigration checkpoints are an important component of 
     the national strategy to prevent illegal immigration.
       (2) Individuals fleeing immigration checkpoints and leading 
     law enforcement officials on high speed vehicle chases 
     endanger law enforcement officers, innocent bystanders, and 
     the fleeing individuals themselves.
       (3) The pursuit of suspects fleeing immigration checkpoints 
     is complicated by overlapping jurisdiction among Federal, 
     State, and local law enforcement officers.
       (b) High Speed Flight from Immigration Checkpoints.--
       (1) In general.--Chapter 35 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 758. High speed flight from immigration checkpoint

       ``Whoever flees or evades a checkpoint operated by the 
     Immigration and Naturalization Service, or any other Federal 
     law enforcement agency, in a motor vehicle and flees Federal, 
     State, or local law enforcement agents in excess of the legal 
     speed limit shall be fined under this title, imprisoned not 
     more than five years, or both.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 757 the following:

``758. High speed flight from immigration checkpoint.''.

       (c) Grounds for Deportation.--Section 241(a)(2)(A) (8 
     U.S.C. 1251(a)(2)(A)) is amended--
       (1) by redesignating clause (iv) as clause (v);
       (2) by inserting after clause (iii) the following:
       ``(iv) High speed flight.--Any alien who is convicted of a 
     violation of section 758 of title 18, United States Code 
     (relating to high speed flight from an immigration 
     checkpoint), is deportable.''; and
       (3) in clause (v) (as so redesignated by paragraph (1)), by 
     striking ``and (iii)'' and inserting ``(iii), and (iv)''.

     SEC. 109. JOINT STUDY OF AUTOMATED DATA COLLECTION.

       (a) Study.--The Attorney General, together with the 
     Secretary of State, the Secretary of Agriculture, the 
     Secretary of the Treasury, and appropriate representatives of 
     the air transport industry, shall jointly undertake a study 
     to develop a plan for making the transition to automated data 
     collection at ports of entry.
       (b) Report.--Nine months after the date of the enactment of 
     this Act, the Attorney General shall submit a report to the 
     Committees on the Judiciary of the Senate and the House of 
     Representatives on the outcome of the joint initiative under 
     subsection (a), noting specific areas of agreement and 
     disagreement, and recommending further steps to be taken, 
     including any suggestions for legislation.

     SEC. 110. AUTOMATED ENTRY-EXIT CONTROL SYSTEM.

       (a) System.--Not later than 2 years after the date of the 
     enactment of this Act, the Attorney General shall develop an 
     automated entry and exit control system that will--
       (1) collect a record of departure for every alien departing 
     the United States and match the records of departure with the 
     record of the alien's arrival in the United States; and
       (2) enable the Attorney General to identify, through on-
     line searching procedures, lawfully admitted nonimmigrants 
     who remain in the United States beyond the period authorized 
     by the Attorney General.
       (b) Report.--
       (1) Deadline.--Not later than December 31 of each year 
     following the development of the system under subsection (a), 
     the Attorney General shall submit an annual report to the 
     Committees on the Judiciary of the House of Representatives 
     and of the Senate on such system.
       (2) Information.--The report shall include the following 
     information:
       (A) The number of departure records collected, with an 
     accounting by country of nationality of the departing alien.
       (B) The number of departure records that were successfully 
     matched to records of the alien's prior arrival in the United 
     States, with an accounting by the alien's country of 
     nationality and by the alien's classification as an immigrant 
     or nonimmigrant.
       (C) The number of aliens who arrived as nonimmigrants, or 
     as a visitor under the visa waiver program under section 217 
     of the Immigration and Nationality Act, for whom no matching 
     departure record has been obtained through the system or 
     through other means as of the end of the alien's authorized 
     period of stay, with an

[[Page H11791]]

     accounting by the alien's country of nationality and date of 
     arrival in the United States.
       (c) Use of Information on Overstays.--Information regarding 
     aliens who have remained in the United States beyond their 
     authorized period of stay identified through the system shall 
     be integrated into appropriate data bases of the Immigration 
     and Naturalization Service and the Department of State, 
     including those used at ports of entry and at consular 
     offices.

     SEC. 111. SUBMISSION OF FINAL PLAN ON REALIGNMENT OF BORDER 
                   PATROL POSITIONS FROM INTERIOR STATIONS.

       Not later than November 30, 1996, the Attorney General 
     shall submit to the Committees on the Judiciary of the House 
     of Representatives and of the Senate a final plan regarding 
     the redeployment of border patrol personnel from interior 
     locations to the front lines of the border. The final plan 
     shall be consistent with the following:
       (1) The preliminary plan regarding such redeployment 
     submitted by the Attorney General on May 17, 1996, to the 
     Committee on Appropriations of the House of Representatives 
     and the Committee on Appropriations of the Senate.
       (2) The direction regarding such redeployment provided in 
     the joint explanatory statement of the committee of 
     conference in the conference report to accompany the Omnibus 
     Consolidated Rescissions and Appropriations Act of 1996 
     (Public Law 104-134).

     SEC. 112. NATIONWIDE FINGERPRINTING OF APPREHENDED ALIENS.

       There are authorized to be appropriated such additional 
     sums as may be necessary to ensure that the ``IDENT'' program 
     (operated by the Immigration and Naturalization Service) is 
     expanded to apply to illegal or criminal aliens apprehended 
     nationwide.
                Subtitle B--Facilitation of Legal Entry

     SEC. 121. LAND BORDER INSPECTORS.

       In order to eliminate undue delay in the thorough 
     inspection of persons and vehicles lawfully attempting to 
     enter the United States, the Attorney General and the 
     Secretary of the Treasury each shall increase, by 
     approximately equal numbers in each of fiscal years 1997 and 
     1998, the number of full-time land border inspectors assigned 
     to active duty by the Immigration and Naturalization Service 
     and the United States Customs Service to a level adequate to 
     assure full staffing during peak crossing hours of all border 
     crossing lanes currently in use, under construction, or whose 
     construction has been authorized by the Congress, except such 
     low-use lanes as the Attorney General may designate.

     SEC. 122. LAND BORDER INSPECTION AND AUTOMATED PERMIT PILOT 
                   PROJECTS.

       (a) Extension of Land Border Inspection Project Authority; 
     Establishment of Automated Permit Pilot Projects.--Section 
     286(q) is amended--
       (1) by striking the matter preceding paragraph (2) and 
     inserting the following:
       ``(q) Land Border Inspection Fee Account.--(1)(A)(i) 
     Notwithstanding any other provision of law, the Attorney 
     General is authorized to establish, by regulation, not more 
     than 6 projects under which a fee may be charged and 
     collected for inspection services provided at one or more 
     land border points of entry. Such projects may include the 
     establishment of commuter lanes to be made available to 
     qualified United States citizens and aliens, as determined by 
     the Attorney General.
       ``(ii) The program authorized in this subparagraph shall 
     terminate on September 30, 2000, unless further authorized by 
     an Act of Congress.
       ``(iii) This subparagraph shall take effect, with respect 
     to any project described in clause (1) that was not 
     authorized to be commenced before the date of the enactment 
     of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996, 30 days after submission of a 
     written plan by the Attorney General detailing the proposed 
     implementation of such project.
       ``(iv) The Attorney General shall prepare and submit on a 
     quarterly basis, until September 30, 2000, a status report on 
     each land border inspection project implemented under this 
     subparagraph.
       ``(B) The Attorney General, in consultation with the 
     Secretary of the Treasury, may conduct pilot projects to 
     demonstrate the use of designated ports of entry after 
     working hours through the use of card reading machines or 
     other appropriate technology.''; and
       (2) by striking paragraph (5).
       (b) Conforming amendment.--The Departments of Commerce, 
     Justice, and State, the Judiciary, and Related Agencies 
     Appropriation Act, 1994 (Public Law 103-121, 107 Stat. 1161) 
     is amended by striking the fourth proviso under the heading 
     ``Immigration and Naturalization Service, Salaries and 
     Expenses''.

     SEC. 123. PREINSPECTION AT FOREIGN AIRPORTS.

       (a) In General.--The Immigration and Nationality Act is 
     amended by inserting after section 235 the following:


                  ``preinspection at foreign airports

       ``Sec. 235A. (a) Establishment of Preinspection Stations.--
       ``(1) New stations.--Subject to paragraph (5), not later 
     than October 31, 1998, the Attorney General, in consultation 
     with the Secretary of State, shall establish and maintain 
     preinspection stations in at least 5 of the foreign airports 
     that are among the 10 foreign airports which the Attorney 
     General identifies as serving as last points of departure for 
     the greatest numbers of inadmissible alien passengers who 
     arrive from abroad by air at ports of entry within the United 
     States. Such preinspection stations shall be in addition to 
     any preinspection stations established prior to the date of 
     the enactment of such Act.
       ``(2) Report.--Not later than October 31, 1998, the 
     Attorney General shall report to the Committees on the 
     Judiciary of the House of Representatives and of the Senate 
     on the implementation of paragraph (1).
       ``(3) Data collection.--Not later than November 1, 1997, 
     and each subsequent November 1, the Attorney General shall 
     compile data identifying--
       ``(A) the foreign airports which served as last points of 
     departure for aliens who arrived by air at United States 
     ports of entry without valid documentation during the 
     preceding fiscal years;
       ``(B) the number and nationality of such aliens arriving 
     from each such foreign airport; and
       ``(C) the primary routes such aliens followed from their 
     country of origin to the United States.
       ``(4) Additional stations.--Subject to paragraph (5), not 
     later than October 31, 2000, the Attorney General, in 
     consultation with the Secretary of State, shall establish 
     preinspection stations in at least 5 additional foreign 
     airports which the Attorney General, in consultation with the 
     Secretary of State, determines, based on the data compiled 
     under paragraph (3) and such other information as may be 
     available, would most effectively reduce the number of aliens 
     who arrive from abroad by air at points of entry within the 
     United States who are inadmissible to the United States. Such 
     preinspection stations shall be in addition to those 
     established prior to the date of the enactment of such Act or 
     pursuant to paragraph (1).
       ``(5) Conditions.--Prior to the establishment of a 
     preinspection station, the Attorney General, in consultation 
     with the Secretary of State, shall ensure that--
       ``(A) employees of the United States stationed at the 
     preinspection station and their accompanying family members 
     will receive appropriate protection;
       ``(B) such employees and their families will not be subject 
     to unreasonable risks to their welfare and safety; and
       ``(C) the country in which the preinspection station is to 
     be established maintains practices and procedures with 
     respect to asylum seekers and refugees in accordance with the 
     Convention Relating to the Status of Refugees (done at 
     Geneva, July 28, 1951), or the Protocol Relating to the 
     Status of Refugees (done at New York, January 31, 1967), or 
     that an alien in the country otherwise has recourse to 
     avenues of protection from return to persecution.
       ``(b) Establishment of Carrier Consultant Program.--The 
     Attorney General shall assign additional immigration officers 
     to assist air carriers in the detection of fraudulent 
     documents at foreign airports which, based on the records 
     maintained pursuant to subsection (a)(3), served as a point 
     of departure for a significant number of arrivals at United 
     States ports of entry without valid documentation, but where 
     no preinspection station exists.''.
       (b) Clerical Amendment.--The table of contents is amended 
     by inserting after the item relating to section 235 the 
     following:

``Sec. 235A.  Preinspection at foreign airports.''.

     SEC. 124. TRAINING OF AIRLINE PERSONNEL IN DETECTION OF 
                   FRAUDULENT DOCUMENTS.

       (a) Use of Funds.--
       (1) In general.--Section 286(h)(2)(A) (8 U.S.C. 
     1356(h)(2)(A)) is amended--
       (A) in clause (iv), by inserting ``, including training of, 
     and technical assistance to, commercial airline personnel 
     regarding such detection'' after ``United States''; and
       (B) by adding at the end the following:

     ``The Attorney General shall provide for expenditures for 
     training and assistance described in clause (iv) in an 
     amount, for any fiscal year, not less than 5 percent of the 
     total of the expenses incurred that are described in the 
     previous sentence.''.
       (2) Applicability.--The amendments made by paragraph (1) 
     shall apply to expenses incurred during or after fiscal year 
     1997.
       (b) Compliance With Detection Regulations.--
       (1) In general.--Section 212(f) (8 U.S.C. 1182(f)) is 
     amended by adding at the end the following: ``Whenever the 
     Attorney General finds that a commercial airline has failed 
     to comply with regulations of the Attorney General relating 
     to requirements of airlines for the detection of fraudulent 
     documents used by passengers traveling to the United States 
     (including the training of personnel in such detection), the 
     Attorney General may suspend the entry of some or all aliens 
     transported to the United States by such airline.''.
       (2) Deadline.--The Attorney General shall first issue, in 
     proposed form, regulations referred to in the second sentence 
     of section 212(f) of the Immigration and Nationality Act, as 
     added by the amendment made by paragraph (1), not later than 
     90 days after the date of the enactment of this Act.

     SEC. 125. PRECLEARANCE AUTHORITY.

       Section 103(a) of the Immigration and Nationality Act (8 
     U.S.C. 1103(a)) is amended by adding at the end the 
     following:

     ``After consultation with the Secretary of State, the 
     Attorney General may authorize officers of a foreign country 
     to be stationed at preclearance facilities in the United 
     States for the purpose of ensuring that persons traveling 
     from or through the United States to that foreign country 
     comply with that country's immigration and related laws. 
     Those officers may exercise such authority and perform such 
     duties as United States immigration officers are authorized 
     to exercise and perform in that foreign country under 
     reciprocal agreement, and they shall enjoy such reasonable 
     privileges and immunities necessary for the performance of 
     their duties as the government of their country extends to 
     United States immigration officers.''.

[[Page H11792]]

                    Subtitle C--Interior Enforcement

     SEC. 131. AUTHORIZATION OF APPROPRIATIONS FOR INCREASE IN 
                   NUMBER OF CERTAIN INVESTIGATORS.

       (a) Authorization.--There are authorized to be appropriated 
     such funds as may be necessary to enable the Commissioner of 
     Immigration and Naturalization to increase the number of 
     investigators and support personnel to investigate potential 
     violations of sections 274 and 274A of the Immigration and 
     Nationality Act by a number equivalent to 300 full-time 
     active-duty investigators in each of fiscal years 1997, 1998, 
     and 1999.
       (b) Allocation of Investigators.--At least one-half of the 
     investigators hired with funds made available under 
     subsection (a) shall be assigned to investigate potential 
     violations of section 274A of the Immigration and Nationality 
     Act.
       (c) Limitation on Overtime.--None of the funds made 
     available under subsection (a) shall be available for 
     administrative expenses to pay any employee overtime pay in 
     an amount in excess of $25,000 for any fiscal year.

     SEC. 132. AUTHORIZATION OF APPROPRIATIONS FOR INCREASE IN 
                   NUMBER OF INVESTIGATORS OF VISA OVERSTAYERS.

       There are authorized to be appropriated such funds as may 
     be necessary to enable the Commissioner of Immigration and 
     Naturalization to increase the number of investigators and 
     support personnel to investigate visa overstayers by a number 
     equivalent to 300 full-time active-duty investigators in 
     fiscal year 1997.

     SEC. 133. ACCEPTANCE OF STATE SERVICES TO CARRY OUT 
                   IMMIGRATION ENFORCEMENT.

       Section 287 (8 U.S.C. 1357) is amended by adding at the end 
     the following:
       ``(g)(1) Notwithstanding section 1342 of title 31, United 
     States Code, the Attorney General may enter into a written 
     agreement with a State, or any political subdivision of a 
     State, pursuant to which an officer or employee of the State 
     or subdivision, who is determined by the Attorney General to 
     be qualified to perform a function of an immigration officer 
     in relation to the investigation, apprehension, or detention 
     of aliens in the United States (including the transportation 
     of such aliens across State lines to detention centers), may 
     carry out such function at the expense of the State or 
     political subdivision and to the extent consistent with State 
     and local law.
       ``(2) An agreement under this subsection shall require that 
     an officer or employee of a State or political subdivision of 
     a State performing a function under the agreement shall have 
     knowledge of, and adhere to, Federal law relating to the 
     function, and shall contain a written certification that the 
     officers or employees performing the function under the 
     agreement have received adequate training regarding the 
     enforcement of relevant Federal immigration laws.
       ``(3) In performing a function under this subsection, an 
     officer or employee of a State or political subdivision of a 
     State shall be subject to the direction and supervision of 
     the Attorney General.
       ``(4) In performing a function under this subsection, an 
     officer or employee of a State or political subdivision of a 
     State may use Federal property or facilities, as provided in 
     a written agreement between the Attorney General and the 
     State or subdivision.
       ``(5) With respect to each officer or employee of a State 
     or political subdivision who is authorized to perform a 
     function under this subsection, the specific powers and 
     duties that may be, or are required to be, exercised or 
     performed by the individual, the duration of the authority of 
     the individual, and the position of the agency of the 
     Attorney General who is required to supervise and direct the 
     individual, shall be set forth in a written agreement between 
     the Attorney General and the State or political subdivision.
       ``(6) The Attorney General may not accept a service under 
     this subsection if the service will be used to displace any 
     Federal employee.
       ``(7) Except as provided in paragraph (8), an officer or 
     employee of a State or political subdivision of a State 
     performing functions under this subsection shall not be 
     treated as a Federal employee for any purpose other than for 
     purposes of chapter 81 of title 5, United States Code 
     (relating to compensation for injury), and sections 2671 
     through 2680 of title 28, United States Code (relating to 
     tort claims).
       ``(8) An officer or employee of a State or political 
     subdivision of a State acting under color of authority under 
     this subsection, or any agreement entered into under this 
     subsection, shall be considered to be acting under color of 
     Federal authority for purposes of determining the liability, 
     and immunity from suit, of the officer or employee in a civil 
     action brought under Federal or State law.
       ``(9) Nothing in this subsection shall be construed to 
     require any State or political subdivision of a State to 
     enter into an agreement with the Attorney General under this 
     subsection.
       ``(10) Nothing in this subsection shall be construed to 
     require an agreement under this subsection in order for any 
     officer or employee of a State or political subdivision of a 
     State--
       ``(A) to communicate with the Attorney General regarding 
     the immigration status of any individual, including reporting 
     knowledge that a particular alien is not lawfully present in 
     the United States; or
       ``(B) otherwise to cooperate with the Attorney General in 
     the identification, apprehension, detention, or removal of 
     aliens not lawfully present in the United States.''.

     SEC. 134. MINIMUM STATE INS PRESENCE.

       (a) In General.--Section 103 (8 U.S.C. 1103), as amended by 
     section 102(e) of this division, is further amended by adding 
     at the end the following:
       ``(f) The Attorney General shall allocate to each State not 
     fewer than 10 full-time active duty agents of the Immigration 
     and Naturalization Service to carry out the functions of the 
     Service, in order to ensure the effective enforcement of this 
     Act.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect 90 days after the date of the enactment of 
     this Act.
 TITLE II--ENHANCED ENFORCEMENT AND PENALTIES AGAINST ALIEN SMUGGLING; 
                             DOCUMENT FRAUD
 Subtitle A--Enhanced Enforcement and Penalties Against Alien Smuggling

     SEC. 201. WIRETAP AUTHORITY FOR INVESTIGATIONS OF ALIEN 
                   SMUGGLING OR DOCUMENT FRAUD.

       Section 2516(1) of title 18, United States Code, is 
     amended--
       (1) in paragraph (c), by striking ``or section 1992 
     (relating to wrecking trains)'' and inserting ``section 1992 
     (relating to wrecking trains), a felony violation of section 
     1028 (relating to production of false identification 
     documentation), section 1425 (relating to the procurement of 
     citizenship or nationalization unlawfully), section 1426 
     (relating to the reproduction of naturalization or 
     citizenship papers), section 1427 (relating to the sale of 
     naturalization or citizenship papers), section 1541 (relating 
     to passport issuance without authority), section 1542 
     (relating to false statements in passport applications), 
     section 1543 (relating to forgery or false use of passports), 
     section 1544 (relating to misuse of passports), or section 
     1546 (relating to fraud and misuse of visas, permits, and 
     other documents)'';
       (2) by striking ``or'' at the end of paragraph (l);
       (3) by redesignating paragraphs (m), (n), and (o) as 
     paragraphs (n), (o), and (p), respectively; and
       (4) by inserting after paragraph (l) the following new 
     paragraph:
       ``(m) a violation of section 274, 277, or 278 of the 
     Immigration and Nationality Act (8 U.S.C. 1324, 1327, or 
     1328) (relating to the smuggling of aliens);''.

     SEC. 202. RACKETEERING OFFENSES RELATING TO ALIEN SMUGGLING.

       Section 1961(1) of title 18, United States Code, as amended 
     by section 433 of Public Law 104-132, is amended--
       (1) by striking ``if the act indictable under section 1028 
     was committed for the purpose of financial gain'';
       (2) by inserting ``section 1425 (relating to the 
     procurement of citizenship or nationalization unlawfully), 
     section 1426 (relating to the reproduction of naturalization 
     or citizenship papers), section 1427 (relating to the sale of 
     naturalization or citizenship papers),'' after ``section 1344 
     (relating to financial institution fraud),'';
       (3) by striking ``if the act indictable under section 1542 
     was committed for the purpose of financial gain'';
       (4) by striking ``if the act indictable under section 1543 
     was committed for the purpose of financial gain'';
       (5) by striking ``if the act indictable under section 1544 
     was committed for the purpose of financial gain''; and
       (6) by striking ``if the act indictable under section 1546 
     was committed for the purpose of financial gain''.

     SEC. 203. INCREASED CRIMINAL PENALTIES FOR ALIEN SMUGGLING.

       (a) Commercial Advantage.--Section 274(a)(1)(B)(i) (8 
     U.S.C. 1324(a)(1)(B)(i)) is amended by inserting ``or in the 
     case of a violation of subparagraph (A)(ii), (iii), or (iv) 
     in which the offense was done for the purpose of commercial 
     advantage or private financial gain'' after ``subparagraph 
     (A)(i)''.
       (b) Additional Offenses.--Section 274(a) (8 U.S.C. 1324(a)) 
     is amended--
       (1) in paragraph (1)(A)--
       (A) by striking ``or'' at the end of clause (iii);
       (B) by striking the comma at the end of clause (iv) and 
     inserting ``; or''; and
       (C) by adding at the end the following new clause:
       ``(v)(I) engages in any conspiracy to commit any of the 
     preceding acts, or
       ``(II) aids or abets the commission of any of the preceding 
     acts,'';
       (2) in paragraph (1)(B)--
       (A) in clause (i), by inserting ``or (v)(I)'' after 
     ``(A)(i)'';
       (B) in clause (ii), by striking ``or (iv)'' and inserting 
     ``(iv), or (v)(II)'';
       (C) in clause (iii), by striking ``or (iv)'' and inserting 
     ``(iv), or (v)''; and
       (D) in clause (iv), by striking ``or (iv)'' and inserting 
     ``(iv), or (v)'';
       (3) in paragraph (2)(B), by striking ``be fined'' and all 
     that follows and inserting the following: ``be fined under 
     title 18, United States Code, and shall be imprisoned, in the 
     case of a first or second violation of subparagraph (B)(iii), 
     not more than 10 years, in the case of a first or second 
     violation of subparagraph (B)(i) or (B)(ii), not less than 3 
     nor more than 10 years, and for any other violation, not less 
     than 5 nor more than 15 years.''; and
       (4) by adding at the end the following new paragraph:
       ``(3)(A) Any person who, during any 12-month period, 
     knowingly hires for employment at least 10 individuals with 
     actual knowledge that the individuals are aliens described in 
     subparagraph (B) shall be fined under title 18, United States 
     Code, or imprisoned for not more than 5 years, or both.
       ``(B) An alien described in this subparagraph is an alien 
     who--
       ``(i) is an unauthorized alien (as defined in section 
     274A(h)(3)), and
       ``(ii) has been brought into the United States in violation 
     of this subsection.''.
       (c) Smuggling of Aliens Who Will Commit Crimes.--Clause (i) 
     of section 274(a)(2)(B) (8 U.S.C. 1324(a)(2)(B)) is amended 
     to read as follows:

[[Page H11793]]

       ``(i) an offense committed with the intent or with reason 
     to believe that the alien unlawfully brought into the United 
     States will commit an offense against the United States or 
     any State punishable by imprisonment for more than 1 year,''.
       (d) Applying Certain Penalties on a Per Alien Basis.--
     Section 274(a)(2) (8 U.S.C. 1324(a)(2)) is amended by 
     striking ``for each transaction constituting a violation of 
     this paragraph, regardless of the number of aliens involved'' 
     and inserting ``for each alien in respect to whom a violation 
     of this paragraph occurs''.
       (e) Sentencing Guidelines.--
       (1) In general.--Pursuant to its authority under section 
     994(p) of title 28, United States Code, the United States 
     Sentencing Commission shall promulgate sentencing guidelines 
     or amend existing sentencing guidelines for offenders 
     convicted of offenses related to smuggling, transporting, 
     harboring, or inducing aliens in violation of section 274(a) 
     (1)(A) or (2) of the Immigration and Nationality Act (8 
     U.S.C. 1324(a)(1)(A), (2)(B)) in accordance with this 
     subsection.
       (2) Requirements.--In carrying out this subsection, the 
     Commission shall, with respect to the offenses described in 
     paragraph (1)--
       (A) increase the base offense level for such offenses at 
     least 3 offense levels above the applicable level in effect 
     on the date of the enactment of this Act;
       (B) review the sentencing enhancement for the number of 
     aliens involved (U.S.S.G. 2L1.1(b)(2)), and increase the 
     sentencing enhancement by at least 50 percent above the 
     applicable enhancement in effect on the date of the enactment 
     of this Act;
       (C) impose an appropriate sentencing enhancement upon an 
     offender with 1 prior felony conviction arising out of a 
     separate and prior prosecution for an offense that involved 
     the same or similar underlying conduct as the current 
     offense, to be applied in addition to any sentencing 
     enhancement that would otherwise apply pursuant to the 
     calculation of the defendant's criminal history category;
       (D) impose an additional appropriate sentencing enhancement 
     upon an offender with 2 or more prior felony convictions 
     arising out of separate and prior prosecutions for offenses 
     that involved the same or similar underling conduct as the 
     current offense, to be applied in addition to any sentencing 
     enhancement that would otherwise apply pursuant to the 
     calculation of the defendant's criminal history category;
       (E) impose an appropriate sentencing enhancement on a 
     defendant who, in the course of committing an offense 
     described in this subsection--
       (i) murders or otherwise causes death, bodily injury, or 
     serious bodily injury to an individual;
       (ii) uses or brandishes a firearm or other dangerous 
     weapon; or
       (iii) engages in conduct that consciously or recklessly 
     places another in serious danger of death or serious bodily 
     injury;
       (F) consider whether a downward adjustment is appropriate 
     if the offense is a first offense and involves the smuggling 
     only of the alien's spouse or child; and
       (G) consider whether any other aggravating or mitigating 
     circumstances warrant upward or downward sentencing 
     adjustments.
       (3) Emergency authority to sentencing commission.--The 
     Commission shall promulgate the guidelines or amendments 
     provided for under this subsection as soon as practicable in 
     accordance with the procedure set forth in section 21(a) of 
     the Sentencing Act of 1987, as though the authority under 
     that Act had not expired.
       (f) Effective Date.--This section and the amendments made 
     by this section shall apply with respect to offenses 
     occurring on or after the date of the enactment of this Act.

     SEC. 204. INCREASED NUMBER OF ASSISTANT UNITED STATES 
                   ATTORNEYS.

       (a) In General.--The number of Assistant United States 
     Attorneys employed by the Department of Justice for the 
     fiscal year 1997 shall be increased by at least 25 above the 
     number of Assistant United States Attorneys that were 
     authorized to be employed as of September 30, 1996.
       (b) Assignment.--Individuals employed to fill the 
     additional positions described in subsection (a) shall 
     prosecute persons who bring into the United States or harbor 
     illegal aliens or violate other criminal statutes involving 
     illegal aliens.

     SEC. 205. UNDERCOVER INVESTIGATION AUTHORITY.

       (a) In General.--Title II is amended by adding at the end 
     the following new section:


                  ``undercover investigation authority

       ``Sec. 294. (a) In General.--With respect to any undercover 
     investigative operation of the Service which is necessary for 
     the detection and prosecution of crimes against the United 
     States--
       ``(1) sums appropriated for the Service may be used for 
     leasing space within the United States and the territories 
     and possessions of the United States without regard to the 
     following provisions of law:
       ``(A) section 3679(a) of the Revised Statutes (31 U.S.C. 
     1341),
       ``(B) section 3732(a) of the Revised Statutes (41 U.S.C. 
     11(a)),
       ``(C) section 305 of the Act of June 30, 1949 (63 Stat. 
     396; 41 U.S.C. 255),
       ``(D) the third undesignated paragraph under the heading 
     `Miscellaneous' of the Act of March 3, 1877 (19 Stat. 370; 40 
     U.S.C. 34),
       ``(E) section 3648 of the Revised Statutes (31 U.S.C. 
     3324),
       ``(F) section 3741 of the Revised Statutes (41 U.S.C. 22), 
     and
       ``(G) subsections (a) and (c) of section 304 of the Federal 
     Property and Administrative Services Act of 1949 (63 Stat. 
     395; 41 U.S.C. 254 (a) and (c));
       ``(2) sums appropriated for the Service may be used to 
     establish or to acquire proprietary corporations or business 
     entities as part of an undercover operation, and to operate 
     such corporations or business entities on a commercial basis, 
     without regard to the provisions of section 304 of the 
     Government Corporation Control Act (31 U.S.C. 9102);
       ``(3) sums appropriated for the Service, and the proceeds 
     from the undercover operation, may be deposited in banks or 
     other financial institutions without regard to the provisions 
     of section 648 of title 18, United States Code, and of 
     section 3639 of the Revised Statutes (31 U.S.C. 3302); and
       ``(4) the proceeds from the undercover operation may be 
     used to offset necessary and reasonable expenses incurred in 
     such operation without regard to the provisions of section 
     3617 of the Revised Statutes (31 U.S.C. 3302).

     The authority set forth in this subsection may be exercised 
     only upon written certification of the Commissioner, in 
     consultation with the Deputy Attorney General, that any 
     action authorized by paragraph (1), (2), (3), or (4) is 
     necessary for the conduct of the undercover operation.
       ``(b) Disposition of Proceeds No Longer Required.--As soon 
     as practicable after the proceeds from an undercover 
     investigative operation, carried out under paragraphs (3) and 
     (4) of subsection (a), are no longer necessary for the 
     conduct of the operation, the proceeds or the balance of the 
     proceeds remaining at the time shall be deposited into the 
     Treasury of the United States as miscellaneous receipts.
       ``(c) Disposition of Certain Corporations and Business 
     Entities.--If a corporation or business entity established or 
     acquired as part of an undercover operation under paragraph 
     (2) of subsection (a) with a net value of over $50,000 is to 
     be liquidated, sold, or otherwise disposed of, the Service, 
     as much in advance as the Commissioner or Commissioner's 
     designee determines practicable, shall report the 
     circumstances to the Attorney General, the Director of the 
     Office of Management and Budget, and the Comptroller General. 
     The proceeds of the liquidation, sale, or other disposition, 
     after obligations are met, shall be deposited in the Treasury 
     of the United States as miscellaneous receipts.
       ``(d) Financial Audits.--The Service shall conduct detailed 
     financial audits of closed undercover operations on a 
     quarterly basis and shall report the results of the audits in 
     writing to the Deputy Attorney General.''.
       (b) Clerical Amendment.--The table of contents is amended 
     by inserting after the item relating to section 293 the 
     following:

``Sec. 294. Undercover investigation authority.''.
                Subtitle B--Deterrence of Document Fraud

     SEC. 211. INCREASED CRIMINAL PENALTIES FOR FRAUDULENT USE OF 
                   GOVERNMENT-ISSUED DOCUMENTS.

       (a) Fraud and Misuse of Government-Issued Identification 
     Documents.--(1) Section 1028(b) of title 18, United States 
     Code, is amended--
       (A) in paragraph (1), by inserting ``except as provided in 
     paragraphs (3) and (4),'' after ``(1)'' and by striking 
     ``five years'' and inserting ``15 years'';
       (B) in paragraph (2), by inserting ``except as provided in 
     paragraphs (3) and (4),'' after ``(2)'' and by striking 
     ``and'' at the end;
       (C) by redesignating paragraph (3) as paragraph (5); and
       (D) by inserting after paragraph (2) the following new 
     paragraphs:
       ``(3) a fine under this title or imprisonment for not more 
     than 20 years, or both, if the offense is committed to 
     facilitate a drug trafficking crime (as defined in section 
     929(a)(2) of this title);
       ``(4) a fine under this title or imprisonment for not more 
     than 25 years, or both, if the offense is committed to 
     facilitate an act of international terrorism (as defined in 
     section 2331(1) of this title); and''.
       (2) Sections 1425 through 1427, sections 1541 through 1544, 
     and section 1546(a) of title 18, United States Code, are each 
     amended by striking ``imprisoned not more'' and all that 
     follows through ``years'' each place it appears and inserting 
     the following: ``imprisoned not more than 25 years (if the 
     offense was committed to facilitate an act of international 
     terrorism (as defined in section 2331 of this title)), 20 
     years (if the offense was committed to facilitate a drug 
     trafficking crime (as defined in section 929(a) of this 
     title)), 10 years (in the case of the first or second such 
     offense, if the offense was not committed to facility such an 
     act of international terrorism or a drug trafficking crime), 
     or 15 years (in the case of any other offense)''.
       (b) Changes to the Sentencing Levels.--
       (1) In general.--Pursuant to the Commission's authority 
     under section 994(p) of title 28, United States Code, the 
     United States Sentencing Commission shall promulgate 
     sentencing guidelines or amend existing sentencing guidelines 
     for offenders convicted of violating, or conspiring to 
     violate, sections 1028(b)(1), 1425 through 1427, 1541 through 
     1544, and 1546(a) of title 18, United States Code, in 
     accordance with this subsection.
       (2) Requirements.--In carrying out this subsection, the 
     Commission shall, with respect to the offenses referred to in 
     paragraph (1)--
       (A) increase the base offense level for such offenses at 
     least 2 offense levels above the level in effect on the date 
     of the enactment of this Act;
       (B) review the sentencing enhancement for number of 
     documents or passports involved (U.S.S.G. 2L2.1(b)(2)), and 
     increase the upward adjustment by at least 50 percent above 
     the applicable enhancement in effect on the date of the 
     enactment of this Act;
       (C) impose an appropriate sentencing enhancement upon an 
     offender with 1 prior felony

[[Page H11794]]

     conviction arising out of a separate and prior prosecution 
     for an offense that involved the same or similar underlying 
     conduct as the current offense, to be applied in addition to 
     any sentencing enhancement that would otherwise apply 
     pursuant to the calculation of the defendant's criminal 
     history category;
       (D) impose an additional appropriate sentencing enhancement 
     upon an offender with 2 or more prior felony convictions 
     arising out of separate and prior prosecutions for offenses 
     that involved the same or similar underlying conduct as the 
     current offense, to be applied in addition to any sentencing 
     enhancement that would otherwise apply pursuant to the 
     calculation of the defendant's criminal history category; and
       (E) consider whether any other aggravating or mitigating 
     circumstances warrant upward or downward sentencing 
     adjustments.
       (3) Emergency authority to sentencing commission.--The 
     Commission shall promulgate the guidelines or amendments 
     provided for under this subsection as soon as practicable in 
     accordance with the procedure set forth in section 21(a) of 
     the Sentencing Act of 1987, as though the authority under 
     that Act had not expired.
       (c) Effective Date.--This section and the amendments made 
     by this section shall apply with respect to offenses 
     occurring on or after the date of the enactment of this Act.

     SEC. 212. NEW DOCUMENT FRAUD OFFENSES; NEW CIVIL PENALTIES 
                   FOR DOCUMENT FRAUD.

       (a) Activities Prohibited.--Section 274C(a) (8 U.S.C. 
     1324c(a)) is amended--
       (1) in paragraph (1), by inserting before the comma at the 
     end the following: ``or to obtain a benefit under this Act'';
       (2) in paragraph (2), by inserting before the comma at the 
     end the following: ``or to obtain a benefit under this Act'';
       (3) in paragraph (3)--
       (A) by inserting ``or with respect to'' after ``issued 
     to'';
       (B) by adding before the comma at the end the following: 
     ``or obtaining a benefit under this Act''; and
       (C) by striking ``or'' at the end;
       (4) in paragraph (4)--
       (A) by inserting ``or with respect to'' after ``issued 
     to'';
       (B) by adding before the period at the end the following: 
     ``or obtaining a benefit under this Act''; and
       (C) by striking the period at the end and inserting ``, 
     or''; and
       (5) by adding at the end the following new paragraphs:
       ``(5) to prepare, file, or assist another in preparing or 
     filing, any application for benefits under this Act, or any 
     document required under this Act, or any document submitted 
     in connection with such application or document, with 
     knowledge or in reckless disregard of the fact that such 
     application or document was falsely made or, in whole or in 
     part, does not relate to the person on whose behalf it was or 
     is being submitted, or
       ``(6)(A) to present before boarding a common carrier for 
     the purpose of coming to the United States a document which 
     relates to the alien's eligibility to enter the United 
     States, and (B) to fail to present such document to an 
     immigration officer upon arrival at a United States port of 
     entry.''.
       (b) Definition of Falsely Make.--Section 274C (8 U.S.C. 
     1324c), as amended by section 213 of this division, is 
     further amended by adding at the end the following new 
     subsection:
       ``(f) Falsely Make.--For purposes of this section, the term 
     `falsely make' means to prepare or provide an application or 
     document, with knowledge or in reckless disregard of the fact 
     that the application or document contains a false, 
     fictitious, or fraudulent statement or material 
     representation, or has no basis in law or fact, or otherwise 
     fails to state a fact which is material to the purpose for 
     which it was submitted.''.
       (c) Conforming Amendment.--Section 274C(d)(3) (8 U.S.C. 
     1324c(d)(3)) is amended by striking ``each document used, 
     accepted, or created and each instance of use, acceptance, or 
     creation'' each place it appears and inserting ``each 
     document that is the subject of a violation under subsection 
     (a)''.
       (d) Waiver by Attorney General.--Section 274C(d) (8 U.S.C. 
     1324c(d)) is amended by adding at the end the following new 
     paragraph:
       ``(7) Waiver by attorney general.--The Attorney General may 
     waive the penalties imposed by this section with respect to 
     an alien who knowingly violates subsection (a)(6) if the 
     alien is granted asylum under section 208 or withholding of 
     deportation under section 243(h).''.
       (e) Effective Date.--Section 274C(f) of the Immigration and 
     Nationality Act, as added by subsection (b), applies to the 
     preparation of applications before, on, or after the date of 
     the enactment of this Act.

     SEC. 213. NEW CRIMINAL PENALTIES FOR FAILURE TO DISCLOSE ROLE 
                   AS PREPARER OF FALSE APPLICATION FOR 
                   IMMIGRATION BENEFITS.

       Section 274C (8 U.S.C. 1324c) is amended by adding at the 
     end the following new subsection:
       ``(e) Criminal Penalties for Failure To Disclose Role as 
     Document Preparer.--(1) Whoever, in any matter within the 
     jurisdiction of the Service, knowingly and willfully fails to 
     disclose, conceals, or covers up the fact that they have, on 
     behalf of any person and for a fee or other remuneration, 
     prepared or assisted in preparing an application which was 
     falsely made (as defined in subsection (f)) for immigration 
     benefits, shall be fined in accordance with title 18, United 
     States Code, imprisoned for not more than 5 years, or both, 
     and prohibited from preparing or assisting in preparing, 
     whether or not for a fee or other remuneration, any other 
     such application.
       ``(2) Whoever, having been convicted of a violation of 
     paragraph (1), knowingly and willfully prepares or assists in 
     preparing an application for immigration benefits pursuant to 
     this Act, or the regulations promulgated thereunder, whether 
     or not for a fee or other remuneration and regardless of 
     whether in any matter within the jurisdiction of the Service, 
     shall be fined in accordance with title 18, United States 
     Code, imprisoned for not more than 15 years, or both, and 
     prohibited from preparing or assisting in preparing any other 
     such application.''.

     SEC. 214. CRIMINAL PENALTY FOR KNOWINGLY PRESENTING DOCUMENT 
                   WHICH FAILS TO CONTAIN REASONABLE BASIS IN LAW 
                   OR FACT.

       The fourth paragraph of section 1546(a) of title 18, United 
     States Code, is amended by striking ``containing any such 
     false statement'' and inserting ``which contains any such 
     false statement or which fails to contain any reasonable 
     basis in law or fact''.

     SEC. 215. CRIMINAL PENALTY FOR FALSE CLAIM TO CITIZENSHIP.

       Section 1015 of title 18, United States Code, is amended--
       (1) by striking the dash at the end of paragraph (d) and 
     inserting ``; or'', and
       (2) by inserting after paragraph (d) the following:
       ``(e) Whoever knowingly makes any false statement or claim 
     that he is, or at any time has been, a citizen or national of 
     the United States, with the intent to obtain on behalf of 
     himself, or any other person, any Federal or State benefit or 
     service, or to engage unlawfully in employment in the United 
     States; or
       ``(f) Whoever knowingly makes any false statement or claim 
     that he is a citizen of the United States in order to 
     register to vote or to vote in any Federal, State, or local 
     election (including an initiative, recall, or referendum)--
     ''.

     SEC. 216. CRIMINAL PENALTY FOR VOTING BY ALIENS IN FEDERAL 
                   ELECTION.

       (a) In General.--Title 18, United States Code, is amended 
     by inserting after section 610 the following:

     ``Sec. 611. Voting by aliens

       ``(a) It shall be unlawful for any alien to vote in any 
     election held solely or in part for the purpose of electing a 
     candidate for the office of President, Vice President, 
     Presidential elector, Member of the Senate, Member of the 
     House of Representatives, Delegate from the District of 
     Columbia, or Resident Commissioner, unless--
       ``(1) the election is held partly for some other purpose;
       ``(2) aliens are authorized to vote for such other purpose 
     under a State constitution or statute or a local ordinance; 
     and
       ``(3) voting for such other purpose is conducted 
     independently of voting for a candidate for such Federal 
     offices, in such a manner that an alien has the opportunity 
     to vote for such other purpose, but not an opportunity to 
     vote for a candidate for any one or more of such Federal 
     offices.
       ``(b) Any person who violates this section shall be fined 
     under this title, imprisoned not more than one year, or 
     both.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 29 of title 18, United States Code, is 
     amended by inserting after the item relating to section 610 
     the following new item:

``611. Voting by aliens.''.

     SEC. 217. CRIMINAL FORFEITURE FOR PASSPORT AND VISA RELATED 
                   OFFENSES.

       Section 982(a) of title 18, United States Code, is amended 
     by inserting after paragraph (5) the following new paragraph:
       ``(6)(A) The court, in imposing sentence on a person 
     convicted of a violation of, or conspiracy to violate, 
     section 1425, 1426, 1427, 1541, 1542, 1543, 1544, or 1546 of 
     this title, or a violation of, or conspiracy to violate, 
     section 1028 of this title if committed in connection with 
     passport or visa issuance or use, shall order that the person 
     forfeit to the United States, regardless of any provision of 
     State law--
       ``(i) any conveyance, including any vessel, vehicle, or 
     aircraft used in the commission of a violation of, or a 
     conspiracy to violate, subsection (a); and
       ``(ii) any property real or personal--
       ``(I) that constitutes, or is derived from or is traceable 
     to the proceeds obtained directly or indirectly from the 
     commission of a violation of, or a conspiracy to violate, 
     subsection (a), section 274A(a)(1) or 274A(a)(2) of the 
     Immigration and Nationality Act, or section 1028, 1425, 1426, 
     1427, 1541, 1542, 1543, 1544, or 1546 of this title; or
       ``(II) that is used to facilitate, or is intended to be 
     used to facilitate, the commission of a violation of, or a 
     conspiracy to violate, subsection (a), section 274A(a)(1) or 
     274A(a)(2) of the Immigration and Nationality Act, or section 
     1028, 1425, 1426, 1427, 1541, 1542, 1543, 1544, or 1546 of 
     this title.
     The court, in imposing sentence on such person, shall order 
     that the person forfeit to the United States all property 
     described in this subparagraph.
       ``(B) The criminal forfeiture of property under 
     subparagraph (A), including any seizure and disposition of 
     the property and any related administrative or judicial 
     proceeding, shall be governed by the provisions of section 
     413 of the Comprehensive Drug Abuse Prevention and Control 
     Act of 1970 (21 U.S.C. 853), other than subsections (a) and 
     (d) of such section 413.''.

     SEC. 218. CRIMINAL PENALTIES FOR INVOLUNTARY SERVITUDE.

       (a) Amendments to Title 18.--Sections 1581, 1583, 1584, and 
     1588 of title 18, United States Code, are amended by striking 
     ``five'' each place it appears and inserting ``10''.
       (b) Review of Sentencing Guidelines.--The United States 
     Sentencing Commission shall ascertain whether there exists an 
     unwarranted disparity--

[[Page H11795]]

       (1) between the sentences for peonage, involuntary 
     servitude, and slave trade offenses, and the sentences for 
     kidnapping offenses in effect on the date of the enactment of 
     this Act; and
       (2) between the sentences for peonage, involuntary 
     servitude, and slave trade offenses, and the sentences for 
     alien smuggling offenses in effect on the date of the 
     enactment of this Act and after the amendment made by 
     subsection (a).
       (c) Amendment of Sentencing Guidelines.--
       (1) In general.--Pursuant to its authority under section 
     994(p) of title 28, United States Code, the United States 
     Sentencing Commission shall review its guidelines on 
     sentencing for peonage, involuntary servitude, and slave 
     trade offenses under sections 1581 through 1588 of title 18, 
     United States Code, and shall amend such guidelines as 
     necessary to--
       (A) reduce or eliminate any unwarranted disparity found 
     under subsection (b) that exists between the sentences for 
     peonage, involuntary servitude, and slave trade offenses, and 
     the sentences for kidnapping offenses and alien smuggling 
     offenses;
       (B) ensure that the applicable guidelines for defendants 
     convicted of peonage, involuntary servitude, and slave trade 
     offenses are sufficiently stringent to deter such offenses 
     and adequately reflect the heinous nature of such offenses; 
     and
       (C) ensure that the guidelines reflect the general 
     appropriateness of enhanced sentences for defendants whose 
     peonage, involuntary servitude, or slave trade offenses 
     involve--
       (i) a large number of victims;
       (ii) the use or threatened use of a dangerous weapon; or
       (iii) a prolonged period of peonage or involuntary 
     servitude.
       (2) Emergency authority to sentencing commission.--The 
     Commission shall promulgate the guidelines or amendments 
     provided for under this subsection as soon as practicable in 
     accordance with the procedure set forth in section 21(a) of 
     the Sentencing Act of 1987, as though the authority under 
     that Act had not expired.
       (d) Effective Date.--This section and the amendments made 
     by this section shall apply with respect to offenses 
     occurring on or after the date of the enactment of this Act.

     SEC. 219. ADMISSIBILITY OF VIDEOTAPED WITNESS TESTIMONY.

       Section 274 (8 U.S.C. 1324) is amended by adding at the end 
     thereof the following new subsection:
       ``(d) Notwithstanding any provision of the Federal Rules of 
     Evidence, the videotaped (or otherwise audiovisually 
     preserved) deposition of a witness to a violation of 
     subsection (a) who has been deported or otherwise expelled 
     from the United States, or is otherwise unable to testify, 
     may be admitted into evidence in an action brought for that 
     violation if the witness was available for cross examination 
     and the deposition otherwise complies with the Federal Rules 
     of Evidence.''.

     SEC. 220. SUBPOENA AUTHORITY IN DOCUMENT FRAUD ENFORCEMENT.

       Section 274C(d)(1) (8 U.S.C. 1324c(d)(1)) is amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by striking the period at the end of subparagraph (B) 
     and inserting ``, and''; and
       (3) by inserting after subparagraph (B) the following:
       ``(C) immigration officers designated by the Commissioner 
     may compel by subpoena the attendance of witnesses and the 
     production of evidence at any designated place prior to the 
     filing of a complaint in a case under paragraph (2).''.
   TITLE III--INSPECTION, APPREHENSION, DETENTION, ADJUDICATION, AND 
             REMOVAL OF INADMISSIBLE AND DEPORTABLE ALIENS
        Subtitle A--Revision of Procedures for Removal of Aliens

     SEC. 301. TREATING PERSONS PRESENT IN THE UNITED STATES 
                   WITHOUT AUTHORIZATION AS NOT ADMITTED.

       (a) ``Admission'' Defined.--Paragraph (13) of section 
     101(a) (8 U.S.C. 1101(a)) is amended to read as follows:
       ``(13)(A) The terms `admission' and `admitted' mean, with 
     respect to an alien, the lawful entry of the alien into the 
     United States after inspection and authorization by an 
     immigration officer.
       ``(B) An alien who is paroled under section 212(d)(5) or 
     permitted to land temporarily as an alien crewman shall not 
     be considered to have been admitted.
       ``(C) An alien lawfully admitted for permanent residence in 
     the United States shall not be regarded as seeking an 
     admission into the United States for purposes of the 
     immigration laws unless the alien--
       ``(i) has abandoned or relinquished that status,
       ``(ii) has been absent from the United States for a 
     continuous period in excess of 180 days,
       ``(iii) has engaged in illegal activity after having 
     departed the United States,
       ``(iv) has departed from the United States while under 
     legal process seeking removal of the alien from the United 
     States, including removal proceedings under this Act and 
     extradition proceedings,
       ``(v) has committed an offense identified in section 
     212(a)(2), unless since such offense the alien has been 
     granted relief under section 212(h) or 240A(a), or
       ``(vi) is attempting to enter at a time or place other than 
     as designated by immigration officers or has not been 
     admitted to the United States after inspection and 
     authorization by an immigration officer.''.
       (b) Inadmissibility of Aliens Previously Removed and 
     Unlawfully Present.--
       (1) In general.--Section 212(a) (8 U.S.C. 1182(a)) is 
     amended by redesignating paragraph (9) as paragraph (10) and 
     by inserting after paragraph (8) the following new paragraph:
       ``(9) Aliens previously removed.--
       ``(A) Certain aliens previously removed.--
       ``(i) Arriving aliens.--Any alien who has been ordered 
     removed under section 235(b)(1) or at the end of proceedings 
     under section 240 initiated upon the alien's arrival in the 
     United States and who again seeks admission within 5 years of 
     the date of such removal (or within 20 years in the case of a 
     second or subsequent removal or at any time in the case of an 
     alien convicted of an aggravated felony) is inadmissible.
       ``(ii) Other aliens.--Any alien not described in clause (i) 
     who--

       ``(I) has been ordered removed under section 240 or any 
     other provision of law, or
       ``(II) departed the United States while an order of removal 
     was outstanding,

     and who seeks admission within 10 years of the date of such 
     alien's departure or removal (or within 20 years of such date 
     in the case of a second or subsequent removal or at any time 
     in the case of an alien convicted of an aggravated felony) is 
     inadmissible.
       ``(iii) Exception.--Clauses (i) and (ii) shall not apply to 
     an alien seeking admission within a period if, prior to the 
     date of the alien's reembarkation at a place outside the 
     United States or attempt to be admitted from foreign 
     contiguous territory, the Attorney General has consented to 
     the alien's reapplying for admission.
       ``(B) Aliens unlawfully present.--
       ``(i) In general.--Any alien (other than an alien lawfully 
     admitted for permanent residence) who--

       ``(I) was unlawfully present in the United States for a 
     period of more than 180 days but less than 1 year, 
     voluntarily departed the United States (whether or not 
     pursuant to section 244(e)) prior to the commencement of 
     proceedings under section 235(b)(1) or section 240, and again 
     seeks admission within 3 years of the date of such alien's 
     departure or removal, or
       ``(II) has been unlawfully present in the United States for 
     one year or more, and who again seeks admission within 10 
     years of the date of such alien's departure or removal from 
     the United States,

     is inadmissible.
       ``(ii) Construction of unlawful presence.--For purposes of 
     this paragraph, an alien is deemed to be unlawfully present 
     in the United States if the alien is present in the United 
     States after the expiration of the period of stay authorized 
     by the Attorney General or is present in the United States 
     without being admitted or paroled.
       ``(iii) Exceptions.--

       ``(I) Minors.--No period of time in which an alien is under 
     18 years of age shall be taken into account in determining 
     the period of unlawful presence in the United States under 
     clause (i).
       ``(II) Asylees.--No period of time in which an alien has a 
     bona fide application for asylum pending under section 208 
     shall be taken into account in determining the period of 
     unlawful presence in the United States under clause (i) 
     unless the alien during such period was employed without 
     authorization in the United States.
       ``(III) Family unity.--No period of time in which the alien 
     is a beneficiary of family unity protection pursuant to 
     section 301 of the Immigration Act of 1990 shall be taken 
     into account in determining the period of unlawful presence 
     in the United States under clause (i).
       ``(IV) Battered women and children.--Clause (i) shall not 
     apply to an alien who would be described in paragraph 
     (6)(A)(ii) if `violation of the terms of the alien's 
     nonimmigrant visa' were substituted for `unlawful entry into 
     the United States' in subclause (III) of that paragraph.

       ``(iv) Tolling for good cause.--In the case of an alien 
     who--

       ``(I) has been lawfully admitted or paroled into the United 
     States,
       ``(II) has filed a nonfrivolous application for a change or 
     extension of status before the date of expiration of the 
     period of stay authorized by the Attorney General, and
       ``(III) has not been employed without authorization in the 
     United States before or during the pendency of such 
     application,

     the calculation of the period of time specified in clause 
     (i)(I) shall be tolled during the pendency of such 
     application, but not to exceed 120 days.
       ``(v) Waiver.--The Attorney General has sole discretion to 
     waive clause (i) in the case of an immigrant who is the 
     spouse or son or daughter of a United States citizen or of an 
     alien lawfully admitted for permanent residence, if it is 
     established to the satisfaction of the Attorney General that 
     the refusal of admission to such immigrant alien would result 
     in extreme hardship to the citizen or lawfully resident 
     spouse or parent of such alien. No court shall have 
     jurisdiction to review a decision or action by the Attorney 
     General regarding a waiver under this clause.
       ``(C) Aliens unlawfully present after previous immigration 
     violations.--
       ``(i) In general.--Any alien who--

       ``(I) has been unlawfully present in the United States for 
     an aggregate period of more than 1 year, or
       ``(II) has been ordered removed under section 235(b)(1), 
     section 240, or any other provision of law,

     and who enters or attempts to reenter the United States 
     without being admitted is inadmissible.
       ``(ii) Exception.--Clause (i) shall not apply to an alien 
     seeking admission more than 10 years after the date of the 
     alien's last departure from

[[Page H11796]]

     the United States if, prior to the alien's reembarkation at a 
     place outside the United States or attempt to be readmitted 
     from a foreign contiguous territory, the Attorney General has 
     consented to the alien's reapplying for admission.''.
       (2) Limitation on change of status.--Section 248 (8 U.S.C. 
     1258) is amended by inserting ``and who is not inadmissible 
     under section 212(a)(9)(B)(i) (or whose inadmissibility under 
     such section is waived under section 212(a)(9)(B)(v))'' after 
     ``maintain that status''.
       (3) Treatment of unlawful presence before effective date.--
     In applying section 212(a)(9)(B) of the Immigration and 
     Nationality Act, as inserted by paragraph (1), no period 
     before the title III-A effective date shall be included in a 
     period of unlawful presence in the United States.
       (c) Revision to Ground of Inadmissibility for Illegal 
     Entrants and Immigration Violators.--
       (1) In general.--Subparagraphs (A) and (B) of section 
     212(a)(6) (8 U.S.C. 1182(a)(6)) are amended to read as 
     follows:
       ``(A) Aliens present without admission or parole.--
       ``(i) In general.--An alien present in the United States 
     without being admitted or paroled, or who arrives in the 
     United States at any time or place other than as designated 
     by the Attorney General, is inadmissible.
       ``(ii) Exception for certain battered women and children.--
     Clause (i) shall not apply to an alien who demonstrates 
     that--

       ``(I) the alien qualifies for immigrant status under 
     subparagraph (A)(iii), (A)(iv), (B)(ii), or (B)(iii) of 
     section 204(a)(1),
       ``(II)(a) the alien has been battered or subjected to 
     extreme cruelty by a spouse or parent, or by a member of the 
     spouse's or parent's family residing in the same household as 
     the alien and the spouse or parent consented or acquiesced to 
     such battery or cruelty, or (b) the alien's child has been 
     battered or subjected to extreme cruelty by a spouse or 
     parent of the alien (without the active participation of the 
     alien in the battery or cruelty) or by a member of the 
     spouse's or parent's family residing in the same household as 
     the alien when the spouse or parent consented to or 
     acquiesced in such battery or cruelty and the alien did not 
     actively participate in such battery or cruelty, and
       ``(III) there was a substantial connection between the 
     battery or cruelty described in subclause (I) or (II) and the 
     alien's unlawful entry into the United States.

       ``(B) Failure to attend removal proceeding.--Any alien who 
     without reasonable cause fails or refuses to attend or remain 
     in attendance at a proceeding to determine the alien's 
     inadmissibility or deportability and who seeks admission to 
     the United States within 5 years of such alien's subsequent 
     departure or removal is inadmissible. ''.
       (2) Transition for battered spouse or child provision.--The 
     requirements of subclauses (II) and (III) of section 
     212(a)(6)(A)(ii) of the Immigration and Nationality Act, as 
     inserted by paragraph (1), shall not apply to an alien who 
     demonstrates that the alien first arrived in the United 
     States before the title III-A effective date (described in 
     section 309(a) of this division).
       (d) Adjustment in Grounds for Deportation.--Section 241 (8 
     U.S.C. 1251), before redesignation as section 237 by section 
     305(a)(2) of this division, is amended--
       (1) in the matter before paragraph (1) of subsection (a), 
     by striking ``in the United States'' and inserting ``in and 
     admitted to the United States'';
       (2) in subsection (a)(1), by striking ``Excludable'' each 
     place it appears and inserting ``Inadmissible'';
       (3) in subsection (a)(1)(A), by striking ``excludable'' and 
     inserting ``inadmissible''; and
       (4) by amending subparagraph (B) of subsection (a)(1) to 
     read as follows:
       ``(B) Present in violation of law.--Any alien who is 
     present in the United States in violation of this Act or any 
     other law of the United States is deportable.

     SEC. 302. INSPECTION OF ALIENS; EXPEDITED REMOVAL OF 
                   INADMISSIBLE ARRIVING ALIENS; REFERRAL FOR 
                   HEARING (REVISED SECTION 235).

       (a) In General.--Section 235 (8 U.S.C. 1225) is amended to 
     read as follows:


``inspection by immigration officers; expedited removal of inadmissible 
                 arriving aliens; referral for hearing

       ``Sec. 235. (a) Inspection.--
       ``(1) Aliens treated as applicants for admission.--An alien 
     present in the United States who has not been admitted or who 
     arrives in the United States (whether or not at a designated 
     port of arrival and including an alien who is brought to the 
     United States after having been interdicted in international 
     or United States waters) shall be deemed for purposes of this 
     Act an applicant for admission.
       ``(2) Stowaways.--An arriving alien who is a stowaway is 
     not eligible to apply for admission or to be admitted and 
     shall be ordered removed upon inspection by an immigration 
     officer. Upon such inspection if the alien indicates an 
     intention to apply for asylum under section 208 or a fear of 
     persecution, the officer shall refer the alien for an 
     interview under subsection (b)(1)(B). A stowaway may apply 
     for asylum only if the stowaway is found to have a credible 
     fear of persecution under subsection (b)(1)(B). In no case 
     may a stowaway be considered an applicant for admission or 
     eligible for a hearing under section 240.
       ``(3) Inspection.--All aliens (including alien crewmen) who 
     are applicants for admission or otherwise seeking admission 
     or readmission to or transit through the United States shall 
     be inspected by immigration officers.
       ``(4) Withdrawal of application for admission.--An alien 
     applying for admission may, in the discretion of the Attorney 
     General and at any time, be permitted to withdraw the 
     application for admission and depart immediately from the 
     United States.
       ``(5) Statements.--An applicant for admission may be 
     required to state under oath any information sought by an 
     immigration officer regarding the purposes and intentions of 
     the applicant in seeking admission to the United States, 
     including the applicant's intended length of stay and whether 
     the applicant intends to remain permanently or become a 
     United States citizen, and whether the applicant is 
     inadmissible.
       ``(b) Inspection of Applicants for Admission.--
       ``(1) Inspection of aliens arriving in the united states 
     and certain other aliens who have not been admitted or 
     paroled.--
       ``(A) Screening.--
       ``(i) In general.--If an immigration officer determines 
     that an alien (other than an alien described in subparagraph 
     (F)) who is arriving in the United States or is described in 
     clause (iii) is inadmissible under section 212(a)(6)(C) or 
     212(a)(7), the officer shall order the alien removed from the 
     United States without further hearing or review unless the 
     alien indicates either an intention to apply for asylum under 
     section 208 or a fear of persecution.
       ``(ii) Claims for asylum.--If an immigration officer 
     determines that an alien (other than an alien described in 
     subparagraph (F)) who is arriving in the United States or is 
     described in clause (iii) is inadmissible under section 
     212(a)(6)(C) or 212(a)(7) and the alien indicates either an 
     intention to apply for asylum under section 208 or a fear of 
     persecution, the officer shall refer the alien for an 
     interview by an asylum officer under subparagraph (B).
       ``(iii) Application to certain other aliens.--

       ``(I) In general.--The Attorney General may apply clauses 
     (i) and (ii) of this subparagraph to any or all aliens 
     described in subclause (II) as designated by the Attorney 
     General. Such designation shall be in the sole and 
     unreviewable discretion of the Attorney General and may be 
     modified at any time.
       ``(II) Aliens described.--An alien described in this clause 
     is an alien who is not described in subparagraph (F), who has 
     not been admitted or paroled into the United States, and who 
     has not affirmatively shown, to the satisfaction of an 
     immigration officer, that the alien has been physically 
     present in the United States continuously for the 2-year 
     period immediately prior to the date of the determination of 
     inadmissibility under this subparagraph.

       ``(B) Asylum interviews.--
       ``(i) Conduct by asylum officers.--An asylum officer shall 
     conduct interviews of aliens referred under subparagraph 
     (A)(ii), either at a port of entry or at such other place 
     designated by the Attorney General.
       ``(ii) Referral of certain aliens.--If the officer 
     determines at the time of the interview that an alien has a 
     credible fear of persecution (within the meaning of clause 
     (v)), the alien shall be detained for further consideration 
     of the application for asylum.
       ``(iii) Removal without further review if no credible fear 
     of persecution.--

       ``(I) In general.--Subject to subclause (III), if the 
     officer determines that an alien does not have a credible 
     fear of persecution, the officer shall order the alien 
     removed from the United States without further hearing or 
     review.
       ``(II) Record of determination.--The officer shall prepare 
     a written record of a determination under subclause (I). Such 
     record shall include a summary of the material facts as 
     stated by the applicant, such additional facts (if any) 
     relied upon by the officer, and the officer's analysis of 
     why, in the light of such facts, the alien has not 
     established a credible fear of persecution. A copy of the 
     officer's interview notes shall be attached to the written 
     summary.
       ``(III) Review of determination.--The Attorney General 
     shall provide by regulation and upon the alien's request for 
     prompt review by an immigration judge of a determination 
     under subclause (I) that the alien does not have a credible 
     fear of persecution. Such review shall include an opportunity 
     for the alien to be heard and questioned by the immigration 
     judge, either in person or by telephonic or video connection. 
     Review shall be concluded as expeditiously as possible, to 
     the maximum extent practicable within 24 hours, but in no 
     case later than 7 days after the date of the determination 
     under subclause (I).
       ``(IV) Mandatory detention.--Any alien subject to the 
     procedures under this clause shall be detained pending a 
     final determination of credible fear of persecution and, if 
     found not to have such a fear, until removed.

       ``(iv) Information about interviews.--The Attorney General 
     shall provide information concerning the asylum interview 
     described in this subparagraph to aliens who may be eligible. 
     An alien who is eligible for such interview may consult with 
     a person or persons of the alien's choosing prior to the 
     interview or any review thereof, according to regulations 
     prescribed by the Attorney General. Such consultation shall 
     be at no expense to the Government and shall not unreasonably 
     delay the process.
       ``(v) Credible fear of persecution defined.--For purposes 
     of this subparagraph, the term `credible fear of persecution' 
     means that there is a significant possibility, taking into 
     account the credibility of the statements made by the alien 
     in support of the alien's claim and such other facts as are 
     known to the officer, that the alien could establish 
     eligibility for asylum under section 208.
       ``(C) Limitation on administrative review.--Except as 
     provided in subparagraph (B)(iii)(III), a removal order 
     entered in accordance with subparagraph (A)(i) or (B)(iii)(I) 
     is not subject to administrative appeal, except that

[[Page H11797]]

     the Attorney General shall provide by regulation for prompt 
     review of such an order under subparagraph (A)(i) against an 
     alien who claims under oath, or as permitted under penalty of 
     perjury under section 1746 of title 28, United States Code, 
     after having been warned of the penalties for falsely making 
     such claim under such conditions, to have been lawfully 
     admitted for permanent residence, to have been admitted as a 
     refugee under section 207, or to have been granted asylum 
     under section 208.
       ``(D) Limit on collateral attacks.--In any action brought 
     against an alien under section 275(a) or section 276, the 
     court shall not have jurisdiction to hear any claim attacking 
     the validity of an order of removal entered under 
     subparagraph (A)(i) or (B)(iii).
       ``(E) Asylum officer defined.--As used in this paragraph, 
     the term `asylum officer' means an immigration officer who--
       ``(i) has had professional training in country conditions, 
     asylum law, and interview techniques comparable to that 
     provided to full-time adjudicators of applications under 
     section 208, and
       ``(ii) is supervised by an officer who meets the condition 
     described in clause (i) and has had substantial experience 
     adjudicating asylum applications.
       ``(F) Exception.--Subparagraph (A) shall not apply to an 
     alien who is a native or citizen of a country in the Western 
     Hemisphere with whose government the United States does not 
     have full diplomatic relations and who arrives by aircraft at 
     a port of entry.
       ``(2) Inspection of other aliens.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), in 
     the case of an alien who is an applicant for admission, if 
     the examining immigration officer determines that an alien 
     seeking admission is not clearly and beyond a doubt entitled 
     to be admitted, the alien shall be detained for a proceeding 
     under section 240.
       ``(B) Exception.--Subparagraph (A) shall not apply to an 
     alien--
       ``(i) who is a crewman,
       ``(ii) to whom paragraph (1) applies, or
       ``(iii) who is a stowaway.
       ``(C) Treatment of aliens arriving from contiguous 
     territory.--In the case of an alien described in subparagraph 
     (A) who is arriving on land (whether or not at a designated 
     port of arrival) from a foreign territory contiguous to the 
     United States, the Attorney General may return the alien to 
     that territory pending a proceeding under section 240.
       ``(3) Challenge of decision.--The decision of the examining 
     immigration officer, if favorable to the admission of any 
     alien, shall be subject to challenge by any other immigration 
     officer and such challenge shall operate to take the alien 
     whose privilege to be admitted is so challenged, before an 
     immigration judge for a proceeding under section 240.
       ``(c) Removal of Aliens Inadmissible on Security and 
     Related Grounds.--
       ``(1) Removal without further hearing.--If an immigration 
     officer or an immigration judge suspects that an arriving 
     alien may be inadmissible under subparagraph (A) (other than 
     clause (ii)), (B), or (C) of section 212(a)(3), the officer 
     or judge shall--
       ``(A) order the alien removed, subject to review under 
     paragraph (2);
       ``(B) report the order of removal to the Attorney General; 
     and
       ``(C) not conduct any further inquiry or hearing until 
     ordered by the Attorney General.
       ``(2) Review of order.--(A) The Attorney General shall 
     review orders issued under paragraph (1).
       ``(B) If the Attorney General--
       ``(i) is satisfied on the basis of confidential information 
     that the alien is inadmissible under subparagraph (A) (other 
     than clause (ii)), (B), or (C) of section 212(a)(3), and
       ``(ii) after consulting with appropriate security agencies 
     of the United States Government, concludes that disclosure of 
     the information would be prejudicial to the public interest, 
     safety, or security,

     the Attorney General may order the alien removed without 
     further inquiry or hearing by an immigration judge.
       ``(C) If the Attorney General does not order the removal of 
     the alien under subparagraph (B), the Attorney General shall 
     specify the further inquiry or hearing that shall be 
     conducted in the case.
       ``(3) Submission of statement and information.--The alien 
     or the alien's representative may submit a written statement 
     and additional information for consideration by the Attorney 
     General.
       ``(d) Authority Relating to Inspections.--
       ``(1) Authority to search conveyances.--Immigration 
     officers are authorized to board and search any vessel, 
     aircraft, railway car, or other conveyance or vehicle in 
     which they believe aliens are being brought into the United 
     States.
       ``(2) Authority to order detention and delivery of arriving 
     aliens.--Immigration officers are authorized to order an 
     owner, agent, master, commanding officer, person in charge, 
     purser, or consignee of a vessel or aircraft bringing an 
     alien (except an alien crewmember) to the United States--
       ``(A) to detain the alien on the vessel or at the airport 
     of arrival, and
       ``(B) to deliver the alien to an immigration officer for 
     inspection or to a medical officer for examination.
       ``(3) Administration of oath and consideration of 
     evidence.--The Attorney General and any immigration officer 
     shall have power to administer oaths and to take and consider 
     evidence of or from any person touching the privilege of any 
     alien or person he believes or suspects to be an alien to 
     enter, reenter, transit through, or reside in the United 
     States or concerning any matter which is material and 
     relevant to the enforcement of this Act and the 
     administration of the Service.
       ``(4) Subpoena authority.--(A) The Attorney General and any 
     immigration officer shall have power to require by subpoena 
     the attendance and testimony of witnesses before immigration 
     officers and the production of books, papers, and documents 
     relating to the privilege of any person to enter, reenter, 
     reside in, or pass through the United States or concerning 
     any matter which is material and relevant to the enforcement 
     of this Act and the administration of the Service, and to 
     that end may invoke the aid of any court of the United 
     States.
       ``(B) Any United States district court within the 
     jurisdiction of which investigations or inquiries are being 
     conducted by an immigration officer may, in the event of 
     neglect or refusal to respond to a subpoena issued under this 
     paragraph or refusal to testify before an immigration 
     officer, issue an order requiring such persons to appear 
     before an immigration officer, produce books, papers, and 
     documents if demanded, and testify, and any failure to obey 
     such order of the court may be punished by the court as a 
     contempt thereof.''.
       (b) GAO Study on Operation of Expedited Removal 
     Procedures.--
       (1) Study.--The Comptroller General shall conduct a study 
     on the implementation of the expedited removal procedures 
     under section 235(b)(1) of the Immigration and Nationality 
     Act, as amended by subsection (a). The study shall examine--
       (A) the effectiveness of such procedures in deterring 
     illegal entry,
       (B) the detention and adjudication resources saved as a 
     result of the procedures,
       (C) the administrative and other costs expended to comply 
     with the provision,
       (D) the effectiveness of such procedures in processing 
     asylum claims by undocumented aliens who assert a fear of 
     persecution, including the accuracy of credible fear 
     determinations, and
       (E) the cooperation of other countries and air carriers in 
     accepting and returning aliens removed under such procedures.
       (2) Report.--By not later than 18 months after the date of 
     the enactment of this Act, the Comptroller General shall 
     submit to the Committees on the Judiciary of the House of 
     Representatives and the Senate a report on the study 
     conducted under paragraph (1).

     SEC. 303. APPREHENSION AND DETENTION OF ALIENS (REVISED 
                   SECTION 236).

       (a) In General.--Section 236 (8 U.S.C. 1226) is amended to 
     read as follows:


                 ``apprehension and detention of aliens

       ``Sec. 236. (a) Arrest, Detention, and Release.--On a 
     warrant issued by the Attorney General, an alien may be 
     arrested and detained pending a decision on whether the alien 
     is to be removed from the United States. Except as provided 
     in subsection (c) and pending such decision, the Attorney 
     General--
       ``(1) may continue to detain the arrested alien; and
       ``(2) may release the alien on--
       ``(A) bond of at least $1,500 with security approved by, 
     and containing conditions prescribed by, the Attorney 
     General; or
       ``(B) conditional parole; but
       ``(3) may not provide the alien with work authorization 
     (including an `employment authorized' endorsement or other 
     appropriate work permit), unless the alien is lawfully 
     admitted for permanent residence or otherwise would (without 
     regard to removal proceedings) be provided such 
     authorization.
       ``(b) Revocation of Bond or Parole.--The Attorney General 
     at any time may revoke a bond or parole authorized under 
     subsection (a), rearrest the alien under the original 
     warrant, and detain the alien.
       ``(c) Detention of Criminal Aliens.--
       ``(1) Custody.--The Attorney General shall take into 
     custody any alien who--
       ``(A) is inadmissible by reason of having committed any 
     offense covered in section 212(a)(2),
       ``(B) is deportable by reason of having committed any 
     offense covered in section 237(a)(2)(A)(ii), (A)(iii), (B), 
     (C), or (D),
       ``(C) is deportable under section 237(a)(2)(A)(i) on the 
     basis of an offense for which the alien has been sentence to 
     a term of imprisonment of at least 1 year, or
       ``(D) is inadmissible under section 212(a)(3)(B) or 
     deportable under section 237(a)(4)(B),
     when the alien is released, without regard to whether the 
     alien is released on parole, supervised release, or 
     probation, and without regard to whether the alien may be 
     arrested or imprisoned again for the same offense.
       ``(2) Release.--The Attorney General may release an alien 
     described in paragraph (1) only if the Attorney General 
     decides pursuant to section 3521 of title 18, United States 
     Code, that release of the alien from custody is necessary to 
     provide protection to a witness, a potential witness, a 
     person cooperating with an investigation into major criminal 
     activity, or an immediate family member or close associate of 
     a witness, potential witness, or person cooperating with such 
     an investigation, and the alien satisfies the Attorney 
     General that the alien will not pose a danger to the safety 
     of other persons or of property and is likely to appear for 
     any scheduled proceeding. A decision relating to such release 
     shall take place in accordance with a procedure that 
     considers the severity of the offense committed by the alien.
       ``(d) Identification of Criminal Aliens.--(1) The Attorney 
     General shall devise and implement a system--
       ``(A) to make available, daily (on a 24-hour basis), to 
     Federal, State, and local authorities the investigative 
     resources of the Service to determine whether individuals 
     arrested by such authorities for aggravated felonies are 
     aliens;

[[Page H11798]]

       ``(B) to designate and train officers and employees of the 
     Service to serve as a liaison to Federal, State, and local 
     law enforcement and correctional agencies and courts with 
     respect to the arrest, conviction, and release of any alien 
     charged with an aggravated felony; and
       ``(C) which uses computer resources to maintain a current 
     record of aliens who have been convicted of an aggravated 
     felony, and indicates those who have been removed.
       ``(2) The record under paragraph (1)(C) shall be made 
     available--
       ``(A) to inspectors at ports of entry and to border patrol 
     agents at sector headquarters for purposes of immediate 
     identification of any alien who was previously ordered 
     removed and is seeking to reenter the United States, and
       ``(B) to officials of the Department of State for use in 
     its automated visa lookout system.
       ``(3) Upon the request of the governor or chief executive 
     officer of any State, the Service shall provide assistance to 
     State courts in the identification of aliens unlawfully 
     present in the United States pending criminal prosecution.
       ``(e) Judicial Review.--The Attorney General's 
     discretionary judgment regarding the application of this 
     section shall not be subject to review. No court may set 
     aside any action or decision by the Attorney General under 
     this section regarding the detention or release of any alien 
     or the grant, revocation, or denial of bond or parole.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     become effective on the title III-A effective date.
       (2) Notification regarding custody.--If the Attorney 
     General, not later than 10 days after the date of the 
     enactment of this Act, notifies in writing the Committees on 
     the Judiciary of the House of Representatives and the Senate 
     that there is insufficient detention space and Immigration 
     and Naturalization Service personnel available to carry out 
     section 236(c) of the Immigration and Nationality Act, as 
     amended by subsection (a), or the amendments made by section 
     440(c) of Public Law 104-132, the provisions in paragraph (3) 
     shall be in effect for a 1-year period beginning on the date 
     of such notification, instead of such section or such 
     amendments. The Attorney General may extend such 1-year 
     period for an additional year if the Attorney General 
     provides the same notice not later than 10 days before the 
     end of the first 1-year period. After the end of such 1-year 
     or 2-year periods, the provisions of such section 236(c) 
     shall apply to individuals released after such periods.
       (3) Transition period custody rules.--
       (A) In general.--During the period in which this paragraph 
     is in effect pursuant to paragraph (2), the Attorney General 
     shall take into custody any alien who--
       (i) has been convicted of an aggravated felony (as defined 
     under section 101(a)(43) of the Immigration and Nationality 
     Act, as amended by section 321 of this division),
       (ii) is inadmissible by reason of having committed any 
     offense covered in section 212(a)(2) of such Act,
       (iii) is deportable by reason of having committed any 
     offense covered in section 241(a)(2)(A)(ii), (A)(iii), (B), 
     (C), or (D) of such Act (before redesignation under this 
     subtitle), or
       (iv) is inadmissible under section 212(a)(3)(B) of such Act 
     or deportable under section 241(a)(4)(B) of such Act (before 
     redesignation under this subtitle),
     when the alien is released, without regard to whether the 
     alien is released on parole, supervised release, or 
     probation, and without regard to whether the alien may be 
     arrested or imprisoned again for the same offense.
       (B) Release.--The Attorney General may release the alien 
     only if the alien is an alien described in subparagraph 
     (A)(ii) or (A)(iii) and--
       (i) the alien was lawfully admitted to the United States 
     and satisfies the Attorney General that the alien will not 
     pose a danger to the safety of other persons or of property 
     and is likely to appear for any scheduled proceeding, or
       (ii) the alien was not lawfully admitted to the United 
     States, cannot be removed because the designated country of 
     removal will not accept the alien, and satisfies the Attorney 
     General that the alien will not pose a danger to the safety 
     of other persons or of property and is likely to appear for 
     any scheduled proceeding.

     SEC. 304. REMOVAL PROCEEDINGS; CANCELLATION OF REMOVAL AND 
                   ADJUSTMENT OF STATUS; VOLUNTARY DEPARTURE 
                   (REVISED AND NEW SECTIONS 239 TO 240C).

       (a) In General.--Chapter 4 of title II is amended--
       (1) by redesignating section 239 (8 U.S.C. 1229) as section 
     234 and by moving such section to immediately follow section 
     233;
       (2) by redesignating section 240 (8 U.S.C. 1230) as section 
     240C; and
       (3) by inserting after section 238 the following new 
     sections:


                  ``initiation of removal proceedings

       ``Sec. 239. (a) Notice to Appear.--
       ``(1) In general.--In removal proceedings under section 
     240, written notice (in this section referred to as a `notice 
     to appear') shall be given in person to the alien (or, if 
     personal service is not practicable, through service by mail 
     to the alien or to the alien's counsel of record, if any) 
     specifying the following:
       ``(A) The nature of the proceedings against the alien.
       ``(B) The legal authority under which the proceedings are 
     conducted.
       ``(C) The acts or conduct alleged to be in violation of 
     law.
       ``(D) The charges against the alien and the statutory 
     provisions alleged to have been violated.
       ``(E) The alien may be represented by counsel and the alien 
     will be provided (i) a period of time to secure counsel under 
     subsection (b)(1) and (ii) a current list of counsel prepared 
     under subsection (b)(2).
       ``(F)(i) The requirement that the alien must immediately 
     provide (or have provided) the Attorney General with a 
     written record of an address and telephone number (if any) at 
     which the alien may be contacted respecting proceedings under 
     section 240.
       ``(ii) The requirement that the alien must provide the 
     Attorney General immediately with a written record of any 
     change of the alien's address or telephone number.
       ``(iii) The consequences under section 240(b)(5) of failure 
     to provide address and telephone information pursuant to this 
     subparagraph.
       ``(G)(i) The time and place at which the proceedings will 
     be held.
       ``(ii) The consequences under section 240(b)(5) of the 
     failure, except under exceptional circumstances, to appear at 
     such proceedings.
       ``(2) Notice of change in time or place of proceedings.--
       ``(A) In general.--In removal proceedings under section 
     240, in the case of any change or postponement in the time 
     and place of such proceedings, subject to subparagraph (B) a 
     written notice shall be given in person to the alien (or, if 
     personal service is not practicable, through service by mail 
     to the alien or to the alien's counsel of record, if any) 
     specifying--
       ``(i) the new time or place of the proceedings, and
       ``(ii) the consequences under section 240(b)(5) of failing, 
     except under exceptional circumstances, to attend such 
     proceedings.
       ``(B) Exception.--In the case of an alien not in detention, 
     a written notice shall not be required under this paragraph 
     if the alien has failed to provide the address required under 
     paragraph (1)(F).
       ``(3) Central address files.--The Attorney General shall 
     create a system to record and preserve on a timely basis 
     notices of addresses and telephone numbers (and changes) 
     provided under paragraph (1)(F).
       ``(b) Securing of Counsel.--
       ``(1) In general.--In order that an alien be permitted the 
     opportunity to secure counsel before the first hearing date 
     in proceedings under section 240, the hearing date shall not 
     be scheduled earlier than 10 days after the service of the 
     notice to appear, unless the alien requests in writing an 
     earlier hearing date.
       ``(2) Current lists of counsel.--The Attorney General shall 
     provide for lists (updated not less often than quarterly) of 
     persons who have indicated their availability to represent 
     pro bono aliens in proceedings under section 240. Such lists 
     shall be provided under subsection (a)(1)(E) and otherwise 
     made generally available.
       ``(3) Rule of construction.--Nothing in this subsection may 
     be construed to prevent the Attorney General from proceeding 
     against an alien pursuant to section 240 if the time period 
     described in paragraph (1) has elapsed and the alien has 
     failed to secure counsel.
       ``(c) Service by Mail.--Service by mail under this section 
     shall be sufficient if there is proof of attempted delivery 
     to the last address provided by the alien in accordance with 
     subsection (a)(1)(F).
       ``(d) Prompt Initiation of Removal.--(1) In the case of an 
     alien who is convicted of an offense which makes the alien 
     deportable, the Attorney General shall begin any removal 
     proceeding as expeditiously as possible after the date of the 
     conviction.
       ``(2) Nothing in this subsection shall be construed to 
     create any substantive or procedural right or benefit that is 
     legally enforceable by any party against the United States or 
     its agencies or officers or any other person.


                         ``removal proceedings

       ``Sec. 240. (a) Proceeding.--
       ``(1) In general.--An immigration judge shall conduct 
     proceedings for deciding the inadmissibility or deportability 
     of an alien.
       ``(2) Charges.--An alien placed in proceedings under this 
     section may be charged with any applicable ground of 
     inadmissibility under section 212(a) or any applicable ground 
     of deportability under section 237(a).
       ``(3) Exclusive procedures.--Unless otherwise specified in 
     this Act, a proceeding under this section shall be the sole 
     and exclusive procedure for determining whether an alien may 
     be admitted to the United States or, if the alien has been so 
     admitted, removed from the United States. Nothing in this 
     section shall affect proceedings conducted pursuant to 
     section 238.
       ``(b) Conduct of Proceeding.--
       ``(1) Authority of immigration judge.--The immigration 
     judge shall administer oaths, receive evidence, and 
     interrogate, examine, and cross-examine the alien and any 
     witnesses. The immigration judge may issue subpoenas for the 
     attendance of witnesses and presentation of evidence. The 
     immigration judge shall have authority (under regulations 
     prescribed by the Attorney General) to sanction by civil 
     money penalty any action (or inaction) in contempt of the 
     judge's proper exercise of authority under this Act.
       ``(2) Form of proceeding.--
       ``(A) In general.--The proceeding may take place--
       ``(i) in person,
       ``(ii) where agreed to by the parties, in the absence of 
     the alien,
       ``(iii) through video conference, or
       ``(iv) subject to subparagraph (B), through telephone 
     conference.
       ``(B) Consent required in certain cases.--An evidentiary 
     hearing on the merits may only be conducted through a 
     telephone conference with the consent of the alien involved 
     after the alien has been advised of the right to proceed in 
     person or through video conference.
       ``(3) Presence of alien.--If it is impracticable by reason 
     of an alien's mental incompetency

[[Page H11799]]

     for the alien to be present at the proceeding, the Attorney 
     General shall prescribe safeguards to protect the rights and 
     privileges of the alien.
       ``(4) Aliens rights in proceeding.--In proceedings under 
     this section, under regulations of the Attorney General--
       ``(A) the alien shall have the privilege of being 
     represented, at no expense to the Government, by counsel of 
     the alien's choosing who is authorized to practice in such 
     proceedings,
       ``(B) the alien shall have a reasonable opportunity to 
     examine the evidence against the alien, to present evidence 
     on the alien's own behalf, and to cross-examine witnesses 
     presented by the Government but these rights shall not 
     entitle the alien to examine such national security 
     information as the Government may proffer in opposition to 
     the alien's admission to the United States or to an 
     application by the alien for discretionary relief under this 
     Act, and
       ``(C) a complete record shall be kept of all testimony and 
     evidence produced at the proceeding.
       ``(5) Consequences of failure to appear.--
       ``(A) In general.--Any alien who, after written notice 
     required under paragraph (1) or (2) of section 239(a) has 
     been provided to the alien or the alien's counsel of record, 
     does not attend a proceeding under this section, shall be 
     ordered removed in absentia if the Service establishes by 
     clear, unequivocal, and convincing evidence that the written 
     notice was so provided and that the alien is removable (as 
     defined in subsection (e)(2)). The written notice by the 
     Attorney General shall be considered sufficient for purposes 
     of this subparagraph if provided at the most recent address 
     provided under section 239(a)(1)(F).
       ``(B) No notice if failure to provide address 
     information.--No written notice shall be required under 
     subparagraph (A) if the alien has failed to provide the 
     address required under section 239(a)(1)(F).
       ``(C) Rescission of order.--Such an order may be rescinded 
     only--
       ``(i) upon a motion to reopen filed within 180 days after 
     the date of the order of removal if the alien demonstrates 
     that the failure to appear was because of exceptional 
     circumstances (as defined in subsection (e)(1)), or
       ``(ii) upon a motion to reopen filed at any time if the 
     alien demonstrates that the alien did not receive notice in 
     accordance with paragraph (1) or (2) of section 239(a) or the 
     alien demonstrates that the alien was in Federal or State 
     custody and the failure to appear was through no fault of the 
     alien.
     The filing of the motion to reopen described in clause (i) or 
     (ii) shall stay the removal of the alien pending disposition 
     of the motion by the immigration judge.
       ``(D) Effect on judicial review.--Any petition for review 
     under section 242 of an order entered in absentia under this 
     paragraph shall (except in cases described in section 
     242(b)(5)) be confined to (i) the validity of the notice 
     provided to the alien, (ii) the reasons for the alien's not 
     attending the proceeding, and (iii) whether or not the alien 
     is removable.
       ``(E) Additional application to certain aliens in 
     contiguous territory.--The preceding provisions of this 
     paragraph shall apply to all aliens placed in proceedings 
     under this section, including any alien who remains in a 
     contiguous foreign territory pursuant to section 
     235(b)(2)(C).
       ``(6) Treatment of frivolous behavior.--The Attorney 
     General shall, by regulation--
       ``(A) define in a proceeding before an immigration judge or 
     before an appellate administrative body under this title, 
     frivolous behavior for which attorneys may be sanctioned,
       ``(B) specify the circumstances under which an 
     administrative appeal of a decision or ruling will be 
     considered frivolous and will be summarily dismissed, and
       ``(C) impose appropriate sanctions (which may include 
     suspension and disbarment) in the case of frivolous behavior.
     Nothing in this paragraph shall be construed as limiting the 
     authority of the Attorney General to take actions with 
     respect to inappropriate behavior.
       ``(7) Limitation on discretionary relief for failure to 
     appear.--Any alien against whom a final order of removal is 
     entered in absentia under this subsection and who, at the 
     time of the notice described in paragraph (1) or (2) of 
     section 239(a), was provided oral notice, either in the 
     alien's native language or in another language the alien 
     understands, of the time and place of the proceedings and of 
     the consequences under this paragraph of failing, other than 
     because of exceptional circumstances (as defined in 
     subsection (e)(1)) to attend a proceeding under this section, 
     shall not be eligible for relief under section 240A, 240B, 
     245, 248, or 249 for a period of 10 years after the date of 
     the entry of the final order of removal.
       ``(c) Decision and Burden of Proof.--
       ``(1) Decision.--
       ``(A) In general.--At the conclusion of the proceeding the 
     immigration judge shall decide whether an alien is removable 
     from the United States. The determination of the immigration 
     judge shall be based only on the evidence produced at the 
     hearing.
       ``(B) Certain medical decisions.--If a medical officer or 
     civil surgeon or board of medical officers has certified 
     under section 232(b) that an alien has a disease, illness, or 
     addiction which would make the alien inadmissible under 
     paragraph (1) of section 212(a), the decision of the 
     immigration judge shall be based solely upon such 
     certification.
       ``(2) Burden on alien.--In the proceeding the alien has the 
     burden of establishing--
       ``(A) if the alien is an applicant for admission, that the 
     alien is clearly and beyond doubt entitled to be admitted and 
     is not inadmissible under section 212; or
       ``(B) by clear and convincing evidence, that the alien is 
     lawfully present in the United States pursuant to a prior 
     admission.
     In meeting the burden of proof under subparagraph (B), the 
     alien shall have access to the alien's visa or other entry 
     document, if any, and any other records and documents, not 
     considered by the Attorney General to be confidential, 
     pertaining to the alien's admission or presence in the United 
     States.
       ``(3) Burden on service in cases of deportable aliens.--
       ``(A) In general.--In the proceeding the Service has the 
     burden of establishing by clear and convincing evidence that, 
     in the case of an alien who has been admitted to the United 
     States, the alien is deportable. No decision on deportability 
     shall be valid unless it is based upon reasonable, 
     substantial, and probative evidence.
       ``(B) Proof of convictions.--In any proceeding under this 
     Act, any of the following documents or records (or a 
     certified copy of such an official document or record) shall 
     constitute proof of a criminal conviction:
       ``(i) An official record of judgment and conviction.
       ``(ii) An official record of plea, verdict, and sentence.
       ``(iii) A docket entry from court records that indicates 
     the existence of the conviction.
       ``(iv) Official minutes of a court proceeding or a 
     transcript of a court hearing in which the court takes notice 
     of the existence of the conviction.
       ``(v) An abstract of a record of conviction prepared by the 
     court in which the conviction was entered, or by a State 
     official associated with the State's repository of criminal 
     justice records, that indicates the charge or section of law 
     violated, the disposition of the case, the existence and date 
     of conviction, and the sentence.
       ``(vi) Any document or record prepared by, or under the 
     direction of, the court in which the conviction was entered 
     that indicates the existence of a conviction.
       ``(vii) Any document or record attesting to the conviction 
     that is maintained by an official of a State or Federal penal 
     institution, which is the basis for that institution's 
     authority to assume custody of the individual named in the 
     record.
       ``(C) Electronic records.--In any proceeding under this 
     Act, any record of conviction or abstract that has been 
     submitted by electronic means to the Service from a State or 
     court shall be admissible as evidence to prove a criminal 
     conviction if it is--
       ``(i) certified by a State official associated with the 
     State's repository of criminal justice records as an official 
     record from its repository or by a court official from the 
     court in which the conviction was entered as an official 
     record from its repository, and
       ``(ii) certified in writing by a Service official as having 
     been received electronically from the State's record 
     repository or the court's record repository.
     A certification under clause (i) may be by means of a 
     computer-generated signature and statement of authenticity.
       ``(4) Notice.--If the immigration judge decides that the 
     alien is removable and orders the alien to be removed, the 
     judge shall inform the alien of the right to appeal that 
     decision and of the consequences for failure to depart under 
     the order of removal, including civil and criminal penalties.
       ``(5) Motions to reconsider.--
       ``(A) In general.--The alien may file one motion to 
     reconsider a decision that the alien is removable from the 
     United States.
       ``(B) Deadline.--The motion must be filed within 30 days of 
     the date of entry of a final administrative order of removal.
       ``(C) Contents.--The motion shall specify the errors of law 
     or fact in the previous order and shall be supported by 
     pertinent authority.
       ``(6) Motions to reopen.--
       ``(A) In general.--An alien may file one motion to reopen 
     proceedings under this section.
       ``(B) Contents.--The motion to reopen shall state the new 
     facts that will be proven at a hearing to be held if the 
     motion is granted, and shall be supported by affidavits or 
     other evidentiary material.
       ``(C) Deadline.--
       ``(i) In general.--Except as provided in this subparagraph, 
     the motion to reopen shall be filed within 90 days of the 
     date of entry of a final administrative order of removal.
       ``(ii) Asylum.--There is no time limit on the filing of a 
     motion to reopen if the basis of the motion is to apply for 
     relief under sections 208 or 241(b)(3) and is based on 
     changed country conditions arising in the country of 
     nationality or the country to which removal has been ordered, 
     if such evidence is material and was not available and would 
     not have been discovered or presented at the previous 
     proceeding.
       ``(iii) Failure to appear.--The filing of a motion to 
     reopen an order entered pursuant to subsection (b)(5) is 
     subject to the deadline specified in subparagraph (C) of such 
     subsection.
       ``(d) Stipulated Removal.--The Attorney General shall 
     provide by regulation for the entry by an immigration judge 
     of an order of removal stipulated to by the alien (or the 
     alien's representative) and the Service. A stipulated order 
     shall constitute a conclusive determination of the alien's 
     removability from the United States.
       ``(e) Definitions.--In this section and section 240A:
       ``(1) Exceptional circumstances.--The term `exceptional 
     circumstances' refers to exceptional circumstances (such as 
     serious illness of the alien or serious illness or death of 
     the spouse, child, or parent of the alien, but not including 
     less compelling circumstances) beyond the control of the 
     alien.
       ``(2) Removable.--The term `removable' means--
       ``(A) in the case of an alien not admitted to the United 
     States, that the alien is inadmissible under section 212, or
       ``(B) in the case of an alien admitted to the United 
     States, that the alien is deportable under section 237.

[[Page H11800]]

            ``cancellation of removal; adjustment of status

       ``Sec. 240A. (a) Cancellation of Removal for Certain 
     Permanent Residents.--The Attorney General may cancel removal 
     in the case of an alien who is inadmissible or deportable 
     from the United States if the alien--
       ``(1) has been an alien lawfully admitted for permanent 
     residence for not less than 5 years,
       ``(2) has resided in the United States continuously for 7 
     years after having been admitted in any status, and
       ``(3) has not been convicted of any aggravated felony.
       ``(b) Cancellation of Removal and Adjustment of Status for 
     Certain Nonpermanent Residents.--
       ``(1) In general.--The Attorney General may cancel removal 
     in the case of an alien who is inadmissible or deportable 
     from the United States if the alien--
       ``(A) has been physically present in the United States for 
     a continuous period of not less than 10 years immediately 
     preceding the date of such application;
       ``(B) has been a person of good moral character during such 
     period;
       ``(C) has not been convicted of an offense under section 
     212(a)(2), 237(a)(2), or 237(a)(3); and
       ``(D) establishes that removal would result in exceptional 
     and extremely unusual hardship to the alien's spouse, parent, 
     or child, who is a citizen of the United States or an alien 
     lawfully admitted for permanent residence.
       ``(2) Special rule for battered spouse or child.--The 
     Attorney General may cancel removal in the case of an alien 
     who is inadmissible or deportable from the United States if 
     the alien demonstrates that--
       ``(A) the alien has been battered or subjected to extreme 
     cruelty in the United States by a spouse or parent who is a 
     United States citizen or lawful permanent resident (or is the 
     parent of a child of a United States citizen or lawful 
     permanent resident and the child has been battered or 
     subjected to extreme cruelty in the United States by such 
     citizen or permanent resident parent);
       ``(B) the alien has been physically present in the United 
     States for a continuous period of not less than 3 years 
     immediately preceding the date of such application;
       ``(C) the alien has been a person of good moral character 
     during such period;
       ``(D) the alien is not inadmissible under paragraph (2) or 
     (3) of section 212(a), is not deportable under paragraph 
     (1)(G) or (2) through (4) of section 237(a), and has not been 
     convicted of an aggravated felony; and
       ``(E) the removal would result in extreme hardship to the 
     alien, the alien's child, or (in the case of an alien who is 
     a child) to the alien's parent.

     In acting on applications under this paragraph, the Attorney 
     General shall consider any credible evidence relevant to the 
     application. The determination of what evidence is credible 
     and the weight to be given that evidence shall be within the 
     sole discretion of the Attorney General.
       ``(3) Adjustment of status.--The Attorney General may 
     adjust to the status of an alien lawfully admitted for 
     permanent residence any alien who the Attorney General 
     determines meets the requirements of paragraph (1) or (2). 
     The number of adjustments under this paragraph shall not 
     exceed 4,000 for any fiscal year. The Attorney General shall 
     record the alien's lawful admission for permanent residence 
     as of the date the Attorney General's cancellation of removal 
     under paragraph (1) or (2) or determination under this 
     paragraph.
       ``(c) Aliens Ineligible for Relief.--The provisions of 
     subsections (a) and (b)(1) shall not apply to any of the 
     following aliens:
       ``(1) An alien who entered the United States as a crewman 
     subsequent to June 30, 1964.
       ``(2) An alien who was admitted to the United States as a 
     nonimmigrant exchange alien as defined in section 
     101(a)(15)(J), or has acquired the status of such a 
     nonimmigrant exchange alien after admission, in order to 
     receive graduate medical education or training, regardless of 
     whether or not the alien is subject to or has fulfilled the 
     two-year foreign residence requirement of section 212(e).
       ``(3) An alien who--
       ``(A) was admitted to the United States as a nonimmigrant 
     exchange alien as defined in section 101(a)(15)(J) or has 
     acquired the status of such a nonimmigrant exchange alien 
     after admission other than to receive graduate medical 
     education or training,
       ``(B) is subject to the two-year foreign residence 
     requirement of section 212(e), and
       ``(C) has not fulfilled that requirement or received a 
     waiver thereof.
       ``(4) An alien who is inadmissible under section 212(a)(3) 
     or deportable under section 237(a)(4).
       ``(5) An alien who is described in section 241(b)(3)(B)(i).
       ``(6) An alien whose removal has previously been cancelled 
     under this section or whose deportation was suspended under 
     section 244(a) or who has been granted relief under section 
     212(c), as such sections were in effect before the date of 
     the enactment of the Illegal Immigration Reform and Immigrant 
     Responsibility Act of 1996.
       ``(d) Special Rules Relating to Continuous Residence or 
     Physical Presence.--
       ``(1) Termination of continuous period.--For purposes of 
     this section, any period of continuous residence or 
     continuous physical presence in the United States shall be 
     deemed to end when the alien is served a notice to appear 
     under section 239(a) or when the alien has committed an 
     offense referred to in section 212(a)(2) that renders the 
     alien inadmissible to the United States under section 
     212(a)(2) or removable from the United States under section 
     237(a)(2) or 237(a)(4), whichever is earliest.
       ``(2) Treatment of certain breaks in presence.--An alien 
     shall be considered to have failed to maintain continuous 
     physical presence in the United States under subsections 
     (b)(1) and (b)(2) if the alien has departed from the United 
     States for any period in excess of 90 days or for any periods 
     in the aggregate exceeding 180 days.
       ``(3) Continuity not required because of honorable service 
     in armed forces and presence upon entry into service.--The 
     requirements of continuous residence or continuous physical 
     presence in the United States under subsections (a) and (b) 
     shall not apply to an alien who--
       ``(A) has served for a minimum period of 24 months in an 
     active-duty status in the Armed Forces of the United States 
     and, if separated from such service, was separated under 
     honorable conditions, and
       ``(B) at the time of the alien's enlistment or induction 
     was in the United States.
       ``(e) Annual Limitation.--The Attorney General may not 
     cancel the removal and adjust the status under this section, 
     nor suspend the deportation and adjust the status under 
     section 244(a) (as in effect before the enactment of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996), of a total of more than 4,000 aliens in any fiscal 
     year. The previous sentence shall apply regardless of when an 
     alien applied for such cancellation and adjustment and 
     whether such an alien had previously applied for suspension 
     of deportation under such section 244(a).


                         ``voluntary departure

       ``Sec. 240B. (a) Certain Conditions.--
       ``(1) In general.--The Attorney General may permit an alien 
     voluntarily to depart the United States at the alien's own 
     expense under this subsection, in lieu of being subject to 
     proceedings under section 240 or prior to the completion of 
     such proceedings, if the alien is not deportable under 
     section 237(a)(2)(A)(iii) or section 237(a)(4)(B).
       ``(2) Period.--Permission to depart voluntarily under this 
     subsection shall not be valid for a period exceeding 120 
     days.
       ``(3) Bond.--The Attorney General may require an alien 
     permitted to depart voluntarily under this subsection to post 
     a voluntary departure bond, to be surrendered upon proof that 
     the alien has departed the United States within the time 
     specified.
       ``(4) Treatment of aliens arriving in the united states.--
     In the case of an alien who is arriving in the United States 
     and with respect to whom proceedings under section 240 are 
     (or would otherwise be) initiated at the time of such alien's 
     arrival, paragraph (1) shall not apply. Nothing in this 
     paragraph shall be construed as preventing such an alien from 
     withdrawing the application for admission in accordance with 
     section 235(a)(4).
       ``(b) At Conclusion of Proceedings.--
       ``(1) In general.--The Attorney General may permit an alien 
     voluntarily to depart the United States at the alien's own 
     expense if, at the conclusion of a proceeding under section 
     240, the immigration judge enters an order granting voluntary 
     departure in lieu of removal and finds that--
       ``(A) the alien has been physically present in the United 
     States for a period of at least one year immediately 
     preceding the date the notice to appear was served under 
     section 239(a);
       ``(B) the alien is, and has been, a person of good moral 
     character for at least 5 years immediately preceding the 
     alien's application for voluntary departure;
       ``(C) the alien is not deportable under section 
     237(a)(2)(A)(iii) or section 237(a)(4); and
       ``(D) the alien has established by clear and convincing 
     evidence that the alien has the means to depart the United 
     States and intends to do so.
       ``(2) Period.--Permission to depart voluntarily under this 
     subsection shall not be valid for a period exceeding 60 days.
       ``(3) Bond.--An alien permitted to depart voluntarily under 
     this subsection shall be required to post a voluntary 
     departure bond, in an amount necessary to ensure that the 
     alien will depart, to be surrendered upon proof that the 
     alien has departed the United States within the time 
     specified.
       ``(c) Aliens Not Eligible.--The Attorney General shall not 
     permit an alien to depart voluntarily under this section if 
     the alien was previously permitted to so depart after having 
     been found inadmissible under section 212(a)(6)(A).
       ``(d) Civil Penalty for Failure to Depart.--If an alien is 
     permitted to depart voluntarily under this section and fails 
     voluntarily to depart the United States within the time 
     period specified, the alien shall be subject to a civil 
     penalty of not less than $1,000 and not more than $5,000, and 
     be ineligible for a period of 10 years for any further relief 
     under this section and sections 240A, 245, 248, and 249. The 
     order permitting the alien to depart voluntarily shall inform 
     the alien of the penalties under this subsection.
       ``(e) Additional Conditions.--The Attorney General may by 
     regulation limit eligibility for voluntary departure under 
     this section for any class or classes of aliens. No court may 
     review any regulation issued under this subsection.
       ``(f) Judicial Review.--No court shall have jurisdiction 
     over an appeal from denial of a request for an order of 
     voluntary departure under subsection (b), nor shall any court 
     order a stay of an alien's removal pending consideration of 
     any claim with respect to voluntary departure.''.
       (b) Repeal of Section 212(c).--Section 212(c) (8 U.S.C. 
     1182(c)) is repealed.
       (c) Streamlining Removal of Criminal Aliens.--

[[Page H11801]]

       (1) In general.--Section 242A(b)(4) (8 U.S.C. 1252a(b)(4)), 
     as amended by section 442(a) of Public Law 104-132 and before 
     redesignation by section 308(b)(5) of this division, is 
     amended--
       (A) by striking subparagraph (D);
       (B) by amending subparagraph (E) to read as follows:
       ``(D) a determination is made for the record that the 
     individual upon whom the notice for the proceeding under this 
     section is served (either in person or by mail) is, in fact, 
     the alien named in such notice;''; and
       (C) by redesignating subparagraphs (F) and (G) as 
     subparagraph (E) and (F), respectively.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall be effective as if included in the enactment of section 
     442(a) of Public Law 104-132.

     SEC. 305. DETENTION AND REMOVAL OF ALIENS ORDERED REMOVED 
                   (NEW SECTION 241).

       (a) In General.--Title II is further amended--
       (1) by striking section 237 (8 U.S.C. 1227),
       (2) by redesignating section 241 (8 U.S.C. 1251) as section 
     237 and by moving such section to immediately follow section 
     236, and
       (3) by inserting after section 240C (as redesignated by 
     section 304(a)(2)) of this division the following new 
     section:


           ``detention and removal of aliens ordered removed

       ``Sec. 241. (a) Detention, Release, and Removal of Aliens 
     Ordered Removed.--
       ``(1) Removal period.--
       ``(A) In general.--Except as otherwise provided in this 
     section, when an alien is ordered removed, the Attorney 
     General shall remove the alien from the United States within 
     a period of 90 days (in this section referred to as the 
     `removal period').
       ``(B) Beginning of period.--The removal period begins on 
     the latest of the following:
       ``(i) The date the order of removal becomes 
     administratively final.
       ``(ii) If the removal order is judicially reviewed and if a 
     court orders a stay of the removal of the alien, the date of 
     the court's final order.
       ``(iii) If the alien is detained or confined (except under 
     an immigration process), the date the alien is released from 
     detention or confinement.
       ``(C) Suspension of period.--The removal period shall be 
     extended beyond a period of 90 days and the alien may remain 
     in detention during such extended period if the alien fails 
     or refuses to make timely application in good faith for 
     travel or other documents necessary to the alien's departure 
     or conspires or acts to prevent the alien's removal subject 
     to an order of removal.
       ``(2) Detention.--During the removal period, the Attorney 
     General shall detain the alien. Under no circumstance during 
     the removal period shall the Attorney General release an 
     alien who has been found inadmissible under section 212(a)(2) 
     or 212(a)(3)(B) or deportable under section 237(a)(2) or 
     237(a)(4)(B).
       ``(3) Supervision after 90-day period.--If the alien does 
     not leave or is not removed within the removal period, the 
     alien, pending removal, shall be subject to supervision under 
     regulations prescribed by the Attorney General. The 
     regulations shall include provisions requiring the alien--
       ``(A) to appear before an immigration officer periodically 
     for identification;
       ``(B) to submit, if necessary, to a medical and psychiatric 
     examination at the expense of the United States Government;
       ``(C) to give information under oath about the alien's 
     nationality, circumstances, habits, associations, and 
     activities, and other information the Attorney General 
     considers appropriate; and
       ``(D) to obey reasonable written restrictions on the 
     alien's conduct or activities that the Attorney General 
     prescribes for the alien.
       ``(4) Aliens imprisoned, arrested, or on parole, supervised 
     release, or probation.--
       ``(A) In general.--Except as provided in section 343(a) of 
     the Public Health Service Act (42 U.S.C. 259(a)) and 
     paragraph (2), the Attorney General may not remove an alien 
     who is sentenced to imprisonment until the alien is released 
     from imprisonment. Parole, supervised release, probation, or 
     possibility of arrest or further imprisonment is not a reason 
     to defer removal.
       ``(B) Exception for removal of nonviolent offenders prior 
     to completion of sentence of imprisonment.--The Attorney 
     General is authorized to remove an alien in accordance with 
     applicable procedures under this Act before the alien has 
     completed a sentence of imprisonment--
       ``(i) in the case of an alien in the custody of the 
     Attorney General, if the Attorney General determines that (I) 
     the alien is confined pursuant to a final conviction for a 
     nonviolent offense (other than an offense related to 
     smuggling or harboring of aliens or an offense described in 
     section 101(a)(43)(B), (C), (E), (I), or (L) and (II) the 
     removal of the alien is appropriate and in the best interest 
     of the United States; or
       ``(ii) in the case of an alien in the custody of a State 
     (or a political subdivision of a State), if the chief State 
     official exercising authority with respect to the 
     incarceration of the alien determines that (I) the alien is 
     confined pursuant to a final conviction for a nonviolent 
     offense (other than an offense described in section 
     101(a)(43)(C) or (E)), (II) the removal is appropriate and in 
     the best interest of the State, and (III) submits a written 
     request to the Attorney General that such alien be so 
     removed.
       ``(C) Notice.--Any alien removed pursuant to this paragraph 
     shall be notified of the penalties under the laws of the 
     United States relating to the reentry of deported aliens, 
     particularly the expanded penalties for aliens removed under 
     subparagraph (B).
       ``(D) No private right.--No cause or claim may be asserted 
     under this paragraph against any official of the United 
     States or of any State to compel the release, removal, or 
     consideration for release or removal of any alien.
       ``(5) Reinstatement of removal orders against aliens 
     illegally reentering.--If the Attorney General finds that an 
     alien has reentered the United States illegally after having 
     been removed or having departed voluntarily, under an order 
     of removal, the prior order of removal is reinstated from its 
     original date and is not subject to being reopened or 
     reviewed, the alien is not eligible and may not apply for any 
     relief under this Act, and the alien shall be removed under 
     the prior order at any time after the reentry.
       ``(6) Inadmissible or criminal aliens.--An alien ordered 
     removed who is inadmissible under section 212, removable 
     under section 237(a)(1)(C), 237(a)(2), or 237(a)(4) or who 
     has been determined by the Attorney General to be a risk to 
     the community or unlikely to comply with the order of 
     removal, may be detained beyond the removal period and, if 
     released, shall be subject to the terms of supervision in 
     paragraph (3).
       ``(7) Employment authorization.--No alien ordered removed 
     shall be eligible to receive authorization to be employed in 
     the United States unless the Attorney General makes a 
     specific finding that--
       ``(A) the alien cannot be removed due to the refusal of all 
     countries designated by the alien or under this section to 
     receive the alien, or
       ``(B) the removal of the alien is otherwise impracticable 
     or contrary to the public interest.
       ``(b) Countries to Which Aliens May Be Removed.--
       ``(1) Aliens arriving at the united states.--Subject to 
     paragraph (3)--
       ``(A) In general.--Except as provided by subparagraphs (B) 
     and (C), an alien who arrives at the United States and with 
     respect to whom proceedings under section 240 were initiated 
     at the time of such alien's arrival shall be removed to the 
     country in which the alien boarded the vessel or aircraft on 
     which the alien arrived in the United States.
       ``(B) Travel from contiguous territory.--If the alien 
     boarded the vessel or aircraft on which the alien arrived in 
     the United States in a foreign territory contiguous to the 
     United States, an island adjacent to the United States, or an 
     island adjacent to a foreign territory contiguous to the 
     United States, and the alien is not a native, citizen, 
     subject, or national of, or does not reside in, the territory 
     or island, removal shall be to the country in which the alien 
     boarded the vessel that transported the alien to the 
     territory or island.
       ``(C) Alternative countries.--If the government of the 
     country designated in subparagraph (A) or (B) is unwilling to 
     accept the alien into that country's territory, removal shall 
     be to any of the following countries, as directed by the 
     Attorney General:
       ``(i) The country of which the alien is a citizen, subject, 
     or national.
       ``(ii) The country in which the alien was born.
       ``(iii) The country in which the alien has a residence.
       ``(iv) A country with a government that will accept the 
     alien into the country's territory if removal to each country 
     described in a previous clause of this subparagraph is 
     impracticable, inadvisable, or impossible.
       ``(2) Other aliens.--Subject to paragraph (3)--
       ``(A) Selection of country by alien.--Except as otherwise 
     provided in this paragraph--
       ``(i) any alien not described in paragraph (1) who has been 
     ordered removed may designate one country to which the alien 
     wants to be removed, and
       ``(ii) the Attorney General shall remove the alien to the 
     country the alien so designates.
       ``(B) Limitation on designation.--An alien may designate 
     under subparagraph (A)(i) a foreign territory contiguous to 
     the United States, an adjacent island, or an island adjacent 
     to a foreign territory contiguous to the United States as the 
     place to which the alien is to be removed only if the alien 
     is a native, citizen, subject, or national of, or has resided 
     in, that designated territory or island.
       ``(C) Disregarding designation.--The Attorney General may 
     disregard a designation under subparagraph (A)(i) if--
       ``(i) the alien fails to designate a country promptly;
       ``(ii) the government of the country does not inform the 
     Attorney General finally, within 30 days after the date the 
     Attorney General first inquires, whether the government will 
     accept the alien into the country;
       ``(iii) the government of the country is not willing to 
     accept the alien into the country; or
       ``(iv) the Attorney General decides that removing the alien 
     to the country is prejudicial to the United States.
       ``(D) Alternative country.--If an alien is not removed to a 
     country designated under subparagraph (A)(i), the Attorney 
     General shall remove the alien to a country of which the 
     alien is a subject, national, or citizen unless the 
     government of the country--
       ``(i) does not inform the Attorney General or the alien 
     finally, within 30 days after the date the Attorney General 
     first inquires or within another period of time the Attorney 
     General decides is reasonable, whether the government will 
     accept the alien into the country; or
       ``(ii) is not willing to accept the alien into the country.
       ``(E) Additional removal countries.--If an alien is not 
     removed to a country under the previous subparagraphs of this 
     paragraph, the Attorney General shall remove the alien to any 
     of the following countries:
       ``(i) The country from which the alien was admitted to the 
     United States.

[[Page H11802]]

       ``(ii) The country in which is located the foreign port 
     from which the alien left for the United States or for a 
     foreign territory contiguous to the United States.
       ``(iii) A country in which the alien resided before the 
     alien entered the country from which the alien entered the 
     United States.
       ``(iv) The country in which the alien was born.
       ``(v) The country that had sovereignty over the alien's 
     birthplace when the alien was born.
       ``(vi) The country in which the alien's birthplace is 
     located when the alien is ordered removed.
       ``(vii) If impracticable, inadvisable, or impossible to 
     remove the alien to each country described in a previous 
     clause of this subparagraph, another country whose government 
     will accept the alien into that country.
       ``(F) Removal country when united states is at war.--When 
     the United States is at war and the Attorney General decides 
     that it is impracticable, inadvisable, inconvenient, or 
     impossible to remove an alien under this subsection because 
     of the war, the Attorney General may remove the alien--
       ``(i) to the country that is host to a government in exile 
     of the country of which the alien is a citizen or subject if 
     the government of the host country will permit the alien's 
     entry; or
       ``(ii) if the recognized government of the country of which 
     the alien is a citizen or subject is not in exile, to a 
     country, or a political or territorial subdivision of a 
     country, that is very near the country of which the alien is 
     a citizen or subject, or, with the consent of the government 
     of the country of which the alien is a citizen or subject, to 
     another country.
       ``(3) Restriction on removal to a country where alien's 
     life or freedom would be threatened.--
       ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
     the Attorney General may not remove an alien to a country if 
     the Attorney General decides that the alien's life or freedom 
     would be threatened in that country because of the alien's 
     race, religion, nationality, membership in a particular 
     social group, or political opinion.
       ``(B) Exception.--Subparagraph (A) does not apply to an 
     alien deportable under section 237(a)(4)(D) or if the 
     Attorney General decides that--
       ``(i) the alien ordered, incited, assisted, or otherwise 
     participated in the persecution of an individual because of 
     the individual's race, religion, nationality, membership in a 
     particular social group, or political opinion;
       ``(ii) the alien, having been convicted by a final judgment 
     of a particularly serious crime is a danger to the community 
     of the United States;
       ``(iii) there are serious reasons to believe that the alien 
     committed a serious nonpolitical crime outside the United 
     States before the alien arrived in the United States; or
       ``(iv) there are reasonable grounds to believe that the 
     alien is a danger to the security of the United States.

     For purposes of clause (ii), an alien who has been convicted 
     of an aggravated felony (or felonies) for which the alien has 
     been sentenced to an aggregate term of imprisonment of at 
     least 5 years shall be considered to have committed a 
     particularly serious crime. The previous sentence shall not 
     preclude the Attorney General from determining that, 
     notwithstanding the length of sentence imposed, an alien has 
     been convicted of a particularly serious crime. For purposes 
     of clause (iv), an alien who is described in section 
     237(a)(4)(B) shall be considered to be an alien with respect 
     to whom there are reasonable grounds for regarding as a 
     danger to the security of the United States.
       ``(c) Removal of Aliens Arriving at Port of Entry.--
       ``(1) Vessels and aircraft.--An alien arriving at a port of 
     entry of the United States who is ordered removed either 
     without a hearing under section 235(b)(1) or 235(c) or 
     pursuant to proceedings under section 240 initiated at the 
     time of such alien's arrival shall be removed immediately on 
     a vessel or aircraft owned by the owner of the vessel or 
     aircraft on which the alien arrived in the United States, 
     unless--
       ``(A) it is impracticable to remove the alien on one of 
     those vessels or aircraft within a reasonable time, or
       ``(B) the alien is a stowaway--
       ``(i) who has been ordered removed in accordance with 
     section 235(a)(1),
       ``(ii) who has requested asylum, and
       ``(iii) whose application has not been adjudicated or whose 
     asylum application has been denied but who has not exhausted 
     all appeal rights.
       ``(2) Stay of removal.--
       ``(A) In general.--The Attorney General may stay the 
     removal of an alien under this subsection if the Attorney 
     General decides that--
       ``(i) immediate removal is not practicable or proper; or
       ``(ii) the alien is needed to testify in the prosecution of 
     a person for a violation of a law of the United States or of 
     any State.
       ``(B) Payment of detention costs.--During the period an 
     alien is detained because of a stay of removal under 
     subparagraph (A)(ii), the Attorney General may pay from the 
     appropriation `Immigration and Naturalization Service--
     Salaries and Expenses'--
       ``(i) the cost of maintenance of the alien; and
       ``(ii) a witness fee of $1 a day.
       ``(C) Release during stay.--The Attorney General may 
     release an alien whose removal is stayed under subparagraph 
     (A)(ii) on--
       ``(i) the alien's filing a bond of at least $500 with 
     security approved by the Attorney General;
       ``(ii) condition that the alien appear when required as a 
     witness and for removal; and
       ``(iii) other conditions the Attorney General may 
     prescribe.
       ``(3) Costs of detention and maintenance pending removal.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and subsection (d), an owner of a vessel or aircraft bringing 
     an alien to the United States shall pay the costs of 
     detaining and maintaining the alien--
       ``(i) while the alien is detained under subsection (d)(1), 
     and
       ``(ii) in the case of an alien who is a stowaway, while the 
     alien is being detained pursuant to--

       ``(I) subsection (d)(2)(A) or (d)(2)(B)(i),
       ``(II) subsection (d)(2)(B)(ii) or (iii) for the period of 
     time reasonably necessary for the owner to arrange for 
     repatriation or removal of the stowaway, including obtaining 
     necessary travel documents, but not to extend beyond the date 
     on which it is ascertained that such travel documents 
     cannot be obtained from the country to which the stowaway 
     is to be returned, or

       ``(III) section 235(b)(1)(B)(ii), for a period not to 
     exceed 15 days (excluding Saturdays, Sundays, and holidays) 
     commencing on the first such day which begins on the earlier 
     of 72 hours after the time of the initial presentation of the 
     stowaway for inspection or at the time the stowaway is 
     determined to have a credible fear of persecution.

       ``(B) Nonapplication.--Subparagraph (A) shall not apply 
     if--
       ``(i) the alien is a crewmember;
       ``(ii) the alien has an immigrant visa;
       ``(iii) the alien has a nonimmigrant visa or other 
     documentation authorizing the alien to apply for temporary 
     admission to the United States and applies for admission not 
     later than 120 days after the date the visa or documentation 
     was issued;
       ``(iv) the alien has a reentry permit and applies for 
     admission not later than 120 days after the date of the 
     alien's last inspection and admission;
       ``(v)(I) the alien has a nonimmigrant visa or other 
     documentation authorizing the alien to apply for temporary 
     admission to the United States or a reentry permit;
       ``(II) the alien applies for admission more than 120 days 
     after the date the visa or documentation was issued or after 
     the date of the last inspection and admission under the 
     reentry permit; and
       ``(III) the owner of the vessel or aircraft satisfies the 
     Attorney General that the existence of the condition relating 
     to inadmissibility could not have been discovered by 
     exercising reasonable care before the alien boarded the 
     vessel or aircraft; or
       ``(vi) the individual claims to be a national of the United 
     States and has a United States passport.
        ``(d) Requirements of Persons Providing Transportation.--
       ``(1) Removal at time of arrival.--An owner, agent, master, 
     commanding officer, person in charge, purser, or consignee of 
     a vessel or aircraft bringing an alien (except an alien 
     crewmember) to the United States shall--
       ``(A) receive an alien back on the vessel or aircraft or 
     another vessel or aircraft owned or operated by the same 
     interests if the alien is ordered removed under this part; 
     and
       ``(B) take the alien to the foreign country to which the 
     alien is ordered removed.
       ``(2) Alien stowaways.--An owner, agent, master, commanding 
     officer, charterer, or consignee of a vessel or aircraft 
     arriving in the United States with an alien stowaway--
       ``(A) shall detain the alien on board the vessel or 
     aircraft, or at such place as the Attorney General shall 
     designate, until completion of the inspection of the alien by 
     an immigration officer;
       ``(B) may not permit the stowaway to land in the United 
     States, except pursuant to regulations of the Attorney 
     General temporarily--
       ``(i) for medical treatment,
       ``(ii) for detention of the stowaway by the Attorney 
     General, or
       ``(iii) for departure or removal of the stowaway; and
       ``(C) if ordered by an immigration officer, shall remove 
     the stowaway on the vessel or aircraft or on another vessel 
     or aircraft.
     The Attorney General shall grant a timely request to remove 
     the stowaway under subparagraph (C) on a vessel or aircraft 
     other than that on which the stowaway arrived if the 
     requester has obtained any travel documents necessary for 
     departure or repatriation of the stowaway and removal of the 
     stowaway will not be unreasonably delayed.
       ``(3) Removal upon order.--An owner, agent, master, 
     commanding officer, person in charge, purser, or consignee of 
     a vessel, aircraft, or other transportation line shall comply 
     with an order of the Attorney General to take on board, guard 
     safely, and transport to the destination specified any alien 
     ordered to be removed under this Act.
       ``(e) Payment of Expenses of Removal.--
       ``(1) Costs of removal at time of arrival.--In the case of 
     an alien who is a stowaway or who is ordered removed either 
     without a hearing under section 235(a)(1) or 235(c) or 
     pursuant to proceedings under section 240 initiated at the 
     time of such alien's arrival, the owner of the vessel or 
     aircraft (if any) on which the alien arrived in the United 
     States shall pay the transportation cost of removing the 
     alien. If removal is on a vessel or aircraft not owned by the 
     owner of the vessel or aircraft on which the alien arrived in 
     the United States, the Attorney General may--
       ``(A) pay the cost from the appropriation `Immigration and 
     Naturalization Service--Salaries and Expenses'; and
       ``(B) recover the amount of the cost in a civil action from 
     the owner, agent, or consignee of the vessel or aircraft (if 
     any) on which the alien arrived in the United States.
       ``(2) Costs of removal to port of removal for aliens 
     admitted or permitted to land.--

[[Page H11803]]

     In the case of an alien who has been admitted or permitted to 
     land and is ordered removed, the cost (if any) of removal of 
     the alien to the port of removal shall be at the expense of 
     the appropriation for the enforcement of this Act.
       ``(3) Costs of removal from port of removal for aliens 
     admitted or permitted to land.--
       ``(A) Through appropriation.--Except as provided in 
     subparagraph (B), in the case of an alien who has been 
     admitted or permitted to land and is ordered removed, the 
     cost (if any) of removal of the alien from the port of 
     removal shall be at the expense of the appropriation for the 
     enforcement of this Act.
       ``(B) Through owner.--
       ``(i) In general.--In the case of an alien described in 
     clause (ii), the cost of removal of the alien from the port 
     of removal may be charged to any owner of the vessel, 
     aircraft, or other transportation line by which the alien 
     came to the United States.
       ``(ii) Aliens described.--An alien described in this clause 
     is an alien who--

       ``(I) is admitted to the United States (other than lawfully 
     admitted for permanent residence) and is ordered removed 
     within 5 years of the date of admission based on a ground 
     that existed before or at the time of admission, or
       ``(II) is an alien crewman permitted to land temporarily 
     under section 252 and is ordered removed within 5 years of 
     the date of landing.

       ``(C) Costs of removal of certain aliens granted voluntary 
     departure.--In the case of an alien who has been granted 
     voluntary departure under section 240B and who is financially 
     unable to depart at the alien's own expense and whose removal 
     the Attorney General deems to be in the best interest of the 
     United States, the expense of such removal may be paid from 
     the appropriation for the enforcement of this Act.
       ``(f) Aliens Requiring Personal Care During Removal.--
       ``(1) In general.--If the Attorney General believes that an 
     alien being removed requires personal care because of the 
     alien's mental or physical condition, the Attorney General 
     may employ a suitable person for that purpose who shall 
     accompany and care for the alien until the alien arrives at 
     the final destination.
       ``(2) Costs.--The costs of providing the service described 
     in paragraph (1) shall be defrayed in the same manner as the 
     expense of removing the accompanied alien is defrayed under 
     this section.
       ``(g) Places of Detention.--
       ``(1) In general.--The Attorney General shall arrange for 
     appropriate places of detention for aliens detained pending 
     removal or a decision on removal. When United States 
     Government facilities are unavailable or facilities adapted 
     or suitably located for detention are unavailable for rental, 
     the Attorney General may expend from the appropriation 
     `Immigration and Naturalization Service--Salaries and 
     Expenses', without regard to section 3709 of the Revised 
     Statutes (41 U.S.C. 5), amounts necessary to acquire land and 
     to acquire, build, remodel, repair, and operate facilities 
     (including living quarters for immigration officers if not 
     otherwise available) necessary for detention.
       ``(2) Detention facilities of the immigration and 
     naturalization service.--Prior to initiating any project for 
     the construction of any new detention facility for the 
     Service, the Commissioner shall consider the availability for 
     purchase or lease of any existing prison, jail, detention 
     center, or other comparable facility suitable for such use.
       ``(h) Statutory Construction.--Nothing in this section 
     shall be construed to create any substantive or procedural 
     right or benefit that is legally enforceable by any party 
     against the United States or its agencies or officers or any 
     other person.''.
       (b) Reentry of Alien Removed Prior to Completion of Term of 
     Imprisonment.--Section 276(b) (8 U.S.C. 1326(b)), as amended 
     by section 321(b) of this division, is amended--
       (1) by striking ``or'' at the end of paragraph (2),
       (2) by adding ``or'' at the end of paragraph (3), and
       (3) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) who was removed from the United States pursuant to 
     section 241(a)(4)(B) who thereafter, without the permission 
     of the Attorney General, enters, attempts to enter, or is at 
     any time found in, the United States (unless the Attorney 
     General has expressly consented to such alien's reentry) 
     shall be fined under title 18, United States Code, imprisoned 
     for not more than 10 years, or both.
       (c) Miscellaneous Conforming Amendment.--Section 212(a)(4) 
     (8 U.S.C. 1182(a)(4)), as amended by section 621(a) of this 
     division, is amended by striking ``241(a)(5)(B)'' each place 
     it appears and inserting ``237(a)(5)(B)''.

     SEC. 306. APPEALS FROM ORDERS OF REMOVAL (NEW SECTION 242).

       (a) In General.--Section 242 (8 U.S.C. 1252) is amended--
       (1) by redesignating subsection (j) as subsection (i) and 
     by moving such subsection and adding it at the end of section 
     241, as inserted by section 305(a)(3) of this division; and
       (2) by amending the remainder of section 242 to read as 
     follows:


                 ``judicial review of orders of removal

       ``Sec. 242. (a) Applicable Provisions.--
       ``(1) General orders of removal.--Judicial review of a 
     final order of removal (other than an order of removal 
     without a hearing pursuant to section 235(b)(1)) is governed 
     only by chapter 158 of title 28 of the United States Code, 
     except as provided in subsection (b) and except that the 
     court may not order the taking of additional evidence under 
     section 2347(c) of such title.
       ``(2) Matters not subject to judicial review.--
       ``(A) Review relating to section 235(b)(1).--
     Notwithstanding any other provision of law, no court shall 
     have jurisdiction to review--
       ``(i) except as provided in subsection (e), any individual 
     determination or to entertain any other cause or claim 
     arising from or relating to the implementation or operation 
     of an order of removal pursuant to section 235(b)(1),
       ``(ii) except as provided in subsection (e), a decision by 
     the Attorney General to invoke the provisions of such 
     section,
       ``(iii) the application of such section to individual 
     aliens, including the determination made under section 
     235(b)(1)(B), or
       ``(iv) except as provided in subsection (e), procedures and 
     policies adopted by the Attorney General to implement the 
     provisions of section 235(b)(1).
       ``(B) Denials of discretionary relief.--Notwithstanding any 
     other provision of law, no court shall have jurisdiction to 
     review--
       ``(i) any judgment regarding the granting of relief under 
     section 212(h), 212(i), 240A, 240B, or 245, or
       ``(ii) any other decision or action of the Attorney General 
     the authority for which is specified under this title to be 
     in the discretion of the Attorney General, other than the 
     granting of relief under section 208(a).
       ``(C) Orders against criminal aliens.--Notwithstanding any 
     other provision of law, no court shall have jurisdiction to 
     review any final order of removal against an alien who is 
     removable by reason of having committed a criminal offense 
     covered in section 212(a)(2) or 237(a)(2)(A)(iii), (B), (C), 
     or (D), or any offense covered by section 237(a)(2)(A)(ii) 
     for which both predicate offenses are, without regard to 
     their date of commission, otherwise covered by section 
     237(a)(2)(A)(i).
       ``(3) Treatment of certain decisions.--No alien shall have 
     a right to appeal from a decision of an immigration judge 
     which is based solely on a certification described in section 
     240(c)(1)(B).
       ``(b) Requirements for Review of Orders of Removal.--With 
     respect to review of an order of removal under subsection 
     (a)(1), the following requirements apply:
       ``(1) Deadline.--The petition for review must be filed not 
     later than 30 days after the date of the final order of 
     removal.
       ``(2) Venue and forms.--The petition for review shall be 
     filed with the court of appeals for the judicial circuit in 
     which the immigration judge completed the proceedings. The 
     record and briefs do not have to be printed. The court of 
     appeals shall review the proceeding on a typewritten record 
     and on typewritten briefs.
       ``(3) Service.--
       ``(A) In general.--The respondent is the Attorney General. 
     The petition shall be served on the Attorney General and on 
     the officer or employee of the Service in charge of the 
     Service district in which the final order of removal under 
     section 240 was entered.
       ``(B) Stay of order.--Service of the petition on the 
     officer or employee does not stay the removal of an alien 
     pending the court's decision on the petition, unless the 
     court orders otherwise.
       ``(C) Alien's brief.--The alien shall serve and file a 
     brief in connection with a petition for judicial review not 
     later than 40 days after the date on which the administrative 
     record is available, and may serve and file a reply brief not 
     later than 14 days after service of the brief of the Attorney 
     General, and the court may not extend these deadlines except 
     upon motion for good cause shown. If an alien fails to file a 
     brief within the time provided in this paragraph, the court 
     shall dismiss the appeal unless a manifest injustice would 
     result.
       ``(4) Scope and standard for review.--Except as provided in 
     paragraph (5)(B)--
       ``(A) the court of appeals shall decide the petition only 
     on the administrative record on which the order of removal is 
     based,
       ``(B) the administrative findings of fact are conclusive 
     unless any reasonable adjudicator would be compelled to 
     conclude to the contrary,
       ``(C) a decision that an alien is not eligible for 
     admission to the United States is conclusive unless 
     manifestly contrary to law, and
       ``(D) the Attorney General's discretionary judgment whether 
     to grant relief under section 208(a) shall be conclusive 
     unless manifestly contrary to the law and an abuse of 
     discretion.
       ``(5) Treatment of nationality claims.--
       ``(A) Court determination if no issue of fact.--If the 
     petitioner claims to be a national of the United States and 
     the court of appeals finds from the pleadings and affidavits 
     that no genuine issue of material fact about the petitioner's 
     nationality is presented, the court shall decide the 
     nationality claim.
       ``(B) Transfer if issue of fact.--If the petitioner claims 
     to be a national of the United States and the court of 
     appeals finds that a genuine issue of material fact about the 
     petitioner's nationality is presented, the court shall 
     transfer the proceeding to the district court of the United 
     States for the judicial district in which the petitioner 
     resides for a new hearing on the nationality claim and a 
     decision on that claim as if an action had been brought in 
     the district court under section 2201 of title 28, United 
     States Code.
       ``(C) Limitation on determination.--The petitioner may have 
     such nationality claim decided only as provided in this 
     paragraph.
       ``(6) Consolidation with review of motions to reopen or 
     reconsider.--When a petitioner seeks review of an order under 
     this section, any review sought of a motion to reopen or 
     reconsider the order shall be consolidated with the review of 
     the order.
       ``(7) Challenge to validity of orders in certain criminal 
     proceedings.--
       ``(A) In general.--If the validity of an order of removal 
     has not been judicially decided, a defendant in a criminal 
     proceeding charged with

[[Page H11804]]

     violating section 243(a) may challenge the validity of the 
     order in the criminal proceeding only by filing a separate 
     motion before trial. The district court, without a jury, 
     shall decide the motion before trial.
       ``(B) Claims of united states nationality.--If the 
     defendant claims in the motion to be a national of the United 
     States and the district court finds that--
       ``(i) no genuine issue of material fact about the 
     defendant's nationality is presented, the court shall decide 
     the motion only on the administrative record on which the 
     removal order is based and the administrative findings of 
     fact are conclusive if supported by reasonable, substantial, 
     and probative evidence on the record considered as a whole; 
     or
       ``(ii) a genuine issue of material fact about the 
     defendant's nationality is presented, the court shall hold a 
     new hearing on the nationality claim and decide that claim as 
     if an action had been brought under section 2201 of title 28, 
     United States Code.

     The defendant may have such nationality claim decided only as 
     provided in this subparagraph.
       ``(C) Consequence of invalidation.--If the district court 
     rules that the removal order is invalid, the court shall 
     dismiss the indictment for violation of section 243(a). The 
     United States Government may appeal the dismissal to the 
     court of appeals for the appropriate circuit within 30 days 
     after the date of the dismissal.
       ``(D) Limitation on filing petitions for review.--The 
     defendant in a criminal proceeding under section 243(a) may 
     not file a petition for review under subsection (a) during 
     the criminal proceeding.
       ``(8) Construction.--This subsection--
       ``(A) does not prevent the Attorney General, after a final 
     order of removal has been issued, from detaining the alien 
     under section 241(a);
       ``(B) does not relieve the alien from complying with 
     section 241(a)(4) and section 243(g); and
       ``(C) does not require the Attorney General to defer 
     removal of the alien.
       ``(9) Consolidation of questions for judicial review.--
     Judicial review of all questions of law and fact, including 
     interpretation and application of constitutional and 
     statutory provisions, arising from any action taken or 
     proceeding brought to remove an alien from the United States 
     under this title shall be available only in judicial review 
     of a final order under this section.
       ``(c) Requirements for Petition.--A petition for review or 
     for habeas corpus of an order of removal--
       ``(1) shall attach a copy of such order, and
       ``(2) shall state whether a court has upheld the validity 
     of the order, and, if so, shall state the name of the court, 
     the date of the court's ruling, and the kind of proceeding.
       ``(d) Review of Final Orders.--A court may review a final 
     order of removal only if--
       ``(1) the alien has exhausted all administrative remedies 
     available to the alien as of right, and
       ``(2) another court has not decided the validity of the 
     order, unless the reviewing court finds that the petition 
     presents grounds that could not have been presented in the 
     prior judicial proceeding or that the remedy provided by the 
     prior proceeding was inadequate or ineffective to test the 
     validity of the order.
       ``(e) Judicial Review of Orders Under Section 235(b)(1).--
       ``(1) Limitations on relief.--Without regard to the nature 
     of the action or claim and without regard to the identity of 
     the party or parties bringing the action, no court may--
       ``(A) enter declaratory, injunctive, or other equitable 
     relief in any action pertaining to an order to exclude an 
     alien in accordance with section 235(b)(1) except as 
     specifically authorized in a subsequent paragraph of this 
     subsection, or
       ``(B) certify a class under Rule 23 of the Federal Rules of 
     Civil Procedure in any action for which judicial review is 
     authorized under a subsequent paragraph of this subsection.
       ``(2) Habeas corpus proceedings.--Judicial review of any 
     determination made under section 235(b)(1) is available in 
     habeas corpus proceedings, but shall be limited to 
     determinations of--
       ``(A) whether the petitioner is an alien,
       ``(B) whether the petitioner was ordered removed under such 
     section, and
       ``(C) whether the petitioner can prove by a preponderance 
     of the evidence that the petitioner is an alien lawfully 
     admitted for permanent residence, has been admitted as a 
     refugee under section 207, or has been granted asylum under 
     section 208, such status not having been terminated, and is 
     entitled to such further inquiry as prescribed by the 
     Attorney General pursuant to section 235(b)(1)(C).
       ``(3) Challenges on validity of the system.--
       ``(A) In general.--Judicial review of determinations under 
     section 235(b) and its implementation is available in an 
     action instituted in the United States District Court for the 
     District of Columbia, but shall be limited to determinations 
     of--
       ``(i) whether such section, or any regulation issued to 
     implement such section, is constitutional; or
       ``(ii) whether such a regulation, or a written policy 
     directive, written policy guideline, or written procedure 
     issued by or under the authority of the Attorney General to 
     implement such section, is not consistent with applicable 
     provisions of this title or is otherwise in violation of law.
       ``(B) Deadlines for bringing actions.--Any action 
     instituted under this paragraph must be filed no later than 
     60 days after the date the challenged section, regulation, 
     directive, guideline, or procedure described in clause (i) or 
     (ii) of subparagraph (A) is first implemented.
       ``(C) Notice of appeal.--A notice of appeal of an order 
     issued by the District Court under this paragraph may be 
     filed not later than 30 days after the date of issuance of 
     such order.
       ``(D) Expeditious consideration of cases.--It shall be the 
     duty of the District Court, the Court of Appeals, and the 
     Supreme Court of the United States to advance on the docket 
     and to expedite to the greatest possible extent the 
     disposition of any case considered under this paragraph.
       ``(4) Decision.--In any case where the court determines 
     that the petitioner--
       ``(A) is an alien who was not ordered removed under section 
     235(b)(1), or
       ``(B) has demonstrated by a preponderance of the evidence 
     that the alien is an alien lawfully admitted for permanent 
     residence, has been admitted as a refugee under section 207, 
     or has been granted asylum under section 208,
     the court may order no remedy or relief other than to require 
     that the petitioner be provided a hearing in accordance with 
     section 240. Any alien who is provided a hearing under 
     section 240 pursuant to this paragraph may thereafter obtain 
     judicial review of any resulting final order of removal 
     pursuant to subsection (a)(1).
       ``(5) Scope of inquiry.--In determining whether an alien 
     has been ordered removed under section 235(b)(1), the court's 
     inquiry shall be limited to whether such an order in fact was 
     issued and whether it relates to the petitioner. There shall 
     be no review of whether the alien is actually inadmissible or 
     entitled to any relief from removal.
       ``(f) Limit on Injunctive Relief.--
       (1) In general.--Regardless of the nature of the action or 
     claim or of the identity of the party or parties bringing the 
     action, no court (other than the Supreme Court) shall have 
     jurisdiction or authority to enjoin or restrain the operation 
     of the provisions of chapter 4 of title II, as amended by the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996, other than with respect to the application of such 
     provisions to an individual alien against whom proceedings 
     under such chapter have been initiated.
       (2) Particular cases.--Notwithstanding any other provision 
     of law, no court shall enjoin the removal of any alien 
     pursuant to a final order under this section unless the alien 
     shows by clear and convincing evidence that the entry or 
     execution of such order is prohibited as a matter of law.
       ``(g) Exclusive Jurisdiction.--Except as provided in this 
     section and notwithstanding any other provision of law, no 
     court shall have jurisdiction to hear any cause or claim by 
     or on behalf of any alien arising from the decision or action 
     by the Attorney General to commence proceedings, adjudicate 
     cases, or execute removal orders against any alien under this 
     Act.''.
       (b) Repeal of Section 106.--Section 106 (8 U.S.C. 1105a) is 
     repealed.
       (c) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by subsections (a) and (b) shall apply to all final 
     orders of deportation or removal and motions to reopen filed 
     on or after the date of the enactment of this Act and 
     subsection (g) of section 242 of the Immigration and 
     Nationality Act (as added by subsection (a)), shall apply 
     without limitation to claims arising from all past, pending, 
     or future exclusion, deportation, or removal proceedings 
     under such Act.
       (2) Limitation.--Paragraph (1) shall not be considered to 
     invalidate or to require the reconsideration of any judgment 
     or order entered under section 106 of the Immigration and 
     Nationality Act, as amended by section 440 of Public Law 104-
     132.
       (d) Technical Amendment.--Effective as if included in the 
     enactment of the Antiterrorism and Effective Death Penalty 
     Act of 1996 (Public Law 104-132), subsections (a), (c), (d), 
     (g), and (h) of section 440 of such Act are amended by 
     striking ``any offense covered by section 241(a)(2)(A)(ii) 
     for which both predicate offenses are covered by section 
     241(a)(2)(A)(i)'' and inserting ``any offense covered by 
     section 241(a)(2)(A)(ii) for which both predicate offenses 
     are, without regard to the date of their commission, 
     otherwise covered by section 241(a)(2)(A)(i)''.

     SEC. 307. PENALTIES RELATING TO REMOVAL (REVISED SECTION 
                   243).

       (a) In General.--Section 243 (8 U.S.C. 1253) is amended to 
     read as follows:


                     ``penalties related to removal

       ``Sec. 243. (a) Penalty for Failure to Depart.--
       ``(1) In general.--Any alien against whom a final order of 
     removal is outstanding by reason of being a member of any of 
     the classes described in section 237(a), who--
       ``(A) willfully fails or refuses to depart from the United 
     States within a period of 90 days from the date of the final 
     order of removal under administrative processes, or if 
     judicial review is had, then from the date of the final order 
     of the court,
       ``(B) willfully fails or refuses to make timely application 
     in good faith for travel or other documents necessary to the 
     alien's departure,
       ``(C) connives or conspires, or takes any other action, 
     designed to prevent or hamper or with the purpose of 
     preventing or hampering the alien's departure pursuant to 
     such, or
       ``(D) willfully fails or refuses to present himself or 
     herself for removal at the time and place required by the 
     Attorney General pursuant to such order,
     shall be fined under title 18, United States Code, or 
     imprisoned not more than four years (or 10 years if the alien 
     is a member of any of the classes described in paragraph 
     (1)(E), (2), (3), or (4) of section 237(a)), or both.
       ``(2) Exception.--It is not a violation of paragraph (1) to 
     take any proper steps for the purpose of securing 
     cancellation of or exemption from such order of removal or 
     for the purpose of

[[Page H11805]]

     securing the alien's release from incarceration or custody.
       ``(3) Suspension.--The court may for good cause suspend the 
     sentence of an alien under this subsection and order the 
     alien's release under such conditions as the court may 
     prescribe. In determining whether good cause has been shown 
     to justify releasing the alien, the court shall take into 
     account such factors as--
       ``(A) the age, health, and period of detention of the 
     alien;
       ``(B) the effect of the alien's release upon the national 
     security and public peace or safety;
       ``(C) the likelihood of the alien's resuming or following a 
     course of conduct which made or would make the alien 
     deportable;
       ``(D) the character of the efforts made by such alien 
     himself and by representatives of the country or countries to 
     which the alien's removal is directed to expedite the alien's 
     departure from the United States;
       ``(E) the reason for the inability of the Government of the 
     United States to secure passports, other travel documents, or 
     removal facilities from the country or countries to which the 
     alien has been ordered removed; and
       ``(F) the eligibility of the alien for discretionary relief 
     under the immigration laws.
       ``(b) Willful Failure to Comply with Terms of Release Under 
     Supervision.--An alien who shall willfully fail to comply 
     with regulations or requirements issued pursuant to section 
     241(a)(3) or knowingly give false information in response to 
     an inquiry under such section shall be fined not more than 
     $1,000 or imprisoned for not more than one year, or both.
       ``(c) Penalties Relating to Vessels and Aircraft.--
       ``(1) Civil penalties.--
       ``(A) Failure to carry out certain orders.--If the Attorney 
     General is satisfied that a person has violated subsection 
     (d) or (e) of section 241, the person shall pay to the 
     Commissioner the sum of $2,000 for each violation.
       ``(B) Failure to remove alien stowaways.--If the Attorney 
     General is satisfied that a person has  failed to remove an 
     alien stowaway as required under section 241(d)(2), the 
     person shall pay to the Commissioner the sum of $5,000 for 
     each alien stowaway not removed.
       ``(C) No compromise.--The Attorney General may not 
     compromise the amount of such penalty under this paragraph.
       ``(2) Clearing vessels and aircraft.--
       ``(A) Clearance before decision on liability.--A vessel or 
     aircraft may be granted clearance before a decision on 
     liability is made under paragraph (1) only if a bond approved 
     by the Attorney General or an amount sufficient to pay the 
     civil penalty is deposited with the Commissioner.
       ``(B) Prohibition on clearance while penalty unpaid.--A 
     vessel or aircraft may not be granted clearance if a civil 
     penalty imposed under paragraph (1) is not paid.
       ``(d) Discontinuing Granting Visas to Nationals of Country 
     Denying or Delaying Accepting Alien.--On being notified by 
     the Attorney General that the government of a foreign country 
     denies or unreasonably delays accepting an alien who is a 
     citizen, subject, national, or resident of that country after 
     the Attorney General asks whether the government will accept 
     the alien under this section, the Secretary of State shall 
     order consular officers in that foreign country to 
     discontinue granting immigrant visas or nonimmigrant visas, 
     or both, to citizens, subjects, nationals, and residents of 
     that country until the Attorney General notifies the 
     Secretary that the country has accepted the alien.''.

     SEC. 308. REDESIGNATION AND REORGANIZATION OF OTHER 
                   PROVISIONS; ADDITIONAL CONFORMING AMENDMENTS.

       (a) Conforming Amendment to Table of Contents; Overview of 
     Reorganized Chapters.--The table of contents, as amended by 
     sections 123(b) and 671(e)(1) of this division, is amended--
       (1) by striking the item relating to section 106, and
       (2) by striking the item relating to chapter 4 of title II 
     and all that follows through the item relating to section 
     244A and inserting the following:


   ``chapter 4--inspection, apprehension, examination, exclusion, and 
                                removal

``Sec. 231. Lists of alien and citizen passengers arriving or 
              departing; record of resident aliens and citizens leaving 
              permanently for foreign country.
``Sec. 232. Detention of aliens for physical and mental examination.
``Sec. 233. Entry through or from foreign territory and adjacent 
              islands; landing stations.
``Sec. 234. Designation of ports of entry for aliens arriving by civil 
              aircraft.
``Sec. 235. Inspection by immigration officers; expedited removal of 
              inadmissible arriving aliens; referral for hearing.
``Sec. 235A.  Preinspection at foreign airports.
``Sec. 236. Apprehension and detention of aliens not lawfully in the 
              United States.
``Sec. 237. General classes of deportable aliens.
``Sec. 238. Expedited removal of aliens convicted of committing 
              aggravated felonies.
``Sec. 239. Initiation of removal proceedings.
``Sec. 240. Removal proceedings.
``Sec. 240A. Cancellation of removal; adjustment of status.
``Sec. 240B. Voluntary departure.
``Sec. 240C. Records of admission.
``Sec. 241. Detention and removal of aliens ordered removed.
``Sec. 242. Judicial review of orders of removal.
``Sec. 243. Penalties relating to removal.
``Sec. 244. Temporary protected status.


             ``chapter 5--adjustment and change of status''.

       (b) Reorganization of Other Provisions.--Chapters 4 and 5 
     of title II are amended as follows:
       (1) Amending chapter heading.--Amend the heading for 
     chapter 4 of title II to read as follows:

  ``Chapter 4--Inspection, Apprehension, Examination, Exclusion, and 
                               Removal''.

       (2) Redesignating section 232 as section 232(a).--Amend 
     section 232 (8 U.S.C. 1222)--
       (A) by inserting ``(a) Detention of Aliens.--'' after 
     ``Sec. 232.'', and
       (B) by amending the section heading to read as follows:


      ``detention of aliens for physical and mental examination''.

       (3) Redesignating section 234 as section 232(b).--Amend 
     section 234 (8 U.S.C. 1224)--
       (A) by striking the heading,
       (B) by striking ``Sec. 234.'' and inserting the following: 
     ``(b) Physical and Mental Examination.--'', and
       (C) by moving such provision to the end of section 232.
       (4) Redesignating section 238 as section 233.--Redesignate 
     section 238 (8 U.S.C. 1228) as section 233 and move the 
     section to immediately follow section 232.
       (5) Redesignating section 242a as section 238.--Redesignate 
     section 242A as section 238, strike ``deportation'' in its 
     heading and insert ``removal'', and move the section to 
     immediately follow section 237 (as redesignated by section 
     305(a)(2)).
       (6) Striking section 242b.--Strike section 242B (8 U.S.C. 
     1252b).
       (7) Striking section 244 and redesignating section 244a as 
     section 244.--Strike section 244 (8 U.S.C. 1254) and 
     redesignate section 244A as section 244.
       (8) Amending chapter heading.--Amend the heading for 
     chapter 5 of title II to read as follows:

            ``Chapter 5--Adjustment and Change of Status''.

       (c) Additional Conforming Amendments.--
       (1) Expedited procedures for aggravated felons (former 
     section 242a).--Section 238 (which, previous to redesignation 
     under section 308(b)(5) of this division, was section 242A) 
     is amended--
       (A) in subsection (a)(1), by striking ``section 242'' and 
     inserting ``section 240'';
       (B) in subsection (a)(2), by striking ``section 242(a)(2)'' 
     and inserting ``section 236(c)''; and
       (C) in subsection (b)(1), by striking ``section 
     241(a)(2)(A)(iii)'' and inserting ``section 
     237(a)(2)(A)(iii)''.
       (2) Treatment of certain helpless aliens.--
       (A) Certification of helpless aliens.--Section 232 (8 
     U.S.C. 1222), as amended by section 308(b)(2) of this 
     division, is further amended by adding at the end the 
     following new subsection:
       ``(c) Certification of Certain Helpless Aliens.--If an 
     examining medical officer determines that an alien arriving 
     in the United States is inadmissible, is helpless from 
     sickness, mental or physical disability, or infancy, and is 
     accompanied by another alien whose protection or guardianship 
     may be required, the officer may certify such fact for 
     purposes of applying section 212(a)(10)(B) with respect to 
     the other alien.''.
       (B) Ground of inadmissibility for protection and 
     guardianship of aliens denied admission for health or 
     infancy.--Subparagraph (B) of section 212(a)(10) (8 U.S.C. 
     1182(a)(10)), as redesignated by section 301(a)(1) of this 
     division, is amended to read as follows:
       ``(B) Guardian required to accompany helpless alien.--Any 
     alien--
       ``(i) who is accompanying another alien who is inadmissible 
     and who is certified to be helpless from sickness, mental or 
     physical disability, or infancy pursuant to section 232(c), 
     and
       ``(ii) whose protection or guardianship is determined to be 
     required by the alien described in clause (i),
     is inadmissible.''.
       (3) Contingent consideration in relation to removal of 
     aliens.--Section 273(a) (8 U.S.C. 1323(a)) is amended--
       (A) by inserting ``(1)'' after ``(a)'', and
       (B) by adding at the end the following new paragraph:
       ``(2) It is unlawful for an owner, agent, master, 
     commanding officer, person in charge, purser, or consignee of 
     a vessel or aircraft who is bringing an alien (except an 
     alien crewmember) to the United States to take any 
     consideration to be kept or returned contingent on whether an 
     alien is admitted to, or ordered removed from, the United 
     States.''.
       (4) Clarification.--(A) Section 238(a)(1), which, previous 
     to redesignation under section 308(b)(5) of this division, 
     was section 242A(a)(1), is amended by adding at the end the 
     following: ``Nothing in this section shall be construed to 
     create any substantive or procedural right or benefit that is 
     legally enforceable by any party against the United States or 
     its agencies or officers or any other person.''.
       (B) Section 225 of the Immigration and Nationality 
     Technical Corrections Act of 1994 (Public Law 103-416) is 
     amended by striking ``and nothing in'' and all that follows 
     up to ``shall''.
       (d) Additional Conforming Amendments Relating to Exclusion 
     and Inadmissibility.--
       (1) Section 212.--Section 212 (8 U.S.C. 1182(a)) is 
     amended--
       (A) in the heading, by striking ``excluded from'' and 
     inserting ``ineligible for'';
       (B) in the matter in subsection (a) before paragraph (1), 
     by striking all that follows ``(a)'' and inserting the 
     following: ``Classes of

[[Page H11806]]

     Aliens Ineligible for Visas or Admission.--Except as 
     otherwise provided in this Act, aliens who are inadmissible 
     under the following paragraphs are ineligible to receive 
     visas and ineligible to be admitted to the United States:'';
       (C) in subsection (a), by striking ``is excludable'' and 
     inserting ``is inadmissible'' each place it appears;
       (D) in subsections (a)(5)(C) (before redesignation by 
     section 343(c)(1) of this division), (d)(1), and (k), by 
     striking ``exclusion'' and inserting ``inadmissibility'';
       (E) in subsections (b), (d)(3), (h)(1)(A)(i), and (k), by 
     striking ``excludable'' each place it appears and inserting 
     ``inadmissible'';
       (F) in subsection (b)(2), by striking ``or ineligible for 
     entry'';
       (G) in subsection (d)(7), by striking ``excluded from'' and 
     inserting ``denied''; and
       (H) in subsection (h)(1)(B), by striking ``exclusion'' and 
     inserting ``denial of admission''.
       (2) Section 241.--Section 241 (8 U.S.C. 1251), before 
     redesignation as section 237 by section 305(a)(2) of this 
     division, is amended--
       (A) in subsection (a)(1)(H), by striking ``excludable'' and 
     inserting ``inadmissible'';
       (B) in subsection (a)(4)(C)(ii), by striking 
     ``excludability'' and inserting ``inadmissibility'';
       (C) in subsection (c), by striking ``exclusion'' and 
     inserting ``inadmissibility''; and
       (D) effective upon enactment of this Act, by striking 
     subsection (d), as added by section 414(a) of the 
     Antiterrorism and Effective Death Penalty Act of 1996 (P.L. 
     104-132).
       (3) Other general references.--The following provisions are 
     amended by striking ``excludability'' and ``excludable'' each 
     place each appears and inserting ``inadmissibility'' and 
     ``inadmissible'', respectively:
       (A) Sections 101(f)(3), 213, 234 (before redesignation by 
     section 308(b) of this division), 241(a)(1) (before 
     redesignation by section 305(a)(2) of this division), 272(a), 
     277, 286(h)(2)(A)(v), and 286(h)(2)(A)(vi).
       (B) Section 601(c) of the Immigration Act of 1990.
       (C) Section 128 of the Foreign Relations Authorization Act, 
     Fiscal Years 1992 and 1993 (Public Law 102-138).
       (D) Section 1073 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337).
       (E) Section 221 of the Immigration and Nationality 
     Technical Corrections Act of 1994 (Public Law 103-416).
       (4) Related terms.--
       (A) Section 101(a)(17) (8 U.S.C. 1101(a)(17)) is amended by 
     striking ``or expulsion'' and inserting ``expulsion, or 
     removal''.
       (B) Section 102 (8 U.S.C. 1102) is amended by striking 
     ``exclusion or deportation'' and inserting ``removal''.
       (C) Section 103(c)(2) (8 U.S.C. 1103(c)(2)) is amended by 
     striking ``been excluded or deported'' and inserting ``not 
     been admitted or have been removed''.
       (D) Section 206 (8 U.S.C. 1156) is amended by striking 
     ``excluded from admission to the United States and deported'' 
     and inserting ``denied admission to the United States and 
     removed''.
       (E) Section 216(f) (8 U.S.C. 1186a) is amended by striking 
     ``exclusion'' and inserting ``inadmissibility''.
       (F) Section 217 (8 U.S.C. 1187) is amended by striking 
     ``excluded from admission'' and inserting ``denied admission 
     at the time of arrival'' each place it appears.
       (G) Section 221(f) (8 U.S.C. 1201) is amended by striking 
     ``exclude'' and inserting ``deny admission to''.
       (H) Section 232(a) (8 U.S.C. 1222(a)), as redesignated by 
     subsection (b)(2), is amended by striking ``excluded by'' and 
     ``the excluded classes'' and inserting ``inadmissible under'' 
     and ``inadmissible classes'', respectively.
       (I)(i) Section 272 (8 U.S.C. 1322) is amended--
       (I) by striking ``exclusion'' in the heading and inserting 
     ``denial of admission'',
       (II) in subsection (a), by striking ``excluding condition'' 
     and inserting ``condition causing inadmissibility'', and
       (III) in subsection (c), by striking ``excluding''.
       (ii) The item in the table of contents relating to such 
     section is amended by striking ``exclusion'' and inserting 
     ``denial of admission''.
       (J) Section 276(a) (8 U.S.C. 1326(a)) is amended--
       (i) in paragraph (1), as amended by section 324(a) of this 
     division--

       (I) by striking ``arrested and deported, has been excluded 
     and deported,'' and inserting ``denied admission, excluded, 
     deported, or removed'', and
       (II) by striking ``exclusion or deportation'' and inserting 
     ``exclusion, deportation, or removal''; and

       (ii) in paragraph (2)(B), by striking ``excluded and 
     deported'' and inserting ``denied admission and removed''.
       (K) Section 286(h)(2)(A)(vi) (8 U.S.C. 1356(h)(2)(A)(vi)) 
     is amended by striking ``exclusion'' each place it appears 
     and inserting ``removal''.
       (L) Section 287 (8 U.S.C. 1357) is amended--
       (i) in subsection (a), by striking ``or expulsion'' each 
     place it appears and inserting ``expulsion, or removal'', and
       (ii) in subsection (c), by striking ``exclusion from'' and 
     inserting ``denial of admission to''.
       (M) Section 290(a) (8 U.S.C. 1360(a)) is amended by 
     striking ``admitted to the United States, or excluded 
     therefrom'' each place it appears and inserting ``admitted or 
     denied admission to the United States''.
       (N) Section 291 (8 U.S.C. 1361) is amended by striking 
     ``subject to exclusion'' and inserting ``inadmissible'' each 
     place it appears.
       (O) Section 292 (8 U.S.C. 1362) is amended by striking 
     ``exclusion or deportation'' each place it appears and 
     inserting ``removal''.
       (P) Section 360 (8 U.S.C. 1503) is amended--
       (i) in subsection (a), by striking ``exclusion'' each place 
     it appears and inserting ``removal'', and
       (ii) in subsection (c), by striking ``excluded from'' and 
     inserting ``denied''.
       (Q) Section 507(b)(2)(D) (8 U.S.C. 1537(b)(2)(D)) is 
     amended by striking ``exclusion because such alien is 
     excludable'' and inserting ``removal because such alien is 
     inadmissible''.
       (R) Section 301(a)(1) of the Immigration Act of 1990 is 
     amended by striking ``exclusion'' and inserting 
     ``inadmissibility''.
       (S) Section 401(c) of the Refugee Act of 1980 is amended by 
     striking ``deportation or exclusion'' and inserting 
     ``removal''.
       (T) Section 501(e)(2) of the Refugee Education Assistance 
     Act of 1980 (Public Law 96-422) is amended--
       (i) by striking ``exclusion or deportation'' each place it 
     appears and inserting ``removal'', and
       (ii) by striking ``deportation or exclusion'' each place it 
     appears and inserting ``removal''.
       (U) Section 4113(c) of title 18, United States Code, is 
     amended by striking ``exclusion and deportation'' and 
     inserting ``removal''.
       (5) Repeal of superseded provision.--Effective as of the 
     date of the enactment of the Antiterrorism and Effective 
     Death Penalty Act of 1996, section 422 of such  Act is 
     repealed and the Immigration and Nationality Act shall be 
     applied as if such section had not been enacted.
       (e) Revision of Terminology Relating to Deportation.--
       (1) Each of the following is amended by striking 
     ``deportation'' each place it appears and inserting 
     ``removal'':
       (A) Subparagraphs (A)(iii)(II), (A)(iv)(II), and 
     (B)(iii)(II) of section 204(a)(1) (8 U.S.C. 1154(a)(1)).
       (B) Section 212(d)(1) (8 U.S.C. 1182(d)(1)).
       (C) Section 212(d)(11) (8 U.S.C. 1182(d)(11)).
       (D) Section 214(k)(4)(C) (8 U.S.C. 1184(k)(4)(C)), as 
     redesignated by section 671(a)(3)(A) of this division.
       (E) Section 241(a)(1)(H) (8 U.S.C. 1251(a)(1)(H)), before 
     redesignation as section 237 by section 305(a)(2) of this 
     division.
       (F) Section 242A (8 U.S.C. 1252a), before redesignation as 
     section 238 by subsection (b)(5).
       (G) Subsections (a)(3) and (b)(5)(B) of section 244A (8 
     U.S.C. 1254a), before redesignation as section 244 by 
     subsection (b)(7).
       (H) Section 246(a) (8 U.S.C. 1256(a)).
       (I) Section 254 (8 U.S.C. 1284).
       (J) Section 263(a)(4) (8 U.S.C. 1303(a)(4)).
       (K) Section 276(b) (8 U.S.C. 1326(b)).
       (L) Section 286(h)(2)(A)(v) (8 U.S.C. 1356(h)(2)(A)(v)).
       (M) Section 287(g) (8 U.S.C. 1357(g)) (as added by section 
     122 of this division).
       (N) Section 291 (8 U.S.C. 1361).
       (O) Section 318 (8 U.S.C. 1429).
       (P) Section 130005(a) of the Violent Crime Control and Law 
     Enforcement Act of 1994 (Public Law 103-322).
       (Q) Section 4113(b) of title 18, United States Code.
       (2) Each of the following is amended by striking 
     ``deported'' each place it appears and inserting ``removed'':
       (A) Section 212(d)(7) (8 U.S.C. 1182(d)(7)).
       (B) Section 214(d) (8 U.S.C. 1184(d)).
       (C) Section 241(a) (8 U.S.C. 1251(a)), before redesignation 
     as section 237 by section 305(a)(2) of this division.
       (D) Section 242A(c)(2)(D)(iv) (8 U.S.C. 
     1252a(c)(2)(D)(iv)), as amended by section 671(b)(13) of this 
     division but before redesignation as section 238 by 
     subsection (b)(5).
       (E) Section 252(b) (8 U.S.C. 1282(b)).
       (F) Section 254 (8 U.S.C. 1284).
       (G) Subsections (b) and (c) of section 266 (8 U.S.C. 1306).
       (H) Section 301(a)(1) of the Immigration Act of 1990.
       (I) Section 4113 of title 18, United States Code.
       (3) Section 101(g) (8 U.S.C. 1101(g)) is amended by 
     inserting ``or removed'' after ``deported'' each place it 
     appears.
       (4) Section 103(c)(2) (8 U.S.C. 1103(c)(2)) is amended by 
     striking ``suspension of deportation'' and inserting 
     ``cancellation of removal''.
       (5) Section 201(b)(1)(D) (8 U.S.C. 1151(b)(1)(D)) is 
     amended by striking ``deportation is suspended'' and 
     inserting ``removal is canceled''.
       (6) Section 212(l)(2)(B) (8 U.S.C. 1182(l)(2)(B)) is 
     amended by striking ``deportation against'' and inserting 
     ``removal of''.
       (7) Subsections (b)(2), (c)(2)(B), (c)(3)(D), (c)(4)(A), 
     and (d)(2)(C) of section 216 (8 U.S.C. 1186a) are each 
     amended by striking ``deportation'', ``deportation'', 
     ``deport'', and ``deported'' each place each appears and 
     inserting ``removal'', ``removal'', ``remove'', and 
     ``removed'', respectively.
       (8) Subsections (b)(2), (c)(2)(B), (c)(3)(D), and (d)(2)(C) 
     of section 216A (8 U.S.C. 1186b) are each amended by striking 
     ``deportation'', ``deportation'', ``deport'', and 
     ``deported'' and inserting ``removal'', ``removal'', 
     ``remove'', and ``removed'', respectively.
       (9) Section 217(b)(2) (8 U.S.C. 1187(b)(2)) is amended by 
     striking ``deportation against'' and inserting ``removal 
     of''.
       (10) Section 242A (8 U.S.C. 1252a), before redesignation as 
     section 238 by subsection (b)(6), is amended, in the headings 
     to various subdivisions, by striking ``Deportation'' and 
     ``deportation'' and inserting ``Removal'' and ``removal'', 
     respectively.
       (11) Section 244A(a)(1)(A) (8 U.S.C. 1254a(a)(1)(A)), 
     before redesignation as section 244 by subsection (b)(8), is 
     amended--
       (A) in subsection (a)(1)(A), by striking ``deport'' and 
     inserting ``remove'', and
       (B) in subsection (e), by striking ``Suspension of 
     Deportation'' and inserting ``Cancellation of Removal''.
       (12) Section 254 (8 U.S.C. 1284) is amended by striking 
     ``deport'' each place it appears and inserting ``remove''.

[[Page H11807]]

       (13) Section 273(d) (8 U.S.C. 1323(d)) is repealed.
       (14)(A) Section 276 (8 U.S.C. 1326) is amended by striking 
     ``deported'' and inserting ``removed''.
       (B) The item in the table of contents relating to such 
     section is amended by striking ``deported'' and inserting 
     ``removed''.
       (15) Section 318 (8 U.S.C. 1429) is amended by striking 
     ``suspending'' and inserting ``canceling''.
       (16) Section 301(a) of the Immigration Act of 1990 is 
     amended by striking ``Deportation'' and inserting 
     ``Removal''.
       (17) The heading of section 130005 of the Violent Crime 
     Control and Law Enforcement Act of 1994 (Public Law 103-322) 
     is amended by striking ``DEPORTATION'' and inserting 
     ``REMOVAL''.
       (18) Section 9 of the Peace Corps Act (22 U.S.C. 2508) is 
     amended by striking ``deported'' and all that follows through 
     ``Deportation'' and inserting ``removed pursuant to chapter 4 
     of title II of the Immigration and Nationality Act''.
       (19) Section 8(c) of the Foreign Agents Registration Act 
     (22 U.S.C. 618(c)) is amended by striking ``deportation'' and 
     all that follows and inserting ``removal pursuant to chapter 
     4 of title II of the Immigration and Nationality Act.''.
       (f) Revision of References to Entry.--
       (1) The following provisions are amended by striking 
     ``entry'' and inserting ``admission'' each place it appears:
       (A) Section 101(a)(15)(K) (8 U.S.C. 1101(a)(15)(K)).
       (B) Section 101(a)(30) (8 U.S.C. 1101(a)(30)).
       (C) Section 212(a)(2)(D) (8 U.S.C. 1182(a)(2)(D)).
       (D) Section 212(a)(6)(C)(i) (8 U.S.C. 1182(a)(6)(C)(i)).
       (E) Section 212(h)(1)(A)(i) (8 U.S.C. 1182(h)(1)(A)(i)).
       (F) Section 212(j)(1)(D) (8 U.S.C. 1182(j)(1)(D)).
       (G) Section 214(c)(2)(A) (8 U.S.C. 1184(c)(2)(A)).
       (H) Section 214(d) (8 U.S.C. 1184(d)).
       (I) Section 216(b)(1)(A)(i) (8 U.S.C. 1186a(b)(1)(A)(i)).
       (J) Section 216(d)(1)(A)(i)(III) (8 U.S.C. 
     1186a(d)(1)(A)(i)(III)).
       (K) Subsection (b) of section 240 (8 U.S.C. 1230), before 
     redesignation as section 240C by section 304(a)(2) of this 
     division.
       (L) Subsection (a)(1)(G) of section 241 (8 U.S.C. 1251), 
     before redesignation as section 237 by section 305(a)(2) of 
     this division.
       (M) Subsection (a)(1)(H) of section 241 (8 U.S.C. 1251), 
     before redesignation as section 237 by section 305(a)(2) of 
     this division, other than the last time it appears.
       (N) Paragraphs (2) and (4) of subsection (a) of section 241 
     (8 U.S.C. 1251), before redesignation as section 237 by 
     section 305(a)(2) of this division.
       (O) Section 245(e)(3) (8 U.S.C. 1255(e)(3)).
       (P) Section 247(a) (8 U.S.C. 1257(a)).
       (Q) Section 601(c)(2) of the Immigration Act of 1990.
       (2) The following provisions are amended by striking 
     ``enter'' and inserting ``be admitted'':
       (A) Section 204(e) (8 U.S.C. 1154(e)).
       (B) Section 221(h) (8 U.S.C. 1201(h)).
       (C) Section 245(e)(2) (8 U.S.C. 1255(e)(2)).
       (3) The following provisions are amended by striking 
     ``enters'' and inserting ``is admitted to'':
       (A) Section 212(j)(1)(D)(ii) (8 U.S.C. 1154(e)).
       (B) Section 214(c)(5)(B) (8 U.S.C. 1184(c)(5)(B)).
       (4) Subsection (a) of section 238 (8 U.S.C. 1228), before 
     redesignation as section 233 by section 308(b)(4) of this 
     division, is amended by striking ``entry and inspection'' and 
     inserting ``inspection and admission''.
       (5) Subsection (a)(1)(H)(ii) of section 241 (8 U.S.C. 
     1251), before redesignation as section 237 by section 
     305(a)(2) of this division, is amended by striking ``at 
     entry''.
       (6) Section 7 of the Central Intelligence Agency Act of 
     1949 (50 U.S.C. 403h) is amended by striking ``that the 
     entry'', ``given entry into'', and ``entering'' and inserting 
     ``that the admission'', ``admitted to'', and ``admitted to''.
       (7) Section 4 of the Atomic Weapons and Special Nuclear 
     Materials Rewards Act (50 U.S.C. 47c) is amended by striking 
     ``entry'' and inserting ``admission''.
       (g) Conforming References to Reorganized Sections.--
       (1) References to sections 232, 234, 238, 239, 240, 241, 
     242a, and 244a.--Any reference in law in effect on the day 
     before the date of the enactment of this Act to section 232, 
     234, 238, 239, 240, 241, 242A, or 244A of the Immigration and 
     Nationality Act (or a subdivision of such section) is deemed, 
     as of the title III-A effective date, to refer to section 
     232(a), 232(b), 233, 234, 234A, 237, 238, or 244 of such Act 
     (or the corresponding subdivision of such section), as 
     redesignated by this subtitle. Any reference in law to 
     section 241 (or a subdivision of such section) of the 
     Immigration and Nationality Act in an amendment made by a 
     subsequent subtitle of this title is deemed a reference (as 
     of the title III-A effective date) to section 237 (or the 
     corresponding subdivision of such section), as redesignated 
     by this subtitle.
       (2) References to section 106.--
       (A) Sections 242A(b)(3) and 242A(c)(3)(A)(ii) (8 U.S.C. 
     1252a(b)(3), 1252a(c)(3)(A)(ii)), as amended by section 
     671(b)(13) of this division but before redesignation as 
     section 238 by subsection (b)(5), are each amended by 
     striking ``106'' and inserting ``242''.
       (B) Sections 210(e)(3)(A) and 245A(f)(4)(A) (8 U.S.C. 
     1160(e)(3)(A), 1255a(f)(4)(A)) are amended by inserting ``(as 
     in effect before October 1, 1996)'' after ``106''.
       (C) Section 242A(c)(3)(A)(iii) (8 U.S.C. 
     1252a(c)(3)(A)(iii)), as amended by section 671(b)(13) of 
     this division but before redesignation as section 238 by 
     subsection (b)(5), is amended by striking ``106(a)(1)'' and 
     inserting ``242(b)(1)''.
       (3) References to section 236.--
       (A) Sections 205 and 209(a)(1) (8 U.S.C. 1155, 1159(a)(1)) 
     are each amended by striking ``236'' and inserting ``240''.
       (B) Section 4113(c) of title 18, United States Code, is 
     amended by striking ``1226 of title 8, United States Code'' 
     and inserting ``240 of the Immigration and Nationality Act''.
       (4) References to section 237.--
       (A) Section 209(a)(1) (8 U.S.C. 1159(a)(1)) is amended by 
     striking ``237'' and inserting ``241''.
       (B) Section 212(d)(7) (8 U.S.C. 1182(d)(7)) is amended by 
     striking ``237(a)'' and inserting ``241(c)''.
       (C) Section 280(a) (8 U.S.C. 1330(a)) is amended by 
     striking ``237, 239, 243'' and inserting ``234, 243(c)(2)''.
       (5) References to section 242.--
       (A)(i) Sections 214(d), 252(b), and 287(f)(1) (8 U.S.C. 
     1184(d), 1282(b), 1357(f)(1)) are each amended by striking 
     ``242'' and inserting ``240''.
       (ii) Subsection (c)(4) of section 242A (8 U.S.C. 1252a), as 
     amended by section 671(b)(13) of this division but before 
     redesignation as section 238 by subsection (b)(5), are each 
     amended by striking ``242'' and inserting ``240''.
       (iii) Section 245A(a)(1)(B) (8 U.S.C. 1255a(a)(1)(B)) is 
     amended by inserting ``(as in effect before October 1, 
     1996)'' after ``242''.
       (iv) Section 4113 of title 18, United States Code, is 
     amended--
       (I) in subsection (a), by striking ``section 1252(b) or 
     section 1254(e) of title 8, United States Code,'' and 
     inserting ``section 240B of the Immigration and Nationality 
     Act''; and
       (II) in subsection (b), by striking ``section 1252 of title 
     8, United States Code,'' and inserting ``section 240 of the 
     Immigration and Nationality Act''.
       (B) Section 130002(a) of Public Law 103-322, as amended by 
     section 345 of this division, is amended by striking 
     ``242(a)(3)(A)'' and inserting ``236(d)''.
       (C) Section 242A(b)(1) (8 U.S.C. 1252a(b)(1)), before 
     redesignation as section 238 by section 308(b)(5) of this 
     division, is amended by striking ``242(b)'' and inserting 
     ``240''.
       (D) Section 242A(c)(2)(D)(ii) (8 U.S.C. 
     1252a(c)(2)(D)(ii)), as amended by section 671(b)(13) of this 
     division but before redesignation as section 238 by 
     subsection (b)(5), is amended by striking ``242(b)'' and 
     inserting ``240''.
       (E) Section 1821(e) of title 28, United States Code, is 
     amended by striking ``242(b)'' and inserting ``240''.
       (F) Section 130007(a) of Public Law 103-322 is amended by 
     striking ``242(i)'' and inserting ``239(d)''.
       (G) Section 20301(c) of Public Law 103-322 is amended by 
     striking ``242(j)(5)'' and ``242(j)'' and inserting 
     ``241(h)(5)'' and ``241(h)'', respectively.
       (6) References to section 242b.--
       (A) Section 303(d)(2) of the Immigration Act of 1990 is 
     amended by striking ``242B'' and inserting ``240(b)(5)''.
       (B) Section 545(g)(1)(B) of the Immigration Act of 1990 is 
     amended by striking ``242B(a)(4)'' and inserting 
     ``239(a)(4)''.
       (7) References to section 243.--
       (A) Section 214(d) (8 U.S.C. 1184(d)) is amended by 
     striking ``243'' and inserting ``241''.
       (B) Section 504(k)(2) (8 U.S.C. 1534(k)(2)) is amended by 
     striking ``withholding of deportation under section 243(h)'' 
     and inserting ``by withholding of removal under section 
     241(b)(3)''.
       (C)(i) Section 315(c) of the Immigration Reform and Control 
     Act of 1986 is amended by striking ``243(g)'' and 
     ``1253(g)''and inserting ``243(d)'' and ``1253(d)'' 
     respectively.
       (ii) Section 702(b) of the Departments of Commerce, 
     Justice, and State, the Judiciary, and Related Agencies 
     Appropriations Act, 1988 is amended by striking ``243(g)'' 
     and inserting ``243(d)''.
       (iii) Section 903(b) of Public Law 100-204 is amended by 
     striking ``243(g)'' and inserting ``243(d)''.
       (D)(i) Section 6(f)(2)(F) of the Food Stamp Act of 1977 (7 
     U.S.C. 2015(f)(2)(F)) is amended by striking ``243(h)'' and 
     inserting ``241(b)(3)''.
       (ii) Section 214(a)(5) of the Housing and Community 
     Development Act of 1980 (42 U.S.C. 1436a(a)(5)) is amended by 
     striking ``243(h)'' and inserting ``241(b)(3)''.
       (E)(i) Subsection (c)(2)(B)(ii) of section 244A (8 U.S.C. 
     1254a), before redesignated as section 244 by section 
     308(b)(7), is amended by striking ``243(h)(2)'' and inserting 
     ``208(b)(2)(A)''.
       (ii) Section 301(e)(2) of the Immigration Act of 1990 is 
     amended by striking ``243(h)(2)'' and inserting 
     ``208(b)(2)(A)''.
       (F) Section 316(f) (8 U.S.C. 1427(f)) is amended by 
     striking ``subparagraphs (A) through (D) of paragraph 
     243(h)(2)'' and inserting ``clauses (i) through (v) of 
     section 208(b)(2)(A)''.
       (8) References to section 244.--
       (A)(i) Section 201(b)(1)(D) (8 U.S.C. 1151(b)(1)(D)) and 
     subsection (e) of section 244A (8 U.S.C. 1254a), before 
     redesignation as section 244 by section 308(b)(7) of this 
     division, are each amended by striking ``244(a)'' and 
     inserting ``240A(a)''.
       (ii) Section 304(c)(1)(B) of the Miscellaneous and 
     Technical Immigration and Naturalization Amendments of 1991 
     (Public Law 102-232) is amended by striking ``244(a)'' and 
     inserting ``240A(a)''.
       (B) Section 504(k)(3) (8 U.S.C. 1534(k)(3)) is amended by 
     striking ``suspension of deportation under subsection (a) or 
     (e) of section 244'' and inserting ``cancellation of removal 
     under section 240A''.
       (C) Section 304(c)(1)(B) of the Miscellaneous and Technical 
     Immigration and Naturalization Amendments of 1991 (Public Law 
     102-232) is amended by striking ``244(b)(2)'' and inserting 
     ``240A(b)(2)''.
       (D) Section 364(a)(2) of this division is amended by 
     striking ``244(a)(3)'' and inserting ``240A(a)(3)''.

[[Page H11808]]

       (E) Section 431(c)(1)(B)(iii) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996, as added by section 501 of this division, is amended by 
     striking ``suspension of deportation and adjustment of status 
     pursuant to section 244(a)(3) of such Act'' and inserting 
     ``cancellation of removal under section 240A of such Act''.
       (9) References to chapter 5.--
       (A) Sections 266(b), 266(c), and 291 (8 U.S.C. 1306(b), 
     1306(c), 1361) are each amended by striking ``chapter 5'' and 
     inserting ``chapter 4''.
       (B) Section 6(b) of the Act of August 1, 1956 (50 U.S.C. 
     855(b)) is amended by striking ``chapter 5, title II, of the 
     Immigration and Nationality Act (66 Stat. 163)'' and 
     inserting ``chapter 4 of title II of the Immigration and 
     Nationality Act''.
       (10) Miscellaneous cross-reference corrections for newly 
     added provisions.--
       (A) Section 212(h), as amended by section 301(h) of this 
     division, is amended by striking ``section 212(c)'' and 
     inserting ``paragraphs (1) and (2) of section 240A(a)''.
       (B) Section 245(c)(6), as amended by section 332(d) of this 
     division, is amended by striking ``241(a)(4)(B)'' and 
     inserting ``237(a)(4)(B)''.
       (C) Section 249(d), as amended by section 332(e) of this 
     division, is amended by striking ``241(a)(4)(B)'' and 
     inserting ``237(a)(4)(B)''.
       (D) Section 274C(d)(7), as added by section 212(d) of this 
     division, is amended by striking ``withholding of deportation 
     under section 243(h)'' and inserting ``withholding of removal 
     under section 241(b)(3)''.
       (E) Section 3563(b)(21) of title 18, United States Code, as 
     inserted by section 374(b) of this division, is amended by 
     striking ``242A(d)(5)'' and inserting ``238(d)(5)''.
       (F) Section 130007(a) of the Violent Crime Control and Law 
     Enforcement Act of 1994 (Public Law 103-322), as amended by 
     section 671(a)(6) of this division, is amended by striking 
     ``242A(a)(3)'' and inserting ``238(a)(3)''.
       (G) Section 386(b) of this division is amended by striking 
     ``excludable'' and ``excludable'' and inserting 
     ``inadmissible'' and ``inadmissible'', respectively, each 
     place each appears.
       (H) Subsections (a), (c), (d), (g), and (h) of section 440 
     of the Antiterrorism and Effective Death Penalty Act of 1996 
     (Public Law 104-132), as amended by section 306(d) of this 
     division, are amended by striking ``241(a)(2)(A)(ii)'' and 
     ``241(a)(2)(A)(i)'' and inserting ``237(a)(2)(A)(ii)'' and 
     ``237(a)(2)(A)(i)'', respectively .

     SEC. 309. EFFECTIVE DATES; TRANSITION.

       (a) In General.--Except as provided in this section and 
     sections 303(b)(2), 306(c), 308(d)(2)(D), or 308(d)(5) of 
     this division, this subtitle and the amendments made by this 
     subtitle shall take effect on the first day of the first 
     month beginning more than 180 days after the date of the 
     enactment of this Act (in this title referred to as the 
     ``title III-A effective date'').
       (b) Promulgation of Regulations.--The Attorney General 
     shall first promulgate regulations to carry out this subtitle 
     by not later than 30 days before the title III-A effective 
     date.
       (c) Transition for Aliens in Proceedings.--
       (1) General rule that new rules do not apply.--Subject to 
     the succeeding provisions of this subsection, in the case of 
     an alien who is in exclusion or deportation proceedings as of 
     the title III-A effective date--
       (A) the amendments made by this subtitle shall not apply, 
     and
       (B) the proceedings (including judicial review thereof) 
     shall continue to be conducted without regard to such 
     amendments.
       (2) Attorney general option to elect to apply new 
     procedures.--In a case described in paragraph (1) in which an 
     evidentiary hearing under section 236 or 242 and 242B of the 
     Immigration and Nationality Act has not commenced as of the 
     title III-A effective date, the Attorney General may elect to 
     proceed under chapter 4 of title II of such Act (as amended 
     by this subtitle). The Attorney General shall provide notice 
     of such election to the alien involved not later than 30 days 
     before the date any evidentiary hearing is commenced. If the 
     Attorney General makes such election, the notice of hearing 
     provided to the alien under section 235 or 242(a) of such Act 
     shall be valid as if provided under section 239 of such Act 
     (as amended by this subtitle) to confer jurisdiction on the 
     immigration judge.
       (3) Attorney general option to terminate and reinitiate 
     proceedings.--In the case described in paragraph (1), the 
     Attorney General may elect to terminate proceedings in which 
     there has not been a final administrative decision and to 
     reinitiate proceedings under chapter 4 of title II the 
     Immigration and Nationality Act (as amended by this 
     subtitle). Any determination in the terminated proceeding 
     shall not be binding in the reinitiated proceeding.
       (4) Transitional changes in judicial review.--In the case 
     described in paragraph (1) in which a final order of 
     exclusion or deportation is entered more than 30 days after 
     the date of the enactment of this Act, notwithstanding any 
     provision of section 106 of the Immigration and Nationality 
     Act (as in effect as of the date of the enactment of this 
     Act) to the contrary--
       (A) in the case of judicial review of a final order of 
     exclusion, subsection (b) of such section shall not apply and 
     the action for judicial review shall be governed by the 
     provisions of subsections (a) and (c) of such in the same 
     manner as they apply to judicial review of orders of 
     deportation;
       (B) a court may not order the taking of additional evidence 
     under section 2347(c) of title 28, United States Code;
       (C) the petition for judicial review must be filed not 
     later than 30 days after the date of the final order of 
     exclusion or deportation;
       (D) the petition for review shall be filed with the court 
     of appeals for the judicial circuit in which the 
     administrative proceedings before the special inquiry officer 
     or immigration judge were completed;
       (E) there shall be no appeal of any discretionary decision 
     under section 212(c), 212(h), 212(i), 244, or 245 of the 
     Immigration and Nationality Act (as in effect as of the date 
     of the enactment of this Act);
       (F) service of the petition for review shall not stay the 
     deportation of an alien pending the court's decision on the 
     petition, unless the court orders otherwise; and
       (G) there shall be no appeal permitted in the case of an 
     alien who is inadmissible or deportable by reason of having 
     committed a criminal offense covered in section 212(a)(2) or 
     section 241(a)(2)(A)(iii), (B), (C), or (D) of the 
     Immigration and Nationality Act (as in effect as of the date 
     of the enactment of this Act), or any offense covered by 
     section 241(a)(2)(A)(ii) of such Act (as in effect on such 
     date) for which both predicate offenses are, without regard 
     to their date of commission, otherwise covered by section 
     241(a)(2)(A)(i) of such Act (as so in effect).
       (5) Transitional rule with regard to suspension of 
     deportation.--Paragraphs (1) and (2) of section 240A(d) of 
     the Immigration and Nationality Act (relating to continuous 
     residence or physical presence) shall apply to notices to 
     appear issued before, on, or after the date of the enactment 
     of this Act.
       (6) Transition for certain family unity aliens.--The 
     Attorney General may waive the application of section 
     212(a)(9) of the Immigration and Nationality Act, as inserted 
     by section 301(b)(1) of this division, in the case of an 
     alien who is provided benefits under the provisions of 
     section 301 of the Immigration Act of 1990 (relating to 
     family unity).
       (7) Limitation on suspension of deportation.--The Attorney 
     General may not suspend the deportation and adjust the status 
     under section 244 of the Immigration and Nationality Act of 
     more than 4,000 aliens in any fiscal year (beginning after 
     the date of the enactment of this Act). The previous sentence 
     shall apply regardless of when an alien applied for such 
     suspension and adjustment.
       (d) Transitional References.--For purposes of carrying out 
     the Immigration and Nationality Act, as amended by this 
     subtitle--
       (1) any reference in section 212(a)(1)(A) of such Act to 
     the term ``inadmissible'' is deemed to include a reference to 
     the term ``excludable'', and
       (2) any reference in law to an order of removal shall be 
     deemed to include a reference to an order of exclusion and 
     deportation or an order of deportation.
       (e) Transition.--No period of time before the date of the 
     enactment of this Act shall be included in the period of 1 
     year described in section 212(a)(6)(B)(i) of the Immigration 
     and Nationality Act (as amended by section 301(c) of this 
     division).
                 Subtitle B--Criminal Alien Provisions

     SEC. 321. AMENDED DEFINITION OF AGGRAVATED FELONY.

       (a) In General.--Section 101(a)(43) (8 U.S.C. 1101(a)(43)), 
     as amended by section 441(e) of the Antiterrorism and 
     Effective Death Penalty Act of 1996 (P.L. 104-132), is 
     amended--
       (1) in subparagraph (A), by inserting ``, rape, or sexual 
     abuse of a minor'' after ``murder'';
       (2) in subparagraph (D), by striking ``$100,000'' and 
     inserting ``$10,000'';
       (3) in subparagraphs (F), (G), (N), and (P), by striking 
     ``is at least 5 years'' each place it appears and inserting 
     ``at least one year'';
       (4) in subparagraph (J), by striking ``sentence of 5 years' 
     imprisonment'' and inserting ``sentence of one year 
     imprisonment'';
       (5) in subparagraph (K)(ii), by inserting ``if committed'' 
     before ``for commercial advantage'';
       (6) in subparagraph (L)--
       (A) by striking ``or'' at the end of clause (i),
       (B) by inserting ``or'' at the end of clause (ii), and
       (C) by adding at the end the following new clause:
       ``(iii) section 601 of the National Security Act of 1947 
     (relating to protecting the identity of undercover 
     agents);'';
       (7) in subparagraph (M), by striking ``$200,000'' each 
     place it appears and inserting ``$10,000'';
       (8) in subparagraph (N), by striking ``for which the term'' 
     and all that follows and inserting the following: ``, except 
     in the case of a first offense for which the alien has 
     affirmatively shown that the alien committed the offense for 
     the purpose of assisting, abetting, or aiding only the 
     alien's spouse, child, or parent (and no other individual) to 
     violate a provision of this Act'';
       (9) in subparagraph (P), by striking ``18 months'' and 
     inserting ``12 months, except in the case of a first offense 
     for which the alien has affirmatively shown that the alien 
     committed the offense for the purpose of assisting, abetting, 
     or aiding only the alien's spouse, child, or parent (and no 
     other individual) to violate a provision of this Act'';
       (10) in subparagraph (R), by striking ``for which a 
     sentence of 5 years' imprisonment or more may be imposed'' 
     and inserting ``for which the term of imprisonment is at 
     least one year''; and
       (11) in subparagraph (S), by striking ``for which a 
     sentence of 5 years' imprisonment or more may be imposed'' 
     and inserting ``for which the term of imprisonment is at 
     least one year''.
       (b) Effective Date of Definition.--Section 101(a)(43) (8 
     U.S.C. 1101(a)(43)) is amended by adding at the end the 
     following new sentence: ``Notwithstanding any other provision 
     of law (including any effective date), the term applies 
     regardless of whether the conviction was entered before, on, 
     or after the date of enactment of this paragraph.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to actions taken on

[[Page H11809]]

     or after the date of the enactment of this Act, regardless of 
     when the conviction occurred, and shall apply under section 
     276(b) of the Immigration and Nationality Act only to 
     violations of section 276(a) of such Act occurring on or 
     after such date.

     SEC. 322. DEFINITION OF CONVICTION AND TERM OF IMPRISONMENT.

       (a) Definition.--
       (1) In general.--Section 101(a) (8 U.S.C. 1101(a)) is 
     amended by adding at the end the following new paragraph:
       ``(48)(A) The term `conviction' means, with respect to an 
     alien, a formal judgment of guilt of the alien entered by a 
     court or, if adjudication of guilt has been withheld, where--
       ``(i) a judge or jury has found the alien guilty or the 
     alien has entered a plea of guilty or nolo contendere or has 
     admitted sufficient facts to warrant a finding of guilt, and
       ``(ii) the judge has ordered some form of punishment, 
     penalty, or restraint on the alien's liberty to be imposed.
       ``(B) Any reference to a term of imprisonment or a sentence 
     with respect to an offense is deemed to include the period of 
     incarceration or confinement ordered by a court of law 
     regardless of any suspension of the imposition or execution 
     of that imprisonment or sentence in whole or in part.''.
       (2) Conforming amendments.--
       (A) Section 101(a)(43) (8 U.S.C. 1101(a)(43)) is amended by 
     striking ``imposed (regardless of any suspension of 
     imprisonment)'' each place it appears in subparagraphs (F), 
     (G), (N), and (P).
       (B) Section 212(a)(2)(B) (8 U.S.C. 1182(a)(2)(B)) is 
     amended by striking ``actually imposed''.
       (b) Reference to Proof Provisions.--For provisions relating 
     to proof of convictions, see subparagraphs (B) and (C) of 
     section 240(c)(3) of the Immigration and Nationality Act, as 
     inserted by section 304(a)(3) of this division.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to convictions and sentences entered before, on, 
     or after the date of the enactment of this Act. Subparagraphs 
     (B) and (C) of section 240(c)(3) of the Immigration and 
     Nationality Act, as inserted by section 304(a)(3) of this 
     division, shall apply to proving such convictions.

     SEC. 323. AUTHORIZING REGISTRATION OF ALIENS ON CRIMINAL 
                   PROBATION OR CRIMINAL PAROLE.

       Section 263(a) (8 U.S.C. 1303(a)) is amended by striking 
     ``and (5)'' and inserting ``(5) aliens who are or have been 
     on criminal probation or criminal parole within the United 
     States, and (6)''.

     SEC. 324. PENALTY FOR REENTRY OF DEPORTED ALIENS.

       (a) In General.--Section 276(a)(1) (8 U.S.C. 1326(a)(1)) is 
     amended to read as follows:
       ``(1) has been arrested and deported, has been excluded and 
     deported, or has departed the United States while an order of 
     exclusion or deportation is outstanding, and thereafter''.
       (b) Treatment of Stipulations.--The last sentence of 
     section 276(b) (8 U.S.C. 1326(b)) is amended by inserting 
     ``(or not during)'' after ``during''.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to departures that occurred before, on, or after 
     the date of the enactment of this Act, but only with respect 
     to entries (and attempted entries) occurring on or after such 
     date.

     SEC. 325. CHANGE IN FILING REQUIREMENT.

       Section 2424 of title 18, United States Code, is amended--
       (1) in the first undesignated paragraph of subsection (a)--
       (A) by striking ``alien'' each place it appears;
       (B) by inserting after ``individual'' the first place it 
     appears the following: ``, knowing or in reckless disregard 
     of the fact that the individual is an alien''; and
       (C) by striking ``within three years after that individual 
     has entered the United States from any country, party to the 
     arrangement adopted July 25, 1902, for the suppression of the 
     white-slave traffic'';
       (2) in the second undesignated paragraph of subsection 
     (a)--
       (A) by striking ``thirty'' and inserting ``five business''; 
     and
       (B) by striking ``within three years after that individual 
     has entered the United States from any country, party to the 
     said arrangement for the suppression of the white-slave 
     traffic,''; and
       (3) in the text following the third undesignated paragraph 
     of subsection (a), by striking ``two'' and inserting ``10''.

     SEC. 326. CRIMINAL ALIEN IDENTIFICATION SYSTEM.

       Subsection (a) of section 130002 of the Violent Crime 
     Control and Law Enforcement Act of 1994 (Public Law 103-322), 
     as amended by section 432 of Public Law 104-132, is amended 
     to read as follows:
       ``(a) Operation and Purpose.--The Commissioner of 
     Immigration and Naturalization shall, under the authority of 
     section 242(a)(3)(A) of the Immigration and Nationality Act 
     operate a criminal alien identification system. The criminal 
     alien identification system shall be used to assist Federal, 
     State, and local law enforcement agencies in identifying and 
     locating aliens who may be subject to removal by reason of 
     their conviction of aggravated felonies, subject to 
     prosecution under section 275 of such Act, not lawfully 
     present in the United States, or otherwise removable. Such 
     system shall include providing for recording of fingerprint 
     records of aliens who have been previously arrested and 
     removed into appropriate automated fingerprint identification 
     systems.''.

     SEC. 327. APPROPRIATIONS FOR CRIMINAL ALIEN TRACKING CENTER.

       Section 130002(b) of the Violent Crime Control and Law 
     Enforcement Act of 1994 (8 U.S.C. 1252 note) is amended--
       (1) by inserting ``and'' after ``1996;'', and
       (2) by striking paragraph (2) and all that follows through 
     the period at the end and inserting the following:
       ``(2) $5,000,000 for each of fiscal years 1997 through 
     2001.''.

     SEC. 328. PROVISIONS RELATING TO STATE CRIMINAL ALIEN 
                   ASSISTANCE PROGRAM.

       (a) Modification of Authority.--
       (1) In general.--Section 241(i), as redesignated by section 
     306(a)(1) of this division, is amended--
       (A) in paragraph (3)(A), by striking ``felony and sentenced 
     to a term of imprisonment'' and inserting ``felony or two or 
     more misdemeanors'', and
       (B) by adding at the end the following new paragraph:
       ``(6) To the extent of available appropriations, funds 
     otherwise made available under this section with respect to a 
     State (or political subdivision, including a municipality) 
     for incarceration of an undocumented criminal alien may, at 
     the discretion of the recipient of the funds, be used for the 
     costs of imprisonment of such alien in a State, local, or 
     municipal prison or jail.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply beginning with fiscal year 1997.
       (b) Sense of the Congress With Respect to Program.--
       (1) Findings.--The Congress finds as follows:
       (A) Of the $130,000,000 appropriated in fiscal year 1995 
     for the State Criminal Alien Assistance Program, the 
     Department of Justice disbursed the first $43,000,000 to 
     States on October 6, 1994, 32 days before the 1994 general 
     election, and then failed to disburse the remaining 
     $87,000,000 until January 31, 1996, 123 days after the end of 
     fiscal year 1995.
       (B) While H.R. 2880, the continuing appropriation measure 
     funding certain operations of the Federal Government from 
     January 26, 1996 to March 15, 1996, included $66,000,000 to 
     reimburse States for the cost of incarcerating documented 
     illegal immigrant felons, the Department of Justice failed to 
     disburse any of the funds to the States during the period of 
     the continuing appropriation.
       (2) Sense of the congress.--It is the sense of the Congress 
     that--
       (A) the Department of Justice was disturbingly slow in 
     disbursing fiscal year 1995 funds under the State Criminal 
     Alien Assistance Program to States after the initial grants 
     were released just prior to the 1994 election; and
       (B) the Attorney General should make it a high priority to 
     expedite the disbursement of Federal funds intended to 
     reimburse States for the cost of incarcerating illegal 
     immigrants, aiming for all State Criminal Alien Assistance 
     Program funds to be disbursed during the fiscal year for 
     which they are appropriated.

     SEC. 329. DEMONSTRATION PROJECT FOR IDENTIFICATION OF ILLEGAL 
                   ALIENS IN INCARCERATION FACILITY OF ANAHEIM, 
                   CALIFORNIA.

       (a) Authority.--The Attorney General shall conduct a 
     project demonstrating the feasibility of identifying, from 
     among the individuals who are incarcerated in local 
     governmental prison facilities prior to arraignment on 
     criminal charges, those individuals who are aliens unlawfully 
     present in the United States.
       (b) Description of Project.--The project authorized by 
     subsection (a) shall include--
       (1) the detail to incarceration facilities within the city 
     of Anaheim, California and the county of Ventura, California, 
     of an employee of the Immigration and Naturalization Service 
     who has expertise in the identification of aliens unlawfully 
     in the United States, and
       (2) provision of funds sufficient to provide for--
       (A) access for such employee to records of the Service 
     necessary to identify such aliens, and
       (B) in the case of an individual identified as such an 
     alien, pre-arraignment reporting to the court regarding the 
     Service's intention to remove the alien from the United 
     States.
       (c) Termination.--The authority under this section shall 
     cease to be effective 6 months after the date of the 
     enactment of this Act.

     SEC. 330. PRISONER TRANSFER TREATIES.

       (a) Negotiations With Other Countries.--(1) Congress 
     advises the President to begin to negotiate and renegotiate, 
     not later than 90 days after the date of enactment of this 
     Act, bilateral prisoner transfer treaties, providing for the 
     incarceration, in the country of the alien's nationality, of 
     any alien who--
       (A) is a national of a country that is party to such a 
     treaty; and
       (B) has been convicted of a criminal offense under Federal 
     or State law and who--
       (i) is not in lawful immigration status in the United 
     States, or
       (ii) on the basis of conviction for a criminal offense 
     under Federal or State law, or on any other basis, is subject 
     to deportation or removal under the Immigration and 
     Nationality Act,
     for the duration of the prison term to which the alien was 
     sentenced for the offense referred to in subparagraph (B). 
     Any such agreement may provide for the release of such alien 
     pursuant to parole procedures of that country.
       (2) In entering into negotiations under paragraph (1), the 
     President may consider providing for appropriate 
     compensation, subject to the availability of appropriations, 
     in cases where the United States is able to independently 
     verify the adequacy of the sites where aliens will be 
     imprisoned and the length of time the alien is actually 
     incarcerated in the foreign country under such a treaty.
       (b) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) the focus of negotiations for such agreements should 
     be--
       (A) to expedite the transfer of aliens unlawfully in the 
     United States who are (or are about to be) incarcerated in 
     United States prisons,

[[Page H11810]]

       (B) to ensure that a transferred prisoner serves the 
     balance of the sentence imposed by the United States courts,
       (C) to eliminate any requirement of prisoner consent to 
     such a transfer, and
       (D) to allow the Federal Government or the States to keep 
     their original prison sentences in force so that transferred 
     prisoners who return to the United States prior to the 
     completion of their original United States sentences can be 
     returned to custody for the balance of their prisons 
     sentences;
       (2) the Secretary of State should give priority to 
     concluding an agreement with any country for which the 
     President determines that the number of aliens described in 
     subsection (a) who are nationals of that country in the 
     United States represents a significant percentage of all such 
     aliens in the United States; and
       (3) no new treaty providing for the transfer of aliens from 
     Federal, State, or local incarceration facilities to a 
     foreign incarceration facility should permit the alien to 
     refuse the transfer.
       (c) Prisoner Consent.--Notwithstanding any other provision 
     of law, except as required by treaty, the transfer of an 
     alien from a Federal, State, or local incarceration facility 
     under an agreement of the type referred to in subsection (a) 
     shall not require consent of the alien.
       (d) Annual Report.--Not later than 90 days after the date 
     of the enactment of this Act, and annually thereafter, the 
     Attorney General shall submit a report to the Committees on 
     the Judiciary of the House of Representatives and of the 
     Senate stating whether each prisoner transfer treaty to which 
     the United States is a party has been effective in the 
     preceding 12 months in bringing about the return of 
     deportable incarcerated aliens to the country of which they 
     are nationals and in ensuring that they serve the balance of 
     their sentences.
       (e) Training Foreign Law Enforcement Personnel.--(1) 
     Subject to paragraph (2), the President shall direct the 
     Border Patrol Academy and the Customs Service Academy to 
     enroll for training an appropriate number of foreign law 
     enforcement personnel, and shall make appointments of foreign 
     law enforcement personnel to such academies, as necessary to 
     further the following United States law enforcement goals:
       (A) Preventing of drug smuggling and other cross-border 
     criminal activity.
       (B) Preventing illegal immigration.
       (C) Preventing the illegal entry of goods into the United 
     States (including goods the sale of which is illegal in the 
     United States, the entry of which would cause a quota to be 
     exceeded, or the appropriate duty or tariff for which has not 
     been paid).
       (2) The appointments described in paragraph (1) shall be 
     made only to the extent there is capacity in such academies 
     beyond what is required to train United States citizens 
     needed in the Border Patrol and Customs Service, and only of 
     personnel from a country with which the prisoner transfer 
     treaty has been stated to be effective in the most recent 
     report referred to in subsection (d).
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.

     SEC. 331. PRISONER TRANSFER TREATIES STUDY.

       (a) Report to Congress.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of State and 
     the Attorney General shall submit to the Committees on the 
     Judiciary of the House of Representatives and of the Senate a 
     report that describes the use and effectiveness of the 
     prisoner transfer treaties with the three countries with the 
     greatest number of their nationals incarcerated in the United 
     States in removing from the United States such incarcerated 
     nationals.
       (b) Use of Treaty.--The report under subsection (a) shall 
     include--
       (1) the number of aliens convicted of a criminal offense in 
     the United States since November 30, 1977, who would have 
     been or are eligible for transfer pursuant to the treaties;
       (2) the number of aliens described in paragraph (1) who 
     have been transferred pursuant to the treaties;
       (3) the number of aliens described in paragraph (2) who 
     have been incarcerated in full compliance with the treaties;
       (4) the number of aliens who are incarcerated in a penal 
     institution in the United States who are eligible for 
     transfer pursuant to the treaties; and
       (5) the number of aliens described in paragraph (4) who are 
     incarcerated in Federal, State, and local penal institutions 
     in the United States.
       (c) Recommendations.--The report under subsection (a) shall 
     include the recommendations of the Secretary of State and the 
     Attorney General to increase the effectiveness and use of, 
     and full compliance with, the treaties. In considering the 
     recommendations under this subsection, the Secretary and the 
     Attorney General shall consult with such State and local 
     officials in areas disproportionately impacted by aliens 
     convicted of criminal offenses as the Secretary and the 
     Attorney General consider appropriate. Such recommendations 
     shall address--
       (1) changes in Federal laws, regulations, and policies 
     affecting the identification, prosecution, and deportation of 
     aliens who have committed criminal offenses in the United 
     States;
       (2) changes in State and local laws, regulations, and 
     policies affecting the identification, prosecution, and 
     deportation of aliens who have committed a criminal offense 
     in the United States;
       (3) changes in the treaties that may be necessary to 
     increase the number of aliens convicted of criminal offenses 
     who may be transferred pursuant to the treaties;
       (4) methods for preventing the unlawful reentry into the 
     United States of aliens who have been convicted of criminal 
     offenses in the United States and transferred pursuant to the 
     treaties;
       (5) any recommendations by appropriate officials of the 
     appropriate government agencies of such countries regarding 
     programs to achieve the goals of, and ensure full compliance 
     with, the treaties;
       (6) whether the recommendations under this subsection 
     require the renegotiation of the treaties; and
       (7) the additional funds required to implement each 
     recommendation under this subsection.

     SEC. 332. ANNUAL REPORT ON CRIMINAL ALIENS.

       Not later than 12 months after the date of the enactment of 
     this Act, and annually thereafter, the Attorney General shall 
     submit to the Committees on the Judiciary of the House of 
     Representatives and of the Senate a report detailing--
       (1) the number of illegal aliens incarcerated in Federal 
     and State prisons for having committed felonies, stating the 
     number incarcerated for each type of offense;
       (2) the number of illegal aliens convicted of felonies in 
     any Federal or State court, but not sentenced to 
     incarceration, in the year before the report was submitted, 
     stating the number convicted for each type of offense;
       (3) programs and plans underway in the Department of 
     Justice to ensure the prompt removal from the United States 
     of criminal aliens subject to removal; and
       (4) methods for identifying and preventing the unlawful 
     reentry of aliens who have been convicted of criminal 
     offenses in the United States and removed from the United 
     States.

     SEC. 333. PENALTIES FOR CONSPIRING WITH OR ASSISTING AN ALIEN 
                   TO COMMIT AN OFFENSE UNDER THE CONTROLLED 
                   SUBSTANCES IMPORT AND EXPORT ACT.

       (a) Review of Guidelines.--Not later than 6 months after 
     the date of the enactment of this Act, the United States 
     Sentencing Commission shall conduct a review of the 
     guidelines applicable to an offender who conspires with, or 
     aids or abets, a person who is not a citizen or national of 
     the United States in committing any offense under section 
     1010 of the Controlled Substance Import and Export Act (21 
     U.S.C. 960).
       (b) Revision of Guidelines.--Following such review, 
     pursuant to section 994(p) of title 28, United States Code, 
     the Commission shall promulgate sentencing guidelines or 
     amend existing sentencing guidelines to ensure an 
     appropriately stringent sentence for such offenders.

     SEC. 334. ENHANCED PENALTIES FOR FAILURE TO DEPART, ILLEGAL 
                   REENTRY, AND PASSPORT AND VISA FRAUD.

       (a) Failing to Depart.--The United States Sentencing 
     Commission shall promptly promulgate, pursuant to section 994 
     of title 28, United States Code, amendments to the sentencing 
     guidelines to make appropriate increases in the base offense 
     level for offenses under section 242(e) and 276(b) of the 
     Immigration and Nationality Act (8 U.S.C. 1252(e) and 
     1326(b)) to reflect the amendments made by section 130001 of 
     the Violent Crime Control and Law Enforcement Act of 1994.
       (b) Passport and Visa Offenses.--The United States 
     Sentencing Commission shall promptly promulgate, pursuant to 
     section 994 of title 28, United States Code, amendments to 
     the sentencing guidelines to make appropriate increases in 
     the base offense level for offenses under chapter 75 of title 
     18, United States Code to reflect the amendments made by 
     section 130009 of the Violent Crime Control and Law 
     Enforcement Act of 1994.
     Subtitle C--Revision of Grounds for Exclusion and Deportation

     SEC. 341. PROOF OF VACCINATION REQUIREMENT FOR IMMIGRANTS.

       (a) In General.--Section 212(a)(1)(A) (8 U.S.C. 
     1182(a)(1)(A)) is amended--
       (1) by redesignating clauses (ii) and (iii) as clauses 
     (iii) and (iv), respectively, and
       (2) by inserting after clause (i) the following new clause:
       ``(ii) who seeks admission as an immigrant, or who seeks 
     adjustment of status to the status of an alien lawfully 
     admitted for permanent residence, and who has failed to 
     present documentation of having received vaccination against 
     vaccine-preventable diseases, which shall include at least 
     the following diseases: mumps, measles, rubella, polio, 
     tetanus and diphtheria toxoids, pertussis, influenza type B 
     and hepatitis B, and any other vaccinations against vaccine-
     preventable diseases recommended by the Advisory Committee 
     for Immunization Practices,''.
       (b) Waiver.--Section 212(g) (8 U.S.C. 1182(g)) is amended 
     by striking ``, or'' at the end of paragraph (1) and all that 
     follows and inserting a semicolon and the following:
     ``in accordance with such terms, conditions, and controls, if 
     any, including the giving of bond, as the Attorney General, 
     in the discretion of the Attorney General after consultation 
     with the Secretary of Health and Human Services, may by 
     regulation prescribe;
       ``(2) subsection (a)(1)(A)(ii) in the case of any alien--
       ``(A) who receives vaccination against the vaccine-
     preventable disease or diseases for which the alien has 
     failed to present documentation of previous vaccination,
       ``(B) for whom a civil surgeon, medical officer, or panel 
     physician (as those terms are defined by section 34.2 of 
     title 42 of the Code of Federal Regulations) certifies, 
     according to such regulations as the Secretary of Health and 
     Human Services may prescribe, that such vaccination would not 
     be medically appropriate, or
       ``(C) under such circumstances as the Attorney General 
     provides by regulation, with respect to whom the requirement 
     of such a vaccination would be contrary to the alien's 
     religious beliefs or moral convictions; or

[[Page H11811]]

       ``(3) subsection (a)(1)(A)(iii) in the case of any alien, 
     in accordance with such terms, conditions, and controls, if 
     any, including the giving of bond, as the Attorney General, 
     in the discretion of the Attorney General after consultation 
     with the Secretary of Health and Human Services, may by 
     regulation prescribe.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to applications for immigrant visas 
     or for adjustment of status filed after September 30, 1996.

     SEC. 342. INCITEMENT OF TERRORIST ACTIVITY AND PROVISION OF 
                   FALSE DOCUMENTATION TO TERRORISTS AS A BASIS 
                   FOR EXCLUSION FROM THE UNITED STATES.

       (a) In General.--Section 212(a)(3)(B) (8 U.S.C. 
     1182(a)(3)(B)) is amended--
       (1) by redesignating subclauses (III) and (IV) of clause 
     (i) as subclauses (IV) and (V), respectively;
       (2) by inserting after subclause (II) of clause (i) the 
     following new subclause:

       ``(III) has, under circumstances indicating an intention to 
     cause death or serious bodily harm, incited terrorist 
     activity,''; and

       (3) in clause (iii)(III), by inserting ``documentation or'' 
     before ``identification'';
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act 
     and shall apply to incitement regardless of when it occurs.

     SEC. 343. CERTIFICATION REQUIREMENTS FOR FOREIGN HEALTH-CARE 
                   WORKERS.

       Section 212(a)(5) (8 U.S.C. 1182(a)(5)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D), 
     and
       (2) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Uncertified foreign health-care workers.--Any alien 
     who seeks to enter the United States for the purpose of 
     performing labor as a health-care worker, other than a 
     physician, is excludable unless the alien presents to the 
     consular officer, or, in the case of an adjustment of status, 
     the Attorney General, a certificate from the Commission on 
     Graduates of Foreign Nursing Schools, or a certificate from 
     an equivalent independent credentialing organization approved 
     by the Attorney General in consultation with the Secretary of 
     Health and Human Services, verifying that--
       ``(i) the alien's education, training, license, and 
     experience--

       ``(I) meet all applicable statutory and regulatory 
     requirements for entry into the United States under the 
     classification specified in the application;
       ``(II) are comparable with that required for an American 
     health-care worker of the same type; and
       ``(III) are authentic and, in the case of a license, 
     unencumbered;

       ``(ii) the alien has the level of competence in oral and 
     written English considered by the Secretary of Health and 
     Human Services, in consultation with the Secretary of 
     Education, to be appropriate for health care work of the kind 
     in which the alien will be engaged, as shown by an 
     appropriate score on one or more nationally recognized, 
     commercially available, standardized assessments of the 
     applicant's ability to speak and write; and
       ``(iii) if a majority of States licensing the profession in 
     which the alien intends to work recognize a test predicting 
     the success on the profession's licensing or certification 
     examination, the alien has passed such a test or has passed 
     such an examination.

     For purposes of clause (ii), determination of the 
     standardized tests required and of the minimum scores that 
     are appropriate are within the sole discretion of the 
     Secretary of Health and Human Services and are not subject to 
     further administrative or judicial review.''.

     SEC. 344. REMOVAL OF ALIENS FALSELY CLAIMING UNITED STATES 
                   CITIZENSHIP.

       (a) Exclusion of Aliens Who Have Falsely Claimed United 
     States Citizenship.--Section 212(a)(6)(C) (8 U.S.C. 
     1182(a)(6)(C)) is amended--
       (1) by redesignating clause (ii) as clause (iii), and
       (2) by inserting after clause (i) the following new clause:
       ``(ii) Falsely claiming citizenship.--Any alien who falsely 
     represents, or has falsely represented, himself or herself to 
     be a citizen of the United States for any purpose or benefit 
     under this Act (including section 274A) or any other Federal 
     or State law is excludable.''.
       (b) Deportation of Aliens Who Have Falsely Claimed United 
     States Citizenship.--Section 241(a)(3) (8 U.S.C. 1251(a)(3)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(D) Falsely claiming citizenship.--Any alien who falsely 
     represents, or has falsely represented, himself to be a 
     citizen of the United States for any purpose or benefit under 
     this Act (including section 274A) or any Federal or State law 
     is deportable.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to representations made on or after the date of 
     the enactment of this Act.

     SEC. 345. WAIVER OF EXCLUSION AND DEPORTATION GROUND FOR 
                   CERTAIN SECTION 274C VIOLATORS.

       (a) Exclusion Grounds.--Section 212 (8 U.S.C. 1182) is 
     amended--
       (1) by amending subparagraph (F) of subsection (a)(6) to 
     read as follows:
       ``(F) Subject of civil penalty.--
       ``(i) In general.--An alien who is the subject of a final 
     order for violation of section 274C is inadmissible.
       ``(ii) Waiver authorized.--For provision authorizing waiver 
     of clause (i), see subsection (d)(12).''; and
       (2) by adding at the end of subsection (d) the following 
     new paragraph:
       ``(12) The Attorney General may, in the discretion of the 
     Attorney General for humanitarian purposes or to assure 
     family unity, waive application of clause (i) of subsection 
     (a)(6)(F)--
       ``(A) in the case of an alien lawfully admitted for 
     permanent residence who temporarily proceeded abroad 
     voluntarily and not under an order of deportation or removal 
     and who is otherwise admissible to the United States as a 
     returning resident under section 211(b), and
       ``(B) in the case of an alien seeking admission or 
     adjustment of status under section 201(b)(2)(A) or under 
     section 203(a),

     if no previous civil money penalty was imposed against the 
     alien under section 274C and the offense was committed solely 
     to assist, aid, or support the alien's spouse or child (and 
     not another individual). No court shall have jurisdiction to 
     review a decision of the Attorney General to grant or deny a 
     waiver under this paragraph.''.
       (b) Ground of Deportation.--Subparagraph (C) of section 
     241(a)(3) (8 U.S.C. 1251(a)(3)), before redesignation by 
     section 305(a)(2) of this division, is amended to read as 
     follows:
       ``(C) Document fraud.--
       ``(i) In general.--An alien who is the subject of a final 
     order for violation of section 274C is deportable.
       ``(ii) Waiver authorized.--The Attorney General may waive 
     clause (i) in the case of an alien lawfully admitted for 
     permanent residence if no previous civil money penalty was 
     imposed against the alien under section 274C and the offense 
     was incurred solely to assist, aid, or support the alien's 
     spouse or child (and no other individual). No court shall 
     have jurisdiction to review a decision of the Attorney 
     General to grant or deny a waiver under this clause.''.

     SEC. 346. INADMISSIBILITY OF CERTAIN STUDENT VISA ABUSERS.

       (a) In General.--Section 212(a)(6) (8 U.S.C. 1182(a)(6)) is 
     amended by adding at the end the following new subparagraph:
       ``(G) Student visa abusers.--An alien who obtains the 
     status of a nonimmigrant under section 101(a)(15)(F)(i) and 
     who violates a term or condition of such status under section 
     214(l) is excludable until the alien has been outside the 
     United States for a continuous period of 5 years after the 
     date of the violation.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to aliens who obtain the status of a nonimmigrant 
     under section 101(a)(15)(F) of the Immigration and 
     Nationality Act after the end of the 60-day period beginning 
     on the date of the enactment of this Act, including aliens 
     whose status as such a nonimmigrant is extended after the end 
     of such period.

     SEC. 347. REMOVAL OF ALIENS WHO HAVE UNLAWFULLY VOTED.

       (a) Exclusion of Aliens Who Have Unlawfully Voted.--Section 
     212(a)(10) (8 U.S.C. 1182(a)(10)), as redesignated by section 
     301(b) of this division, is amended by adding at the end the 
     following new subparagraph:
       ``(D) Unlawful voters.--Any alien who has voted in 
     violation of any Federal, State, or local constitutional 
     provision, statute, ordinance, or regulation is 
     excludable.''.
       (b) Deportation of Aliens Who Have Unlawfully Voted.--
     Section 241(a) (8 U.S.C. 1251(a)), before redesignation by 
     section 305(a)(2) of this division, is amended by adding at 
     the end the following new paragraph:
       ``(6) Unlawful voters.--Any alien who has voted in 
     violation of any Federal, State, or local constitutional 
     provision, statute, ordinance, or regulation is 
     deportable.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to voting occurring before, on, or after the date 
     of the enactment of this Act.

     SEC. 348. WAIVERS FOR IMMIGRANTS CONVICTED OF CRIMES.

       (a) In General.--Section 212(h) (8 U.S.C. 1182(h)) is 
     amended by adding at the end the following: ``No waiver shall 
     be granted under this subsection in the case of an alien who 
     has previously been admitted to the United States as an 
     alien lawfully admitted for permanent residence if either 
     since the date of such admission the alien has been 
     convicted of an aggravated felony or the alien has not 
     lawfully resided continuously in the United States for a 
     period of not less than 7 years immediately preceding the 
     date of initiation of proceedings to remove the alien from 
     the United States. No court shall have jurisdiction to 
     review a decision of the Attorney General to grant or deny 
     a waiver under this subsection.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective on the date of the enactment of this Act 
     and shall apply in the case of any alien who is in exclusion 
     or deportation proceedings as of such date unless a final 
     administrative order in such proceedings has been entered as 
     of such date.

     SEC. 349. WAIVER OF MISREPRESENTATION GROUND OF 
                   INADMISSIBILITY FOR CERTAIN ALIEN.

       Subsection (i) of section 212 (8 U.S.C. 1182) is amended to 
     read as follows:
       ``(i)(1) The Attorney General may, in the discretion of the 
     Attorney General, waive the application of clause (i) of 
     subsection (a)(6)(C) in the case of an immigrant who is the 
     spouse, son, or daughter of a United States citizen or of an 
     alien lawfully admitted for permanent residence if it is 
     established to the satisfaction of the Attorney General that 
     the refusal of admission to the United States of such 
     immigrant alien would result in extreme hardship to the 
     citizen or lawfully resident spouse or parent of such an 
     alien.
       ``(2) No court shall have jurisdiction to review a decision 
     or action of the Attorney General regarding a waiver under 
     paragraph (1).''.

     SEC. 350. OFFENSES OF DOMESTIC VIOLENCE AND STALKING AS 
                   GROUND FOR DEPORTATION.

       (a) In General.--Section 241(a)(2) (8 U.S.C. 1251(a)(2)) is 
     amended by adding at the end the following:

[[Page H11812]]

       ``(E) Crimes of domestic violence, stalking, or violation 
     of protection order, crimes against children and .--
       ``(i) Domestic violence, stalking, and child abuse.--Any 
     alien who at any time after entry is convicted of a crime of 
     domestic violence, a crime of stalking, or a crime of child 
     abuse, child neglect, or child abandonment is deportable. For 
     purposes of this clause, the term `crime of domestic 
     violence' means any crime of violence (as defined in section 
     16 of title 18, United States Code) against a person 
     committed by a current or former spouse of the person, by an 
     individual with whom the person shares a child in common, by 
     an individual who is cohabiting with or has cohabited with 
     the person as a spouse, by an individual similarly situated 
     to a spouse of the person under the domestic or family 
     violence laws of the jurisdiction where the offense occurs, 
     or by any other individual against a person who is protected 
     from that individual's acts under the domestic or family 
     violence laws of the United States or any State, Indian 
     tribal government, or unit of local government.
       ``(ii) Violators of protection orders.--Any alien who at 
     any time after entry is enjoined under a protection order 
     issued by a court and whom the court determines has engaged 
     in conduct that violates the portion of a protection order 
     that involves protection against credible threats of 
     violence, repeated harassment, or bodily injury to the person 
     or persons for whom the protection order was issued is 
     deportable. For purposes of this clause, the term `protection 
     order' means any injunction issued for the purpose of 
     preventing violent or threatening acts of domestic violence, 
     including temporary or final orders issued by civil or 
     criminal courts (other than support or child custody orders 
     or provisions) whether obtained by filing an independent 
     action or as a pendente lite order in another proceeding.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to convictions, or violations of court orders, 
     occurring after the date of the enactment of this Act.

     SEC. 351. CLARIFICATION OF DATE AS OF WHICH RELATIONSHIP 
                   REQUIRED FOR WAIVER FROM EXCLUSION OR 
                   DEPORTATION FOR SMUGGLING.

       (a) Exclusion.--Section 212(d)(11) (8 U.S.C. 1182(d)(11)) 
     is amended by inserting ``an individual who at the time of 
     such action was'' after ``aided only''.
       (b) Deportation.--Section 241(a)(1)(E)(iii) (8 U.S.C. 
     1251(a)(1)(E)(iii)) is amended by inserting ``an individual 
     who at the time of the offense was'' after ``aided only''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to applications for waivers filed before, on, or 
     after the date of the enactment of this Act, but shall not 
     apply to such an application for which a final determination 
     has been made as of the date of the enactment of this Act.

     SEC. 352. EXCLUSION OF FORMER CITIZENS WHO RENOUNCED 
                   CITIZENSHIP TO AVOID UNITED STATES TAXATION.

       (a) In General.--Section 212(a)(10) (8 U.S.C. 1182(a)(10)), 
     as redesignated by section 301(b) of this division and as 
     amended by section 347(a) of this division, is amended by 
     adding at the end the following:
       ``(E) Former citizens who renounced citizenship to avoid 
     taxation.--Any alien who is a former citizen of the United 
     States who officially renounces United States citizenship and 
     who is determined by the Attorney General to have renounced 
     United States citizenship for the purpose of avoiding 
     taxation by the United States is excludable.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals who renounce United States 
     citizenship on and after the date of the enactment of this 
     Act.

     SEC. 353. REFERENCES TO CHANGES ELSEWHERE IN DIVISION.

       (a) Deportation for High Speed Flight.--For provision 
     making high speed flight from an immigration checkpoint 
     subject to deportation, see section 108(c) of this division.
       (b) Inadmissibility of Aliens Previously Removed and 
     Unlawfully Present.--For provision making aliens previously 
     removed and unlawfully present in the United States 
     inadmissible, see section 301(b) of this division.
       (c) Inadmissibility of Illegal Entrants.--For provision 
     revising the ground of inadmissibility for illegal entrants 
     and immigration violators, see section 301(c) of this 
     division.
       (d) Deportation for Visa Violators.--For provision revising 
     the ground of deportation for illegal entrants, see section 
     301(d) of this division.
       (e) Labor Certifications for Professional Athletes.--For 
     provision providing for continued validity of labor 
     certifications and classification petitions for professional 
     athletes, see section 624 of this division.
      Subtitle D--Changes in Removal of Alien Terrorist Provisions

     SEC. 354. TREATMENT OF CLASSIFIED INFORMATION.

       (a) Limitation on Provision of Summaries; Use of Special 
     Attorneys in Challenges to Classified Information.--
       (1) No provision of summary in certain cases.--Section 
     504(e)(3)(D) (8 U.S.C. 1534(e)(3)(D)) is amended--
       (A) in clause (ii), by inserting before the period at the 
     end the following: ``unless the judge makes the findings 
     under clause (iii)'', and
       (B) by adding at the end the following new clause:
       ``(iii) Findings.--The findings described in this clause 
     are, with respect to an alien, that--

       ``(I) the continued presence of the alien in the United 
     States would likely cause serious and irreparable harm to the 
     national security or death or serious bodily injury to any 
     person, and
       ``(II) the provision of the summary would likely cause 
     serious and irreparable harm to the national security or 
     death or serious bodily injury to any person.''.

       (2) Special challenge procedures.--Section 504(e)(3) (8 
     U.S.C. 1534(e)(3)) is amended by adding at the end the 
     following new subparagraphs:
       ``(E) Continuation of hearing without summary.--If a judge 
     makes the findings described in subparagraph (D)(iii)--
       ``(i) if the alien involved is an alien lawfully admitted 
     for permanent residence, the procedures described in 
     subparagraph (F) shall apply; and
       ``(ii) in all cases the special removal hearing shall 
     continue, the Department of Justice shall cause to be 
     delivered to the alien a statement that no summary is 
     possible, and the classified information submitted in camera 
     and ex parte may be used pursuant to this paragraph.
       ``(F) Special procedures for access and challenges to 
     classified information by special attorneys in case of lawful 
     permanent aliens.--
       ``(i) In general.--The procedures described in this 
     subparagraph are that the judge (under rules of the removal 
     court) shall designate a special attorney to assist the 
     alien--

       ``(I) by reviewing in camera the classified information on 
     behalf of the alien, and

       ``(II) by challenging through an in camera proceeding the 
     veracity of the evidence contained in the classified 
     information.

       ``(ii) Restrictions on disclosure.--A special attorney 
     receiving classified information under clause (i)--

       ``(I) shall not disclose the information to the alien or to 
     any other attorney representing the alien, and
       ``(II) who discloses such information in violation of 
     subclause (I) shall be subject to a fine under title 18, 
     United States Code, imprisoned for not less than 10 years nor 
     more than 25 years, or both.''.

       (3) Appeals.--Section 505(c) (8 U.S.C. 1535(c)) is 
     amended--
       (A) in paragraph (1), by striking ``The decision'' and 
     inserting ``Subject to paragraph (2), the decision'';
       (B) in paragraph (3)(D), by inserting before the period at 
     the end the following: ``, except that in the case of a 
     review under paragraph (2) in which an alien lawfully 
     admitted for permanent residence was denied a written summary 
     of classified information under section 504(c)(3), the Court 
     of Appeals shall review questions of fact de novo'';
       (C) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (D) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Automatic appeals in cases of permanent resident 
     aliens in which no summary provided.--
       ``(A) In general.--Unless the alien waives the right to a 
     review under this paragraph, in any case involving an alien 
     lawfully admitted for permanent residence who is denied a 
     written summary of classified information under section 
     504(e)(3) and with respect to which the procedures described 
     in section 504(e)(3)(F) apply, any order issued by the judge 
     shall be reviewed by the Court of Appeals for the District of 
     Columbia Circuit.
       ``(B) Use of special attorney.--With respect to any issue 
     relating to classified information that arises in such 
     review, the alien shall be represented only by the special 
     attorney designated under section 504(e)(3)(F)(i) on behalf 
     of the alien.''.
       (4) Establishment of panel of special attorneys.--Section 
     502 (8 U.S.C. 1532) is amended by adding at the end the 
     following new subsection:
       ``(e) Establishment of Panel of Special Attorneys.--The 
     removal court shall provide for the designation of a panel of 
     attorneys each of whom--
       ``(1) has a security clearance which affords the attorney 
     access to classified information, and
       ``(2) has agreed to represent permanent resident aliens 
     with respect to classified information under section 
     504(e)(3) in accordance with (and subject to the penalties 
     under) this title.''.
       (5) Definition of special attorney.--Section 501 (8 U.S.C. 
     1531) is amended--
       (A) by striking ``and'' at the end of paragraph (5),
       (B) by striking the period at the end of paragraph (6) and 
     inserting ``; and'', and
       (C) by adding at the end the following new paragraph:
       ``(7) the term `special attorney' means an attorney who is 
     on the panel established under section 502(e).''.
       (b) Other Provisions Relating to Classified Information.--
       (1) Introduction of classified information.--Section 504(e) 
     (8 U.S.C. 1534(e)) is amended--
       (A) in paragraph (1)--
       (i) by inserting after ``(A)'' the following: ``the 
     Government is authorized to use in a removal proceedings the 
     fruits of electronic surveillance and unconsented physical 
     searches authorized under the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1801 et seq.) without 
     regard to subsections (c), (e), (f), (g), and (h) of section 
     106 of that Act and'', and
       (ii) by striking ``the Foreign Intelligence Surveillance 
     Act of 1978 (50 U.S.C. 1801 et seq.)'' and inserting ``such 
     Act''; and
       (B) by striking the period at the end of paragraph (3)(A) 
     and inserting the following: ``and neither the alien nor the 
     public shall be informed of such evidence or its sources 
     other than through reference to the summary provided pursuant 
     to this paragraph. Notwithstanding

[[Page H11813]]

     the previous sentence, the Department of Justice may, in its 
     discretion and, in the case of classified information, after 
     coordination with the originating agency, elect to introduce 
     such evidence in open session.''.
       (2) Maintenance of confidentiality of classified 
     information in arguments.--Section 504(f) (8 U.S.C. 1534(f)) 
     is amended by adding at the end the following: ``The judge 
     may allow any part of the argument that refers to evidence 
     received in camera and ex parte to be heard in camera and ex 
     parte.''.
       (3) Maintenance of confidentiality of classified 
     information in orders.--Section 504(j) (8 U.S.C. 1534(j)) is 
     amended by adding at the end the following: ``Any portion of 
     the order that would reveal the substance or source of 
     information received in camera and ex parte pursuant to 
     subsection (e) shall not be made available to the alien or 
     the public.''.

     SEC. 355. EXCLUSION OF REPRESENTATIVES OF TERRORISTS 
                   ORGANIZATIONS.

       Section 212(a)(3)(B)(i)(IV) (8 U.S.C. 
     1182(a)(3)(B)(i)(VI)), as inserted by section 411(1)(C) of 
     Public Law 104-132, is amended by inserting ``which the alien 
     knows or should have known is a terrorist organization'' 
     after ``219,''.

     SEC. 356. STANDARD FOR JUDICIAL REVIEW OF TERRORIST 
                   ORGANIZATION DESIGNATIONS.

       Section 219(b)(3) (8 U.S.C. 1189(b)(3)), as added by 
     section 302(a) of Public Law 104-132, is amended--
       (1) by striking ``or'' at the end of subparagraph (B),
       (2) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon, and
       (3) by adding at the end the following:
       ``(D) lacking substantial support in the administrative 
     record taken as a whole or in classified information 
     submitted to the court under paragraph (2), or
       ``(E) not in accord with the procedures required by law.''.

     SEC. 357. REMOVAL OF ANCILLARY RELIEF FOR VOLUNTARY 
                   DEPARTURE.

       Section 504(k) (8 U.S.C. 1534(k)) is amended--
       (1) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), and
       (2) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) voluntary departure under section 244(e);''.

     SEC. 358. EFFECTIVE DATE.

       The amendments made by this subtitle shall be effective as 
     if included in the enactment of subtitle A of title IV of the 
     Antiterrorism and Effective Death Penalty Act of 1996 (Public 
     Law 104-132).
                  Subtitle E--Transportation of Aliens

     SEC. 361. DEFINITION OF STOWAWAY.

       (a) Stowaway Defined.--Section 101(a) (8 U.S.C. 1101(a)), 
     as amended by section 322(a)(1) of this division, is amended 
     by adding at the end the following new paragraph:
       ``(49) The term `stowaway' means any alien who obtains 
     transportation without the consent of the owner, charterer, 
     master or person in command of any vessel or aircraft through 
     concealment aboard such vessel or aircraft. A passenger who 
     boards with a valid ticket is not to be considered a 
     stowaway.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act.

     SEC. 362. TRANSPORTATION CONTRACTS.

       (a) Coverage of Noncontiguous Territory.--Section 238 (8 
     U.S.C. 1228), before redesignation as section 233 under 
     section 308(b)(4) of this division, is amended--
       (1) in the heading, by striking ``contiguous'', and
       (2) by striking ``contiguous'' each place it appears in 
     subsections (a), (b), and (d).
       (b) Coverage of Railroad Train.--Subsection (d) of such 
     section is further amended by inserting ``or railroad train'' 
     after ``aircraft''.
                   Subtitle F--Additional Provisions

     SEC. 371. IMMIGRATION JUDGES AND COMPENSATION.

       (a) Definition of Term.--Paragraph (4) of section 101(b) (8 
     U.S.C. 1101(b)) is amended to read as follows:
       ``(4) The term `immigration judge' means an attorney whom 
     the Attorney General appoints as an administrative judge 
     within the Executive Office for Immigration Review, qualified 
     to conduct specified classes of proceedings, including a 
     hearing under section 240. An immigration judge shall be 
     subject to such supervision and shall perform such duties as 
     the Attorney General shall prescribe, but shall not be 
     employed by the Immigration and Naturalization Service.''.
       (b) Substitution for Term ``Special Inquiry Officer''.--The 
     Immigration and Nationality Act is amended by striking ``a 
     special inquiry officer'', ``A special inquiry officer'', 
     ``special inquiry officer'', and ``special inquiry officers'' 
     and inserting ``an immigration judge'', ``An immigration 
     judge'', ``immigration judge'', and ``immigration judges'', 
     respectively, each place it appears in the following 
     sections:
       (1) Section 106(a)(2) (8 U.S.C. 1105a(a)(2)), before its 
     repeal by section 306(c) of this division.
       (2) Section 209(a)(2) (8 U.S.C. 1159(a)(2)).
       (3) Section 234 (8 U.S.C. 1224), before redesignation by 
     section 308(b) of this division.
       (4) Section 235 (8 U.S.C. 1225), before amendment by 
     section 302(a) of this division.
       (5) Section 236 (8 U.S.C. 1226), before amendment by 
     section 303 of this division.
       (6) Section 242(b) (8 U.S.C. 1252(b)), before amendment by 
     section 306(a)(2) of this division.
       (7) Section 242B(d)(1) (8 U.S.C. 1252b(d)(1)), before 
     repeal by section 306(b)(6) of this division.
       (8) Section 273(d) (8 U.S.C. 1323(d)), before its repeal by 
     section 308(e)(13) of this division.
       (9) Section 292 (8 U.S.C. 1362).
       (c) Compensation for Immigration Judges.--
       (1) In general.--There shall be four levels of pay for 
     immigration judges, under the Immigration Judge Schedule 
     (designated as IJ-1, 2, 3, and 4, respectively), and each 
     such judge shall be paid at one of those levels, in 
     accordance with the provisions of this subsection.
       (2) Rates of pay.--
       (A) The rates of basic pay for the levels established under 
     paragraph (1) shall be as follows:

70% of the next to highest rate of basic pay for the Senior Executive .
  Service
80% of the next to highest rate of basic pay for the Senior Executive .
  Service
90% of the next to highest rate of basic pay for the Senior Executive .
  Service
92% of the next to highest rate of basic pay for the Senior Executive .
  Service.

       (B) Locality pay, where applicable, shall be calculated 
     into the basic pay for immigration judges.
       (3) Appointment.--
       (A) Upon appointment, an immigration judge shall be paid at 
     IJ-1, and shall be advanced to IJ-2 upon completion of 104 
     weeks of service, to IJ-3 upon completion of 104 weeks of 
     service in the next lower rate, and to IJ-4 upon completion 
     of 52 weeks of service in the next lower rate.
       (B) Notwithstanding subparagraph (A), the Attorney General 
     may provide for appointment of an immigration judge at an 
     advanced rate under such circumstances as the Attorney 
     General may determine appropriate.
       (4) Transition.--Immigration judges serving as of the 
     effective date shall be paid at the rate that corresponds to 
     the amount of time, as provided under paragraph (3)(A), that 
     they have served as an immigration judge, and in no case 
     shall be paid less after the effective date than the rate of 
     pay prior to the effective date.
       (d) Effective Dates.--
       (1) Subsections (a) and (b) shall take effect on the date 
     of the enactment of this Act.
       (2) Subsection (c) shall take effect 90 days after the date 
     of the enactment of this Act.

     SEC. 372. DELEGATION OF IMMIGRATION ENFORCEMENT AUTHORITY.

       Section 103(a) (8 U.S.C. 1103(a)) is amended--
       (1) inserting ``(1)'' after ``(a)'',
       (2) by designating each sentence (after the first sentence) 
     as a separate paragraph with appropriate consecutive 
     numbering and initial indentation,
       (3) by adding at the end the following new paragraph:
       ``(8) In the event the Attorney General determines that an 
     actual or imminent mass influx of aliens arriving off the 
     coast of the United States, or near a land border, presents 
     urgent circumstances requiring an immediate Federal response, 
     the Attorney General may authorize any State or local law 
     enforcement officer, with the consent of the head of the 
     department, agency, or establishment under whose jurisdiction 
     the individual is serving, to perform or exercise any of the 
     powers, privileges, or duties conferred or imposed by this 
     Act or regulations issued thereunder upon officers or 
     employees of the Service.''.

     SEC. 373. POWERS AND DUTIES OF THE ATTORNEY GENERAL AND THE 
                   COMMISSIONER.

       Section 103 (8 U.S.C. 1103) is amended--
       (1) by adding at the end of subsection (a) the following 
     new paragraph:
       ``(9) The Attorney General, in support of persons in 
     administrative detention in non-Federal institutions, is 
     authorized--
       ``(A) to make payments from funds appropriated for the 
     administration and enforcement of the laws relating to 
     immigration, naturalization, and alien registration for 
     necessary clothing, medical care, necessary guard hire, and 
     the housing, care, and security of persons detained by the 
     Service pursuant to Federal law under an agreement with a 
     State or political subdivision of a State; and
       ``(B) to enter into a cooperative agreement with any State, 
     territory, or political subdivision thereof, for the 
     necessary construction, physical renovation, acquisition of 
     equipment, supplies or materials required to establish 
     acceptable conditions of confinement and detention services 
     in any State or unit of local government which agrees to 
     provide guaranteed bed space for persons detained by the 
     Service.''; and
       (2) by adding at the end of subsection (c), as redesignated 
     by section 102(d)(1) of this division, the following: ``The 
     Commissioner may enter into cooperative agreements with State 
     and local law enforcement agencies for the purpose of 
     assisting in the enforcement of the immigration laws.''.

     SEC. 374. JUDICIAL DEPORTATION.

       (a) In General.--Section 242A(d) (8 U.S.C. 1252a(d)), as 
     added by section 224(a) of Immigration and Nationality 
     Technical Corrections Act of 1994 and before redesignation by 
     section 308(b)(5) of this division, is amended--
       (1) in paragraph (1), by striking ``whose criminal 
     conviction causes such alien to be deportable under section 
     241(a)(2)(A)'' and inserting ``who is deportable'';
       (2) in paragraph (4), by striking ``without a decision on 
     the merits''; and
       (3) by adding at the end the following new paragraph:
       ``(5) Stipulated judicial order of deportation.--The United 
     States Attorney, with the concurrence of the Commissioner, 
     may, pursuant to Federal Rule of Criminal Procedure 11, enter 
     into a plea agreement which calls for the alien, who is 
     deportable under this Act, to waive the right to notice and a 
     hearing under this section, and stipulate to the entry of a 
     judicial order of deportation from the United States as a 
     condition of the plea agreement or as a condition of 
     probation or supervised release, or both.

[[Page H11814]]

     The United States district court, in both felony and 
     misdemeanor cases, and a United States magistrate judge in 
     misdemeanor cases, may accept such a stipulation and shall 
     have jurisdiction to enter a judicial order of deportation 
     pursuant to the terms of such stipulation.''.
       (b) Deportation As a Condition of Probation.--Section 
     3563(b) of title 18, United States Code, is amended--
       (1) by striking ``or'' at the end of paragraph (20);
       (2) by redesignating paragraph (21) as paragraph (22); and
       (3) by inserting after paragraph (20) the following new 
     paragraph:
       ``(21) be ordered deported by a United States district 
     court, or United States magistrate judge, pursuant to a 
     stipulation entered into by the defendant and the United 
     States under section 242A(d)(5) of the Immigration and 
     Nationality Act, except that, in the absence of a 
     stipulation, the United States district court or a United 
     States magistrate judge, may order deportation as a condition 
     of probation, if, after notice and hearing pursuant to such 
     section, the Attorney General demonstrates by clear and 
     convincing evidence that the alien is deportable; or''.
       (c) Effective Date.--The amendment made by subsection 
     (a)(2) shall be effective as if included in the enactment of 
     section 224(a) of the Immigration and Nationality Technical 
     Corrections Act of 1994.

     SEC. 375. LIMITATION ON ADJUSTMENT OF STATUS.

       Section 245(c) (8 U.S.C. 1255(c)) is amended--
       (1) by striking ``or (6)'' and inserting ``(6)''; and
       (2) by inserting before the period at the end the 
     following: ``; (7) any alien who seeks adjustment of status 
     to that of an immigrant under section 203(b) and is not in a 
     lawful nonimmigrant status; or (8) any alien who was employed 
     while the alien was an unauthorized alien, as defined in 
     section 274A(h)(3), or who has otherwise violated the terms 
     of a nonimmigrant visa''.

     SEC. 376. TREATMENT OF CERTAIN FEES.

       (a) Increase in Fee.--Section 245(i) (8 U.S.C. 1255(i)), as 
     added by section 506(b) of Public Law 103-317, is amended--
       (1) in paragraph (1), by striking ``five times the fee 
     required for the processing of applications under this 
     section'' and inserting ``$1,000''; and
       (2) by amending paragraph (3) to read as follows:
       ``(3)(A) The portion of each application fee (not to exceed 
     $200) that the Attorney General determines is required to 
     process an application under this section and is remitted to 
     the Attorney General pursuant to paragraphs (1) and (2) of 
     this subsection shall be disposed of by the Attorney General 
     as provided in subsections (m), (n), and (o) of section 286.
       ``(B) Any remaining portion of such fees remitted under 
     such paragraphs shall be deposited by the Attorney General 
     into the Immigration Detention Account established under 
     section 286(s).''.
       (b) Immigration Detention Account.--Section 286 (8 U.S.C. 
     1356) is amended by adding at the end the following new 
     subsection:
       ``(s) Immigration Detention Account.--(1) There is 
     established in the general fund of the Treasury a separate 
     account which shall be known as the `Immigration Detention 
     Account'. Notwithstanding any other section of this title, 
     there shall be deposited as offsetting receipts into the 
     Immigration Detention Account amounts described in section 
     245(i)(3)(B) to remain available until expended.
       ``(2)(A) The Secretary of the Treasury shall refund out of 
     the Immigration Detention Account to any appropriation the 
     amount paid out of such appropriation for expenses incurred 
     by the Attorney General for the detention of aliens under 
     sections 236(c) and 241(a).
       ``(B) The amounts which are required to be refunded under 
     subparagraph (A) shall be refunded at least quarterly on the 
     basis of estimates made by the Attorney General of the 
     expenses referred to in subparagraph (A). Proper adjustments 
     shall be made in the amounts subsequently refunded under 
     subparagraph (A) to the extent prior estimates were in excess 
     of, or less than, the amount required to be refunded under 
     subparagraph (A).
       ``(C) The amounts required to be refunded from the 
     Immigration Detention Account for fiscal year 1997 and 
     thereafter shall be refunded in accordance with estimates 
     made in the budget request of the Attorney General for those 
     fiscal years. Any proposed changes in the amounts designated 
     in such budget requests shall only be made after notification 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate in accordance with section 605 
     of Public Law 104-134.
       ``(D) The Attorney General shall prepare and submit 
     annually to the Congress statements of financial condition of 
     the Immigration Detention Account, including beginning 
     account balance, revenues, withdrawals, and ending account 
     balance and projection for the ensuing fiscal year.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to applications made on or after the end of the 
     90-day period beginning on the date of the enactment of this 
     Act.

     SEC. 377. LIMITATION ON LEGALIZATION LITIGATION.

       (a) Limitation on Court Jurisdiction.--Section 245A(f)(4) 
     (8 U.S.C. 1255a(f)(4)) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Jurisdiction of courts.--Notwithstanding any other 
     provision of law, no court shall have jurisdiction of any 
     cause of action or claim by or on behalf of any person 
     asserting an interest under this section unless such person 
     in fact filed an application under this section within the 
     period specified by subsection (a)(1), or attempted to file a 
     complete application and application fee with an authorized 
     legalization officer of the Service but had the application 
     and fee refused by that officer.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective as if included in the enactment of the 
     Immigration Reform and Control Act of 1986.

     SEC. 378. RESCISSION OF LAWFUL PERMANENT RESIDENT STATUS.

       (a) In General.--Section 246(a) (8 U.S.C. 1256(a)) is 
     amended by adding at the end the following sentence: 
     ``Nothing in this subsection shall require the Attorney 
     General to rescind the alien's status prior to commencement 
     of procedures to remove the alien under section 240, and an 
     order of removal issued by an immigration judge shall be 
     sufficient to rescind the alien's status.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the title III-A effective date (as 
     defined in section 309(a) of this division).

     SEC. 379. ADMINISTRATIVE REVIEW OF ORDERS.

       (a) In General.--Sections 274A(e)(7) and 274C(d)(4) (8 
     U.S.C. 1324a(e)(7), 1324c(d)(4)) are each amended--
       (1) by striking ``unless, within 30 days, the Attorney 
     General modifies or vacates the decision and order'' and 
     inserting ``unless either (A) within 30 days, an official 
     delegated by regulation to exercise review authority over the 
     decision and order modifies or vacates the decision and 
     order, or (B) within 30 days of the date of such a 
     modification or vacation (or within 60 days of the date of 
     decision and order of an administrative law judge if not so 
     modified or vacated) the decision and order is referred to 
     the Attorney General pursuant to regulations''; and
       (2) by striking ``a final order'' and inserting ``the final 
     agency decision and order''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to orders issued on or after the date of the 
     enactment of this Act.

     SEC. 380. CIVIL PENALTIES FOR FAILURE TO DEPART.

       (a) In General.--The Immigration and Nationality Act is 
     amended by inserting after section 274C the following new 
     section:


                ``civil penalties for failure to depart

       ``Sec. 274D. (a) In General.--Any alien subject to a final 
     order of removal who--
       ``(1) willfully fails or refuses to--
       ``(A) depart from the United States pursuant to the order,
       ``(B) make timely application in good faith for travel or 
     other documents necessary for departure, or
       ``(C) present for removal at the time and place required by 
     the Attorney General; or
       ``(2) conspires to or takes any action designed to prevent 
     or hamper the alien's departure pursuant to the order,

     shall pay a civil penalty of not more than $500 to the 
     Commissioner for each day the alien is in violation of this 
     section.
       ``(b) Construction.--Nothing in this section shall be 
     construed to diminish or qualify any penalties to which an 
     alien may be subject for activities proscribed by section 
     243(a) or any other section of this Act.''.
       (b) Clerical Amendment.--The table of contents is amended 
     by inserting after the item relating to section 274C the 
     following new item:

``Sec. 274D. Civil penalties for failure to depart.''.

       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to actions occurring on or after the title III-A 
     effective date (as defined in section 309(a) of this 
     division).

     SEC. 381. CLARIFICATION OF DISTRICT COURT JURISDICTION.

       (a) In General.--Section 279 (8 U.S.C. 1329) is amended--
       (1) by amending the first sentence to read as follows: 
     ``The district courts of the United States shall have 
     jurisdiction of all causes, civil and criminal, brought by 
     the United States that arise under the provisions of this 
     title.'', and
       (2) by adding at the end the following new sentence: 
     ``Nothing in this section shall be construed as providing 
     jurisdiction for suits against the United States or its 
     agencies or officers.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to actions filed after the date of the enactment 
     of this Act.

     SEC. 382. APPLICATION OF ADDITIONAL CIVIL PENALTIES TO 
                   ENFORCEMENT.

       (a) In General.--Subsection (b) of section 280 (8 U.S.C. 
     1330) is amended to read as follows:
       ``(b)(1) There is established in the general fund of the 
     Treasury a separate account which shall be known as the 
     `Immigration Enforcement Account'. Notwithstanding any other 
     section of this title, there shall be deposited as offsetting 
     receipts into the Immigration Enforcement Account amounts 
     described in paragraph (2) to remain available until 
     expended.
       ``(2) The amounts described in this paragraph are the 
     following:
       ``(A) The increase in penalties collected resulting from 
     the amendments made by sections 203(b) and 543(a) of the 
     Immigration Act of 1990.
       ``(B) Civil penalties collected under sections 240B(d), 
     274C, 274D, and 275(b).
       ``(3)(A) The Secretary of the Treasury shall refund out of 
     the Immigration Enforcement Account to any appropriation the 
     amount paid out of such appropriation for expenses incurred 
     by the Attorney General for activities that enhance 
     enforcement of provisions of this title. Such activities 
     include--
       ``(i) the identification, investigation, apprehension, 
     detention, and removal of criminal aliens;
       ``(ii) the maintenance and updating of a system to identify 
     and track criminal aliens, deportable aliens, inadmissible 
     aliens, and aliens illegally entering the United States; and
       ``(iii) for the repair, maintenance, or construction on the 
     United States border, in areas experiencing high levels of 
     apprehensions of illegal

[[Page H11815]]

     aliens, of structures to deter illegal entry into the United 
     States.
       ``(B) The amounts which are required to be refunded under 
     subparagraph (A) shall be refunded at least quarterly on the 
     basis of estimates made by the Attorney General of the 
     expenses referred to in subparagraph (A). Proper adjustments 
     shall be made in the amounts subsequently refunded under 
     subparagraph (A) to the extent prior estimates were in excess 
     of, or less than, the amount required to be refunded under 
     subparagraph (A).
       ``(C) The amounts required to be refunded from the 
     Immigration Enforcement Account for fiscal year 1996 and 
     thereafter shall be refunded in accordance with estimates 
     made in the budget request of the Attorney General for those 
     fiscal years. Any proposed changes in the amounts designated 
     in such budget requests shall only be made after notification 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate in accordance with section 605 
     of Public Law 104-134.
       ``(D) The Attorney General shall prepare and submit 
     annually to the Congress statements of financial condition of 
     the Immigration Enforcement Account, including beginning 
     account balance, revenues, withdrawals, and ending account 
     balance and projection for the ensuing fiscal year.''.
       (b) Immigration User Fee Account.--Section 286(h)(1)(B) (8 
     U.S.C. 1356(h)(1)(B)) is amended by striking ``271'' and 
     inserting ``243(c), 271,''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fines and penalties collected on or after the 
     date of the enactment of this Act.

     SEC. 383. EXCLUSION OF CERTAIN ALIENS FROM FAMILY UNITY 
                   PROGRAM.

       (a) In General.--Section 301(e) of the Immigration Act of 
     1990 (8 U.S.C. 1255a note) is amended--
       (1) by striking ``or'' at the end of paragraph (1),
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``, or'', and
       (3) by adding at the end the following new paragraph:
       ``(3) has committed an act of juvenile delinquency which if 
     committed by an adult would be classified as--
       ``(A) a felony crime of violence that has an element the 
     use or attempted use of physical force against another 
     individual, or
       ``(B) a felony offense that by its nature involves a 
     substantial risk that physical force against another 
     individual may be used in the course of committing the 
     offense.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to benefits granted or extended after the date of 
     the enactment of this Act.

     SEC. 384. PENALTIES FOR DISCLOSURE OF INFORMATION.

       (a) In General.--Except as provided in subsection (b), in 
     no case may the Attorney General, or any other official or 
     employee of the Department of Justice (including any bureau 
     or agency of such Department)--
       (1) make an adverse determination of admissibility or 
     deportability of an alien under the Immigration and 
     Nationality Act using information furnished solely by--
       (A) a spouse or parent who has battered the alien or 
     subjected the alien to extreme cruelty,
       (B) a member of the spouse's or parent's family residing in 
     the same household as the alien who has battered the alien or 
     subjected the alien to extreme cruelty when the spouse or 
     parent consented to or acquiesced in such battery or cruelty,
       (C) a spouse or parent who has battered the alien's child 
     or subjected the alien's child to extreme cruelty (without 
     the active participation of the alien in the battery or 
     extreme cruelty), or
       (D) a member of the spouse's or parent's family residing in 
     the same household as the alien who has battered the alien's 
     child or subjected the alien's child to extreme cruelty when 
     the spouse or parent consented to or acquiesced in such 
     battery or cruelty and the alien did not actively participate 
     in such battery or cruelty,

     unless the alien has been convicted of a crime or crimes 
     listed in section 241(a)(2) of the Immigration and 
     Nationality Act; or
       (2) permit use by or disclosure to anyone (other than a 
     sworn officer or employee of the Department, or bureau or 
     agency thereof, for legitimate Department, bureau, or agency 
     purposes) of any information which relates to an alien who is 
     the beneficiary of an application for relief under clause 
     (iii) or (iv) of section 204(a)(1)(A), clause (ii) or (iii) 
     of section 204(a)(1)(B), section 216(c)(4)(C), or section 
     244(a)(3) of such Act as an alien (or the parent of a child) 
     who has been battered or subjected to extreme cruelty.

     The limitation under paragraph (2) ends when the application 
     for relief is denied and all opportunities for appeal of the 
     denial have been exhausted.
       (b) Exceptions.--
       (1) The Attorney General may provide, in the Attorney 
     General's discretion, for the disclosure of information in 
     the same manner and circumstances as census information may 
     be disclosed by the Secretary of Commerce under section 8 of 
     title 13, United States Code.
       (2) The Attorney General may provide in the discretion of 
     the Attorney General for the disclosure of information to law 
     enforcement officials to be used solely for a legitimate law 
     enforcement purpose.
       (3) Subsection (a) shall not be construed as preventing 
     disclosure of information in connection with judicial review 
     of a determination in a manner that protects the 
     confidentiality of such information.
       (4) Subsection (a)(2) shall not apply if all the battered 
     individuals in the case are adults and they have all waived 
     the restrictions of such subsection.
       (c) Penalties for Violations.--Anyone who willfully uses, 
     publishes, or permits information to be disclosed in 
     violation of this section shall be subject to appropriate 
     disciplinary action and subject to a civil money penalty of 
     not more than $5,000 for each such violation.
       (d) Conforming Amendments to Other Disclosure 
     Restrictions.--
       (1) In general.--The last sentence of section 210(b)(6) and 
     the second sentence of section 245A(c)(5) (8 U.S.C. 
     1255a(c)(5)) are each amended to read as follows: ``Anyone 
     who uses, publishes, or permits information to be examined in 
     violation of this paragraph shall be subject to appropriate 
     disciplinary action and subject to a civil money penalty of 
     not more than $5,000 for each violation.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to offenses occurring on or after the date of the 
     enactment of this Act.

     SEC. 385. AUTHORIZATION OF ADDITIONAL FUNDS FOR REMOVAL OF 
                   ALIENS.

       In addition to the amounts otherwise authorized to be 
     appropriated for each fiscal year beginning with fiscal year 
     1996, there are authorized to be appropriated to the Attorney 
     General $150,000,000 for costs associated with the removal of 
     inadmissible or deportable aliens, including costs of 
     detention of such aliens pending their removal, the hiring of 
     more investigators, and the hiring of more detention and 
     deportation officers.

     SEC. 386. INCREASE IN INS DETENTION FACILITIES; REPORT ON 
                   DETENTION SPACE.

       (a) Increase in Detention Facilities.--Subject to the 
     availability of appropriations, the Attorney General shall 
     provide for an increase in the detention facilities of the 
     Immigration and Naturalization Service to at least 9,000 beds 
     before the end of fiscal year 1997.
       (b) Report on Detention Space.--
       (1) In general.--Not later than 6 months after the date of 
     the enactment of this Act, and every 6 months thereafter, the 
     Attorney General shall submit a report to the Committees on 
     the Judiciary of the House of Representatives and of the 
     Senate estimating the amount of detention space that will be 
     required, during the fiscal year in which the report is 
     submitted and the succeeding fiscal year, to detain--
       (A) all aliens subject to detention under section 236(c) of 
     the Immigration and Nationality Act (as amended by section 
     303 of this title) and section 241(a) of the Immigration and 
     Nationality Act (as inserted by section 305(a)(3) of this 
     title);
       (B) all excludable or deportable aliens subject to 
     proceedings under section 238 of the Immigration and 
     Nationality Act (as redesignated by section 308(b)(5) of this 
     title) or section 235(b)(2)(A) or 240 of the Immigration and 
     Nationality Act; and
       (C) other excludable or deportable aliens in accordance 
     with the priorities established by the Attorney General.
       (2) Estimate of number of aliens released into the 
     community.--
       (A) Criminal aliens.--
       (i) In general.--The first report submitted under paragraph 
     (1) shall include an estimate of the number of criminal 
     aliens who, in each of the 3 fiscal years concluded prior to 
     the date of the report--

       (I) were released from detention facilities of the 
     Immigration and Naturalization Service (whether operated 
     directly by the Service or through contract with other 
     persons or agencies); or
       (II) were not taken into custody or detention by the 
     Service upon completion of their incarceration.

       (ii) Aliens convicted of aggravated felonies.--The estimate 
     under clause (i) shall estimate separately, with respect to 
     each year described in such clause, the number of criminal 
     aliens described in such clause who were convicted of an 
     aggravated felony.
       (B) All excludable or deportable aliens.--The first report 
     submitted under paragraph (1) shall also estimate the number 
     of excludable or deportable aliens who were released into the 
     community due to a lack of detention facilities in each of 
     the 3 fiscal years concluded prior to the date of the report 
     notwithstanding circumstances that the Attorney General 
     believed justified detention (for example, a significant 
     probability that the released alien would not appear, as 
     agreed, at subsequent exclusion or deportation proceedings).
       (C) Subsequent reports.--Each report under paragraph (1) 
     following the first such report shall include the estimates 
     under subparagraphs (A) and (B), made with respect to the 6-
     month period immediately preceding the date of the submission 
     of the report.

     SEC. 387. PILOT PROGRAM ON USE OF CLOSED MILITARY BASES FOR 
                   THE DETENTION OF INADMISSIBLE OR DEPORTABLE 
                   ALIENS.

       (a) Establishment.--The Attorney General and the Secretary 
     of Defense shall establish one or more pilot programs for up 
     to 2 years each to determine the feasibility of the use of 
     military bases, available because of actions under a base 
     closure law, as detention centers by the Immigration and 
     Naturalization Service. In selecting real property at a 
     military base for use as a detention center under the pilot 
     program, the Attorney General and the Secretary shall consult 
     with the redevelopment authority established for the military 
     base and give substantial deference to the redevelopment plan 
     prepared for the military base.
       (b) Report.--Not later than 30 months after the date of the 
     enactment of this Act, the Attorney General, together with 
     the Secretary of Defense, shall submit a report to the 
     Committees on the Judiciary of the House of Representatives

[[Page H11816]]

     and of the Senate, and the Committees on Armed Services of 
     the House of Representatives and of the Senate, on the 
     feasibility of using military bases closed under a base 
     closure law as detention centers by the Immigration and 
     Naturalization Service.
       (c) Definition.--For purposes of this section, the term 
     ``base closure law'' means each of the following:
       (1) The Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
     note).
       (2) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).
       (3) Section 2687 of title 10, United States Code.
       (4) Any other similar law enacted after the date of the 
     enactment of this Act.

     SEC. 388. REPORT ON INTERIOR REPATRIATION PROGRAM.

       Not later than 30 months after the date of the enactment of 
     this Act, the Attorney General, in consultation with the 
     Secretary of State, shall submit a report to the Committees 
     on the Judiciary of the House of Representatives and of the 
     Senate on the operation of the program of interior 
     repatriation developed under section 437 of the Antiterrorism 
     and Effective Death Penalty Act of 1996 (Public Law 104-132).
        TITLE IV--ENFORCEMENT OF RESTRICTIONS AGAINST EMPLOYMENT
   Subtitle A--Pilot Programs for Employment Eligibility Confirmation

     SEC. 401. ESTABLISHMENT OF PROGRAMS.

       (a) In General.--The Attorney General shall conduct 3 pilot 
     programs of employment eligibility confirmation under this 
     subtitle.
       (b) Implementation Deadline; Termination.--The Attorney 
     General shall implement the pilot programs in a manner that 
     permits persons and other entities to have elections under 
     section 402 of this division made and in effect no later than 
     1 year after the date of the enactment of this Act. Unless 
     the Congress otherwise provides, the Attorney General shall 
     terminate a pilot program at the end of the 4-year period 
     beginning on the first day the pilot program is in effect.
       (c) Scope of Operation of Pilot Programs.--The Attorney 
     General shall provide for the operation--
       (1) of the basic pilot program (described in section 403(a) 
     of this division) in, at a minimum, 5 of the 7 States with 
     the highest estimated population of aliens who are not 
     lawfully present in the United States;
       (2) of the citizen attestation pilot program (described in 
     section 403(b) of this division) in at least 5 States (or, if 
     fewer, all of the States) that meet the condition described 
     in section 403(b)(2)(A) of this division; and
       (3) of the machine-readable-document pilot program 
     (described in section 403(c) of this division) in at least 5 
     States (or, if fewer, all of the States) that meet the 
     condition described in section 403(c)(2) of this division.
       (d) References in Subtitle.--In this subtitle--
       (1) Pilot program references.--The terms ``program'' or 
     ``pilot program'' refer to any of the 3 pilot programs 
     provided for under this subtitle.
       (2) Confirmation system.--The term ``confirmation system'' 
     means the confirmation system established under section 404 
     of this division.
       (3) References to section 274a.--Any reference in this 
     subtitle to section 274A (or a subdivision of such section) 
     is deemed a reference to such section (or subdivision 
     thereof) of the Immigration and Nationality Act.
       (4) I-9 or similar form.--The term ``I-9 or similar form'' 
     means the form used for purposes of section 274A(b)(1)(A) or 
     such other form as the Attorney General determines to be 
     appropriate.
        (5) Limited application to recruiters and referrers.--Any 
     reference to recruitment or referral (or a recruiter or 
     referrer) in relation to employment is deemed a reference 
     only to such recruitment or referral (or recruiter or 
     referrer) that is subject to section 274A(a)(1)(B)(ii).
       (6) United states citizenship.--The term ``United States 
     citizenship'' includes United States nationality.
       (7) State.--The term ``State'' has the meaning given such 
     term in section 101(a)(36) of the Immigration and Nationality 
     Act.

     SEC. 402. VOLUNTARY ELECTION TO PARTICIPATE IN A PILOT 
                   PROGRAM.

       (a) Voluntary Election.--Subject to subsection (c)(3)(B), 
     any person or other entity that conducts any hiring (or 
     recruitment or referral) in a State in which a pilot program 
     is operating may elect to participate in that pilot program. 
     Except as specifically provided in subsection (e), the 
     Attorney General may not require any person or other entity 
     to participate in a pilot program.
       (b) Benefit of Rebuttable Presumption.--
       (1) In general.--If a person or other entity is 
     participating in a pilot program and obtains confirmation of 
     identity and employment eligibility in compliance with the 
     terms and conditions of the program with respect to the 
     hiring (or recruitment or referral) of an individual for 
     employment in the United States, the person or entity has 
     established a rebuttable presumption that the person or 
     entity has not violated section 274A(a)(1)(A) with respect to 
     such hiring (or such recruitment or referral).
       (2) Construction.--Paragraph (1) shall not be construed as 
     preventing a person or other entity that has an election in 
     effect under subsection (a) from establishing an affirmative 
     defense under section 274A(a)(3) if the person or entity 
     complies with the requirements of section 274A(a)(1)(B) but 
     fails to obtain confirmation under paragraph (1).
       (c) General Terms of Elections.--
       (1) In general.--An election under subsection (a) shall be 
     in such form and manner, under such terms and conditions, and 
     shall take effect, as the Attorney General shall specify. The 
     Attorney General may not impose any fee as a condition of 
     making an election or participating in a pilot program.
       (2) Scope of election.--
       (A) In general.--Subject to paragraph (3), any electing 
     person or other entity may provide that the election under 
     subsection (a) shall apply (during the period in which the 
     election is in effect)--
       (i) to all its hiring (and all recruitment or referral) in 
     the State (or States) in which the pilot program is 
     operating, or
       (ii) to its hiring (or recruitment or referral) in one or 
     more pilot program States or one or more places of hiring (or 
     recruitment or referral, as the case may be) in the pilot 
     program States.
       (B) Application of programs in non-pilot program states.--
     In addition, the Attorney General may permit a person or 
     entity electing--
       (i) the basic pilot program (described in section 403(a) of 
     this division) to provide that the election applies to its 
     hiring (or recruitment or referral) in one or more States or 
     places of hiring (or recruitment or referral) in which the 
     pilot program is not otherwise operating, or
       (ii) the citizen attestation pilot program (described in 
     403(b) of this division) or the machine-readable-document 
     pilot program (described in section 403(c) of this division) 
     to provide that the election applies to its hiring (or 
     recruitment or referral) in one or more States or places of 
     hiring (or recruitment or referral) in which the pilot 
     program is not otherwise operating but only if such States 
     meet the requirements of 403(b)(2)(A) and 403(c)(2) of this 
     division, respectively.
       (3) Acceptance and rejection of elections.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Attorney General shall accept all elections made under 
     subsection (a).
       (B) Rejection of elections.--The Attorney General may 
     reject an election by a person or other entity under this 
     section or limit its applicability to certain States or 
     places of hiring (or recruitment or referral) if the Attorney 
     General has determined that there are insufficient resources 
     to provide appropriate services under a pilot program for the 
     person's or entity's hiring (or recruitment or referral) in 
     any or all States or places of hiring.
       (4) Termination of elections.--The Attorney General may 
     terminate an election by a person or other entity under this 
     section because the person or entity has substantially failed 
     to comply with its obligations under the pilot program. A 
     person or other entity may terminate an election in such form 
     and manner as the Attorney General shall specify.
       (d) Consultation, Education, and Publicity.--
       (1) Consultation.--The Attorney General shall closely 
     consult with representatives of employers (and recruiters and 
     referrers) in the development and implementation of the pilot 
     programs, including the education of employers (and 
     recruiters and referrers) about such programs.
       (2) Publicity.--The Attorney General shall widely publicize 
     the election process and pilot programs, including the 
     voluntary nature of the pilot programs and the advantages to 
     employers (and recruiters and referrers) of making an 
     election under this section.
       (3) Assistance through district offices.--The Attorney 
     General shall designate one or more individuals in each 
     District office of the Immigration and Naturalization Service 
     for a Service District in which a pilot program is being 
     implemented--
       (A) to inform persons and other entities that seek 
     information about pilot programs of the voluntary nature of 
     such programs, and
       (B) to assist persons and other entities in electing and 
     participating in any pilot programs in effect in the 
     District, in complying with the requirements of section 274A, 
     and in facilitating confirmation of the identity and 
     employment eligibility of individuals consistent with such 
     section.
       (e) Select Entities Required to Participate in a Pilot 
     Program.--
       (1) Federal government.--
       (A) Executive departments.--
       (i) In general.--Each Department of the Federal Government 
     shall elect to participate in a pilot program and shall 
     comply with the terms and conditions of such an election.
       (ii) Election.--Subject to clause (iii), the Secretary of 
     each such Department--

       (I) shall elect the pilot program (or programs) in which 
     the Department shall participate, and
       (II) may limit the election to hiring occurring in certain 
     States (or geographic areas) covered by the program (or 
     programs) and in specified divisions within the Department, 
     so long as all hiring by such divisions and in such locations 
     is covered.

       (iii) Role of attorney general.--The Attorney General shall 
     assist and coordinate elections under this subparagraph in 
     such manner as assures that--

       (I) a significant portion of the total hiring within each 
     Department within States covered by a pilot program is 
     covered under such a program, and
       (II) there is significant participation by the Federal 
     Executive branch in each of the pilot programs.

       (B) Legislative branch.--Each Member of Congress, each 
     officer of Congress, and the head of each agency of the 
     legislative branch, that conducts hiring in a State in which 
     a pilot program is operating shall elect to participate in a 
     pilot program, may specify which pilot program or programs 
     (if there is more than one) in which the Member, officer, or 
     agency will participate, and shall comply with the terms and 
     conditions of such an election.
       (2) Application to certain violators.--An order under 
     section 274A(e)(4) or section 274B(g)

[[Page H11817]]

     of the Immigration and Nationality Act may require the 
     subject of the order to participate in, and comply with the 
     terms of, a pilot program with respect to the subject's 
     hiring (or recruitment or referral) of individuals in a State 
     covered by such a program.
       (3) Consequence of failure to participate.--If a person or 
     other entity is required under this subsection to participate 
     in a pilot program and fails to comply with the requirements 
     of such program with respect to an individual--
       (A) such failure shall be treated as a violation of section 
     274A(a)(1)(B) with respect to that individual, and
       (B) a rebuttable presumption is created that the person or 
     entity has violated section 274A(a)(1)(A).
     Subparagraph (B) shall not apply in any prosecution under 
     section 274A(f)(1).
       (f) Construction.--This subtitle shall not affect the 
     authority of the Attorney General under any other law 
     (including section 274A(d)(4)) to conduct demonstration 
     projects in relation to section 274A.

     SEC. 403. PROCEDURES FOR PARTICIPANTS IN PILOT PROGRAMS.

       (a) Basic Pilot Program.--A person or other entity that 
     elects to participate in the basic pilot program described in 
     this subsection agrees to conform to the following procedures 
     in the case of the hiring (or recruitment or referral) for 
     employment in the United States of each individual covered by 
     the election:
       (1) Provision of additional information.--The person or 
     entity shall obtain from the individual (and the individual 
     shall provide) and shall record on the I-9 or similar form--
       (A) the individual's social security account number, if the 
     individual has been issued such a number, and
       (B) if the individual does not attest to United States 
     citizenship under section 274A(b)(2), such identification or 
     authorization number established by the Immigration and 
     Naturalization Service for the alien as the Attorney General 
     shall specify,
     and shall retain the original form and make it available for 
     inspection for the period and in the manner required of I-9 
     forms under section 274A(b)(3).
       (2) Presentation of documentation.--
       (A) In general.--The person or other entity, and the 
     individual whose identity and employment eligibility are 
     being confirmed, shall, subject to subparagraph (B), fulfill 
     the requirements of section 274A(b) with the following 
     modifications:
       (i) A document referred to in section 274A(b)(1)(B)(ii) (as 
     redesignated by section 412(a) of this division) must be 
     designated by the Attorney General as suitable for the 
     purpose of identification in a pilot program.
       (ii) A document referred to in section 274A(b)(1)(D) must 
     contain a photograph of the individual.
       (iii) The person or other entity has complied with the 
     requirements of section 274A(b)(1) with respect to 
     examination of a document if the document reasonably appears 
     on its face to be genuine and it reasonably appears to 
     pertain to the individual whose identity and work eligibility 
     is being confirmed.
       (B) Limitation of requirement to examine documentation.--If 
     the Attorney General finds that a pilot program would 
     reliably determine with respect to an individual whether--
       (i) the person with the identity claimed by the individual 
     is authorized to work in the United States, and
       (ii) the individual is claiming the identity of another 
     person,
     if a person or entity could fulfill the requirement to 
     examine documentation contained in subparagraph (A) of 
     section 274A(b)(1) by examining a document specified in 
     either subparagraph (B) or (D) of such section, the Attorney 
     General may provide that, for purposes of such requirement, 
     only such a document need be examined. In such case, any 
     reference in section 274A(b)(1)(A) to a verification that an 
     individual is not an unauthorized alien shall be deemed to be 
     a verification of the individual's identity.
       (3) Seeking confirmation.--
       (A) In general.--The person or other entity shall make an 
     inquiry, as provided in section 404(a)(1) of this division, 
     using the confirmation system to seek confirmation of the 
     identity and employment eligibility of an individual, by not 
     later than the end of 3 working days (as specified by the 
     Attorney General) after the date of the hiring (or 
     recruitment or referral, as the case may be).
       (B) Extension of time period.--If the person or other 
     entity in good faith attempts to make an inquiry during such 
     3 working days and the confirmation system has registered 
     that not all inquiries were received during such time, the 
     person or entity can make an inquiry in the first subsequent 
     working day in which the confirmation system registers that 
     it has received all inquiries. If the confirmation system 
     cannot receive inquiries at all times during a day, the 
     person or entity merely has to assert that the entity 
     attempted to make the inquiry on that day for the previous 
     sentence to apply to such an inquiry, and does not have to 
     provide any additional proof concerning such inquiry.
       (4) Confirmation or nonconfirmation.--
       (A) Confirmation upon initial inquiry.--If the person or 
     other entity receives an appropriate confirmation of an 
     individual's identity and work eligibility under the 
     confirmation system within the time period specified under 
     section 404(b) of this division, the person or entity shall 
     record on the I-9 or similar form an appropriate code that is 
     provided under the system and that indicates a final 
     confirmation of such identity and work eligibility of the 
     individual.
       (B) Nonconfirmation upon initial inquiry and secondary 
     verification.--
       (i) Nonconfirmation.--If the person or other entity 
     receives a tentative nonconfirmation of an individual's 
     identity or work eligibility under the confirmation system 
     within the time period specified under 404(b) of this 
     division, the person or entity shall so inform the individual 
     for whom the confirmation is sought.
       (ii) No contest.--If the individual does not contest the 
     nonconfirmation within the time period specified in section 
     404(c) of this division, the nonconfirmation shall be 
     considered final. The person or entity shall then record on 
     the I-9 or similar form an appropriate code which has been 
     provided under the system to indicate a tentative 
     nonconfirmation.
       (iii) Contest.--If the individual does contest the 
     nonconfirmation, the individual shall utilize the process for 
     secondary verification provided under section 404(c) of this 
     division. The nonconfirmation will remain tentative until a 
     final confirmation or nonconfirmation is provided by the 
     confirmation system within the time period specified in such 
     section. In no case shall an employer terminate employment of 
     an individual because of a failure of the individual to have 
     identity and work eligibility confirmed under this section 
     until a nonconfirmation becomes final. Nothing in this clause 
     shall apply to a termination of employment for any reason 
     other than because of such a failure.
       (iv) Recording of conclusion on form.--If a final 
     confirmation or nonconfirmation is provided by the 
     confirmation system under section 404(c) of this division 
     regarding an individual, the person or entity shall record on 
     the I-9 or similar form an appropriate code that is provided 
     under the system and that indicates a confirmation or 
     nonconfirmation of identity and work eligibility of the 
     individual.
       (C) Consequences of nonconfirmation.--
       (i) Termination or notification of continued employment.--
     If the person or other entity has received a final 
     nonconfirmation regarding an individual under subparagraph 
     (B), the person or entity may terminate employment (or 
     recruitment or referral) of the individual. If the person or 
     entity does not terminate employment (or recruitment or 
     referral) of the individual, the person or entity shall 
     notify the Attorney General of such fact through the 
     confirmation system or in such other manner as the Attorney 
     General may specify.
       (ii) Failure to notify.--If the person or entity fails to 
     provide notice with respect to an individual as required 
     under clause (i), the failure is deemed to constitute a 
     violation of section 274A(a)(1)(B) with respect to that 
     individual and the applicable civil monetary penalty under 
     section 274A(e)(5) shall be (notwithstanding the amounts 
     specified in such section) no less than $500 and no more than 
     $1,000 for each individual with respect to whom such 
     violation occurred.
       (iii) Continued employment after final nonconfirmation.--If 
     the person or other entity continues to employ (or to recruit 
     or refer) an individual after receiving final 
     nonconfirmation, a rebuttable presumption is created that the 
     person or entity has violated section 274A(a)(1)(A). The 
     previous sentence shall not apply in any prosecution under 
     section 274A(f)(1).
       (b) Citizen Attestation Pilot Program.--
       (1) In general.--Except as provided in paragraphs (3) 
     through (5), the procedures applicable under the citizen 
     attestation pilot program under this subsection shall be the 
     same procedures as those under the basic pilot program under 
     subsection (a).
       (2) Restrictions.--
       (A) State document requirement to participate in pilot 
     program.--The Attorney General may not provide for the 
     operation of the citizen attestation pilot program in a State 
     unless each driver's license or similar identification 
     document described in section 274A(b)(1)(D)(i) issued by the 
     State--
       (i) contains a photograph of the individual involved, and
       (ii) has been determined by the Attorney General to have 
     security features, and to have been issued through 
     application and issuance procedures, which make such document 
     sufficiently resistant to counterfeiting, tampering, and 
     fraudulent use that it is a reliable means of identification 
     for purposes of this section.
       (B) Authorization to limit employer participation.--The 
     Attorney General may restrict the number of persons or other 
     entities that may elect to participate in the citizen 
     attestation pilot program under this subsection as the 
     Attorney General determines to be necessary to produce a 
     representative sample of employers and to reduce the 
     potential impact of fraud.
       (3) No confirmation required for certain individuals 
     attesting to u.s. citizenship.--In the case of a person or 
     other entity hiring (or recruiting or referring) an 
     individual under the citizen attestation pilot program, if 
     the individual attests to United States citizenship (under 
     penalty of perjury on an I-9 or similar form which form 
     states on its face the criminal and other penalties provided 
     under law for a false representation of United States 
     citizenship)--
       (A) the person or entity may fulfill the requirement to 
     examine documentation contained in subparagraph (A) of 
     section 274A(b)(1) by examining a document specified in 
     either subparagraph (B)(i) or (D) of such section; and
       (B) the person or other entity is not required to comply 
     with respect to such individual with the procedures described 
     in paragraphs (3) and (4) of subsection (a), but only if the 
     person or entity retains the form and makes it available for 
     inspection in the same manner as in the case of an I-9 form 
     under section 274A(b)(3).
       (4) Waiver of document presentation requirement in certain 
     cases.--
       (A) In general.--In the case of a person or entity that 
     elects, in a manner specified by the Attorney General 
     consistent with subparagraph (B), to participate in the pilot 
     program under

[[Page H11818]]

     this paragraph, if an individual being hired (or recruited or 
     referred) attests (in the manner described in paragraph (3)) 
     to United States citizenship and the person or entity retains 
     the form on which the attestation is made and makes it 
     available for inspection in the same manner as in the case of 
     an I-9 form under section 274A(b)(3), the person or entity is 
     not required to comply with the procedures described in 
     section 274A(b).
       (B) Restriction.--The Attorney General shall restrict the 
     election under this paragraph to no more than 1,000 employers 
     and, to the extent practicable, shall select among employers 
     seeking to make such election in a manner that provides for 
     such an election by a representative sample of employers.
       (5) Nonreviewable determinations.--The determinations of 
     the Attorney General under paragraphs (2) and (4) are within 
     the discretion of the Attorney General and are not subject to 
     judicial or administrative review.
       (c) Machine-Readable-Document Pilot Program.--
       (1) In general.--Except as provided in paragraph (3), the 
     procedures applicable under the machine-readable-document 
     pilot program under this subsection shall be the same 
     procedures as those under the basic pilot program under 
     subsection (a).
       (2) State document requirement to participate in pilot 
     program.--The Attorney General may not provide for the 
     operation of the machine-readable-document pilot program in a 
     State unless driver's licenses and similar identification 
     documents described in section 274A(b)(1)(D)(i) issued by the 
     State include a machine-readable social security account 
     number.
       (3) Use of machine-readable documents.--If the individual 
     whose identity and employment eligibility must be confirmed 
     presents to the person or entity hiring (or recruiting or 
     referring) the individual a license or other document 
     described in paragraph (2) that includes a machine-readable 
     social security account number, the person or entity must 
     make an inquiry through the confirmation system by using a 
     machine-readable feature of such document. If the individual 
     does not attest to United States citizenship under section 
     274A(b)(2), the individual's identification or authorization 
     number described in subsection (a)(1)(B) shall be provided as 
     part of the inquiry.
       (d) Protection from Liability for Actions Taken on the 
     Basis of Information Provided by the Confirmation System.--No 
     person or entity participating in a pilot program shall be 
     civilly or criminally liable under any law for any action 
     taken in good faith reliance on information provided 
     through the confirmation system.

     SEC. 404. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

       (a) In General.--The Attorney General shall establish a 
     pilot program confirmation system through which the Attorney 
     General (or a designee of the Attorney General, which may be 
     a nongovernmental entity)--
       (1) responds to inquiries made by electing persons and 
     other entities (including those made by the transmittal of 
     data from machine-readable documents under the machine-
     readable pilot program) at any time through a toll-free 
     telephone line or other toll-free electronic media concerning 
     an individual's identity and whether the individual is 
     authorized to be employed, and
       (2) maintains records of the inquiries that were made, of 
     confirmations provided (or not provided), and of the codes 
     provided to inquirers as evidence of their compliance with 
     their obligations under the pilot programs.

     To the extent practicable, the Attorney General shall seek to 
     establish such a system using one or more nongovernmental 
     entities.
       (b) Initial Response.--The confirmation system shall 
     provide confirmation or a tentative nonconfirmation of an 
     individual's identity and employment eligibility within 3 
     working days of the initial inquiry. If providing 
     confirmation or tentative nonconfirmation, the confirmation 
     system shall provide an appropriate code indicating such 
     confirmation or such nonconfirmation.
       (c) Secondary Verification Process in Case of Tentative 
     Nonconfirmation.--In cases of tentative nonconfirmation, the 
     Attorney General shall specify, in consultation with the 
     Commissioner of Social Security and the Commissioner of the 
     Immigration and Naturalization Service, an available 
     secondary verification process to confirm the validity of 
     information provided and to provide a final confirmation or 
     nonconfirmation within 10 working days after the date of the 
     tentative nonconfirmation. When final confirmation or 
     nonconfirmation is provided, the confirmation system shall 
     provide an appropriate code indicating such confirmation or 
     nonconfirmation.
       (d) Design and Operation of System.--The confirmation 
     system shall be designed and operated--
       (1) to maximize its reliability and ease of use by persons 
     and other entities making elections under section 402(a) of 
     this division consistent with insulating and protecting the 
     privacy and security of the underlying information;
       (2) to respond to all inquiries made by such persons and 
     entities on whether individuals are authorized to be employed 
     and to register all times when such inquiries are not 
     received;
       (3) with appropriate administrative, technical, and 
     physical safeguards to prevent unauthorized disclosure of 
     personal information; and
       (4) to have reasonable safeguards against the system's 
     resulting in unlawful discriminatory practices based on 
     national origin or citizenship status, including--
       (A) the selective or unauthorized use of the system to 
     verify eligibility;
       (B) the use of the system prior to an offer of employment; 
     or
       (C) the exclusion of certain individuals from consideration 
     for employment as a result of a perceived likelihood that 
     additional verification will be required, beyond what is 
     required for most job applicants.
       (e) Responsibilities of the Commissioner of Social 
     Security.--As part of the confirmation system, the 
     Commissioner of Social Security, in consultation with the 
     entity responsible for administration of the system, shall 
     establish a reliable, secure method, which, within the time 
     periods specified under subsections (b) and (c), compares the 
     name and social security account number provided in an 
     inquiry against such information maintained by the 
     Commissioner in order to confirm (or not confirm) the 
     validity of the information provided regarding an individual 
     whose identity and employment eligibility must be confirmed, 
     the correspondence of the name and number, and whether the 
     individual has presented a social security account number 
     that is not valid for employment. The Commissioner shall not 
     disclose or release social security information (other than 
     such confirmation or nonconfirmation).
       (f) Responsibilities of the Commissioner of the Immigration 
     and Naturalization Service.--As part of the confirmation 
     system, the Commissioner of the Immigration and 
     Naturalization Service, in consultation with the entity 
     responsible for administration of the system, shall establish 
     a reliable, secure method, which, within the time periods 
     specified under subsections (b) and (c), compares the name 
     and alien identification or authorization number described in 
     section 403(a)(1)(B) of this division which are provided in 
     an inquiry against such information maintained by the 
     Commissioner in order to confirm (or not confirm) the 
     validity of the information provided, the correspondence of 
     the name and number, and whether the alien is authorized to 
     be employed in the United States.
       (g) Updating Information.--The Commissioners of Social 
     Security and the Immigration and Naturalization Service shall 
     update their information in a manner that promotes the 
     maximum accuracy and shall provide a process for the prompt 
     correction of erroneous information, including instances in 
     which it is brought to their attention in the secondary 
     verification process described in subsection (c).
       (h) Limitation on Use of the Confirmation System and Any 
     Related Systems.--
       (1) In general.--Notwithstanding any other provision of 
     law, nothing in this subtitle shall be construed to permit or 
     allow any department, bureau, or other agency of the United 
     States Government to utilize any information, data base, or 
     other records assembled under this subtitle for any other 
     purpose other than as provided for under a pilot program.
       (2) No national identification card.--Nothing in this 
     subtitle shall be construed to authorize, directly or 
     indirectly, the issuance or use of national identification 
     cards or the establishment of a national identification card.

     SEC. 405. REPORTS.

       The Attorney General shall submit to the Committees on the 
     Judiciary of the House of Representatives and of the Senate 
     reports on the pilot programs within 3 months after the end 
     of the third and fourth years in which the programs are in 
     effect. Such reports shall--
       (1) assess the degree of fraudulent attesting of United 
     States citizenship,
       (2) include recommendations on whether or not the pilot 
     programs should be continued or modified, and
       (3) assess the benefits of the pilot programs to employers 
     and the degree to which they assist in the enforcement of 
     section 274A.
      Subtitle B--Other Provisions Relating to Employer Sanctions

     SEC. 411. LIMITING LIABILITY FOR CERTAIN TECHNICAL VIOLATIONS 
                   OF PAPERWORK REQUIREMENTS.

       (a) In General.--Section 274A(b) (8 U.S.C. 1324a(b)) is 
     amended by adding at the end the following new paragraph:
       ``(6) Good faith compliance.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C), a person or entity is considered to have complied 
     with a requirement of this subsection notwithstanding a 
     technical or procedural failure to meet such requirement if 
     there was a good faith attempt to comply with the 
     requirement.
       ``(B) Exception if failure to correct after notice.--
     Subparagraph (A) shall not apply if--
       ``(i) the Service (or another enforcement agency) has 
     explained to the person or entity the basis for the failure,
       ``(ii) the person or entity has been provided a period of 
     not less than 10 business days (beginning after the date of 
     the explanation) within which to correct the failure, and
       ``(iii) the person or entity has not corrected the failure 
     voluntarily within such period.
       ``(C) Exception for pattern or practice violators.--
     Subparagraph (A) shall not apply to a person or entity that 
     has or is engaging in a pattern or practice of violations of 
     subsection (a)(1)(A) or (a)(2).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to failures occurring on or after the date of the 
     enactment of this Act.

     SEC. 412. PAPERWORK AND OTHER CHANGES IN THE EMPLOYER 
                   SANCTIONS PROGRAM.

       (a) Reducing the Number of Documents Accepted for 
     Employment Verification.--Section 274A(b)(1) (8 U.S.C. 
     1324a(b)(1)) is amended--
       (1) in subparagraph (B)--
       (A) by striking clauses (ii) through (iv),
       (B) in clause (v), by striking ``or other alien 
     registration card, if the card'' and inserting ``, alien 
     registration card, or other document designated by the 
     Attorney General, if the document'' and redesignating such 
     clause as clause (ii), and

[[Page H11819]]

       (C) in clause (ii), as so redesignated--
       (i) in subclause (I), by striking ``or'' before ``such 
     other personal identifying information'' and inserting 
     ``and'',
       (ii) by striking ``and'' at the end of subclause (I),
       (iii) by striking the period at the end of subclause (II) 
     and inserting ``, and'', and
       (iv) by adding at the end the following new subclause:

       ``(III) contains security features to make it resistant to 
     tampering, counterfeiting, and fraudulent use.'';

       (2) in subparagraph (C)--
       (A) by adding ``or'' at the end of clause (i),
       (B) by striking clause (ii), and
       (C) by redesignating clause (iii) as clause (ii); and
       (3) by adding at the end the following new subparagraph:
       ``(E) Authority to prohibit use of certain documents.--If 
     the Attorney General finds, by regulation, that any document 
     described in subparagraph (B), (C), or (D) as establishing 
     employment authorization or identity does not reliably 
     establish such authorization or identity or is being used 
     fraudulently to an unacceptable degree, the Attorney General 
     may prohibit or place conditions on its use for purposes of 
     this subsection.''.
       (b) Reduction of Paperwork for Certain Employees.--Section 
     274A(a) (8 U.S.C. 1324a(a)) is amended by adding at the end 
     the following new paragraph:
       ``(6) Treatment of documentation for certain employees.--
       ``(A) In general.--For purposes of this section, if--
       ``(i) an individual is a member of a collective-bargaining 
     unit and is employed, under a collective bargaining agreement 
     entered into between one or more employee organizations and 
     an association of two or more employers, by an employer that 
     is a member of such association, and
       ``(ii) within the period specified in subparagraph (B), 
     another employer that is a member of the association (or an 
     agent of such association on behalf of the employer) has 
     complied with the requirements of subsection (b) with respect 
     to the employment of the individual,
     the subsequent employer shall be deemed to have complied with 
     the requirements of subsection (b) with respect to the hiring 
     of the employee and shall not be liable for civil penalties 
     described in subsection (e)(5).
       ``(B) Period.--The period described in this subparagraph is 
     3 years, or, if less, the period of time that the individual 
     is authorized to be employed in the United States.
       ``(C) Liability.--
       ``(i) In general.--If any employer that is a member of an 
     association hires for employment in the United States an 
     individual and relies upon the provisions of subparagraph (A) 
     to comply with the requirements of subsection (b) and the 
     individual is an alien not authorized to work in the United 
     States, then for the purposes of paragraph (1)(A), subject to 
     clause (ii), the employer shall be presumed to have known at 
     the time of hiring or afterward that the individual was an 
     alien not authorized to work in the United States.
       ``(ii) Rebuttal of presumption.--The presumption 
     established by clause (i) may be rebutted by the employer 
     only through the presentation of clear and convincing 
     evidence that the employer did not know (and could not 
     reasonably have known) that the individual at the time of 
     hiring or afterward was an alien not authorized to work in 
     the United States.
       ``(iii) Exception.--Clause (i) shall not apply in any 
     prosecution under subsection (f)(1).''.
       (c) Elimination of Dated Provisions.--Section 274A (8 
     U.S.C. 1324a) is amended by striking subsections (i) through 
     (n).
       (d) Clarification of Application to Federal Government.--
     Section 274A(a) (8 U.S.C. 1324a(a)), as amended by subsection 
     (b), is amended by adding at the end the following new 
     paragraph:
       ``(7) Application to federal government.--For purposes of 
     this section, the term `entity' includes an entity in any 
     branch of the Federal Government.''.
       (e) Effective Dates.--
       (1) The amendments made by subsection (a) shall apply with 
     respect to hiring (or recruitment or referral) occurring on 
     or after such date (not later than 12 months after the date 
     of the enactment of this Act) as the Attorney General shall 
     designate.
       (2) The amendment made by subsection (b) shall apply to 
     individuals hired on or after 60 days after the date of the 
     enactment of this Act.
       (3) The amendment made by subsection (c) shall take effect 
     on the date of the enactment of this Act.
       (4) The amendment made by subsection (d) applies to hiring 
     occurring before, on, or after the date of the enactment of 
     this Act, but no penalty shall be imposed under subsection 
     (e) or (f) of section 274A of the Immigration and Nationality 
     Act for such hiring occurring before such date.

     SEC. 413. REPORT ON ADDITIONAL AUTHORITY OR RESOURCES NEEDED 
                   FOR ENFORCEMENT OF EMPLOYER SANCTIONS 
                   PROVISIONS.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Attorney General shall submit 
     to the Committees on the Judiciary of the House of 
     Representatives and of the Senate a report on any additional 
     authority or resources needed--
       (1) by the Immigration and Naturalization Service in order 
     to enforce section 274A of the Immigration and Nationality 
     Act, or
       (2) by Federal agencies in order to carry out the Executive 
     Order of February 13, 1996 (entitled ``Economy and Efficiency 
     in Government Procurement Through Compliance with Certain 
     Immigration and Naturalization Act Provisions'') and to 
     expand the restrictions in such order to cover agricultural 
     subsidies, grants, job training programs, and other Federally 
     subsidized assistance programs.
       (b) Reference to Increased Authorization of 
     Appropriations.--For provision increasing the authorization 
     of appropriations for investigators for violations of 
     sections 274 and 274A of the Immigration and Nationality Act, 
     see section 131 of this division.

     SEC. 414. REPORTS ON EARNINGS OF ALIENS NOT AUTHORIZED TO 
                   WORK.

       (a) In General.--Subsection (c) of section 290 (8 U.S.C. 
     1360) is amended to read as follows:
       ``(c)(1) Not later than 3 months after the end of each 
     fiscal year (beginning with fiscal year 1996), the 
     Commissioner of Social Security shall report to the 
     Committees on the Judiciary of the House of Representatives 
     and the Senate on the aggregate quantity of social security 
     account numbers issued to aliens not authorized to be 
     employed, with respect to which, in such fiscal year, 
     earnings were reported to the Social Security Administration.
       ``(2) If earnings are reported on or after January 1, 1997, 
     to the Social Security Administration on a social security 
     account number issued to an alien not authorized to work in 
     the United States, the Commissioner of Social Security shall 
     provide the Attorney General with information regarding the 
     name and address of the alien, the name and address of the 
     person reporting the earnings, and the amount of the 
     earnings. The information shall be provided in an electronic 
     form agreed upon by the Commissioner and the Attorney 
     General.''.
       (b) Report on Fraudulent Use of Social Security Account 
     Numbers.--The Commissioner of Social Security shall transmit 
     to the Attorney General, by not later than 1 year after the 
     date of the enactment of this Act, a report on the extent to 
     which social security account numbers and cards are used by 
     aliens for fraudulent purposes.

     SEC. 415. AUTHORIZING MAINTENANCE OF CERTAIN INFORMATION ON 
                   ALIENS.

       Section 264 (8 U.S.C. 1304) is amended by adding at the end 
     the following new subsection:
       ``(f) Notwithstanding any other provision of law, the 
     Attorney General is authorized to require any alien to 
     provide the alien's social security account number for 
     purposes of inclusion in any record of the alien maintained 
     by the Attorney General or the Service.''.

     SEC. 416. SUBPOENA AUTHORITY.

       Section 274A(e)(2) (8 U.S.C. 1324a(e)(2)) is amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by striking the period at the end of subparagraph (B) 
     and inserting ``, and''; and
       (3) by inserting after subparagraph (B) the following:
       ``(C) immigration officers designated by the Commissioner 
     may compel by subpoena the attendance of witnesses and the 
     production of evidence at any designated place prior to the 
     filing of a complaint in a case under paragraph (2).''.
      Subtitle C--Unfair Immigration-Related Employment Practices

     SEC. 421. TREATMENT OF CERTAIN DOCUMENTARY PRACTICES AS 
                   UNFAIR IMMIGRATION-RELATED EMPLOYMENT 
                   PRACTICES.

       (a) In General.--Section 274B(a)(6) (8 U.S.C. 1324b(a)(6)) 
     is amended--
       (1) by striking ``For purposes of paragraph (1), a'' and 
     inserting ``A''; and
       (2) by striking ``relating to the hiring of individuals'' 
     and inserting the following: ``if made for the purpose or 
     with the intent of discriminating against an individual in 
     violation of paragraph (1)''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to requests made on or after the date of the 
     enactment of this Act.
              TITLE V--RESTRICTIONS ON BENEFITS FOR ALIENS
  Subtitle A--Eligibility of Aliens for Public Assistance and Benefits

     SEC. 501. EXCEPTION TO INELIGIBILITY FOR PUBLIC BENEFITS FOR 
                   CERTAIN BATTERED ALIENS.

       Section 431 of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641) is 
     amended by adding at the end the following new subsection:
       ``(c) Treatment of Certain Battered Aliens as Qualified 
     Aliens.--For purposes of this title, the term `qualified 
     alien' includes--
       ``(1) an alien who--
       ``(A) has been battered or subjected to extreme cruelty in 
     the United States by a spouse or a parent, or by a member of 
     the spouse or parent's family residing in the same household 
     as the alien and the spouse or parent consented to, or 
     acquiesced in, such battery or cruelty, but only if (in the 
     opinion of the Attorney General, which opinion is not subject 
     to review by any court) there is a substantial connection 
     between such battery or cruelty and the need for the benefits 
     to be provided; and
       ``(B) has been approved or has a petition pending which 
     sets forth a prima facie case for--
       ``(i) status as a spouse or a child of a United States 
     citizen pursuant to clause (ii), (iii), or (iv) of section 
     204(a)(1)(A) of the Immigration and Nationality Act,
       ``(ii) classification pursuant to clause (ii) or (iii) of 
     section 204(a)(1)(B) of the Act,
       ``(iii) suspension of deportation and adjustment of status 
     pursuant to section 244(a)(3) of such Act, or
       ``(iv) status as a spouse or child of a United States 
     citizen pursuant to clause (i) of section 204(a)(1)(A) of 
     such Act, or classification pursuant to clause (i) of section 
     204(a)(1)(B) of such Act; or
       ``(2) an alien--
       ``(A) whose child has been battered or subjected to extreme 
     cruelty in the United States by

[[Page H11820]]

     a spouse or a parent of the alien (without the active 
     participation of the alien in the battery or cruelty), or by 
     a member of the spouse or parent's family residing in the 
     same household as the alien and the spouse or parent 
     consented or acquiesced to such battery or cruelty, and the 
     alien did not actively participate in such battery or 
     cruelty, but only if (in the opinion of the Attorney General, 
     which opinion is not subject to review by any court) there is 
     a substantial connection between such battery or cruelty and 
     the need for the benefits to be provided; and
       ``(B) who meets the requirement of clause (ii) of 
     subparagraph (A).
     This subsection shall not apply to an alien during any period 
     in which the individual responsible for such battery or 
     cruelty resides in the same household or family eligibility 
     unit as the individual subjected to such battery or 
     cruelty.''.

     SEC. 502. PILOT PROGRAMS ON LIMITING ISSUANCE OF DRIVER'S 
                   LICENSES TO ILLEGAL ALIENS.

       (a) In General.--Pursuant to guidelines prescribed by the 
     Attorney General not later than 6 months after the date of 
     the enactment of this Act, all States may conduct pilot 
     programs within their State to determine the viability, 
     advisability, and cost-effectiveness of the State's denying 
     driver's licenses to aliens who are not lawfully present in 
     the United States. Under a pilot program a State may deny a 
     driver's license to aliens who are not lawfully present in 
     the United States. Such program shall be conducted in 
     cooperation with relevant State and local authorities.
       (b) Report.--Not later than 3 years after the date of the 
     enactment of this Act, the Attorney General shall submit a 
     report to the Judiciary Committees of the House of 
     Representatives and of the Senate on the results of the pilot 
     programs conducted under subsection (a).

     SEC. 503. INELIGIBILITY OF ALIENS NOT LAWFULLY PRESENT FOR 
                   SOCIAL SECURITY BENEFITS.

       (a) In General.--Section 202 of the Social Security Act (42 
     U.S.C. 402) is amended by adding at the end the following new 
     subsection:

                   ``Limitation on Payments to Aliens

       ``(y) Notwithstanding any other provision of law, no 
     monthly benefit under this title shall be payable to any 
     alien in the United States for any month during which such 
     alien is not lawfully present in the United States as 
     determined by the Attorney General.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to benefits for which applications 
     are filed on or after the first day of the first month that 
     begins at least 60 days after the date of the enactment of 
     this Act.

     SEC. 504. PROCEDURES FOR REQUIRING PROOF OF CITIZENSHIP FOR 
                   FEDERAL PUBLIC BENEFITS.

       Section 432(a) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642) is 
     amended--
       (1) by inserting ``(1)'' after the dash, and
       (2) by adding at the end the following:
       ``(2) Not later than 18 months after the date of the 
     enactment of this Act, the Attorney General, in consultation 
     with the Secretary of Health and Human Services, shall also 
     establish procedures for a person applying for a Federal 
     public benefit (as defined in section 401(c)) to provide 
     proof of citizenship in a fair and nondiscriminatory 
     manner.''.

     SEC. 505. LIMITATION ON ELIGIBILITY FOR PREFERENTIAL 
                   TREATMENT OF ALIENS NOT LAWFULLY PRESENT ON 
                   BASIS OF RESIDENCE FOR HIGHER EDUCATION 
                   BENEFITS.

       (a) In General.--Notwithstanding any other provision of 
     law, an alien who is not lawfully present in the United 
     States shall not be eligible on the basis of residence within 
     a State (or a political subdivision) for any postsecondary 
     education benefit unless a citizen or national of the United 
     States is eligible for such a benefit (in no less an amount, 
     duration, and scope) without regard to whether the citizen or 
     national is such a resident.
       (b) Effective Date.--This section shall apply to benefits 
     provided on or after July 1, 1998.

     SEC. 506. STUDY AND REPORT ON ALIEN STUDENT ELIGIBILITY FOR 
                   POSTSECONDARY FEDERAL STUDENT FINANCIAL 
                   ASSISTANCE.

       (a) GAO Study and Report.--
       (1) Study.--The Comptroller General shall conduct a study 
     to determine the extent to which aliens who are not lawfully 
     admitted for permanent residence are receiving postsecondary 
     Federal student financial assistance.
       (2) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall submit a 
     report to the appropriate committees of the Congress on the 
     study conducted under paragraph (1).
       (b) Report on Computer Matching Program.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the Secretary of Education and the 
     Commissioner of Social Security shall jointly submit to the 
     appropriate committees of the Congress a report on the 
     computer matching program of the Department of Education 
     under section 484(p) of the Higher Education Act of 1965.
       (2) Report elements.--The report under paragraph (1) shall 
     include the following:
       (A) An assessment by the Secretary and the Commissioner of 
     the effectiveness of the computer matching program, and a 
     justification for such assessment.
       (B) The ratio of successful matches under the program to 
     inaccurate matches.
       (C) Such other information as the Secretary and the 
     Commissioner jointly consider appropriate.
       (c) Appropriate Committees of the Congress.--For purposes 
     of this section the term ``appropriate committees of the 
     Congress'' means the Committee on Economic and Educational 
     Opportunities and the Committee on the Judiciary of the House 
     of Representatives and the Committee on Labor and Human 
     Resources and the Committee on the Judiciary of the Senate.

     SEC. 507. VERIFICATION OF IMMIGRATION STATUS FOR PURPOSES OF 
                   SOCIAL SECURITY AND HIGHER EDUCATIONAL 
                   ASSISTANCE.

       (a) Social Security Act State Income and Eligibility 
     Verification Systems.--Section 1137(d)(4)(B)(i)) of the 
     Social Security Act (42 U.S.C. 1320b-7(d)(4)(B)(i)) is 
     amended to read as follows:
       ``(i) the State shall transmit to the Immigration and 
     Naturalization Service either photostatic or other similar 
     copies of such documents, or information from such documents, 
     as specified by the Immigration and Naturalization Service, 
     for official verification,''.
       (b) Eligibility for Assistance Under Higher Education Act 
     of 1965.--Section 484(g)(4)(B)(i) of the Higher Education Act 
     of 1965 (20 U.S.C. 1091(g)(4)(B)(i)) is amended to read as 
     follows:
       ``(i) the institution shall transmit to the Immigration and 
     Naturalization Service either photostatic or other similar 
     copies of such documents, or information from such documents, 
     as specified by the Immigration and Naturalization Service, 
     for official verification,''.

     SEC. 508. NO VERIFICATION REQUIREMENT FOR NONPROFIT 
                   CHARITABLE ORGANIZATIONS.

       Section 432 of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642) is 
     amended by adding at the end the following new subsection:
       ``(d) No Verification Requirement for Nonprofit Charitable 
     Organizations.--Subject to subsection (a), a nonprofit 
     charitable organization, in providing any Federal public 
     benefit (as defined in section 401(c)) or any State or local 
     public benefit (as defined in section 411(c)), is not 
     required under this title to determine, verify, or otherwise 
     require proof of eligibility of any applicant for such 
     benefits.''.

     SEC. 509. GAO STUDY OF PROVISION OF MEANS-TESTED PUBLIC 
                   BENEFITS TO ALIENS WHO ARE NOT QUALIFIED ALIENS 
                   ON BEHALF OF ELIGIBLE INDIVIDUALS.

       Not later than 180 days after the date of the enactment of 
     this Act, the Comptroller General shall submit to the 
     Committees on the Judiciary of the House of Representatives 
     and of the Senate and to the Inspector General of the 
     Department of Justice a report on the extent to which means-
     tested public benefits are being paid or provided to aliens 
     who are not qualified aliens (as defined in section 431(b) of 
     the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996) in order to provide such benefits 
     to individuals who are United States citizens or qualified 
     aliens (as so defined). Such report shall address the 
     locations in which such benefits are provided and the 
     incidence of fraud or misrepresentation in connection with 
     the provision of such benefits.

     SEC. 510. TRANSITION FOR ALIENS CURRENTLY RECEIVING BENEFITS 
                   UNDER THE FOOD STAMP PROGRAM.

       Effective as if included in the enactment of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996, subclause (I) of section 402(a)(2)(D)(ii) (8 U.S.C. 
     1612(a)(2)(D)(ii)) is amended to read as follows:

       ``(I) In general.--With respect to the specified Federal 
     program described in paragraph (3)(B), ineligibility under 
     paragraph (1) shall not apply until April 1, 1997, to an 
     alien who received benefits under such program on the date of 
     enactment of this Act, unless such alien is determined to be 
     ineligible to receive such benefits under the Food Stamp Act 
     of 1977. The State agency shall recertify the eligibility of 
     all such aliens during the period beginning April 1, 1997, 
     and ending August 22, 1997.''.

                  Subtitle B--Public Charge Exclusion

     SEC. 531. GROUND FOR EXCLUSION.

       (a) In General.--Paragraph (4) of section 212(a) (8 U.S.C. 
     1182(a)) is amended to read as follows:
       ``(4) Public charge.--
       ``(A) In general.--Any alien who, in the opinion of the 
     consular officer at the time of application for a visa, or in 
     the opinion of the Attorney General at the time of 
     application for admission or adjustment of status, is likely 
     at any time to become a public charge is excludable.
       ``(B) Factors to be taken into account.--(i) In determining 
     whether an alien is excludable under this paragraph, the 
     consular officer or the Attorney General shall at a minimum 
     consider the alien's--
       ``(I) age;
       ``(II) health;
       ``(III) family status;
       ``(IV) assets, resources, and financial status; and
       ``(V) education and skills.
       ``(ii) In addition to the factors under clause (i), the 
     consular officer or the Attorney General may also consider 
     any affidavit of support under section 213A for purposes of 
     exclusion under this paragraph.
       ``(C) Family-sponsored immigrants.--Any alien who seeks 
     admission or adjustment of status under a visa number issued 
     under section 201(b)(2) or 203(a) is excludable under this 
     paragraph unless--
       ``(i) the alien has obtained--

       ``(I) status as a spouse or a child of a United States 
     citizen pursuant to clause (ii), (iii), or (iv) of section 
     204(a)(1)(A), or
       ``(II) classification pursuant to clause (ii) or (iii) of 
     section 204(a)(1)(B); or

       ``(ii) the person petitioning for the alien's admission 
     (including any additional sponsor required under section 
     213A(f)) has executed an

[[Page H11821]]

     affidavit of support described in section 213A with respect 
     to such alien.
       ``(D) Certain employment-based immigrants.--Any alien who 
     seeks admission or adjustment of status under a visa number 
     issued under section 203(b) by virtue of a classification 
     petition filed by a relative of the alien (or by an entity in 
     which such relative has a significant ownership interest) is 
     excludable under this paragraph unless such relative has 
     executed an affidavit of support described in section 213A 
     with respect to such alien.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to applications submitted on or after such date, 
     not earlier than 30 days and not later than 60 days after the 
     date the Attorney General promulgates under section 551(c)(2) 
     of this division a standard form for an affidavit of support, 
     as the Attorney General shall specify, but subparagraphs (C) 
     and (D) of section 212(a)(4) of the Immigration and 
     Nationality Act, as so amended, shall not apply to 
     applications with respect to which an official interview with 
     an immigration officer was conducted before such effective 
     date.
                   Subtitle C--Affidavits of Support

     SEC. 551. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

       (a) In General.--Section 213A (8 U.S.C. 1183a), as inserted 
     by section 423(a) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996, is amended to read as 
     follows:


           ``requirements for sponsor's affidavit of support

       ``Sec. 213A. (a) Enforceability.--
       ``(1) Terms of affidavit.--No affidavit of support may be 
     accepted by the Attorney General or by any consular officer 
     to establish that an alien is not excludable as a public 
     charge under section 212(a)(4) unless such affidavit is 
     executed by a sponsor of the alien as a contract--
       ``(A) in which the sponsor agrees to provide support to 
     maintain the sponsored alien at an annual income that is not 
     less than 125 percent of the Federal poverty line during the 
     period in which the affidavit is enforceable;
       ``(B) that is legally enforceable against the sponsor by 
     the sponsored alien, the Federal Government, any State (or 
     any political subdivision of such State), or by any other 
     entity that provides any means-tested public benefit (as 
     defined in subsection (e)), consistent with the provisions of 
     this section; and
       ``(C) in which the sponsor agrees to submit to the 
     jurisdiction of any Federal or State court for the purpose of 
     actions brought under subsection (b)(2).
       ``(2) Period of enforceability.--An affidavit of support 
     shall be enforceable with respect to benefits provided for an 
     alien before the date the alien is naturalized as a citizen 
     of the United States, or, if earlier, the termination date 
     provided under paragraph (3).
       ``(3) Termination of period of enforceability upon 
     completion of required period of employment, etc.--
       ``(A) In general.--An affidavit of support is not 
     enforceable after such time as the alien (i) has worked 40 
     qualifying quarters of coverage as defined under title II of 
     the Social Security Act or can be credited with such 
     qualifying quarters as provided under subparagraph (B), and 
     (ii) in the case of any such qualifying quarter creditable 
     for any period beginning after December 31, 1996, did not 
     receive any Federal means-tested public benefit (as provided 
     under section 403 of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996) during any such 
     period.
       ``(B) Qualifying quarters.--For purposes of this section, 
     in determining the number of qualifying quarters of coverage 
     under title II of the Social Security Act an alien shall be 
     credited with--
       ``(i) all of the qualifying quarters of coverage as defined 
     under title II of the Social Security Act worked by a parent 
     of such alien while the alien was under age 18, and
       ``(ii) all of the qualifying quarters worked by a spouse of 
     such alien during their marriage and the alien remains 
     married to such spouse or such spouse is deceased.
     No such qualifying quarter of coverage that is creditable 
     under title II of the Social Security Act for any period 
     beginning after December 31, 1996, may be credited to an 
     alien under clause (i) or (ii) if the parent or spouse (as 
     the case may be) of such alien received any Federal means-
     tested public benefit (as provided under section 403 of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996) during the period for which such qualifying 
     quarter of coverage is so credited.
       ``(C) Provision of information to save system.--The 
     Attorney General shall ensure that appropriate information 
     regarding the application of this paragraph is provided to 
     the system for alien verification of eligibility (SAVE) 
     described in section 1137(d)(3) of the Social Security Act.
       ``(b) Reimbursement of Government Expenses.--
       ``(1) Request for reimbursement.--
       ``(A) Requirement.--Upon notification that a sponsored 
     alien has received any means-tested public benefit, the 
     appropriate nongovernmental entity which provided such 
     benefit or the appropriate entity of the Federal Government, 
     a State, or any political subdivision of a State shall 
     request reimbursement by the sponsor in an amount which is 
     equal to the unreimbursed costs of such benefit.
       ``(B) Regulations.--The Attorney General, in consultation 
     with the heads of other appropriate Federal agencies, shall 
     prescribe such regulations as may be necessary to carry out 
     subparagraph (A).
       ``(2) Actions to compel reimbursement.--
       ``(A) In case of nonresponse.--If within 45 days after a 
     request for reimbursement under paragraph (1)(A), the 
     appropriate entity has not received a response from the 
     sponsor indicating a willingness to commence payment an 
     action may be brought against the sponsor pursuant to the 
     affidavit of support.
       ``(B) In case of failure to pay.--If the sponsor fails to 
     abide by the repayment terms established by the appropriate 
     entity, the entity may bring an action against the sponsor 
     pursuant to the affidavit of support.
       ``(C) Limitation on actions.--No cause of action may be 
     brought under this paragraph later than 10 years after the 
     date on which the sponsored alien last received any means-
     tested public benefit to which the affidavit of support 
     applies.
       ``(3) Use of collection agencies.--If the appropriate 
     entity under paragraph (1)(A) requests reimbursement from the 
     sponsor or brings an action against the sponsor pursuant to 
     the affidavit of support, the appropriate entity may appoint 
     or hire an individual or other person to act on behalf of 
     such entity acting under the authority of law for purposes of 
     collecting any amounts owed.
       ``(c) Remedies.--Remedies available to enforce an affidavit 
     of support under this section include any or all of the 
     remedies described in section 3201, 3203, 3204, or 3205 of 
     title 28, United States Code, as well as an order for 
     specific performance and payment of legal fees and other 
     costs of collection, and include corresponding remedies 
     available under State law. A Federal agency may seek to 
     collect amounts owed under this section in accordance with 
     the provisions of subchapter II of chapter 37 of title 31, 
     United States Code.
       ``(d) Notification of Change of Address.--
       ``(1) General requirement.--The sponsor shall notify the 
     Attorney General and the State in which the sponsored alien 
     is currently a resident within 30 days of any change of 
     address of the sponsor during the period in which an 
     affidavit of support is enforceable.
       ``(2) Penalty.--Any person subject to the requirement of 
     paragraph (1) who fails to satisfy such requirement shall, 
     after notice and opportunity to be heard, be subject to a 
     civil penalty of--
       ``(A) not less than $250 or more than $2,000, or
       ``(B) if such failure occurs with knowledge that the 
     sponsored alien has received any means-tested public benefits 
     (other than benefits described in section 401(b), 403(c)(2), 
     or 411(b) of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996) not less than $2,000 or more than 
     $5,000.

     The Attorney General shall enforce this paragraph under 
     appropriate regulations.
       ``(e) Jurisdiction.--An action to enforce an affidavit of 
     support executed under subsection (a) may be brought against 
     the sponsor in any appropriate court--
       ``(1) by a sponsored alien, with respect to financial 
     support; or
       ``(2) by the appropriate entity of the Federal Government, 
     a State or any political subdivision of a State, or by any 
     other nongovernmental entity under subsection (b)(2), with 
     respect to reimbursement.
       ``(f) Sponsor Defined.--
       ``(1) In general.--For purposes of this section the term 
     `sponsor' in relation to a sponsored alien means an 
     individual who executes an affidavit of support with respect 
     to the sponsored alien and who--
       ``(A) is a citizen or national of the United States or an 
     alien who is lawfully admitted to the United States for 
     permanent residence;
       ``(B) is at least 18 years of age;
       ``(C) is domiciled in any of the several States of the 
     United States, the District of Columbia, or any territory or 
     possession of the United States;
       ``(D) is petitioning for the admission of the alien under 
     section 204; and
       ``(E) demonstrates (as provided in paragraph (6)) the means 
     to maintain an annual income equal to at least 125 percent of 
     the Federal poverty line.
       ``(2) Income requirement case.--Such term also includes an 
     individual who does not meet the requirement of paragraph 
     (1)(E) but accepts joint and several liability together with 
     an individual under paragraph (5).
       ``(3) Active duty armed services case.--Such term also 
     includes an individual who does not meet the requirement of 
     paragraph (1)(E) but is on active duty (other than active 
     duty for training) in the Armed Forces of the United States, 
     is petitioning for the admission of the alien under section 
     204 as the spouse or child of the individual, and 
     demonstrates (as provided in paragraph (6)) the means to 
     maintain an annual income equal to at least 100 percent of 
     the Federal poverty line.
       ``(4) Certain employment-based immigrants case.--Such term 
     also includes an individual--
       ``(A) who does not meet the requirement of paragraph 
     (1)(D), but is the relative of the sponsored alien who filed 
     a classification petition for the sponsored alien as an 
     employment-based immigrant under section 203(b) or who has a 
     significant ownership interest in the entity that filed such 
     a petition; and
       ``(B)(i) who demonstrates (as provided under paragraph (6)) 
     the means to maintain an annual income equal to at least 125 
     percent of the Federal poverty line, or
       ``(ii) does not meet the requirement of paragraph (1)(E) 
     but accepts joint and several liability together with an 
     individual under paragraph (5).
       ``(5) Non-petitioning case.--Such term also includes an 
     individual who does not meet the requirement of paragraph 
     (1)(D) but who accepts joint and several liability with a 
     petitioning sponsor under paragraph (2) or relative of an 
     employment-based immigrant under paragraph (4) and who 
     demonstrates (as provided under paragraph (6)) the means to 
     maintain an annual income equal to at least 125 percent of 
     the Federal poverty line.
       ``(6) Demonstration of means to maintain income.--

[[Page H11822]]

       ``(A) In general.--
       ``(i) Method of demonstration.--For purposes of this 
     section, a demonstration of the means to maintain income 
     shall include provision of a certified copy of the 
     individual's Federal income tax return for the individual's 3 
     most recent taxable years and a written statement, executed 
     under oath or as permitted under penalty of perjury under 
     section 1746 of title 28, United States Code, that the copies 
     are certified copies of such returns.
       ``(ii) Flexibility.--For purposes of this section, aliens 
     may demonstrate the means to maintain income through 
     demonstration of significant assets of the sponsored alien or 
     of the sponsor, if such assets are available for the support 
     of the sponsored alien.
       ``(iii) Percent of poverty.--For purposes of this section, 
     a reference to an annual income equal to at least a 
     particular percentage of the Federal poverty line means an 
     annual income equal to at least such percentage of the 
     Federal poverty line for a family unit of a size equal to the 
     number of members of the sponsor's household (including 
     family and non-family dependents) plus the total number of 
     other dependents and aliens sponsored by that sponsor.
       ``(B) Limitation.--The Secretary of State, or the Attorney 
     General in the case of adjustment of status, may provide that 
     the demonstration under subparagraph (A) applies only to the 
     most recent taxable year.
       ``(h) Federal Poverty Line Defined.--For purposes of this 
     section, the term `Federal poverty line' means the level of 
     income equal to the official poverty line (as defined by the 
     Director of the Office of Management and Budget, as revised 
     annually by the Secretary of Health and Human Services, in 
     accordance with section 673(2) of the Omnibus Budget 
     Reconciliation Act of 1981 (42 U.S.C. 9902)) that is 
     applicable to a family of the size involved.
       ``(i) Sponsor's Social Security Account Number Required To 
     Be Provided.--(1) An affidavit of support shall include the 
     social security account number of each sponsor.
       ``(2) The Attorney General shall develop an automated 
     system to maintain the social security account number data 
     provided under paragraph (1).
       ``(3) The Attorney General shall submit an annual report to 
     the Committees on the Judiciary of the House of 
     Representatives and the Senate setting forth--
       ``(A) for the most recent fiscal year for which data are 
     available the number of sponsors under this section and the 
     number of sponsors in compliance with the financial 
     obligations of this section; and
       ``(B) a comparison of such numbers with the numbers of such 
     sponsors for the preceding fiscal year.''.
       (b) Conforming Amendments.--
       (1) Section 421(a)(1) and section 422(a)(1) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1631(a)(1), 1632(a)(1)) are each amended by 
     inserting ``and as amended by section 551(a) of the Illegal 
     Immigration Reform and Immigrant Responsibility Act of 1996'' 
     after ``section 423''.
       (2) Section 423 of such Act (8 U.S.C. 1138a note) is 
     amended by striking subsection (c).
       (c) Effective Date; Promulgation of Form.--
       (1) In general.--The amendments made by this section shall 
     apply to affidavits of support executed on or after a date 
     specified by the Attorney General, which date shall be not 
     earlier than 60 days (and not later than 90 days) after the 
     date the Attorney General formulates the form for such 
     affidavits under paragraph (2).
       (2) Promulgation of form.--Not later than 90 days after the 
     date of the enactment of this Act, the Attorney General, in 
     consultation with the heads of other appropriate agencies, 
     shall promulgate a standard form for an affidavit of support 
     consistent with the provisions of section 213A of the 
     Immigration and Nationality Act, as amended by subsection 
     (a).

     SEC. 552. INDIGENCE AND BATTERED SPOUSE AND CHILD EXCEPTIONS 
                   TO FEDERAL ATTRIBUTION OF INCOME RULE.

       Section 421 of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631) is 
     amended by adding at the end the following new subsection:
       ``(e) Indigence Exception.--
       ``(1) In general.--For an alien for whom an affidavit of 
     support under section 213A of the Immigration and Nationality 
     Act has been executed, if a determination described in 
     paragraph (2) is made, the amount of income and resources of 
     the sponsor or the sponsor's spouse which shall be attributed 
     to the sponsored alien shall not exceed the amount actually 
     provided for a period beginning on the date of such 
     determination and ending 12 months after such date.
       ``(2) Determination described.--A determination described 
     in this paragraph is a determination by an agency that a 
     sponsored alien would, in the absence of the assistance 
     provided by the agency, be unable to obtain food and shelter, 
     taking into account the alien's own income, plus any cash, 
     food, housing, or other assistance provided by other 
     individuals, including the sponsor. The agency shall notify 
     the Attorney General of each such determination, including 
     the names of the sponsor and the sponsored alien involved.
       ``(f) Special Rule for Battered Spouse and Child.--
       ``(1) In general.--Subject to paragraph (2) and 
     notwithstanding any other provision of this section, 
     subsection (a) shall not apply to benefits--
       ``(A) during a 12 month period if the alien demonstrates 
     that (i) the alien has been battered or subjected to extreme 
     cruelty in the United States by a spouse or a parent, or by a 
     member of the spouse or parent's family residing in the same 
     household as the alien and the spouse or parent consented to 
     or acquiesced to such battery or cruelty, or (ii) the alien's 
     child has been battered or subjected to extreme cruelty in 
     the United States by the spouse or parent of the alien 
     (without the active participation of the alien in the battery 
     or cruelty), or by a member of the spouse's or parent's 
     family residing in the same household as the alien when the 
     spouse or parent consented or acquiesced to and the alien did 
     not actively participate in such battery or cruelty, and the 
     battery or cruelty described in clause (i) or (ii) (in the 
     opinion of the agency providing such public benefits, which 
     opinion is not subject to review by any court) has a 
     substantial connection to the need for the public benefits 
     applied for; and
       ``(B) after a 12 month period (regarding the batterer's 
     income and resources only) if the alien demonstrates that 
     such battery or cruelty under subparagraph (A) has been 
     recognized in an order of a judge or administrative law judge 
     or a prior determination of the Immigration and 
     Naturalization Service, and that such battery or cruelty (in 
     the opinion of the agency providing such public benefits, 
     which opinion is not subject to review by any court) has a 
     substantial connection to the need for the benefits.
       ``(2) Limitation.--The exception under paragraph (1) shall 
     not apply to benefits for an alien during any period in which 
     the individual responsible for such battery or cruelty 
     resides in the same household or family eligibility unit as 
     the individual who was subjected to such battery or 
     cruelty.''.

     SEC. 553. AUTHORITY OF STATES AND POLITICAL SUBDIVISIONS OF 
                   STATES TO LIMIT ASSISTANCE TO ALIENS AND TO 
                   DISTINGUISH AMONG CLASSES OF ALIENS IN 
                   PROVIDING GENERAL CASH PUBLIC ASSISTANCE.

       (a) In General.--Subject to subsection (b) and 
     notwithstanding any other provision of law, a State or 
     political subdivision of a State is authorized to prohibit or 
     otherwise limit or restrict the eligibility of aliens or 
     classes of aliens for programs of general cash public 
     assistance furnished under the law of the State or a 
     political subdivision of a State.
       (b) Limitation.--The authority provided for under 
     subsection (a) may be exercised only to the extent that any 
     prohibitions, limitations, or restrictions imposed by a State 
     or political subdivision of a State are not more restrictive 
     than the prohibitions, limitations, or restrictions imposed 
     under comparable Federal programs. For purposes of this 
     section, attribution to an alien of a sponsor's income and 
     resources (as described in section 421 of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1631)) for purposes of determining eligibility 
     for, and the amount of, benefits shall be considered less 
     restrictive than a prohibition of eligibility for such 
     benefits.
                  Subtitle D--Miscellaneous Provisions

     SEC. 561. INCREASED MAXIMUM CRIMINAL PENALTIES FOR FORGING OR 
                   COUNTERFEITING SEAL OF A FEDERAL DEPARTMENT OR 
                   AGENCY TO FACILITATE BENEFIT FRAUD BY AN 
                   UNLAWFUL ALIEN.

       Section 506 of title 18, United States Code, is amended to 
     read as follows:

     ``Sec. 506. Seals of departments or agencies

       ``(a) Whoever--
       ``(1) falsely makes, forges, counterfeits, mutilates, or 
     alters the seal of any department or agency of the United 
     States, or any facsimile thereof;
       ``(2) knowingly uses, affixes, or impresses any such 
     fraudulently made, forged, counterfeited, mutilated, or 
     altered seal or facsimile thereof to or upon any certificate, 
     instrument, commission, document, or paper of any 
     description; or
       ``(3) with fraudulent intent, possesses, sells, offers for 
     sale, furnishes, offers to furnish, gives away, offers to 
     give away, transports, offers to transport, imports, or 
     offers to import any such seal or facsimile thereof, knowing 
     the same to have been so falsely made, forged, counterfeited, 
     mutilated, or altered,
     shall be fined under this title, or imprisoned not more than 
     5 years, or both.
       ``(b) Notwithstanding subsection (a) or any other provision 
     of law, if a forged, counterfeited, mutilated, or altered 
     seal of a department or agency of the United States, or any 
     facsimile thereof, is--
       ``(1) so forged, counterfeited, mutilated, or altered;
       ``(2) used, affixed, or impressed to or upon any 
     certificate, instrument, commission, document, or paper of 
     any description; or
       ``(3) with fraudulent intent, possessed, sold, offered for 
     sale, furnished, offered to furnish, given away, offered to 
     give away, transported, offered to transport, imported, or 
     offered to import,
     with the intent or effect of facilitating an alien's 
     application for, or receipt of, a Federal benefit to which 
     the alien is not entitled, the penalties which may be imposed 
     for each offense under subsection (a) shall be two times the 
     maximum fine, and 3 times the maximum term of imprisonment, 
     or both, that would otherwise be imposed for an offense under 
     subsection (a).
       ``(c) For purposes of this section--
       ``(1) the term `Federal benefit' means--
       ``(A) the issuance of any grant, contract, loan, 
     professional license, or commercial license provided by any 
     agency of the United States or by appropriated funds of the 
     United States; and
       ``(B) any retirement, welfare, Social Security, health 
     (including treatment of an emergency medical condition in 
     accordance with section 1903(v) of the Social Security Act 
     (19 U.S.C. 1396b(v))), disability, veterans, public housing, 
     education, food stamps, or unemployment benefit, or any 
     similar benefit for which payments or assistance are provided 
     by an agency of the United States or by appropriated funds of 
     the United States; and
       ``(2) each instance of forgery, counterfeiting, mutilation, 
     or alteration shall constitute a separate offense under this 
     section.''.

[[Page H11823]]

     SEC. 562. TREATMENT OF EXPENSES SUBJECT TO EMERGENCY MEDICAL 
                   SERVICES EXCEPTION.

       (a) In General.--Subject to such amounts as are provided in 
     advance in appropriation Acts, each State or political 
     subdivision of a State that provides medical assistance for 
     care and treatment of an emergency medical condition (as 
     defined in subsection (d)) through a public hospital or other 
     public facility (including a nonprofit hospital that is 
     eligible for an additional payment adjustment under section 
     1886 of the Social Security Act) or through contract with 
     another hospital or facility to an individual who is an alien 
     not lawfully present in the United States is eligible for 
     payment from the Federal Government of its costs of providing 
     such services, but only to the extent that such costs are not 
     otherwise reimbursed through any other Federal program and 
     cannot be recovered from the alien or another person.
       (b) Confirmation of Immigration Status Required.--No 
     payment shall be made under this section with respect to 
     services furnished to an individual unless the immigration 
     status of the individual has been verified through 
     appropriate procedures established by the Secretary of Health 
     and Human Services and the Attorney General.
       (c) Administration.--This section shall be administered by 
     the Attorney General, in consultation with the Secretary of 
     Health and Human Services.
       (d) Emergency Medical Condition Defined.--For purposes of 
     this section, the term ``emergency medical condition'' means 
     a medical condition (including emergency labor and delivery) 
     manifesting itself by acute symptoms of sufficient severity 
     (including severe pain) such that the absence of immediate 
     medical attention could reasonably be expected to result in--
       (1) placing the patient's health in serious jeopardy,
       (2) serious impairment to bodily functions, or
       (3) serious dysfunction of any bodily organ or part.
       (e) Effective Date.--Subsection (a) shall apply to medical 
     assistance for care and treatment of an emergency medical 
     condition furnished on or after January 1, 1997.

     SEC. 563. REIMBURSEMENT OF STATES AND LOCALITIES FOR 
                   EMERGENCY AMBULANCE SERVICES.

       Subject to the availability of appropriations, the Attorney 
     General shall fully reimburse States and political 
     subdivisions of States for costs incurred by such a State or 
     subdivision for emergency ambulance services provided to any 
     alien who--
       (1) is injured while crossing a land or sea border of the 
     United States without inspection or at any time or place 
     other than as designated by the Attorney General; and
       (2) is under the custody of the State or subdivision 
     pursuant to a transfer, request, or other action by a Federal 
     authority.

     SEC. 564. PILOT PROGRAMS TO REQUIRE BONDING.

       (a) In General.--
       (1) The Attorney General of the United States shall 
     establish a pilot program in 5 district offices of the 
     Immigration and Naturalization Service to require aliens to 
     post a bond in addition to the affidavit requirements under 
     section 213A of the Immigration and Nationality Act and the 
     deeming requirements under section 421 of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1631). Any pilot program established pursuant 
     to this subsection shall require an alien to post a bond in 
     an amount sufficient to cover the cost of benefits described 
     in section 213A(d)(2)(B) of the Immigration and Nationality 
     Act (as amended by section 551(a) of this division) for the 
     alien and the alien's dependents and shall remain in effect 
     until the departure, naturalization, or death of the alien.
       (2) Suit on any such bonds may be brought under the terms 
     and conditions set forth in section 213A of the Immigration 
     and Nationality Act.
       (b) Regulations.--Not later than 180 days after the date of 
     the enactment of this Act, the Attorney General shall issue 
     regulations for establishing the pilot programs, including--
       (1) criteria and procedures for--
       (A) certifying bonding companies for participation in the 
     program, and
       (B) debarment of any such company that fails to pay a bond, 
     and
       (2) criteria for setting the amount of the bond to assure 
     that the bond is in an amount that is not less than the cost 
     of providing benefits under the programs described in 
     subsection (a)(1) for the alien and the alien's dependents 
     for 6 months.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     this section.
       (d) Annual Reporting Requirement.--Beginning 9 months after 
     the date of implementation of the pilot program, the Attorney 
     General shall submit annually to the Committees on the 
     Judiciary of the House of Representatives and the Senate a 
     report on the effectiveness of the program. The Attorney 
     General shall submit a final evaluation of the program not 
     later than 1 year after termination.
       (e) Sunset.--The pilot program under this section shall 
     terminate after 3 years of operation.
       (f) Bonds in Addition to Sponsorship and Deeming 
     Requirements.--Section 213 (8 U.S.C. 1183) is amended by 
     inserting ``(subject to the affidavit of support requirement 
     and attribution of sponsor's income and resources under 
     section 213A)'' after ``in the discretion of the Attorney 
     General''.

     SEC. 565. REPORTS.

       Not later than 180 days after the end of each fiscal year, 
     the Attorney General shall submit a report to the Inspector 
     General of the Department of Justice and the Committees on 
     the Judiciary of the House of Representatives and of the 
     Senate describing the following:
       (1) Public charge deportations.--The number of aliens 
     deported on public charge grounds under section 241(a)(5) of 
     the Immigration and Nationality Act during the previous 
     fiscal year.
       (2) Indigent sponsors.--The number of determinations made 
     under section 421(e) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (as added by section 
     552 of this division) during the previous fiscal year.
       (3) Reimbursement actions.--The number of actions brought, 
     and the amount of each action, for reimbursement under 
     section 213A of the Immigration and Nationality Act 
     (including private collections) for the costs of providing 
     public benefits.
                     Subtitle E--Housing Assistance

     SEC. 571. SHORT TITLE.

       This subtitle may be cited as the ``Use of Assisted Housing 
     by Aliens Act of 1996''.

     SEC. 572. PRORATING OF FINANCIAL ASSISTANCE.

       Section 214(b) of the Housing and Community Development Act 
     of 1980 (42 U.S.C. 1436a(b)) is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) If the eligibility for financial assistance of at 
     least one member of a family has been affirmatively 
     established under the program of financial assistance and 
     under this section, and the ineligibility of one or more 
     family members has not been affirmatively established under 
     this section, any financial assistance made available to that 
     family by the Secretary of Housing and Urban Development 
     shall be prorated, based on the number of individuals in the 
     family for whom eligibility has been affirmatively 
     established under the program of financial assistance and 
     under this section, as compared with the total number of 
     individuals who are members of the family.''.

     SEC. 573. ACTIONS IN CASES OF TERMINATION OF FINANCIAL 
                   ASSISTANCE.

       Section 214(c)(1) of the Housing and Community Development 
     Act of 1980 (42 U.S.C. 1436a(c)(1)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``may, in its discretion,'' and inserting ``shall'';
       (2) in subparagraph (A), by adding at the end the 
     following: ``Financial assistance continued under this 
     subparagraph for a family may be provided only on a prorated 
     basis, under which the amount of financial assistance is 
     based on the percentage of the total number of members of the 
     family that are eligible for that assistance under the 
     program of financial assistance and under this section.''; 
     and
       (3) in subparagraph (B)--
       (A) by striking ``3 years'' and inserting ``18-months'';
       (B) by inserting ``(i)'' after ``(B)'';
       (C) by striking ``Any deferral'' and inserting the 
     following:
       ``(ii) Except as provided in clause (iii), any deferral''; 
     and
       (D) by adding at the end the following new clauses:
       ``(iii) The time period described in clause (ii) shall not 
     apply in the case of a refugee under section 207 of the 
     Immigration and Nationality Act or an individual seeking 
     asylum under section 208 of that Act.''.

     SEC. 574. VERIFICATION OF IMMIGRATION STATUS AND ELIGIBILITY 
                   FOR FINANCIAL ASSISTANCE.

       Section 214(d) of the Housing and Community Development Act 
     of 1980 (42 U.S.C. 1436a(d)) is amended--
       (1) in the matter preceding paragraph (1), by inserting 
     ``or to be'' after ``being'';
       (2) in paragraph (1)(A), by adding at the end the 
     following: ``If the declaration states that the individual is 
     not a citizen or national of the United States and that the 
     individual is younger than 62 years of age, the declaration 
     shall be verified by the Immigration and Naturalization 
     Service. If the declaration states that the individual is a 
     citizen or national of the United States, the Secretary of 
     Housing and Urban Development, or the agency administering 
     assistance covered by this section, may request verification 
     of the declaration by requiring presentation of documentation 
     that the Secretary considers appropriate, including a United 
     States passport, resident alien card, alien registration 
     card, social security card, or other documentation.'';
       (3) in paragraph (2)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``on the date of the enactment of the Housing and Community 
     Development Act of 1987'' and inserting ``on the date of 
     enactment of the Use of Assisted Housing by Aliens Act of 
     1996 or applying for financial assistance on or after that 
     date''; and
       (B) by adding at the end the following:
     ``In the case of an individual applying for financial 
     assistance on or after the date of enactment of the Use of 
     Assisted Housing by Aliens Act of 1996, the Secretary may not 
     provide any such assistance for the benefit of that 
     individual before documentation is presented and verified 
     under paragraph (3) or (4).'';
       (4) in paragraph (4)--
       (A) in the matter preceding subparagraph (A), by striking 
     ``on the date of the enactment of the Housing and Community 
     Development Act of 1987'' and inserting ``on the date of 
     enactment of the Use of Assisted Housing by Aliens Act of 
     1996 or applying for financial assistance on or after that 
     date'';
       (B) in subparagraph (A)--
       (i) in clause (i)--

       (I) by inserting ``, not to exceed 30 days,'' after 
     ``reasonable opportunity''; and
       (II) by striking ``and'' at the end; and

       (ii) by striking clause (ii) and inserting the following:

[[Page H11824]]

       ``(ii) in the case of any individual receiving assistance 
     on the date of enactment of the Use of Assisted Housing by 
     Aliens Act of 1996, may not delay, deny, reduce, or terminate 
     the eligibility of that individual for financial assistance 
     on the basis of the immigration status of that individual 
     until the expiration of that 30-day period; and
       ``(iii) in the case of any individual applying for 
     financial assistance on or after the date of enactment of the 
     Use of Assisted Housing by Aliens Act of 1996, may not deny 
     the application for such assistance on the basis of the 
     immigration status of that individual until the expiration of 
     that 30-day period; and''; and
       (C) in subparagraph (B), by striking clause (ii) and 
     inserting the following:
       ``(ii) pending such verification or appeal, the Secretary 
     may not--

       ``(I) in the case of any individual receiving assistance on 
     the date of enactment of the Use of Assisted Housing by 
     Aliens Act of 1996, delay, deny, reduce, or terminate the 
     eligibility of that individual for financial assistance on 
     the basis of the immigration status of that individual; and
       ``(II) in the case of any individual applying for financial 
     assistance on or after the date of enactment of the Use of 
     Assisted Housing by Aliens Act of 1996, deny the application 
     for such assistance on the basis of the immigration status of 
     that individual; and'';

       (5) in paragraph (5), by striking ``status--'' and all that 
     follows through the end of the paragraph and inserting the 
     following: ``status, the Secretary shall--
       ``(A) deny the application of that individual for financial 
     assistance or terminate the eligibility of that individual 
     for financial assistance, as applicable;
       ``(B) provide that the individual may request a fair 
     hearing during the 30-day period beginning upon receipt of 
     the notice under subparagraph (C); and
       ``(C) provide to the individual written notice of the 
     determination under this paragraph, the right to a fair 
     hearing process, and the time limitation for requesting a 
     hearing under subparagraph (C).''; and
       (6) by striking paragraph (6) and inserting the following:
       ``(6) The Secretary shall terminate the eligibility for 
     financial assistance of an individual and the members of the 
     household of the individual, for a period of not less than 24 
     months, upon determining that such individual has knowingly 
     permitted another individual who is not eligible for such 
     assistance to reside in the public or assisted housing unit 
     of the individual. This provision shall not apply to a family 
     if the ineligibility of the ineligible individual at issue 
     was considered in calculating any proration of assistance 
     provided for the family.''.

     SEC. 575. PROHIBITION OF SANCTIONS AGAINST ENTITIES MAKING 
                   FINANCIAL ASSISTANCE ELIGIBILITY 
                   DETERMINATIONS.

       Section 214(e) of the Housing and Community Development Act 
     of 1980 (42 U.S.C. 1436a(e)) is amended--
       (1) in paragraph (2), by adding ``or'' at the end;
       (2) in paragraph (3), by adding at the end the following: 
     ``the response from the Immigration and Naturalization 
     Service to the appeal of that individual.''; and
       (3) by striking paragraph (4).

     SEC. 576. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

       Section 214 of the Housing and Community Development Act of 
     1980 (42 U.S.C. 1436a) is amended by adding at the end the 
     following new subsection:
       ``(h) Verification of Eligibility.--
       ``(1) In general.--Except in the case of an election under 
     paragraph (2)(A), no individual or family applying for 
     financial assistance may receive such financial assistance 
     prior to the affirmative establishment and verification of 
     eligibility of at least the individual or one family member 
     under this section by the Secretary or other appropriate 
     entity.
       ``(2) Rules applicable to public housing agencies.--A 
     public housing agency (as that term is defined in section 3 
     of the United States Housing Act of 1937)--
       ``(A) may elect not to comply with this section; and
       ``(B) in complying with this section--
       ``(i) may initiate procedures to affirmatively establish or 
     verify the eligibility of an individual or family under this 
     section at any time at which the public housing agency 
     determines that such eligibility is in question, regardless 
     of whether or not that individual or family is at or near the 
     top of the waiting list of the public housing agency;
       ``(ii) may affirmatively establish or verify the 
     eligibility of an individual or family under this section in 
     accordance with the procedures set forth in section 
     274A(b)(1) of the Immigration and Nationality Act; and
       ``(iii) shall have access to any relevant information 
     contained in the SAVE system (or any successor thereto) that 
     relates to any individual or family applying for financial 
     assistance.
       ``(3) Eligibility of families.--For purposes of this 
     subsection, with respect to a family, the term `eligibility' 
     means the eligibility of each family member.''.

     SEC. 577. REGULATIONS.

       (a) Issuance.--Not later than the 60 days after the date of 
     enactment of this Act, the Secretary of Housing and Urban 
     Development shall issue any regulations necessary to 
     implement the amendments made by this part. Such regulations 
     shall be issued in the form of an interim final rule, which 
     shall take effect upon issuance and shall not be subject to 
     the provisions of section 533 of title 5, United States Code, 
     regarding notice or opportunity for comment.
       (b) Failure To Issue.--If the Secretary fails to issue the 
     regulations required under subsection (a) before the date 
     specified in that subsection, the regulations relating to 
     restrictions on assistance to noncitizens, contained in the 
     final rule issued by the Secretary of Housing and Urban 
     Development in RIN-2501-AA63 (Docket No. R-95-1409; FR-2383-
     F-050), published in the Federal Register on March 20, 1995 
     (Vol. 60, No. 53; pp. 14824-14861), shall not apply after 
     that date.
                     Subtitle F--General Provisions

     SEC. 591. EFFECTIVE DATES.

       Except as provided in this title, this title and the 
     amendments made by this title shall take effect on the date 
     of the enactment of this Act.

     SEC. 592. NOT APPLICABLE TO FOREIGN ASSISTANCE.

       This title does not apply to any Federal, State, or local 
     governmental program, assistance, or benefits provided to an 
     alien under any program of foreign assistance as determined 
     by the Secretary of State in consultation with the Attorney 
     General.

     SEC. 593. NOTIFICATION.

       (a) In general.--Each agency of the Federal Government or a 
     State or political subdivision that administers a program 
     affected by the provisions of this title, shall, directly or 
     through the States, provide general notification to the 
     public and to program recipients of the changes regarding 
     eligibility for any such program pursuant to this title.
       (b) Failure to give notice.--Nothing in this section shall 
     be construed to require or authorize continuation of 
     eligibility if the notice under this section is not provided.

     SEC. 594. DEFINITIONS.

       Except as otherwise provided in this title, for purposes of 
     this title--
       (1) the terms ``alien'', ``Attorney General'', 
     ``national'', ``naturalization'', ``State'', and ``United 
     States'' shall have the meaning given such terms in section 
     101(a) of the Immigration and Nationality Act; and
       (2) the term ``child'' shall have the meaning given such 
     term in section 101(c) of the Immigration and Nationality 
     Act.
                   TITLE VI--MISCELLANEOUS PROVISIONS
                Subtitle A--Refugees, Parole, and Asylum

     SEC. 601. PERSECUTION FOR RESISTANCE TO COERCIVE POPULATION 
                   CONTROL METHODS.

       (a) Definition of Refugee.--
       (1) Section 101(a)(42) (8 U.S.C. 1101(a)(42)) is amended by 
     adding at the end the following: ``For purposes of 
     determinations under this Act, a person who has been forced 
     to abort a pregnancy or to undergo involuntary sterilization, 
     or who has been persecuted for failure or refusal to undergo 
     such a procedure or for other resistance to a coercive 
     population control program, shall be deemed to have been 
     persecuted on account of political opinion, and a person who 
     has a well founded fear that he or she will be forced to 
     undergo such a procedure or subject to persecution for such 
     failure, refusal, or resistance shall be deemed to have a 
     well founded fear of persecution on account of political 
     opinion.''.
       (2) Not later than 90 days after the end of each fiscal 
     year, the Attorney General shall submit a report to the 
     Committee on the Judiciary of the House of Representatives 
     and the Committee on the Judiciary of the Senate describing 
     the number and countries of origin of aliens granted refugee 
     status or asylum under determinations pursuant to the 
     amendment made by paragraph (1). Each such report shall also 
     contain projections regarding the number and countries of 
     origin of aliens that are likely to be granted refugee status 
     or asylum for the subsequent 2 fiscal years.
       (b) Numerical Limitation.--Section 207(a) (8 U.S.C. 
     1157(a)) is amended by adding at the end the following new 
     paragraph:
       ``(5) For any fiscal year, not more than a total of 1,000 
     refugees may be admitted under this subsection or granted 
     asylum under section 208 pursuant to a determination under 
     the third sentence of section 101(a)(42) (relating to 
     persecution for resistance to coercive population control 
     methods).''.

     SEC. 602. LIMITATION ON USE OF PAROLE

       (a) Parole Authority.--Section 212(d)(5)(A) (8 U.S.C. 
     1182(d)(5)) is amended by striking ``for emergent reasons or 
     for reasons deemed strictly in the public interest'' and 
     inserting ``only on a case-by-case basis for urgent 
     humanitarian reasons or significant public benefit''.
       (b) Report to Congress.--Not later than 90 days after the 
     end of each fiscal year, the Attorney General shall submit a 
     report to the Committee on the Judiciary of the House of 
     Representatives and the Committee on the Judiciary of the 
     Senate describing the number and categories of aliens paroled 
     into the United States under section 212(d)(5) of the 
     Immigration and Nationality Act. Each such report shall 
     provide the total number of aliens paroled into and residing 
     in the United States and shall contain information and data 
     for each country of origin concerning the number and 
     categories of aliens paroled, the duration of parole, the 
     current status of aliens paroled, and the number and 
     categories of aliens returned to the custody from which they 
     were paroled during the preceding fiscal year.

     SEC. 603. TREATMENT OF LONG-TERM PAROLEES IN APPLYING 
                   WORLDWIDE NUMERICAL LIMITATIONS.

       Section 201(c) (8 U.S.C. 1151(c)) is amended--
       (1) by amending paragraph (1)(A)(ii) to read as follows:
       ``(ii) the sum of the number computed under paragraph (2) 
     and the number computed under paragraph (4), plus''; and
       (2) by adding at the end the following new paragraphs:
       ``(4) The number computed under this paragraph for a fiscal 
     year (beginning with fiscal

[[Page H11825]]

     year 1999) is the number of aliens who were paroled into the 
     United States under section 212(d)(5) in the second preceding 
     fiscal year--
       ``(A) who did not depart from the United States (without 
     advance parole) within 365 days; and
       ``(B) who (i) did not acquire the status of aliens lawfully 
     admitted to the United States for permanent residence in the 
     two preceding fiscal years, or (ii) acquired such status in 
     such years under a provision of law (other than section 
     201(b)) which exempts such adjustment from the numerical 
     limitation on the worldwide level of immigration under this 
     section.
       ``(5) If any alien described in paragraph (4) (other than 
     an alien described in paragraph (4)(B)(ii)) is subsequently 
     admitted as an alien lawfully admitted for permanent 
     residence, such alien shall not again be considered for 
     purposes of paragraph (1).''.

     SEC. 604. ASYLUM REFORM.

       (a) Asylum Reform.--Section 208 (8 U.S.C. 1158) is amended 
     to read as follows:


                                ``asylum

       ``Sec. 208. (a) Authority To Apply for Asylum.--
       ``(1) In general.--Any alien who is physically present in 
     the United States or who arrives in the United States 
     (whether or not at a designated port of arrival and including 
     an alien who is brought to the United States after having 
     been interdicted in international or United States waters), 
     irrespective of such alien's status, may apply for asylum in 
     accordance with this section or, where applicable, section 
     235(b).
       ``(2) Exceptions.--
       ``(A) Safe third country.--Paragraph (1) shall not apply to 
     an alien if the Attorney General determines that the alien 
     may be removed, pursuant to a bilateral or multilateral 
     agreement, to a country (other than the country of the 
     alien's nationality or, in the case of an alien having no 
     nationality, the country of the alien's last habitual 
     residence) in which the alien's life or freedom would not be 
     threatened on account of race, religion, nationality, 
     membership in a particular social group, or political 
     opinion, and where the alien would have access to a full and 
     fair procedure for determining a claim to asylum or 
     equivalent temporary protection, unless the Attorney General 
     finds that it is in the public interest for the alien to 
     receive asylum in the United States.
       ``(B) Time limit.--Subject to subparagraph (D), paragraph 
     (1) shall not apply to an alien unless the alien demonstrates 
     by clear and convincing evidence that the application has 
     been filed within 1 year after the date of the alien's 
     arrival in the United States.
       ``(C) Previous asylum applications.--Subject to 
     subparagraph (D), paragraph (1) shall not apply to an alien 
     if the alien has previously applied for asylum and had such 
     application denied.
       ``(D) Changed circumstances.--An application for asylum of 
     an alien may be considered, notwithstanding subparagraphs (B) 
     and (C), if the alien demonstrates to the satisfaction of the 
     Attorney General either the existence of changed 
     circumstances which materially affect the applicant's 
     eligibility for asylum or extraordinary circumstances 
     relating to the delay in filing an application within the 
     period specified in subparagraph (B).
       ``(3) Limitation on judicial review.--No court shall have 
     jurisdiction to review any determination of the Attorney 
     General under paragraph (2).
       ``(b) Conditions for Granting Asylum.--
       ``(1) In general.--The Attorney General may grant asylum to 
     an alien who has applied for asylum in accordance with the 
     requirements and procedures established by the Attorney 
     General under this section if the Attorney General determines 
     that such alien is a refugee within the meaning of section 
     101(a)(42)(A).
       ``(2) Exceptions.--
       ``(A) In general.--Paragraph (1) shall not apply to an 
     alien if the Attorney General determines that--
       ``(i) the alien ordered, incited, assisted, or otherwise 
     participated in the persecution of any person on account of 
     race, religion, nationality, membership in a particular 
     social group, or political opinion;
       ``(ii) the alien, having been convicted by a final judgment 
     of a particularly serious crime, constitutes a danger to the 
     community of the United States;
       ``(iii) there are serious reasons for believing that the 
     alien has committed a serious nonpolitical crime outside the 
     United States prior to the arrival of the alien in the United 
     States;
       ``(iv) there are reasonable grounds for regarding the alien 
     as a danger to the security of the United States;
       ``(v) the alien is inadmissible under subclause (I), (II), 
     (III), or (IV) of section 212(a)(3)(B)(i) or removable under 
     section 237(a)(4)(B) (relating to terrorist activity), 
     unless, in the case only of an alien inadmissible under 
     subclause (IV) of section 212(a)(3)(B)(i), the Attorney 
     General determines, in the Attorney General's discretion, 
     that there are not reasonable grounds for regarding the alien 
     as a danger to the security of the United States; or
       ``(vi) the alien was firmly resettled in another country 
     prior to arriving in the United States.
       ``(B) Special rules.--
       ``(i) Conviction of aggravated felony.--For purposes of 
     clause (ii) of subparagraph (A), an alien who has been 
     convicted of an aggravated felony shall be considered to have 
     been convicted of a particularly serious crime.
       ``(ii) Offenses.--The Attorney General may designate by 
     regulation offenses that will be considered to be a crime 
     described in clause (ii) or (iii) of subparagraph (A).
       ``(C) Additional limitations.--The Attorney General may by 
     regulation establish additional limitations and conditions, 
     consistent with this section, under which an alien shall be 
     ineligible for asylum under paragraph (1).
       ``(D) No judicial review.--There shall be no judicial 
     review of a determination of the Attorney General under 
     subparagraph (A)(v).
       ``(3) Treatment of spouse and children.--A spouse or child 
     (as defined in section 101(b)(1)(A), (B), (C), (D), or (E)) 
     of an alien who is granted asylum under this subsection may, 
     if not otherwise eligible for asylum under this section, be 
     granted the same status as the alien if accompanying, or 
     following to join, such alien.
       ``(c) Asylum Status.--
       ``(1) In general.--In the case of an alien granted asylum 
     under subsection (b), the Attorney General--
       ``(A) shall not remove or return the alien to the alien's 
     country of nationality or, in the case of a person having no 
     nationality, the country of the alien's last habitual 
     residence;
       ``(B) shall authorize the alien to engage in employment in 
     the United States and provide the alien with appropriate 
     endorsement of that authorization; and
       ``(C) may allow the alien to travel abroad with the prior 
     consent of the Attorney General.
       ``(2) Termination of asylum.--Asylum granted under 
     subsection (b) does not convey a right to remain permanently 
     in the United States, and may be terminated if the Attorney 
     General determines that--
       ``(A) the alien no longer meets the conditions described in 
     subsection (b)(1) owing to a fundamental change in 
     circumstances;
       ``(B) the alien meets a condition described in subsection 
     (b)(2);
       ``(C) the alien may be removed, pursuant to a bilateral or 
     multilateral agreement, to a country (other than the country 
     of the alien's nationality or, in the case of an alien having 
     no nationality, the country of the alien's last habitual 
     residence) in which the alien's life or freedom would not be 
     threatened on account of race, religion, nationality, 
     membership in a particular social group, or political 
     opinion, and where the alien is eligible to receive asylum or 
     equivalent temporary protection;
       ``(D) the alien has voluntarily availed himself or herself 
     of the protection of the alien's country of nationality or, 
     in the case of an alien having no nationality, the alien's 
     country of last habitual residence, by returning to such 
     country with permanent resident status or the reasonable 
     possibility of obtaining such status with the same rights and 
     obligations pertaining to other permanent residents of that 
     country; or
       ``(E) the alien has acquired a new nationality and enjoys 
     the protection of the country of his or her new nationality.
       ``(3) Removal when asylum is terminated.--An alien 
     described in paragraph (2) is subject to any applicable 
     grounds of inadmissibility or deportability under section 
     212(a) and 237(a), and the alien's removal or return shall be 
     directed by the Attorney General in accordance with sections 
     240 and 241.
       ``(d) Asylum Procedure.--
       ``(1) Applications.--The Attorney General shall establish a 
     procedure for the consideration of asylum applications filed 
     under subsection (a). The Attorney General may require 
     applicants to submit fingerprints and a photograph at such 
     time and in such manner to be determined by regulation by the 
     Attorney General.
       ``(2) Employment.--An applicant for asylum is not entitled 
     to employment authorization, but such authorization may be 
     provided under regulation by the Attorney General. An 
     applicant who is not otherwise eligible for employment 
     authorization shall not be granted such authorization prior 
     to 180 days after the date of filing of the application for 
     asylum.
       ``(3) Fees.--The Attorney General may impose fees for the 
     consideration of an application for asylum, for employment 
     authorization under this section, and for adjustment of 
     status under section 209(b). Such fees shall not exceed the 
     Attorney General's costs in adjudicating the applications. 
     The Attorney General may provide for the assessment and 
     payment of such fees over a period of time or by 
     installments. Nothing in this paragraph shall be construed to 
     require the Attorney General to charge fees for adjudication 
     services provided to asylum applicants, or to limit the 
     authority of the Attorney General to set adjudication and 
     naturalization fees in accordance with section 286(m).
       ``(4) Notice of privilege of counsel and consequences of 
     frivolous application.--At the time of filing an application 
     for asylum, the Attorney General shall--
       ``(A) advise the alien of the privilege of being 
     represented by counsel and of the consequences, under 
     paragraph (6), of knowingly filing a frivolous application 
     for asylum; and
       ``(B) provide the alien a list of persons (updated not less 
     often than quarterly) who have indicated their availability 
     to represent aliens in asylum proceedings on a pro bono 
     basis.
       ``(5) Consideration of asylum applications.--
       ``(A) Procedures.--The procedure established under 
     paragraph (1) shall provide that--
       ``(i) asylum cannot be granted until the identity of the 
     applicant has been checked against all appropriate records or 
     databases maintained by the Attorney General and by the 
     Secretary of State, including the Automated Visa Lookout 
     System, to determine any grounds on which the alien may be 
     inadmissible to or deportable from the United States, or 
     ineligible to apply for or be granted asylum;
       ``(ii) in the absence of exceptional circumstances, the 
     initial interview or hearing on the asylum application shall 
     commence not later than 45 days after the date an application 
     is filed;
       ``(iii) in the absence of exceptional circumstances, final 
     administrative adjudication of

[[Page H11826]]

     the asylum application, not including administrative appeal, 
     shall be completed within 180 days after the date an 
     application is filed;
       ``(iv) any administrative appeal shall be filed within 30 
     days of a decision granting or denying asylum, or within 30 
     days of the completion of removal proceedings before an 
     immigration judge under section 240, whichever is later; and
       ``(v) in the case of an applicant for asylum who fails 
     without prior authorization or in the absence of exceptional 
     circumstances to appear for an interview or hearing, 
     including a hearing under section 240, the application may be 
     dismissed or the applicant may be otherwise sanctioned for 
     such failure.
       ``(B) Additional regulatory conditions.--The Attorney 
     General may provide by regulation for any other conditions or 
     limitations on the consideration of an application for asylum 
     not inconsistent with this Act.
       ``(6) Frivolous applications.--If the Attorney General 
     determines that an alien has knowingly made a frivolous 
     application for asylum and the alien has received the notice 
     under paragraph (4)(A), the alien shall be permanently 
     ineligible for any benefits under this Act, effective as of 
     the date of a final determination on such application.
       ``(7) No private right of action.--Nothing in this 
     subsection shall be construed to create any substantive or 
     procedural right or benefit that is legally enforceable by 
     any party against the United States or its agencies or 
     officers or any other person.''.
       (b) Conforming and Clerical Amendments.--
       (1) The item in the table of contents relating to section 
     208 is amended to read as follows:

``Sec. 208. Asylum.''.

       (2) Section 104(d)(1)(A) of the Immigration Act of 1990 
     (Public Law 101-649) is amended by striking ``208(b)'' and 
     inserting ``208''.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to applications for asylum filed on or after the 
     first day of the first month beginning more than 180 days 
     after the date of the enactment of this Act.

     SEC. 605. INCREASE IN ASYLUM OFFICERS.

       Subject to the availability of appropriations, the Attorney 
     General shall provide for an increase in the number of asylum 
     officers to at least 600 asylum officers by fiscal year 1997.

     SEC. 606. CONDITIONAL REPEAL OF CUBAN ADJUSTMENT ACT.

       (a) In General.--Public Law 89-732 is repealed effective 
     only upon a determination by the President under section 
     203(c)(3) of the Cuban Liberty and Democratic Solidarity 
     (LIBERTAD) Act of 1996 (Public Law 104-114) that a 
     democratically elected government in Cuba is in power.
       (b) Limitation.--Subsection (a) shall not apply to aliens 
     for whom an application for adjustment of status is pending 
     on such effective date.
Subtitle B--Miscellaneous Amendments to the Immigration and Nationality 
                                  Act

     SEC. 621. ALIEN WITNESS COOPERATION.

       Section 214(j)(1) (8 U.S.C. 1184(j)(1)) (as added by 
     section 130003(b)(2) of the Violent Crime Control and Law 
     Enforcement Act of 1994 (Public Law 103-322; 108 Stat. 2025)) 
     (relating to numerical limitations on the number of aliens 
     who may be provided a visa as nonimmigrants under section 
     101(a)(15)(S) of the Immigration and Nationality Act) is 
     amended--
       (1) by striking ``100.'' and inserting ``200.''; and
       (2) by striking ``25.'' and inserting ``50.''.

     SEC. 622. WAIVER OF FOREIGN COUNTRY RESIDENCE REQUIREMENT 
                   WITH RESPECT TO INTERNATIONAL MEDICAL 
                   GRADUATES.

       (a) Extension of Waiver Program.--Section 220(c) of the 
     Immigration and Nationality Technical Corrections Act of 1994 
     (8 U.S.C. 1182 note) is amended by striking ``1996.'' and 
     inserting ``2002.''.
       (b) Conditions on Federally Requested Waivers.--Section 
     212(e) (8 U.S.C. 1182(e)) is amended by inserting after 
     ``except that in the case of a waiver requested by a State 
     Department of Public Health, or its equivalent'' the 
     following: ``, or in the case of a waiver requested by an 
     interested United States Government agency on behalf of an 
     alien described in clause (iii),''.
       (c) Restrictions on Federally Requested Waivers.--Section 
     214(k) (8 U.S.C. 1184(k)) (as added by section 220(b) of the 
     Immigration and Nationality Technical Corrections Act of 1994 
     (Public Law 103-416; 108 Stat. 4319)) is amended to read as 
     follows:
       ``(k)(1) In the case of a request by an interested State 
     agency, or by an interested Federal agency, for a waiver of 
     the 2-year foreign residence requirement under section 212(e) 
     on behalf of an alien described in clause (iii) of such 
     section, the Attorney General shall not grant such waiver 
     unless--
       ``(A) in the case of an alien who is otherwise 
     contractually obligated to return to a foreign country, the 
     government of such country furnishes the Director of the 
     United States Information Agency with a statement in writing 
     that it has no objection to such waiver;
       ``(B) in the case of a request by an interested State 
     agency, the grant of such waiver would not cause the number 
     of waivers allotted for that State for that fiscal year to 
     exceed 20;
       ``(C) in the case of a request by an interested Federal 
     agency or by an interested State agency--
       ``(i) the alien demonstrates a bona fide offer of full-time 
     employment at a health facility or health care organization, 
     which employment has been determined by the Attorney General 
     to be in the public interest; and
       ``(ii) the alien agrees to begin employment with the health 
     facility or health care organization within 90 days of 
     receiving such waiver, and agrees to continue to work for a 
     total of not less than 3 years (unless the Attorney General 
     determines that extenuating circumstances exist, such as 
     closure of the facility or hardship to the alien, which would 
     justify a lesser period of employment at such health facility 
     or health care organization, in which case the alien must 
     demonstrate another bona fide offer of employment at a health 
     facility or health care organization for the remainder of 
     such 3-year period); and
       ``(D) in the case of a request by an interested Federal 
     agency (other than a request by an interested Federal agency 
     to employ the alien full-time in medical research or 
     training) or by an interested State agency, the alien agrees 
     to practice medicine in accordance with paragraph (2) for a 
     total of not less than 3 years only in the geographic area or 
     areas which are designated by the Secretary of Health and 
     Human Services as having a shortage of health care 
     professionals.
       ``(2)(A) Notwithstanding section 248(2), the Attorney 
     General may change the status of an alien who qualifies under 
     this subsection and section 212(e) to that of an alien 
     described in section 101(a)(15)(H)(i)(b).
       ``(B) No person who has obtained a change of status under 
     subparagraph (A) and who has failed to fulfill the terms of 
     the contract with the health facility or health care 
     organization named in the waiver application shall be 
     eligible to apply for an immigrant visa, for permanent 
     residence, or for any other change of nonimmigrant status, 
     until it is established that such person has resided and been 
     physically present in the country of his nationality or his 
     last residence for an aggregate of at least 2 years following 
     departure from the United States.
       ``(3) Notwithstanding any other provision of this 
     subsection, the 2-year foreign residence requirement under 
     section 212(e) shall apply with respect to an alien described 
     in clause (iii) of such section, who has not otherwise been 
     accorded status under section 101(a)(27)(H), if--
       ``(A) at any time the alien ceases to comply with any 
     agreement entered into under subparagraph (C) or (D) of 
     paragraph (1); or
       ``(B) the alien's employment ceases to benefit the public 
     interest at any time during the 3-year period described in 
     paragraph (1)(C).''.

     SEC. 623. USE OF LEGALIZATION AND SPECIAL AGRICULTURAL WORKER 
                   INFORMATION.

       (a) Confidentiality of Information.--Section 245A(c)(5) (8 
     U.S.C. 1255a(c)(5)) is amended to read as follows:
       ``(5) Confidentiality of information.--
       ``(A) In general.--Except as provided in this paragraph, 
     neither the Attorney General, nor any other official or 
     employee of the Department of Justice, or bureau or agency 
     thereof, may--
       ``(i) use the information furnished by the applicant 
     pursuant to an application filed under this section for any 
     purpose other than to make a determination on the 
     application, for enforcement of paragraph (6), or for the 
     preparation of reports to Congress under section 404 of the 
     Immigration Reform and Control Act of 1986;
       ``(ii) make any publication whereby the information 
     furnished by any particular applicant can be identified; or
       ``(iii) permit anyone other than the sworn officers and 
     employees of the Department or bureau or agency or, with 
     respect to applications filed with a designated entity, that 
     designated entity, to examine individual applications.
       ``(B) Required disclosures.--The Attorney General shall 
     provide the information furnished under this section, and any 
     other information derived from such furnished information, to 
     a duly recognized law enforcement entity in connection with a 
     criminal investigation or prosecution, when such information 
     is requested in writing by such entity, or to an official 
     coroner for purposes of affirmatively identifying a deceased 
     individual (whether or not such individual is deceased as a 
     result of a crime).
       ``(C) Authorized disclosures.--The Attorney General may 
     provide, in the Attorney General's discretion, for the 
     furnishing of information furnished under this section in the 
     same manner and circumstances as census information may be 
     disclosed by the Secretary of Commerce under section 8 of 
     title 13, United States Code.
       ``(D) Construction.--
       ``(i) In general.--Nothing in this paragraph shall be 
     construed to limit the use, or release, for immigration 
     enforcement purposes or law enforcement purposes of 
     information contained in files or records of the Service 
     pertaining to an application filed under this section, other 
     than information furnished by an applicant pursuant to the 
     application, or any other information derived from the 
     application, that is not available from any other source.
       ``(ii) Criminal convictions.--Information concerning 
     whether the applicant has at any time been convicted of a 
     crime may be used or released for immigration enforcement or 
     law enforcement purposes.
       ``(E) Crime.--Whoever knowingly uses, publishes, or permits 
     information to be examined in violation of this paragraph 
     shall be fined not more than $10,000.''.
       (b) Special Agricultural Workers.--Section 210(b)(6) (8 
     U.S.C. 1160(b)(6)) is amended to read as follows:
       ``(6) Confidentiality of information.--
       ``(A) In general.--Except as provided in this paragraph, 
     neither the Attorney General, nor any other official or 
     employee of the Department of Justice, or bureau or agency 
     thereof, may--
       ``(i) use the information furnished by the applicant 
     pursuant to an application filed under this section for any 
     purpose other than to make a determination on the 
     application, including a determination under subsection 
     (a)(3)(B), or for enforcement of paragraph (7);

[[Page H11827]]

       ``(ii) make any publication whereby the information 
     furnished by any particular individual can be identified; or
       ``(iii) permit anyone other than the sworn officers and 
     employees of the Department or bureau or agency or, with 
     respect to applications filed with a designated entity, that 
     designated entity, to examine individual applications.
       ``(B) Required disclosures.--The Attorney General shall 
     provide information furnished under this section, and any 
     other information derived from such furnished information, to 
     a duly recognized law enforcement entity in connection with a 
     criminal investigation or prosecution, when such information 
     is requested in writing by such entity, or to an official 
     coroner for purposes of affirmatively identifying a deceased 
     individual (whether or not such individual is deceased as a 
     result of a crime).
       ``(C) Construction.--
       ``(i) In general.--Nothing in this paragraph shall be 
     construed to limit the use, or release, for immigration 
     enforcement purposes or law enforcement purposes of 
     information contained in files or records of the Service 
     pertaining to an application filed under this section, other 
     than information furnished by an applicant pursuant to the 
     application, or any other information derived from the 
     application, that is not available from any other source.
       ``(ii) Criminal convictions.--Information concerning 
     whether the applicant has at any time been convicted of a 
     crime may be used or released for immigration enforcement or 
     law enforcement purposes.
       ``(D) Crime.--Whoever knowingly uses, publishes, or permits 
     information to be examined in violation of this paragraph 
     shall be fined not more than $10,000.''.

     SEC. 624. CONTINUED VALIDITY OF LABOR CERTIFICATIONS AND 
                   CLASSIFICATION PETITIONS FOR PROFESSIONAL 
                   ATHLETES.

       (a) Labor Certification.--Section 212(a)(5)(A) (8 U.S.C. 
     1182(a)(5)(A)) is amended by adding at the end the following:
       ``(iii) Professional athletes.--

       ``(I) In general.--A certification made under clause (i) 
     with respect to a professional athlete shall remain valid 
     with respect to the athlete after the athlete changes 
     employer, if the new employer is a team in the same sport as 
     the team which employed the athlete when the athlete first 
     applied for the certification.
       ``(II) Definition.--For purposes of subclause (I), the term 
     `professional athlete' means an individual who is employed as 
     an athlete by--

       ``(aa) a team that is a member of an association of 6 or 
     more professional sports teams whose total combined revenues 
     exceed $10,000,000 per year, if the association governs the 
     conduct of its members and regulates the contests and 
     exhibitions in which its member teams regularly engage; or
       ``(bb) any minor league team that is affiliated with such 
     an association.''.
       (b) Classification Petitions.--Section 204 (8 U.S.C. 1154) 
     is amended by adding at the end the following:
       ``(i) Professional Athletes.--
       ``(1) In general.--A petition under subsection (a)(4)(D) 
     for classification of a professional athlete shall remain 
     valid for the athlete after the athlete changes employers, if 
     the new employer is a team in the same sport as the team 
     which was the employer who filed the petition.
       ``(2) Definition.--For purposes of paragraph (1), the term 
     `professional athlete' means an individual who is employed as 
     an athlete by--
       ``(A) a team that is a member of an association of 6 or 
     more professional sports teams whose total combined revenues 
     exceed $10,000,000 per year, if the association governs the 
     conduct of its members and regulates the contests and 
     exhibitions in which its member teams regularly engage; or
       ``(B) any minor league team that is affiliated with such an 
     association.''.

     SEC. 625. FOREIGN STUDENTS.

       (a) Limitations.--
       (1) In general.--Section 214 (8 U.S.C. 1184) is amended by 
     adding at the end the following new subsection:
       ``(l)(1) An alien may not be accorded status as a 
     nonimmigrant under section 101(a)(15)(F)(i) in order to 
     pursue a course of study--
       ``(A) at a public elementary school or in a publicly funded 
     adult education program; or
       ``(B) at a public secondary school unless--
       ``(i) the aggregate period of such status at such a school 
     does not exceed 12 months with respect to any alien, and (ii) 
     the alien demonstrates that the alien has reimbursed the 
     local educational agency that administers the school for the 
     full, unsubsidized per capita cost of providing education at 
     such school for the period of the alien's attendance.
       ``(2) An alien who obtains the status of a nonimmigrant 
     under section 101(a)(15)(F)(i) in order to pursue a course of 
     study at a private elementary or secondary school or in a 
     language training program that is not publicly funded shall 
     be considered to have violated such status, and the alien's 
     visa under section 101(a)(15)(F) shall be void, if the alien 
     terminates or abandons such course of study at such a school 
     and undertakes a course of study at a public elementary 
     school, in a publicly funded adult education program, in a 
     publicly funded adult education language training program, or 
     at a public secondary school (unless the requirements of 
     paragraph (1)(B) are met).''.
       (2) Conforming amendment.--Section 101(a)(15)(F) (8 U.S.C. 
     1101(a)(15)(F)) is amended by inserting ``consistent with 
     section 214(l)'' after ``such a course of study''.
       (b) Reference to New Ground of Exclusion for Student Visa 
     Abusers.--For addition of ground of inadmissibility for 
     certain nonimmigrant student abusers, see section 347 of this 
     division.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to individuals who obtain the status of a 
     nonimmigrant under section 101(a)(15)(F) of the Immigration 
     and Nationality Act after the end of the 60-day period 
     beginning on the date of the enactment of this Act, including 
     aliens whose status as such a nonimmigrant is extended after 
     the end of such period.

     SEC. 626. SERVICES TO FAMILY MEMBERS OF CERTAIN OFFICERS AND 
                   AGENTS KILLED IN THE LINE OF DUTY.

       (a) In General.--Title II, as amended by section 205(a) of 
     this division, is amended by adding at the end the following 
     new section:


 ``transportation of remains of immigration officers and border patrol 
                   agents killed in the line of duty

       ``Sec. 295. (a) In General.--To the extent provided in 
     appropriation Acts, when an immigration officer or border 
     patrol agent is killed in the line of duty, the Attorney 
     General may pay from appropriations available for the 
     activity in which the officer or agent was engaged--
       ``(1) the actual and necessary expenses of transportation 
     of the remains of the officer or agent to a place of burial 
     located in any State, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, or the Republic 
     of Palau;
       ``(2) travel expenses, including per diem in lieu of 
     subsistence, of the decedent's spouse and minor children to 
     and from such site at rates not greater than those 
     established for official government travel under subchapter I 
     of chapter 57 of title 5, United States Code; and
       ``(3) any other memorial service authorized by the Attorney 
     General.
       ``(b) Prepayment.--The Attorney General may prepay any 
     expense authorized to be paid under this section.''.
       (b) Clerical Amendment.--The table of contents, as amended 
     by section 205(b) of this division, is amended by inserting 
     after the item relating to section 294 the following new 
     item:

``Sec. 295.  Transportation of remains of immigration officers and 
              border patrol agents killed in the line of duty.''.
    Subtitle C--Provisions Relating to Visa Processing and Consular 
                               Efficiency

     SEC. 631. VALIDITY OF PERIOD OF VISAS.

       (a) Extension of Validity of Immigrant Visas to 6 Months.--
     Section 221(c) (8 U.S.C. 1201(c)) is amended by striking 
     ``four months'' and inserting ``six months''.
       (b) Authorizing Application of Reciprocity Rule for 
     Nonimmigrant Visa in Case of Refugees and Permanent 
     Residents.--Such section is further amended by inserting 
     before the period at the end of the third sentence the 
     following: ``; except that in the case of aliens who are 
     nationals of a foreign country and who either are granted 
     refugee status and firmly resettled in another foreign 
     country or are granted permanent residence and residing in 
     another foreign country, the Secretary of State may prescribe 
     the period of validity of such a visa based upon the 
     treatment granted by that other foreign country to alien 
     refugees and permanent residents, respectively, in the United 
     States''.

     SEC. 632. ELIMINATION OF CONSULATE SHOPPING FOR VISA 
                   OVERSTAYS.

       (a) In General.--Section 222 (8 U.S.C. 1202) is amended by 
     adding at the end the following:
       ``(g)(1) In the case of an alien who has been admitted on 
     the basis of a nonimmigrant visa and remained in the United 
     States beyond the period of stay authorized by the Attorney 
     General, such visa shall be void beginning after the 
     conclusion of such period of stay.
       ``(2) An alien described in paragraph (1) shall be 
     ineligible to be readmitted to the United States as a 
     nonimmigrant, except--
       ``(A) on the basis of a visa (other than the visa described 
     in paragraph (1)) issued in a consular office located in the 
     country of the alien's nationality (or, if there is no office 
     in such country, in such other consular office as the 
     Secretary of State shall specify); or
       ``(B) where extraordinary circumstances are found by the 
     Secretary of State to exist.''.
       (b) Applicability.--
       (1) Visas.--Section 222(g)(1) of the Immigration and 
     Nationality Act, as added by subsection (a), shall apply to a 
     visa issued before, on, or after the date of the enactment of 
     this Act.
       (2) Aliens seeking readmission.--Section 222(g)(2) of the 
     Immigration and Nationality Act, as added by subsection (a), 
     shall apply to any alien applying for readmission to the 
     United States after the date of the enactment of this Act, 
     except an alien applying for readmission on the basis of a 
     visa that--
       (A) was issued before such date; and
       (B) is not void through the application of section 
     222(g)(1) of the Immigration and Nationality Act, as added by 
     subsection (a).

     SEC. 633. AUTHORITY TO DETERMINE VISA PROCESSING PROCEDURES.

       Section 202(a)(1) (8 U.S.C. 1152(a)(1)) is amended--
       (1) by inserting ``(A)'' after ``Nondiscrimination.--''; 
     and
       (2) by adding at the end the following:
       ``(B) Nothing in this paragraph shall be construed to limit 
     the authority of the Secretary of State to determine the 
     procedures for the processing of immigrant visa applications 
     or the locations where such applications will be 
     processed.''.

     SEC. 634. CHANGES REGARDING VISA APPLICATION PROCESS.

       (a) Nonimmigrant Applications.--Section 222(c) (8 U.S.C. 
     1202(c)) is amended--
       (1) by striking ``personal description'' through ``marks of 
     identification);'';
       (2) by striking ``applicant'' and inserting ``applicant, 
     the determination of his eligibility for a nonimmigrant 
     visa,''; and

[[Page H11828]]

       (3) by adding at the end the following: ``At the discretion 
     of the Secretary of State, application forms for the various 
     classes of nonimmigrant admissions described in section 
     101(a)(15) may vary according to the class of visa being 
     requested.''.
       (b) Disposition of Applications.--Section 222(e) (8 U.S.C. 
     1202(e)) is amended--
       (1) in the first sentence, by striking ``required by this 
     section'' and inserting ``for an immigrant visa''; and
       (2) in the fourth sentence--
       (A) by striking ``stamp'' and inserting ``stamp, or other
       (B) by striking ``by the consular officer''.

     SEC. 635. VISA WAIVER PROGRAM.

       (a) Elimination of Joint Action Requirement.--Section 217 
     (8 U.S.C. 1187) is amended--
       (1) in subsection (a), by striking ``Attorney General and 
     the Secretary of State, acting jointly'' and inserting 
     ``Attorney General, in consultation with the Secretary of 
     State'';
       (2) in subsection (c)(1), by striking ``Attorney General 
     and the Secretary of State acting jointly'' and inserting 
     ``Attorney General, in consultation with the Secretary of 
     State,''; and
       (3) in subsection (d), by striking ``Attorney General and 
     the Secretary of State, acting jointly,'' and inserting 
     ``Attorney General, in consultation with the Secretary of 
     State,''.
       (b) Extension of Program.--Section 217(f) (8 U.S.C. 
     1187(f)) is amended by striking ``1996'' and inserting 
     ``1997.''.
       (c) Duration and Termination of Designation of Pilot 
     Program Countries.--
       (1) In general.--Section 217(g) (8 U.S.C. 1187(g)) is 
     amended to read as follows:
       ``(g) Duration and Termination of Designation.--
       ``(1) In general.--
       ``(A) Determination and notification of disqualification 
     rate.--Upon determination by the Attorney General that a 
     pilot program country's disqualification rate is 2 percent or 
     more, the Attorney General shall notify the Secretary of 
     State.
       ``(B) Probationary status.--If the program country's 
     disqualification rate is greater than 2 percent but less than 
     3.5 percent, the Attorney General shall place the program 
     country in probationary status for a period not to exceed 2 
     full fiscal years following the year in which the 
     determination under subparagraph (A) is made.
       ``(C) Termination of designation.--Subject to paragraph 
     (3), if the program country's disqualification rate is 3.5 
     percent or more, the Attorney General shall terminate the 
     country's designation as a pilot program country effective at 
     the beginning of the second fiscal year following the fiscal 
     year in which the determination under subparagraph (A) is 
     made.
       ``(2) Termination of probationary status.--
       ``(A) In general.--If the Attorney General determines at 
     the end of the probationary period described in paragraph 
     (1)(B) that the program country placed in probationary status 
     under such paragraph has failed to develop a machine-readable 
     passport program as required by section (c)(2)(C), or has a 
     disqualification rate of 2 percent or more, the Attorney 
     General shall terminate the designation of the country as a 
     pilot program country. If the Attorney General determines 
     that the program country has developed a machine-readable 
     passport program and has a disqualification rate of less than 
     2 percent, the Attorney General shall redesignate the country 
     as a pilot program country.
       ``(B) Effective date.--A termination of the designation of 
     a country under subparagraph (A) shall take effect on the 
     first day of the first fiscal year following the fiscal year 
     in which the determination under such subparagraph is made. 
     Until such date, nationals of the country shall remain 
     eligible for a waiver under subsection (a).
       ``(3) Nonapplicability of certain provisions.--Paragraph 
     (1)(C) shall not apply unless the total number of nationals 
     of a pilot program country described in paragraph (4)(A) 
     exceeds 100.
       ``(4) Definition.--For purposes of this subsection, the 
     term `disqualification rate' means the percentage which--
       ``(A) the total number of nationals of the pilot program 
     country who were--
       ``(i) excluded from admission or withdrew their application 
     for admission during the most recent fiscal year for which 
     data are available; and
       ``(ii) admitted as nonimmigrant visitors during such fiscal 
     year and who violated the terms of such admission; bears to
       ``(B) the total number of nationals of such country who 
     applied for admission as nonimmigrant visitors during such 
     fiscal year.''.
       (2) Transition.--A country designated as a pilot program 
     country with probationary status under section 217(g) of the 
     Immigration and Nationality Act (as in effect on the day 
     before the date of the enactment of this Act) shall be 
     considered to be designated as a pilot program country on and 
     after such date, subject to placement in probationary status 
     or termination of such designation under such section (as 
     amended by paragraph (1)).
       (3) Conforming amendment.--Section 217(a)(2)(B) (8 U.S.C. 
     1187(a)(2)(B)) is amended by striking ``or is'' through 
     ``subsection (g).'' and inserting a period.

     SEC. 636. FEE FOR DIVERSITY IMMIGRANT LOTTERY.

       The Secretary of State may establish a fee to be paid by 
     each applicant for an immigrant visa described in section 
     203(c) of the Immigration and Nationality Act. Such fee may 
     be set at a level that will ensure recovery of the cost to 
     the Department of State of allocating visas under such 
     section, including the cost of processing all applications 
     thereunder. All fees collected under this section shall be 
     used for providing consular services. All fees collected 
     under this section shall be deposited as an offsetting 
     collection to any Department of State appropriation and shall 
     remain available for obligations until expended. The 
     provisions of the Act of August 18, 1856 (11 Stat. 58; 22 
     U.S.C. 4212-4214), concerning accounting for consular fees, 
     shall not apply to fees collected under this section.

     SEC. 637. ELIGIBILITY FOR VISAS FOR CERTAIN POLISH APPLICANTS 
                   FOR THE 1995 DIVERSITY IMMIGRANT PROGRAM.

       (a) In General.--The Attorney General, in consultation with 
     the Secretary of State, shall include among the aliens 
     selected for diversity immigrant visas for fiscal year 1997 
     pursuant to section 203(c) of the Immigration and Nationality 
     Act any alien who, on or before September 30, 1995--
       (1) was selected as a diversity immigrant under such 
     section for fiscal year 1995;
       (2) applied for adjustment of status to that of an alien 
     lawfully admitted for permanent residence pursuant to section 
     245 of such Act during fiscal year 1995, and whose 
     application, and any associated fees, were accepted by the 
     Attorney General, in accordance with applicable regulations;
       (3) was not determined by the Attorney General to be 
     excludable under section 212 of such Act or ineligible under 
     section 203(c)(2) of such Act; and
       (4) did not become an alien lawfully admitted for permanent 
     residence during fiscal year 1995.
       (b) Priority.--The aliens selected under subsection (a) 
     shall be considered to have been selected for diversity 
     immigrant visas for fiscal year 1997 prior to any alien 
     selected under any other provision of law.
       (c) Reduction of Immigrant Visa Number.--For purposes of 
     applying the numerical limitations in sections 201 and 203(c) 
     of the Immigration and Nationality Act, aliens selected under 
     subsection (a) who are granted an immigrant visa shall be 
     treated as aliens granted a visa under section 203(c) of such 
     Act.
                      Subtitle D--Other Provisions

     SEC. 641. PROGRAM TO COLLECT INFORMATION RELATING TO 
                   NONIMMIGRANT FOREIGN STUDENTS AND OTHER 
                   EXCHANGE PROGRAM PARTICIPANTS.

       (a) In General.--
       (1) Program.--The Attorney General, in consultation with 
     the Secretary of State and the Secretary of Education, shall 
     develop and conduct a program to collect from approved 
     institutions of higher education and designated exchange 
     visitor programs in the United States the information 
     described in subsection (c) with respect to aliens who--
       (A) have the status, or are applying for the status, of 
     nonimmigrants under subparagraph (F), (J), or (M) of section 
     101(a)(15) of the Immigration and Nationality Act; and
       (B) are nationals of the countries designated under 
     subsection (b).
       (2) Deadline.--The program shall commence not later than 
     January 1, 1998.
       (b) Covered Countries.--The Attorney General, in 
     consultation with the Secretary of State, shall designate 
     countries for purposes of subsection (a)(1)(B). The Attorney 
     General shall initially designate not less than 5 countries 
     and may designate additional countries at any time while the 
     program is being conducted.
       (c) Information to be Collected.--
       (1) In general.--The information for collection under 
     subsection (a) with respect to an alien consists of--
       (A) the identity and current address in the United States 
     of the alien;
       (B) the nonimmigrant classification of the alien and the 
     date on which a visa under the classification was issued or 
     extended or the date on which a change to such classification 
     was approved by the Attorney General;
       (C) in the case of a student at an approved institution of 
     higher education, the current academic status of the alien, 
     including whether the alien is maintaining status as a full-
     time student or, in the case of a participant in a designated 
     exchange visitor program, whether the alien is satisfying the 
     terms and conditions of such program; and
       (D) in the case of a student at an approved institution of 
     higher education, any disciplinary action taken by the 
     institution against the alien as a result of the alien's 
     being convicted of a crime or, in the case of a participant 
     in a designated exchange visitor program, any change in the 
     alien's participation as a result of the alien's being 
     convicted of a crime.
       (2) FERPA.--The Family Educational Rights and Privacy Act 
     of 1974 shall not apply to aliens described in subsection (a) 
     to the extent that the Attorney General determines necessary 
     to carry out the program under subsection (a).
       (3) Electronic collection.--The information described in 
     paragraph (1) shall be collected electronically, where 
     practicable.
       (4) Computer software.--
       (A) Collecting institutions.--To the extent practicable, 
     the Attorney General shall design the program in a manner 
     that permits approved institutions of higher education and 
     designated exchange visitor programs to use existing software 
     for the collection, storage, and data processing of 
     information described in paragraph (1).
       (B) Attorney general.--To the extent practicable, the 
     Attorney General shall use or enhance existing software for 
     the collection, storage, and data processing of information 
     described in paragraph (1).
       (d) Participation by Institutions of Higher Education and 
     Exchange Visitor Programs.--
       (1) Condition.--The information described in subsection (c) 
     shall be provided by as a condition of--
       (A) in the case of an approved institution of higher 
     education, the continued approval of the institution under 
     subparagraph (F) or (M) of section 101(a)(15) of the 
     Immigration and Nationality Act; and

[[Page H11829]]

       (B) in the case of an approved institution of higher 
     education or a designated exchange visitor program, the 
     granting of authority to issue documents to an alien 
     demonstrating the alien's eligibility for a visa under 
     subparagraph (F), (J), or (M) of section 101(a)(15) of such 
     Act.
       (2) Effect of failure to provide information.--If an 
     approved institution of higher education or a designated 
     exchange visitor program fails to provide the specified 
     information, such approvals and such issuance of visas shall 
     be revoked or denied.
       (e) Funding.--
       (1) In general.--Beginning on April 1, 1997, an approved 
     institution of higher education and a designated exchange 
     visitor program shall impose on, and collect from, each alien 
     described in paragraph (3), with respect to whom the 
     institution or program is required by subsection (a) to 
     collect information, a fee established by the Attorney 
     General under paragraph (4) at the time--
       (A) when the alien first registers with the institution or 
     program after entering the United States; or
       (B) in a case where a registration under subparagraph (A) 
     does not exist, when the alien first commences activities in 
     the United States with the institution or program.
       (2) Remittance.--An approved institution of higher 
     education and a designated exchange visitor program 
     shall remit the fees collected under paragraph (1) to the 
     Attorney General pursuant to a schedule established by the 
     Attorney General.
       (3) Aliens described.--An alien referred to in paragraph 
     (1) is an alien who has nonimmigrant status under 
     subparagraph (F), (J), or (M) of section 101(a)(15) of the 
     Immigration and Nationality Act (other than a nonimmigrant 
     under section 101(a)(15)(J) of such Act who has come to the 
     United States as a participant in a program sponsored by the 
     Federal Government).
       (4) Amount and use of fees.--
       (A) Establishment of amount.--The Attorney General shall 
     establish the amount of the fee to be imposed on, and 
     collected from, an alien under paragraph (1). Except as 
     provided in subsection (g)(2), the fee imposed on any 
     individual may not exceed $100. The amount of the fee shall 
     be based on the Attorney General's estimate of the cost per 
     alien of conducting the information collection program 
     described in this section.
       (B) Use.--Fees collected under paragraph (1) shall be 
     deposited as offsetting receipts into the Immigration 
     Examinations Fee Account (established under section 286(m) of 
     the Immigration and Nationality Act) and shall remain 
     available until expended for the Attorney General to 
     reimburse any appropriation the amount paid out of which is 
     for expenses in carrying out this section.
       (f) Joint Report.--Not later than 4 years after the 
     commencement of the program established under subsection (a), 
     the Attorney General, the Secretary of State, and the 
     Secretary of Education shall jointly submit to the Committees 
     on the Judiciary of the Senate and the House of 
     Representatives a report on the operations of the program and 
     the feasibility of expanding the program to cover the 
     nationals of all countries.
       (g) Worldwide Applicability of the Program.--
       (1) Expansion of program.--
       (A) In general.--Not later than 6 months after the 
     submission of the report required by subsection (f), the 
     Attorney General, in consultation with the Secretary of State 
     and the Secretary of Education, shall commence expansion of 
     the program to cover the nationals of all countries.
       (B) Deadline.--Such expansion shall be completed not later 
     than 1 year after the date of the submission of the report 
     referred to in subsection (f).
       (2) Revision of fee.--After the program has been expanded, 
     as provided in paragraph (1), the Attorney General may, on a 
     periodic basis, revise the amount of the fee imposed and 
     collected under subsection (e) in order to take into account 
     changes in the cost of carrying out the program.
       (h) Definitions.--As used in this section:
       (1) Approved institution of higher education.--The term 
     ``approved institution of higher education'' means a college 
     or university approved by the Attorney General, in 
     consultation with the Secretary of Education, under 
     subparagraph (F), (J), or (M) of section 101(a)(15) of the 
     Immigration and Nationality Act.
       (2) Designated exchange visitor program.--The term 
     ``designated exchange visitor program'' means a program that 
     has been--
       (A) designated by the Director of the United States 
     Information Agency for purposes of section 101(a)(15)(J) of 
     the Immigration and Nationality Act; and
       (B) selected by the Attorney General for purposes of the 
     program under this section.

     SEC. 642. COMMUNICATION BETWEEN GOVERNMENT AGENCIES AND THE 
                   IMMIGRATION AND NATURALIZATION SERVICE.

       (a) In General.--Notwithstanding any other provision of 
     Federal, State, or local law, a Federal, State, or local 
     government entity or official may not prohibit, or in any way 
     restrict, any government entity or official from sending to, 
     or receiving from, the Immigration and Naturalization Service 
     information regarding the citizenship or immigration status, 
     lawful or unlawful, of any individual.
       (b) Additional Authority of Government Entities.--
     Notwithstanding any other provision of Federal, State, or 
     local law, no person or agency may prohibit, or in any way 
     restrict, a Federal, State, or local government entity from 
     doing any of the following with respect to information 
     regarding the immigration status, lawful or unlawful, of any 
     individual:
       (1) Sending such information to, or requesting or receiving 
     such information from, the Immigration and Naturalization 
     Service.
       (2) Maintaining such information.
       (3) Exchanging such information with any other Federal, 
     State, or local government entity.
       (c) Obligation to Respond to Inquiries.--The Immigration 
     and Naturalization Service shall respond to an inquiry by a 
     Federal, State, or local government agency, seeking to verify 
     or ascertain the citizenship or immigration status of any 
     individual within the jurisdiction of the agency for any 
     purpose authorized by law, by providing the requested 
     verification or status information.

     SEC. 643. REGULATIONS REGARDING HABITUAL RESIDENCE.

       Not later than 6 months after the date of the enactment of 
     this Act, the Commissioner of Immigration and Naturalization 
     shall issue regulations governing rights of ``habitual 
     residence'' in the United States under the terms of the 
     following:
       (1) The Compact of Free Association between the Government 
     of the United States and the Governments of the Marshall 
     Islands and the Federated States of Micronesia (48 U.S.C. 
     1901 note).
       (2) The Compact of Free Association between the Government 
     of the United States and the Government of Palau (48 U.S.C. 
     1931 note).

     SEC. 644. INFORMATION REGARDING FEMALE GENITAL MUTILATION.

       (a) Provision of Information Regarding Female Genital 
     Mutilation.--The Immigration and Naturalization Service (in 
     cooperation with the Department of State) shall make 
     available for all aliens who are issued immigrant or 
     nonimmigrant visas, prior to or at the time of entry into the 
     United States, the following information:
       (1) Information on the severe harm to physical and 
     psychological health caused by female genital mutilation 
     which is compiled and presented in a manner which is limited 
     to the practice itself and respectful to the cultural values 
     of the societies in which such practice takes place.
       (2) Information concerning potential legal consequences in 
     the United States for (A) performing female genital 
     mutilation, or (B) allowing a child under his or her care to 
     be subjected to female genital mutilation, under criminal or 
     child protection statutes or as a form of child abuse.
       (b) Limitation.--In consultation with the Secretary of 
     State, the Commissioner of Immigration and Naturalization 
     shall identify those countries in which female genital 
     mutilation is commonly practiced and, to the extent 
     practicable, limit the provision of information under 
     subsection (a) to aliens from such countries.
       (c) Definition.--For purposes of this section, the term 
     ``female genital mutilation'' means the removal or 
     infibulation (or both) of the whole or part of the clitoris, 
     the labia minora, or labia majora.

     SEC. 645. CRIMINALIZATION OF FEMALE GENITAL MUTILATION.

       (a) Findings.--The Congress finds that--
       (1) the practice of female genital mutilation is carried 
     out by members of certain cultural and religious groups 
     within the United States;
       (2) the practice of female genital mutilation often results 
     in the occurrence of physical and psychological health 
     effects that harm the women involved;
       (3) such mutilation infringes upon the guarantees of rights 
     secured by Federal and State law, both statutory and 
     constitutional;
       (4) the unique circumstances surrounding the practice of 
     female genital mutilation place it beyond the ability of any 
     single State or local jurisdiction to control;
       (5) the practice of female genital mutilation can be 
     prohibited without abridging the exercise of any rights 
     guaranteed under the first amendment to the Constitution or 
     under any other law; and
       (6) Congress has the affirmative power under section 8 of 
     article I, the necessary and proper clause, section 5 of the 
     fourteenth amendment, as well as under the treaty clause, to 
     the Constitution to enact such legislation.
       (b) Crime.--
       (1) In general.--Chapter 7 of title 18, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 116. Female genital mutilation

       ``(a) Except as provided in subsection (b), whoever 
     knowingly circumcises, excises, or infibulates the whole or 
     any part of the labia majora or labia minora or clitoris of 
     another person who has not attained the age of 18 years shall 
     be fined under this title or imprisoned not more than 5 
     years, or both.
       ``(b) A surgical operation is not a violation of this 
     section if the operation is--
       ``(1) necessary to the health of the person on whom it is 
     performed, and is performed by a person licensed in the place 
     of its performance as a medical practitioner; or
       ``(2) performed on a person in labor or who has just given 
     birth and is performed for medical purposes connected with 
     that labor or birth by a person licensed in the place it is 
     performed as a medical practitioner, midwife, or person in 
     training to become such a practitioner or midwife.
       ``(c) In applying subsection (b)(1), no account shall be 
     taken of the effect on the person on whom the operation is to 
     be performed of any belief on the part of that person, or any 
     other person, that the operation is required as a matter of 
     custom or ritual.''.
       (2) Conforming amendment.--The table of sections at the 
     beginning of chapter 7 of title 18, United States Code, is 
     amended by adding at the end the following new item:

``116. Female genital mutilation.''.

       (c) Effective Date.--The amendments made by subsection (b) 
     shall take effect on the date

[[Page H11830]]

     that is 180 days after the date of the enactment of this Act.

     SEC. 646. ADJUSTMENT OF STATUS FOR CERTAIN POLISH AND 
                   HUNGARIAN PAROLEES.

       (a) In General.--The Attorney General shall adjust the 
     status of an alien described in subsection (b) to that of an 
     alien lawfully admitted for permanent residence if the 
     alien--
       (1) applies for such adjustment;
       (2) has been physically present in the United States for at 
     least 1 year and is physically present in the United States 
     on the date the application for such adjustment is filed;
       (3) is admissible to the United States as an immigrant, 
     except as provided in subsection (c); and
       (4) pays a fee (determined by the Attorney General) for the 
     processing of such application.
       (b) Aliens Eligible for Adjustment of Status.--The benefits 
     provided in subsection (a) shall only apply to an alien who--
       (1) was a national of Poland or Hungary; and
       (2) was inspected and granted parole into the United States 
     during the period beginning on November 1, 1989, and ending 
     on December 31, 1991, after being denied refugee status.
       (c) Waiver of Certain Grounds for Inadmissibility.--The 
     provisions of paragraphs (4), (5), and (7)(A) of section 
     212(a) of the Immigration and Nationality Act shall not apply 
     to adjustment of status under this section and the Attorney 
     General may waive any other provision of such section (other 
     than paragraph (2)(C) and subparagraphs (A), (B), (C), or (E) 
     of paragraph (3)) with respect to such an adjustment for 
     humanitarian purposes, to assure family unity, or when it is 
     otherwise in the public interest.
       (d) Date of Approval.--Upon the approval of such an 
     application for adjustment of status, the Attorney General 
     shall create a record of the alien's admission as an alien 
     lawfully admitted for permanent residence as of the date of 
     the alien's inspection and parole described in subsection 
     (b)(2).
       (e) No Offset in Number of Visas Available.--When an alien 
     is granted the status of having been lawfully admitted for 
     permanent residence under this section, the Secretary of 
     State shall not be required to reduce the number of immigrant 
     visas authorized to be issued under the Immigration and 
     Nationality Act.

     SEC. 647. SUPPORT OF DEMONSTRATION PROJECTS.

       (a) In General.--The Attorney General shall make available 
     funds under this section, in each of fiscal years 1997 
     through 2001, to the Commissioner of Immigration and 
     Naturalization or to other public or private nonprofit 
     entities to support demonstration projects under this section 
     at 10 sites throughout the United States. Each such project 
     shall be designed to provide for the administration of the 
     oath of allegiance under section 337(a) of the Immigration 
     and Nationality Act on a business day around Independence Day 
     to approximately 500 people whose application for 
     naturalization has been approved. Each project shall provide 
     for appropriate outreach and ceremonial and celebratory 
     activities.
       (b) Selection of Sites.--The Attorney General shall, in the 
     Attorney General's discretion, select diverse locations for 
     sites on the basis of the number of naturalization applicants 
     living in proximity to each site and the degree of local 
     community participation and support in the project to be held 
     at the site. Not more than 2 sites may be located in the same 
     State. The Attorney General shall consider changing the sites 
     selected from year to year.
       (c) Amounts Available; Use of Funds.--
       (1) Amount.--The amount made available under this section 
     with respect to any single site for a year shall not exceed 
     $5,000.
       (2) Use.--Funds made available under this section may be 
     used only to cover expenses incurred in carrying out oath 
     administration ceremonies at the demonstration sites under 
     subsection (a), including expenses for--
       (A) cost of personnel of the Immigration and Naturalization 
     Service (including travel and overtime expenses);
       (B) rental of space; and
       (C) costs of printing appropriate brochures and other 
     information about the ceremonies.
       (3) Availability of funds.--Funds that are otherwise 
     available to the Immigration and Naturalization Service to 
     carry out naturalization activities shall be available, to 
     the extent provided in appropriation Acts, to carry out this 
     section.
       (d) Application.--In the case of an entity other than the 
     Immigration and Naturalization Service seeking to conduct a 
     demonstration project under this section, no amounts may be 
     made available to the entity under this section unless an 
     appropriate application has been made to, and approved by, 
     the Attorney General, in a form and manner specified by the 
     Attorney General.

     SEC. 648. SENSE OF CONGRESS REGARDING AMERICAN-MADE PRODUCTS; 
                   REQUIREMENTS REGARDING NOTICE.

       (a) Purchase of American-Made Equipment and Products.--It 
     is the sense of the Congress that, to the greatest extent 
     practicable, all equipment and products purchased with funds 
     made available under this division should be American-made.
       (b) Notice to Recipients of Grants.--In providing grants 
     under this division, the Attorney General, to the greatest 
     extent practicable, shall provide to each recipient of a 
     grant a notice describing the statement made in subsection 
     (a) by the Congress.

     SEC. 649. VESSEL MOVEMENT CONTROLS DURING IMMIGRATION 
                   EMERGENCY.

       Section 1 of the Act of June 15, 1917 (50 U.S.C. 191) is 
     amended in the first sentence by inserting ``or whenever the 
     Attorney General determines that an actual or anticipated 
     mass migration of aliens en route to, or arriving off the 
     coast of, the United States presents urgent circumstances 
     requiring an immediate Federal response,'' after ``United 
     States,'' the first place such term appears.

     SEC. 650. REVIEW OF PRACTICES OF TESTING ENTITIES.

       (a) In General.--The Attorney General shall investigate, 
     and submit a report to the Committees on the Judiciary of the 
     House of Representatives and of the Senate regarding, the 
     practices of entities authorized to administer standardized 
     citizenship tests pursuant to section 312.3(a) of title 8, 
     Code of Federal Regulations. The report shall include any 
     findings of fraudulent practices by such entities.
       (b) Preliminary and Final Reports.--Not later than 90 days 
     after the date of the enactment of this Act, the Attorney 
     General shall submit to the Committees on the Judiciary of 
     the House of Representatives and of the Senate a preliminary 
     report on the investigation conducted under subsection (a). 
     The Attorney General shall submit to such Committees a final 
     report on such investigation not later than 275 days after 
     the submission of the preliminary report.

     SEC. 651. DESIGNATION OF A UNITED STATES CUSTOMS 
                   ADMINISTRATIVE BUILDING.

       (a) Designation.--The United States Customs Administrative 
     Building at the Ysleta/Zaragosa Port of Entry located at 797 
     South Zaragosa Road in El Paso, Texas, is designated as the 
     ``Timothy C. McCaghren Customs Administrative Building''.
       (b) Legal References.--Any reference in any law, 
     regulation, document, record, map, or other paper of the 
     United States to the building referred to in subsection (a) 
     is deemed to be a reference to the ``Timothy C. McCaghren 
     Customs Administrative Building''.

     SEC. 652. MAIL-ORDER BRIDE BUSINESS.

       (a) Findings.--The Congress finds as follows:
       (1) There is a substantial ``mail-order bride'' business in 
     the United States. With approximately 200 companies in the 
     United States, an estimated 2,000 to 3,500 men in the United 
     States find wives through mail-order bride catalogs each 
     year. However, there are no official statistics available on 
     the number of mail-order brides entering the United States 
     each year.
       (2) The companies engaged in the mail-order bride business 
     earn substantial profits.
       (3) Although many of these mail-order marriages work out, 
     in many other cases, anecdotal evidence suggests that mail-
     order brides find themselves in abusive relationships. There 
     is also evidence to suggest that a substantial number of 
     mail-order marriages are fraudulent under United States law.
       (4) Many mail-order brides come to the United States 
     unaware or ignorant of United States immigration law. Mail-
     order brides who are battered often think that if they flee 
     an abusive marriage, they will be deported. Often the 
     citizen spouse threatens to have them deported if they 
     report the abuse.
       (5) The Immigration and Naturalization Service estimates 
     that the rate of marriage fraud between foreign nationals and 
     United States citizens or aliens lawfully admitted for 
     permanent residence is 8 percent. It is unclear what 
     percentage of these marriage fraud cases originate as mail-
     order marriages.
       (b) Information Dissemination.--
       (1) Requirement.--Each international matchmaking 
     organization doing business in the United States shall 
     disseminate to recruits, upon recruitment, such immigration 
     and naturalization information as the Immigration and 
     Naturalization Service deems appropriate, in the recruit's 
     native language, including information regarding conditional 
     permanent residence status and the battered spouse waiver 
     under such status, permanent resident status, marriage fraud 
     penalties, the unregulated nature of the business engaged in 
     by such organizations, and the study required under 
     subsection (c).
       (2) Civil penalty.--
       (A) Violation.--Any international matchmaking organization 
     that the Attorney General determines has violated subsection 
     (b) shall be subject, in addition to any other penalties that 
     may be prescribed by law, to a civil money penalty of not 
     more than $20,000 for each such violation.
       (B) Procedures for imposition of penalty.--Any penalty 
     under subparagraph (A) may be imposed only after notice and 
     opportunity for an agency hearing on the record in accordance 
     with sections 554 through 557 of title 5, United States Code.
       (c) Study.--The Attorney General, in consultation with the 
     Commissioner of Immigration and Naturalization and the 
     Director of the Violence Against Women Initiative of the 
     Department of Justice, shall conduct a study of mail-order 
     marriages to determine, among other things--
       (1) the number of such marriages;
       (2) the extent of marriage fraud in such marriages, 
     including an estimate of the extent of marriage fraud arising 
     from the services provided by international matchmaking 
     organizations;
       (3) the extent to which mail-order spouses utilize section 
     244(a)(3) of the Immigration and Nationality Act (providing 
     for suspension of deportation in certain cases involving 
     abuse), or section 204(a)(1)(A)(iii) of such Act (providing 
     for certain aliens who have been abused to file a 
     classification petition on their own behalf);
       (4) the extent of domestic abuse in mail-order marriages; 
     and
       (5) the need for continued or expanded regulation and 
     education to implement the objectives of the Violence Against 
     Women Act of 1994 and the Immigration Marriage Fraud 
     Amendments of 1986 with respect to mail-order marriages.
       (d) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Attorney General shall submit a 
     report to the Committees on the Judiciary of the House of 
     Representatives

[[Page H11831]]

     and of the Senate setting forth the results of the study 
     conducted under subsection (c).
       (e) Definitions.--As used in this section:
       (1) International matchmaking organization.--
       (A) In general.--The term ``international matchmaking 
     organization'' means a corporation, partnership, business, or 
     other legal entity, whether or not organized under the laws 
     of the United States or any State, that does business in the 
     United States and for profit offers to United States citizens 
     or aliens lawfully admitted for permanent residence, dating, 
     matrimonial, or social referral services to nonresident 
     noncitizens, by--
       (i) an exchange of names, telephone numbers, addresses, or 
     statistics;
       (ii) selection of photographs; or
       (iii) a social environment provided by the organization in 
     a country other than the United States.
       (B) Exception.--Such term does not include a traditional 
     matchmaking organization of a religious nature that otherwise 
     operates in compliance with the laws of the countries of the 
     recruits of such organization and the laws of the United 
     States.
       (2) Recruit.--The term ``recruit'' means a noncitizen, 
     nonresident person, recruited by the international 
     matchmaking organization for the purpose of providing dating, 
     matrimonial, or social referral services to United States 
     citizens or aliens lawfully admitted for permanent residence.

     SEC. 653. REVIEW AND REPORT ON H-2A NONIMMIGRANT WORKERS 
                   PROGRAM.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that the H2-A nonimmigrant worker program should be reviewed 
     and may need improvement in order to meet the need of 
     producers of labor-intensive agricultural commodities and 
     livestock in the United States for an adequate workforce.
       (b) Review.--The Comptroller General shall review the 
     effectiveness of the H-2A nonimmigrant worker program to 
     ensure that the program provides a sufficient supply of 
     agricultural labor in the event of future shortages of 
     domestic workers after the enactment of this Act. Among other 
     things, the Comptroller General shall review the H-2A 
     nonimmigrant worker program to determine--
       (1) whether the program ensures that an adequate supply of 
     qualified United States workers is available at the time and 
     place needed for employers seeking such workers after the 
     date of enactment of this Act;
       (2) whether the program ensures that there is timely 
     approval of applications for temporary foreign workers under 
     the program in the event of shortages of United States 
     workers after the date of the enactment of this Act;
       (3) whether the program ensures that implementation of the 
     program is not displacing United States agricultural workers 
     or diminishing the terms and conditions of employment of 
     United States agricultural workers;
       (4) if, and to what extent, the program is contributing to 
     the problem of illegal immigration; and
       (5) that the program adequately meets the needs of 
     agricultural employers for all types of temporary foreign 
     agricultural workers, including higher-skilled workers in 
     occupations which require a level of specific vocational 
     preparation of 4 or higher (as described in the 4th edition 
     of the Dictionary of Occupational Title, published by the 
     Department of Labor).
       (c) Report.--Not later than December 31, 1996, or 3 months 
     after the date of the enactment of this Act, whichever occurs 
     earlier, the Comptroller General shall submit a report to the 
     appropriate committees of the Congress setting forth the 
     conclusions of the Comptroller General from the review 
     conducted under subsection (b).
       (d) Definitions.--As used in this section:
       (1) The term ``Comptroller General'' means the Comptroller 
     General of the United States.
       (2) The term ``H-2A nonimmigrant worker program'' means the 
     program for the admission of nonimmigrant aliens described in 
     section 101(a)(15)(H)(ii)(a) of the Immigration and 
     Nationality Act.

     SEC. 654. REPORT ON ALLEGATIONS OF HARASSMENT BY CANADIAN 
                   CUSTOMS AGENTS.

       (a) Study and Review.--
       (1) In general.--Not later than 30 days after the date of 
     the enactment of this Act, the Commissioner of the United 
     States Customs Service shall initiate a study of harassment 
     by Canadian customs agents allegedly undertaken for the 
     purpose of deterring cross-border commercial activity along 
     the United States-New Brunswick border. Such study shall 
     include a review of the possible connection between any 
     incidents of harassment and the discriminatory imposition of 
     the New Brunswick provincial sales tax on goods purchased in 
     the United States by New Brunswick residents, and with any 
     other actions taken by the Canadian provincial governments to 
     deter cross-border commercial activities.
       (2) Consultation.--In conducting the study under paragraph 
     (1), the Commissioner of the United States Customs Service 
     shall consult with representatives of the State of Maine, 
     local governments, local businesses, and any other 
     knowledgeable persons who the Commissioner considers to be 
     important to the completion of the study.
       (b) Report.--Not later than 120 days after the date of the 
     enactment of this Act, the Commissioner of the United States 
     Customs Service shall submit to the Committees on the 
     Judiciary of the House of Representatives and of the Senate a 
     report on the study and review conducted under subsection 
     (a). The report shall include recommendations for steps that 
     the United States Government can take to help end any 
     harassment by Canadian customs agents that is found to have 
     occurred.

     SEC. 655. SENSE OF CONGRESS ON DISCRIMINATORY APPLICATION OF 
                   NEW BRUNSWICK PROVINCIAL SALES TAX.

       (a) Findings.--The Congress finds as follows:
       (1) In July 1993, Canadian customs officers began 
     collecting an 11 percent New Brunswick provincial sales tax 
     on goods purchased in the United States by New Brunswick 
     residents, an action that has caused severe economic harm to 
     United States businesses located in proximity to the border 
     with New Brunswick.
       (2) This impediment to cross-border trade compounds the 
     damage already done from the Canadian Government's imposition 
     of a 7 percent tax on all goods bought by Canadians in the 
     United States.
       (3) Collection of the New Brunswick provincial sales tax on 
     goods purchased outside of New Brunswick is effected only 
     along the United States-Canadian border, not along New 
     Brunswick's borders with other Canadian provinces; the tax is 
     thus being administered by Canadian authorities in a manner 
     uniquely discriminatory to Canadians shopping in the United 
     States.
       (4) In February 1994, the United States Trade 
     Representative publicly stated an intention to seek redress 
     from the discriminatory application of the New Brunswick 
     provincial sales tax under the dispute resolution process in 
     chapter 20 of the North American Free Trade Agreement 
     (NAFTA), but the United States Government has still not made 
     such a claim under NAFTA procedures.
       (5) Initially, the United States Trade Representative 
     argued that filing a New Brunswick provincial sales tax claim 
     was delayed only because the dispute mechanism under NAFTA 
     had not yet been finalized, but more than a year after such 
     mechanism has been put in place, the claim has still not been 
     put forward by the United States Trade Representative.
       (b) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) the provincial sales tax levied by the Canadian 
     province of New Brunswick on Canadian citizens of that 
     province who purchase goods in the United States--
       (A) raises questions about a possible violation of the 
     North American Free Trade Agreement in the discriminatory 
     application of the tax to cross-border trade with the United 
     States; and
       (B) damages good relations between the United States and 
     Canada; and
       (2) the United States Trade Representative should move 
     forward without further delay in seeking redress under the 
     dispute resolution process in chapter 20 of the North 
     American Free Trade Agreement for the violation.

     SEC. 656. IMPROVEMENTS IN IDENTIFICATION-RELATED DOCUMENTS.

       (a) Birth Certificates.--
       (1) Standards for acceptance by federal agencies.--
       (A) In general.--
       (i) General rule.--Subject to clause (ii), a Federal agency 
     may not accept for any official purpose a certificate of 
     birth, unless the certificate--

       (I) is a birth certificate (as defined in paragraph (3)); 
     and
       (II) conforms to the standards set forth in the regulation 
     promulgated under subparagraph (B).

       (ii) Applicability.--Clause (i) shall apply only to a 
     certificate of birth issued after the day that is 3 years 
     after the date of the promulgation of a final regulation 
     under subparagraph (B). Clause (i) shall not be construed to 
     prevent a Federal agency from accepting for official purposes 
     any certificate of birth issued on or before such day.
       (B) Regulation.--
       (i) Consultation with government agencies.--The President 
     shall select 1 or more Federal agencies to consult with State 
     vital statistics offices, and with other appropriate Federal 
     agencies designated by the President, for the purpose of 
     developing appropriate standards for birth certificates that 
     may be accepted for official purposes by Federal agencies, as 
     provided in subparagraph (A).
       (ii) Selection of lead agency.--Of the Federal agencies 
     selected under clause (i), the President shall select 1 
     agency to promulgate, upon the conclusion of the consultation 
     conducted under such clause, a regulation establishing 
     standards of the type described in such clause.
       (iii) Deadline.--The agency selected under clause (ii) 
     shall promulgate a final regulation under such clause not 
     later than the date that is 1 year after the date of the 
     enactment of this Act.
       (iv) Minimum requirements.--The standards established under 
     this subparagraph--

       (I) at a minimum, shall require certification of the birth 
     certificate by the State or local custodian of record that 
     issued the certificate, and shall require the use of safety 
     paper, the seal of the issuing custodian of record, and other 
     features designed to limit tampering, counterfeiting, and 
     photocopying, or otherwise duplicating, the birth certificate 
     for fraudulent purposes;
       (II) may not require a single design to which birth 
     certificates issued by all States must conform; and
       (III) shall accommodate the differences between the States 
     in the manner and form in which birth records are stored and 
     birth certificates are produced from such records.

       (2) Grants to states.--
       (A) Assistance in meeting federal standards.--
       (i) In general.--Beginning on the date a final regulation 
     is promulgated under paragraph (1)(B), the Secretary of 
     Health and Human Services, acting through the Director of the 
     National Center for Health Statistics and after consulting 
     with the head of any other agency designated by the 
     President, shall make grants to States to assist them in 
     issuing birth certificates that conform to the standards set 
     forth in the regulation.

[[Page H11832]]

       (ii) Allocation of grants.--The Secretary shall provide 
     grants to States under this subparagraph in proportion to the 
     populations of the States applying to receive a grant and in 
     an amount needed to provide a substantial incentive for 
     States to issue birth certificates that conform to the 
     standards described in clause (i).
       (B) Assistance in matching birth and death records.--
       (i) In general.--The Secretary of Health and Human 
     Services, acting through the Director of the National Center 
     for Health Statistics and after consulting with the head of 
     any other agency designated by the President, shall make 
     grants to States to assist them in developing the capability 
     to match birth and death records, within each State and among 
     the States, and to note the fact of death on the birth 
     certificates of deceased persons. In developing the 
     capability described in the preceding sentence, a State that 
     receives a grant under this subparagraph shall focus first on 
     individuals born after 1950.
       (ii) Allocation and amount of grants.--The Secretary shall 
     provide grants to States under this subparagraph in 
     proportion to the populations of the States applying to 
     receive a grant and in an amount needed to provide a 
     substantial incentive for States to develop the capability 
     described in clause (i).
       (C) Demonstration projects.--The Secretary of Health and 
     Human Services, acting through the Director of the National 
     Center for Health Statistics, shall make grants to States for 
     a project in each of 5 States to demonstrate the feasibility 
     of a system under which persons otherwise required to report 
     the death of individuals to a State would be required to 
     provide to the State's office of vital statistics sufficient 
     information to establish the fact of death of every 
     individual dying in the State within 24 hours of acquiring 
     the information.
       (3) Birth certificate.--As used in this subsection, the 
     term ``birth certificate'' means a certificate of birth--
       (A) of--
       (i) an individual born in the United States; or
       (ii) an individual born abroad--

       (I) who is a citizen or national of the United States at 
     birth; and
       (II) whose birth is registered in the United States; and

       (B) that--
       (i) is a copy, issued by a State or local authorized 
     custodian of record, of an original certificate of birth 
     issued by such custodian of record; or
       (ii) was issued by a State or local authorized custodian of 
     record and was produced from birth records maintained by such 
     custodian of record.
       (b) State-Issued Drivers Licenses and Comparable 
     Identification Documents.--
       (1) Standards for acceptance by federal agencies.--
       (A) In general.--A Federal agency may not accept for any 
     identification-related purpose a driver's license, or other 
     comparable identification document, issued by a State, unless 
     the license or document satisfies the following requirements:
       (i) Application process.--The application process for the 
     license or document shall include the presentation of such 
     evidence of identity as is required by regulations 
     promulgated by the Secretary of Transportation after 
     consultation with the American Association of Motor Vehicle 
     Administrators.
       (ii) Social security number.--Except as provided in 
     subparagraph (B), the license or document shall contain a 
     social security account number that can be read visually or 
     by electronic means.
       (iii) Form.--The license or document otherwise shall be in 
     a form consistent with requirements set forth in regulations 
     promulgated by the Secretary of Transportation after 
     consultation with the American Association of Motor Vehicle 
     Administrators. The form shall contain security features 
     designed to limit tampering, counterfeiting, photocopying, or 
     otherwise duplicating, the license or document for fraudulent 
     purposes and to limit use of the license or document by 
     impostors.
       (B) Exception.--The requirement in subparagraph (A)(ii) 
     shall not apply with respect to a driver's license or other 
     comparable identification document issued by a State, if the 
     State--
       (i) does not require the license or document to contain a 
     social security account number; and
       (ii) requires--

       (I) every applicant for a driver's license, or other 
     comparable identification document, to submit the applicant's 
     social security account number; and
       (II) an agency of the State to verify with the Social 
     Security Administration that such account number is valid.

       (C) Deadline.--The Secretary of Transportation shall 
     promulgate the regulations referred to in clauses (i) and 
     (iii) of subparagraph (A) not later than 1 year after the 
     date of the enactment of this Act.
       (2) Grants to states.--Beginning on the date final 
     regulations are promulgated under paragraph (1), the 
     Secretary of Transportation shall make grants to States to 
     assist them in issuing driver's licenses and other comparable 
     identification documents that satisfy the requirements under 
     such paragraph.
       (3) Effective dates.--
       (A) In general.--Except as otherwise provided in this 
     paragraph, this subsection shall take effect on the date of 
     the enactment of this Act.
       (B) Prohibition on federal agencies.--Subparagraphs (A) and 
     (B) of paragraph (1) shall take effect beginning on October 
     1, 2000, but shall apply only to licenses or documents issued 
     to an individual for the first time and to replacement or 
     renewal licenses or documents issued according to State law.
       (c) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary of Health and Human 
     Services shall submit a report to the Congress on ways to 
     reduce the fraudulent obtaining and the fraudulent use of 
     birth certificates, including any such use to obtain a social 
     security account number or a State or Federal document 
     related to identification or immigration.
       (d) Federal Agency Defined.--For purposes of this section, 
     the term ``Federal agency'' means any of the following:
       (1) An Executive agency (as defined in section 105 of title 
     5, United States Code).
       (2) A military department (as defined in section 102 of 
     such title).
       (3) An agency in the legislative branch of the Government 
     of the United States.
       (4) An agency in the judicial branch of the Government of 
     the United States.

     SEC. 657. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT 
                   SOCIAL SECURITY CARD.

       (a) Development.--
       (1) In general.--The Commissioner of Social Security (in 
     this section referred to as the ``Commissioner'') shall, in 
     accordance with the provisions of this section, develop a 
     prototype of a counterfeit-resistant social security card. 
     Such prototype card--
       (A) shall be made of a durable, tamper-resistant material 
     such as plastic or polyester;
       (B) shall employ technologies that provide security 
     features, such as magnetic stripes, holograms, and integrated 
     circuits; and
       (C) shall be developed so as to provide individuals with 
     reliable proof of citizenship or legal resident alien status.
       (2) Assistance by attorney general.--The Attorney General 
     shall provide such information and assistance as the 
     Commissioner deems necessary to achieve the purposes of this 
     section.
       (b) Studies and Reports.--
       (1) In general.--The Comptroller General and the 
     Commissioner of Social Security shall each conduct a study, 
     and issue a report to the Congress, that examines different 
     methods of improving the social security card application 
     process.
       (2) Elements of studies.--The studies shall include 
     evaluations of the cost and work load implications of issuing 
     a counterfeit-resistant social security card for all 
     individuals over a 3, 5, and 10 year period. The studies 
     shall also evaluate the feasibility and cost implications of 
     imposing a user fee for replacement cards and cards issued to 
     individuals who apply for such a card prior to the scheduled 
     3, 5, and 10 year phase-in options.
       (3) Distribution of reports.--Copies of the reports 
     described in this subsection, along with facsimiles of the 
     prototype cards as described in subsection (a), shall be 
     submitted to the Committees on Ways and Means and Judiciary 
     of the House of Representatives and the Committees on Finance 
     and Judiciary of the Senate not later than 1 year after the 
     date of the enactment of this Act.

     SEC. 658. BORDER PATROL MUSEUM.

       (a) Authority.--Notwithstanding section 203 of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     484) or any other provision of law, the Attorney General is 
     authorized to transfer and convey to the Border Patrol Museum 
     and Memorial Library Foundation, incorporated in the State of 
     Texas, such equipment, artifacts, and memorabilia held by the 
     Immigration and Naturalization Service as the Attorney 
     General may determine is necessary to further the purposes of 
     the Museum and Foundation.
       (b) Technical Assistance.--The Attorney General is 
     authorized to provide technical assistance, through the 
     detail of personnel of the Immigration and Naturalization 
     Service, to the Border Patrol Museum and Memorial Library 
     Foundation for the purpose of demonstrating the use of the 
     items transferred under subsection (a).

     SEC. 659. SENSE OF THE CONGRESS REGARDING THE MISSION OF THE 
                   IMMIGRATION AND NATURALIZATION SERVICE.

       It is the sense of the Congress that the mission statement 
     of the Immigration and Naturalization Service should include 
     a statement that it is the responsibility of the Service to 
     detect, apprehend, and remove those aliens unlawfully present 
     in the United States, particularly those aliens involved in 
     drug trafficking or other criminal activity.

     SEC. 660. AUTHORITY FOR NATIONAL GUARD TO ASSIST IN 
                   TRANSPORTATION OF CERTAIN ALIENS.

       Section 112(d)(1) of title 32, United States Code, is 
     amended by adding at the end the following new sentence: 
     ``The plan as approved by the Secretary may provide for the 
     use of personnel and equipment of the National Guard of that 
     State to assist the Immigration and Naturalization Service in 
     the transportation of aliens who have violated a Federal or 
     State law prohibiting or regulating the possession, use, or 
     distribution of a controlled substance.''.
                   Subtitle E--Technical Corrections

     SEC. 671. MISCELLANEOUS TECHNICAL CORRECTIONS.

       (a) Amendments Relating to Public Law 103-322 (Violent 
     Crime Control and Law Enforcement Act of 1994).--
       (1) Section 60024(1)(F) of the Violent Crime Control and 
     Law Enforcement Act of 1994 (Public Law 103-322) (in this 
     subsection referred to as ``VCCLEA'') is amended by inserting 
     ``United States Code,'' after ``title 18,''.
       (2) Section 130003(b)(3) of VCCLEA is amended by striking 
     ``Naturalization'' and inserting ``Nationality''.
       (3)(A) Section 214 (8 U.S.C. 1184) is amended by 
     redesignating the subsection (j), added by section 
     130003(b)(2) of VCCLEA (108 Stat. 2025), and the subsection 
     (k), as amended by section 622(c) of this division, as 
     subsections (k) and (l), respectively.

[[Page H11833]]

       (B) Section 101(a)(15)(S) (8 U.S.C. 1101(a)(15)(S)) is 
     amended by striking ``214(j)'' and inserting ``214(k)''.
       (4)(A) Section 245 (8 U.S.C. 1255) is amended by 
     redesignating the subsection (i) added by section 
     130003(c)(1) of VCCLEA as subsection (j).
       (B) Section 241(a)(2)(A)(i)(I) (8 U.S.C. 
     1251(a)(2)(A)(i)(I)), as amended by section 130003(d) of 
     VCCLEA and before redesignation by section 305(a)(2) of this 
     division, is amended by striking ``245(i)'' and inserting 
     ``245(j)''.
       (5) Section 245(j)(3), as added by section 130003(c)(1) of 
     VCCLEA and as redesignated by paragraph (4)(A), is amended by 
     striking ``paragraphs (1) or (2)'' and inserting ``paragraph 
     (1) or (2)''.
       (6) Section 130007(a) of VCCLEA is amended by striking 
     ``242A(d)'' and inserting ``242A(a)(3)''.
       (7) The amendments made by this subsection shall be 
     effective as if included in the enactment of the VCCLEA.
       (b) Amendments Relating to Immigration and Nationality 
     Technical Corrections Act of 1994.--
       (1) Section 101(d) of the Immigration and Nationality 
     Technical Corrections Act of 1994 (Public Law 103-416) (in 
     this subsection referred to as ``INTCA'') is amended--
       (A) by striking ``Application'' and all that follows 
     through ``This'' and inserting ``Applicability of 
     Transmission Requirements.--This'';
       (B) by striking ``any residency or other retention 
     requirements for'' and inserting ``the application of any 
     provision of law relating to residence or physical presence 
     in the United States for purposes of transmitting United 
     States''; and
       (C) by striking ``as in effect'' and all that follows 
     through the end and inserting ``to any person whose claim is 
     based on the amendment made by subsection (a) or through whom 
     such a claim is derived.''.
       (2) Section 102 of INTCA is amended by adding at the end 
     the following:
       ``(e) Transition.--In applying the amendment made by 
     subsection (a) to children born before November 14, 1986, any 
     reference in the matter inserted by such amendment to `five 
     years, at least two of which' is deemed a reference to `10 
     years, at least 5 of which'.''.
       (3) Section 351(a) (8 U.S.C. 1483(a)), as amended by 
     section 105(a)(2)(A) of INTCA, is amended by striking the 
     comma after ``nationality''.
       (4) Section 207(2) of INTCA is amended by inserting a comma 
     after ``specified''.
       (5) Section 101(a)(43) (8 U.S.C. 1101(a)(43)) is amended in 
     subparagraph (K)(ii), by striking the comma after ``1588''.
       (6) Section 273(b) (8 U.S.C. 1323(b)), as amended by 
     section 209(a) of INTCA, is amended by striking ``remain'' 
     and inserting ``remains''.
       (7) Section 209(a)(1) of INTCA is amended by striking 
     ``$3000'' and inserting ``$3,000''.
       (8) Section 209(b) of INTCA is amended by striking 
     ``subsection'' and inserting ``section''.
       (9) Section 219(cc) of INTCA is amended by striking `` 
     `year 1993 the first place it appears' '' and inserting `` 
     `year 1993' the first place it appears''.
       (10) Section 219(ee) of INTCA is amended by adding at the 
     end the following:
       ``(3) The amendments made by this subsection shall take 
     effect on the date of the enactment of this Act.''.
       (11) Paragraphs (4) and (6) of section 286(r) (8 U.S.C. 
     1356(r)) are amended by inserting ``the'' before ``Fund'' 
     each place it appears.
       (12) Section 221 of INTCA is amended--
       (A) by striking each semicolon and inserting a comma,
       (B) by striking ``disasters.'' and inserting 
     ``disasters,''; and
       (C) by striking ``The official'' and inserting ``the 
     official''.
       (13) Section 242A (8 U.S.C. 1252a), as added by section 
     224(a) of INTCA and before redesignation as section 238 by 
     section 308(b)(5) of this division, is amended by 
     redesignating subsection (d) as subsection (c).
       (14) Except as otherwise provided in this subsection, the 
     amendments made by this subsection shall take effect as if 
     included in the enactment of INTCA.
       (c) Amendments Relating to Public Law 104-132 
     (Antiterrorism and Effective Death Penalty Act of 1996).--
       (1) Section 219 (8 U.S.C. 1189), as added by section 302(a) 
     of Antiterrorism and Effective Death Penalty Act of 1996 
     (Public Law 104-132) (in this subsection referred to as 
     ``AEDPA''), is amended by striking the heading and all that 
     follows through ``(a)'' and inserting the following:


            ``designation of foreign terrorist organizations

       ``Sec. 219. (a)''.
       (2) Section 302(b) of AEDPA is amended by striking ``, 
     relating to terrorism,''.
       (3) Section 106(a) (8 U.S.C. 1105a(a)), as amended by 
     sections 401(e) and 440(a) of AEDPA, is amended--
       (A) by striking ``and'' at the end of paragraph (8);
       (B) by striking the period at the end of paragraph (9) and 
     inserting ``; and''; and
       (C) in paragraph (10), by striking ``Any'' and inserting 
     ``any''.
       (4) Section 440(a) of the AEDPA is amended by striking 
     ``Section 106 of the Immigration and Nationality Act (8 
     U.S.C. 1105a(a)(10)) is amended to read as follows:'' and 
     inserting ``Section 106(a) of the Immigration and Nationality 
     Act (8 U.S.C. 1105a(a)) is amended by adding at the end the 
     following:''.
       (5) Section 440(g)(1)(A) of AEDPA is amended--
       (A) by striking ``of this title''; and
       (B) by striking the period after ``241(a)(2)(A)(i)''.
       (6) Section 440(g) of AEDPA is amended by striking 
     paragraph (2).
       (7) The amendments made by this subsection shall take 
     effect as if included in the enactment of subtitle A of title 
     IV of AEPDA.
       (d) Striking References to Section 210A.--
       (1)(A) Section 201(b)(1)(C) (8 U.S.C. 1151(b)(1)(C)) is 
     amended by striking ``, 210A,''.
       (B) Section 274B(a)(3)(B) (8 U.S.C. 1324b(a)(3)(B)) is 
     amended by striking ``, 210A(a),''.
       (C) Section 241(a)(1) (8 U.S.C. 1251(a)(1)), before 
     redesignation by section 305(a)(2) of this division, is 
     amended by striking subparagraph (F).
       (2) Sections 204(c)(1)(D)(i) and 204(j)(4) of Immigration 
     Reform and Control Act of 1986 are each amended by striking 
     ``, 210A,''.
       (e) Miscellaneous Changes in the Immigration and 
     Nationality Act.--
       (1) Before being amended by section 308(a)(2) of this 
     division, the item in the table of contents relating to 
     section 242A is amended to read as follows:

``Sec. 242A. Expedited deportation of aliens convicted of committing 
              aggravated felonies.''.

       (2) Section 101(c)(1) (8 U.S.C. 1101(c)(1)) is amended by 
     striking ``, 321, and 322'' and inserting ``and 321''.
       (3) Section 212(d)(11) (8 U.S.C. 1182(d)(11)) is amended by 
     inserting a comma after ``(4) thereof)''.
       (4) Pursuant to section 6(b) of Public Law 103-272 (108 
     Stat. 1378)--
       (A) section 214(f)(1) (8 U.S.C. 1184(f)(1)) is amended by 
     striking ``section 101(3) of the Federal Aviation Act of 
     1958'' and inserting ``section 40102(a)(2) of title 49, 
     United States Code''; and
       (B) section 258(b)(2) (8 U.S.C. 1288(b)(2)) is amended by 
     striking ``section 105 or 106 of the Hazardous Materials 
     Transportation Act (49 U.S.C. App. 1804, 1805)'' and 
     inserting ``section 5103(b), 5104, 5106, 5107, or 5110 of 
     title 49, United States Code''.
       (5) Section 286(h)(1)(A) (8 U.S.C. 1356(h)(1)(A)) is 
     amended by inserting a period after ``expended''.
       (6) Section 286(h)(2)(A) (8 U.S.C. 1356(h)(2)(A)) is 
     amended--
       (A) by striking ``and'' at the end of clause (iv);
       (B) by moving clauses (v) and (vi) 2 ems to the left;
       (C) by striking ``; and'' in clauses (v) and (vi) and 
     inserting ``and for'';
       (D) by striking the colons in clauses (v) and (vi); and
       (E) by striking the period at the end of clause (v) and 
     inserting ``; and''.
       (7) Section 412(b) (8 U.S.C. 1522(b)) is amended by 
     striking the comma after ``is authorized'' in paragraph (3) 
     and after ``The Secretary'' in paragraph (4).
       (f) Miscellaneous Change in the Immigration Act of 1990.--
     Section 161(c)(3) of the Immigration Act of 1990 is amended 
     by striking ``an an'' and inserting ``of an''.
       (g) Miscellaneous Changes in Other Acts.--
       (1) Section 506(a) of the Intelligence Authorization Act, 
     Fiscal Year 1990 (Public Law 101-193) is amended by striking 
     ``this section'' and inserting ``such section''.
       (2) Section 140 of the Foreign Relations Authorization Act, 
     Fiscal Years 1994 and 1995, as amended by section 505(2) of 
     Public Law 103-317, is amended--
       (A) by moving the indentation of subsections (f) and (g) 2 
     ems to the left; and
       (B) in subsection (g), by striking ``(g)'' and all that 
     follows through ``shall'' and inserting ``(g) Subsections (d) 
     and (e) shall''.

          DIVISION D--SMALL BUSINESS PROGRAMS IMPROVEMENT ACT

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This division may be cited as the ``Small 
     Business Programs Improvement Act of 1996''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Administrator defined.
Sec. 3. Effective date.

               TITLE I--AMENDMENTS TO SMALL BUSINESS ACT

Sec. 101. References.
Sec. 102. Risk management database.
Sec. 103. Section 7(a) loan program.
Sec. 104. Disaster loans.
Sec. 105. Microloan demonstration program.
Sec. 106. Small business development center program.
Sec. 107. Miscellaneous authorities to provide loans and other 
              financial assistance.
Sec. 110. STTR program extension.
Sec. 111. Level of participation for export working capital loans.

         TITLE II--AMENDMENTS TO SMALL BUSINESS INVESTMENT ACT

Sec. 201. References.
Sec. 202. Modifications to development company debenture program.
Sec. 203. Required actions upon default.
Sec. 204. Loan liquidation pilot program.
Sec. 205. Registration of certificates.
Sec. 206. Preferred surety bond guarantee program.
Sec. 207. Sense of the Congress.
Sec. 208. Small business investment company improvements.

     SEC. 2. ADMINISTRATOR DEFINED.

       For purposes of this Act, the term ``Administrator'' means 
     the Administrator of the Small Business Administration.

     SEC. 3. EFFECTIVE DATE.

       Except as otherwise expressly provided, this Act and the 
     amendments made by this Act shall take effect on October 1, 
     1996.

[[Page H11834]]

               TITLE I--AMENDMENTS TO SMALL BUSINESS ACT

     SEC. 101. REFERENCES.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Small Business Act (15 U.S.C. 631 et 
     seq.).

     SEC. 102. RISK MANAGEMENT DATABASE.

       Section 4(b) (15 U.S.C. 633) is amended by inserting after 
     paragraph (2) the following:
       ``(3) Risk management database.--
       ``(A) Establishment.--The Administration shall establish, 
     within the management system for the loan programs authorized 
     by subsections (a) and (b) of section 7 of this Act and title 
     V of the Small Business Investment Act of 1958, a management 
     information system that will generate a database capable of 
     providing timely and accurate information in order to 
     identify loan underwriting, collections, recovery, and 
     liquidation problems.
       ``(B) Information to be maintained.--In addition to such 
     other information as the Administration considers 
     appropriate, the database established under subparagraph (A) 
     shall, with respect to each loan program described in 
     subparagraph (A), include information relating to--
       ``(i) the identity of the institution making the guaranteed 
     loan or issuing the debenture;
       ``(ii) the identity of the borrower;
       ``(iii) the total dollar amount of the loan or debenture;
       ``(iv) the total dollar amount of government exposure in 
     each loan;
       ``(v) the district of the Administration in which the 
     borrower has its principal office;
       ``(vi) the principal line of business of the borrower, as 
     identified by Standard Industrial Classification Code (or any 
     successor to that system);
       ``(vii) the delinquency rate for each program (including 
     number of instances and days overdue);
       ``(viii) the number and amount of repurchases, losses, and 
     recoveries in each program;
       ``(ix) the number of deferrals or forbearance sin each 
     program (including days and number of instances);
       ``(x) comparisons on the basis of loan program, lender, 
     Administration district and region, for all the data elements 
     maintained; and
       ``(xi) underwriting characteristics of each loan that has 
     entered into default, including term, amount and type of 
     collateral, loan-to-value and other actual and projected 
     ratios, line of business, credit history, and type of loan.
       ``(C) Deadline for operational capability.--The database 
     established under subparagraph (A) shall--
       ``(i) be operational not later than June 30, 1997; and
       ``(ii) capture data beginning on the first day of the 
     second quarter of fiscal year 1997 beginning after such date 
     and thereafter.''.

     SEC. 103. SECTION 7(A) LOAN PROGRAM.

       (a) Servicing and Liquidation of Loans by Preferred 
     Lenders.--Section 7(a)(2)(C)(ii)(II) (15 U.S.C. 
     636(a)(2)(C)(ii)(II)) is amended to read as follows:

       ``(II) complete authority to service and liquidate such 
     loans without obtaining the prior specific approval of the 
     Administration for routine servicing and liquidation 
     activities, but shall not take any actions creating an actual 
     or apparent conflict of interest.''.

       (b) Certified Lenders Program.--Section 7(a)(19) (15 U.S.C. 
     636(a)(19)) is amended by adding at the end the following new 
     subparagraph:
       ``(C) Authority to liquidate loans.--
       ``(i) In general.--The Administrator may permit lenders 
     participating in the Certified Lenders Program to liquidate 
     loans made with a guarantee from the Administration pursuant 
     to a liquidation plan approved by the Administrator.
       ``(ii) Automatic approval.--If the Administrator does not 
     approve or deny a request for approval of a liquidation plan 
     within 10 business days of the date on which the request is 
     made (or with respect to any routine liquidation activity 
     under such a plan, within 5 business days) such request shall 
     be deemed to be approved.''.
       (c) Limitation on Conducting Pilot Projects.--Section 7(a) 
     (15 U.S.C. 636(a)) is amended by adding at the end the 
     following new paragraph:
       ``(25) Limitation on conducting pilot projects.--
       ``(A) In general.--Not more than 10 percent of the total 
     number of loans guaranteed in any fiscal year under this 
     subsection may be awarded as part of a pilot program which is 
     commenced by the Administrator on or after October 1, 1996.
       ``(B) Pilot program defined.--In this paragraph, the term 
     `pilot program' means any lending program initiative, 
     project, innovation, or other activity not specifically 
     authorized by law.
       ``(C) Low documentation loan program.--The Administrator 
     may carry out the low documentation loan program for loans of 
     $100,000 or less only through lenders with significant 
     experience in making small business loans. Not later than 90 
     days after the date of enactment of this subsection, the 
     Administrator shall promulgate regulations defining the 
     experience necessary for participation as a lender in the low 
     documentation loan program.''.
       (d) Calculation of Subsidy Rate.--Section 7(a) (15 U.S.C. 
     636(a)) is amended by adding at the end the following new 
     paragraph:
       ``(26) Calculation of subsidy rate.--All fees, interest, 
     and profits received and retained by the Administration under 
     this subsection shall be included in the calculations made by 
     the Director of the Office of Management and Budget to offset 
     the cost (as that term is defined in section 502 of the 
     Federal Credit Reform Act of 1990) to the Administration of 
     purchasing and guaranteeing loans under this Act.''.
       (e) Sale of Unguaranteed Portions of SBA Loans.--Section 
     5(f)(3) (15 U.S.C. 634(f)(3)) is amended by adding at the end 
     the following: ``Beginning on March 31, 1997, the sale of the 
     unguaranteed portion of any loan made under section 7(a) 
     shall not be permitted until a final regulation that applies 
     uniformly to both depository institutions and other lenders 
     is promulgated by the Administration setting forth the terms 
     and conditions under which such sales can be permitted, 
     including maintenance of appropriate reserve requirements and 
     other safeguards to protect the safety and soundness of the 
     program.''.
       (f) Conditions on Purchase of Loans.--Section 7(a)(4) (15 
     U.S.C. 636(a)(4)) is amended--
       (1) by striking ``(4) Notwithstanding'' and inserting the 
     following:
       ``(4) Interest rates and fees.--
       ``(A) Interest rates.--Notwithstanding''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) Payment of accrued interest.--
       ``(i) In general.--Any bank or other lending institution 
     making a claim for payment on the guaranteed portion of a 
     loan made under this subsection shall be paid the accrued 
     interest due on the loan from the earliest date of default to 
     the date of payment of the claim at a rate not to exceed the 
     rate of interest on the loan on the date of default, minus 
     one percent.
       ``(ii) Loans sold on secondary market.--If a loan described 
     in clause (i) is sold on the secondary market, the amount of 
     interest paid to a bank or other lending institution 
     described in that clause from the earliest date of default to 
     the date of payment of the claim shall be no more than the 
     agreed upon rate, minus one percent.''.
       (g) Plan for Transfer of Loan Servicing Functions to 
     Centralized Centers.--
       (1) Implementation plan required.--The Administrator shall 
     submit a detailed plan for completing the consolidation, in 
     one or more centralized centers, of the performance of the 
     various functions relating to the servicing of loans directly 
     made or guaranteed by the Administration pursuant to the 
     Small Business Act, addressing the matters described in 
     paragraph (2) by the deadline specified in paragraph (3).
       (2) Contents of plan.--In addition to such other matters as 
     the Administrator may deem appropriate, the plan required by 
     paragraph (1) shall include--
       (A) the proposed number and location of such centralized 
     loan servicing centers;
       (B) the proposed workload (identified by type and numbers 
     of loans and their geographic origin by the Small Business 
     Administration district office) and staffing of each such 
     center;
       (C) a detailed, time-phased plan for the transfer of the 
     identified loan servicing functions to each proposed center; 
     and
       (D) any identified impediments to the timely execution of 
     the proposed plan (including adequacy of available financial 
     resources, availability of needed personnel, facilities, and 
     related equipment) and the recommendations of the 
     Administrator for addressing such impediments.
       (3) Deadline for submission.--Not later than February 28, 
     1997, the plan required by paragraph (1) shall be submitted 
     to the Committees on Small Business of the House of 
     Representatives and Senate.
       (h) Preferred Lender Standard Review Program.--Not later 
     than 90 days after the date of enactment of this Act, the 
     Administrator shall commence a standard review program for 
     the Preferred Lender Program established by section 5(b)(7) 
     of the Small Business Act (15 U.S.C. 634(b)(7)), which shall 
     include annual or more frequent assessments of the 
     participation of the lender in the program, including 
     defaults, loans, and recoveries of loans made by that lender 
     under the authority of this section. The Administrator shall 
     require such standard review for each new entrant to the 
     Preferred Lender Program.
       (i) Independent Study of Loan Programs.--
       (1) Study required.--The Administrator shall contract with 
     one or more private sector parties to conduct a comprehensive 
     assessment of the performance of the loan programs authorized 
     by section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
     and title V of the Small Business Investment Act of 1958 (15 
     U.S.C. 661) addressing the matters described in paragraph (2) 
     and resulting in a report to the Congress pursuant to 
     paragraph (5).
       (2) Matters to be assessed.--In addition to such other 
     matters as the Administrator considers appropriate, the 
     assessment required by paragraph (1) shall address, with 
     respect to each loan program described in paragraph (1) for 
     each of the fiscal years described in paragraph (3)--
       (A) the number and frequency of deferrals and defaults;
       (B) default rates;
       (C) comparative loss rate, by--
       (i) type of lender (separately addressing preferred 
     lenders, certified lenders, and general participation 
     lenders);
       (ii) term of the loan;
       (iii) dollar value of the loan at disbursement; and
       (iv) underwriting characteristics of each loan that has 
     entered into default, including term, amount and type of 
     collateral, loan-to-value and other actual and projected 
     ratios, line of business, credit history, and type of loan; 
     and
       (D) the economic models used by the Office of Management 
     and Budget to calculate the credit subsidy rate applicable to 
     the loan programs.
       (3) Period of assessment.--The assessments undertaken 
     pursuant to paragraph (2) shall address data for the period 
     beginning with fiscal

[[Page H11835]]

     year 1986 of each loan program described in paragraph (1).
       (4) Access to information.--The Administrator shall provide 
     to the contractor access to any information collected by or 
     available to the Administration with regard to the loan 
     programs being assessed. The contactor shall preserve the 
     confidentiality of any information for which confidentiality 
     is protected by law or properly asserted by the person 
     submitting such information.
       (5) Contract funding.--The Administrator shall fund the 
     cost of the contract from the amounts appropriated for the 
     salaries and expenses of the Administration for fiscal year 
     1997.
       (6) Report to the congress.--
       (A) Contents.--The contractor shall prepare a report of--
       (i) its analyses of the makers to be assessed pursuant to 
     paragraph (2); and
       (ii) its independent recommendations for improving program 
     performance with respect to each loan program, regarding--

       (I) improving the timely collection and subsequent 
     management by the Administration of data to measure the 
     performance of each loan program described in paragraph (1); 
     and
       (II) reducing loss rates for and improving the performance 
     of each such loan program.

       (B) Submission to the congress.--Not later than June 30, 
     1997, the Administrator  shall submit the report prepared 
     under subparagraph (A) to the Committees on Small Business 
     of the House of Representatives and the Senate. The 
     Administrator shall append his comments, and those of the 
     Office of Management and Budget, if any, to the report.

     SEC. 104. DISASTER LOANS.

       (a) Private Sector Loan Servicing Demonstration Program.--
       (1) In general.--
       (A) Demonstration program required.--Notwithstanding any 
     other provision of law, the Administration shall conduct a 
     demonstration program, within the parameters described in 
     paragraph (2), to evaluate the comparative costs and benefits 
     of having the Administration's portfolio of disaster loans 
     serviced under contract rather than directly by employees of 
     the Administration. All costs of the demonstration program 
     shall be paid from amounts made available for the Salaries 
     and Expenses Account of the Administration.
       (B) Initiation date.--Not later than 90 days after the date 
     of enactment of this Act, the Administration shall issue a 
     request for proposals for the program parameters described in 
     paragraph (2).
       (2) Demonstration program parameters.--
       (A) Loan sample.--The sample of loans for the demonstration 
     program shall be randomly drawn from the Administration's 
     portfolio of loans made pursuant to section 7(b) of the Small 
     Business Act and shall include a representative group of not 
     less than 30 percent of all loans for residential properties, 
     including 30 percent of all loans made during the 
     demonstration program after the date of enactment of this 
     Act, which loans shall be selected by the Administration on 
     the basis of geographic distribution and such other factors 
     as the Administration determines to be appropriate.
       (B)  Contract and options.--The Administration shall 
     solicit and competitively award one or more contracts to 
     service the loans included in the sample of loans described 
     in subparagraph (A) for a term of not less than one year, 
     with 3 one-year contract renewal options, each of which shall 
     be exercised by the Administration unless the Administration 
     terminates the contractor or contractors for good cause.
       (3) Term of demonstration program.--The demonstration 
     program shall commence not later than October 1, 1997.
       (4) Reports.--
       (A) Interim reports.--Not later than 120 days before the 
     expiration of the initial 4-year contract performance period, 
     the Administrator shall submit to9 the Committees on Small 
     Business of the House of Representatives and the Senate an 
     interim report on the conduct of the demonstration program. 
     The contractor shall be afforded a reasonable opportunity to 
     attach comments to each such report.
       (B) Final report.--Not later than 120 days after the 
     termination of the demonstration program, the Administrator 
     shall submit to the Committees on Small Business of the House 
     of Representatives and the Senate a final report on the 
     performance of the demonstration program, together with the 
     recommendations of the Administrator for continuation, 
     termination, or modification of the demonstration program.
       (b) Definition of Disaster.--
       (1) In general.--Section 3(k) (15 U.S.C. 632(k)) is amended 
     by inserting ``commercial fishery failures or fishery 
     resource disasters (as determined by the Secretary of 
     Commerce under section 308(b) of the Interjurisdictional 
     Fisheries Act of 1986),'' after ``tidal waves,''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective with respect to any disaster occurring on 
     or after march 1, 1994.

     SEC. 105. MICROLOAN DEMONSTRATION PROGRAM.

       Section 7(m)(7)(B) (15 U.S.C. 636(m)(4)) is amended by 
     adding at the end the following: ``If, however, at the 
     beginning of the fourth quarter of a fiscal year the 
     Administration determines that a portion of appropriated 
     microloan funds are unlikely to be awarded during that year, 
     the Administration may make additional funds available to a 
     State in excess of 125 percent of the pro rata share of that 
     State.''.

     SEC. 106. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

       (a) Associate Administrator for Small Business Development 
     Centers.--
       (1) Duties.--Section 21(h) (15 U.S.C. 648(h)) is amended to 
     read as follows:
       ``(h) Associate Administrator for Small Business 
     Development Centers.--
       ``(1) Appointment and compensation.--The Administrator 
     shall appoint an Associate Administrator for Small Business 
     Development Centers who shall report to an official who is 
     not more than one level below the Office of the Administrator 
     and who shall serve without regard to the provisions of title 
     5 governing appointments in the competitive service, and 
     without regard to chapter 51, and subchapter III of chapter 
     53 of such title relating to classification and General 
     Schedule pay rates, but at a rate not less than the rate of 
     GS-17 of the General Schedule.
       ``(2) Duties.--
       ``(A) In general.--The sole responsibility of the Associate 
     Administrator for Small Business Development Centers shall be 
     to administer the small business development center program. 
     Duties of the position shall include recommending the annual 
     program budget, reviewing the annual budgets submitted by 
     each applicant, establishing appropriate funding levels 
     therefore, selecting applicants to participate in this 
     program, implementing the provisions of this section, 
     maintaining a clearinghouse to provide for the dissemination 
     and exchange of information between small business 
     development centers and conducting audits of recipients of 
     grants under this section.
       ``(B) Consultation requirements.--In carrying out the 
     duties described in this subsection, the Associate 
     Administrator shall confer with and seek the advice of the 
     Board established by subsection (i) and Administration 
     officials in areas served by the small business development 
     centers; however, the Associate Administrator shall be 
     responsible for the management and administration of the 
     program and shall not be subject to the approval or 
     concurrence of such Administration officials.''.
       (2) References to associate administrator.--Section 21 (15 
     U.S.C. 648) is amended--
       (A) in subsection (c)(7), by striking ``Deputy Associate 
     Administrator of the Small Business Development Center 
     program'' and inserting ``Associate Administrator for Small 
     Business Development Centers''; and
       (B) in subsection (i)(2), by striking ``Deputy Associate 
     Administrator for Management Assistance'' and inserting 
     ``Associate Administrator for Small Business Development 
     Centers''.
       (b) Extension or Renewal of Cooperative Agreements.--
     Section 21(k)(3) (15 U.S.C. 648(k)(3)) is amended to read as 
     follows:
       ``(3) Extension or renewal of cooperative agreements.--
       ``(A) In general.--In extending or renewing a cooperative 
     agreement of a small business development center, the 
     Administration shall consider the results of the examination 
     and certification program conducted pursuant to paragraphs 
     (1) and (2).
       ``(B) Certification requirement.--After September 30, 2000, 
     the Administration may not renew or extend any cooperative 
     agreement with a small business development center unless the 
     center has been approved under the certification program 
     conducted pursuant to this subsection, except that the 
     Associate Administrator for Small Business Development 
     Centers may waive such certification requirement, in the 
     discretion of the Associate Administrator, upon a showing 
     that the center is making a good faith effort to obtain 
     certification.''.
       (c) Technical Correction.--Section 21(l) (15 U.S.C. 648(l)) 
     is amended to read as follows:
       ``(1) Contract Authority.--The authority to enter into 
     contracts shall be in effect for each fiscal year only to the 
     extent and in the amounts as are provided in advance in 
     appropriations Acts. After the administration has entered a 
     contract, either as a grant or a cooperative agreement, with 
     any applicant under this section, it shall not suspend, 
     terminate, or fail to renew or extend any such contract 
     unless the Administration provides the applicant with written 
     notification setting forth the reasons therefore and 
     affording the applicant an opportunity for a hearing, appeal, 
     or other administrative proceeding under the provisions of 
     chapter 5 of title 5, United States Code.''.

     SEC. 107. MISCELLANEOUS AUTHORITIES TO PROVIDE LOANS AND 
                   OTHER FINANCIAL ASSISTANCE.

       (a) Funding Limitation; Seminars.--Section 7(d) (15 U.S.C. 
     636(d)) is amended--
       (1) by striking ``(d)(1)'' and inserting ``(d)''; and
       (2) by striking paragraph (2).
       (b) Trade Adjustment Loans.--Section 7(e) (15 U.S.C. 
     636(e)) is amended to read as follows:
       ``(e) [RESERVED].''.
       (e) Waiver of Credit Elsewhere Test for Colleges and 
     Universities.--Section 7(f) (15 U.S.C. 636(f)) is amended to 
     read as follows:
       ``(f) [RESERVED].''.
       (d) Loans to Small Business Concerns for Solar Energy and 
     Energy Conservation Measures.--Section 7(l) (15 U.S.C. 
     636(l)) is amended to read as follows:
       ``(l) [RESERVED].''.

     SEC. 108. SMALL BUSINESS COMPETITIVENESS DEMONSTRATION 
                   PROGRAM.

       (a) Extension of Demonstration Program.--
       (1) In general.--Section 711(c) of the Small Business 
     Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 
     644 note; 102 Stat. 3890) is amended by striking ``September 
     30, 1996'' and inserting ``September 30, 1997''.
       (2) Repeal.--Section 717(f) of the Small Business 
     competitiveness Demonstration Program Act of 1988 (15 U.S.C. 
     644 note) is repealed.
       (b) Reporting of Subcontract Participation in Contracts for 
     Architectural and Engineering Services.--Section 714(b)(5) of 
     the Small Business Competitiveness Demonstration Program Act 
     of 1988 (15 U.S.C. 644 note; 102 Stat. 3892) is amended to 
     read as follows:
       ``(5) Duration.--The system described in subsection (a) 
     shall be established not later than

[[Page H11836]]

     October 1, 1996 (or as soon as practicable thereafter on the 
     first day of a subsequent quarter of fiscal year 1997), and 
     shall terminate on September 30, 1997.''.
       (c) Reports to the Congress.--
       (1) In general.--Section 716 of the Small Business 
     Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 
     644 note; 102 Stat. 3893) is amended--
       (A) in subsection (a), by striking ``fiscal year 1991 and 
     1995'' and inserting ``each of fiscal years 1991 through 
     1996'';
       (B) in subsection (b), by striking ``results'' and 
     inserting ``cumulative results''; and
       (C) in subsection (c), by striking ``1996'' and inserting 
     ``1997''.
       (2) Cumulative report through fiscal year 1995.--A 
     cumulative report of the results of the Small Business 
     Competitiveness Demonstration Program for fiscal years 1991 
     through 1995 shall be submitted not later than February 28, 
     1997 pursuant to section 716(a) of the Small Business 
     Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 
     644 note; 102 Stat. 3893), as amended by paragraph (1) of 
     this subsection.

     SEC. 109. AMENDMENT TO SMALL BUSINESS GUARANTEED CREDIT 
                   ENHANCEMENT ACT OF 1993.

       (a) In general.--Section 7 of the Small Business Guaranteed 
     Credit Enhancement Act of 1993 (Public Law 103-81; 15 U.S.C. 
     634 note) is repealed effective September 29, 1996.
       (b) Clerical Amendment.--The table of contents for the 
     Small Business Guaranteed Credit Enhancement Act of 1993 
     (Public Law 103-81; 15 U.S.C. 631 note) is amended by 
     striking the item relating to section 7.

     SEC. 110. STTR PROGRAM EXTENSION.

       Section 9(n)(1)(C) (15 U.S.C. 638(n)(1)(C)) is amended by 
     striking ``fiscal year 1996'' and inserting ``fiscal years 
     1996 and 1997''.

     SEC. 111. LEVEL OF PARTICIPATION FOR EXPORT WORKING CAPITAL 
                   LOANS.

       Section 7(A)(2) (15 U.S.C. 636(A)(2)) is amended by adding 
     at the end the following:
       ``(D) Participation under export working capital program.--
     Notwithstanding subparagraph (A), in an agreement to 
     participate in a loan on a deferred basis under the Export 
     Working Capital Program established pursuant to paragraph 
     (14)(A), such participation by the Administration shall not 
     exceed 90 percent.''.

     TITLE II--AMENDMENTS TO SMALL BUSINESS INVESTMENT ACT

     SEC. 201. REFERENCES.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Small Business Investment Act of 1958 
     (15 U.S.C. 661 et seq.).

     SEC. 202. MODIFICATIONS TO DEVELOPMENT COMPANY DEBENTURE 
                   PROGRAM.

       (a) Decreased Loan to Value Ratios.--Section 502(3) (15 
     U.S.C. 696(3)) is amended to read as follows:
       ``(3) Criteria for assistance.--
       ``(A) In general.--Any development company assisted under 
     this section or section 503 of this title must meet the 
     criteria established by the Administration, including the 
     extent of participation to be required or amount of paid-in 
     capital to be used in each instance as is determined to be 
     reasonable by the Administration.
       ``(B) Community injection funds.--
       ``(i) Sources of funds.--Community injection funds may be 
     derived, in whole or in part, from--

       ``(I) State or local governments;
       ``(II) banks or other financial institutions;
       ``(III) foundations or other not-for-profit institutions; 
     or
       ``(IV) the small business concern (or its owners, 
     stockholders, or affiliates) receiving assistance through a 
     body authorized by this title.

       ``(ii) Funding from institutions.--Not less than 50 percent 
     of the total cost of any project financed pursuant to clauses 
     (i), (ii), or (iii) of subparagraph (C) shall come from the 
     institutions described in subclauses (I), (II), and (III) of 
     clause (i).
       ``(C) Funding from a small business concern.--The small 
     business concern (or its owners, stockholders, or affiliates) 
     receiving assistance through a body authorized by this title 
     shall provide--
       ``(i) at least 15 percent of the total cost of the project 
     financed, if the small business concern has been in operation 
     for a period of 2 years or less;
       ``(ii) at least 15 percent of the total cost of the project 
     financed if the project involves the construction of a 
     limited or single purpose building or structure;
       ``(iii) at least 20 percent of the total cost of the 
     project financed if the project involves both of the 
     conditions set forth in clauses (i) and (ii); or
       ``(iv) at least 10 percent of the total cost of the project 
     financed, in all other circumstances, at the discretion of 
     the development company.''.
       (b) Guarantee Fee for Development Company debentures.--
     Section 503(b)(7)(A) (15 U.S.C. 697(b)(7)(A)) is amended by 
     striking ``equal to 0.125 percent'' and all that follows 
     before the semicolon and inserting the following: ``equal to 
     the lesser of--
       ``(i) 0.9375 percent per year of the outstanding balance of 
     the loan; or
       ``(ii) such percentage per year of the outstanding balance 
     of the loan as the Administrator may determine to be 
     necessary to reduce the cost (as that term is defined in 
     section 502 of the Federal Credit Reform Act of 1990) to the 
     Administration of purchasing and guaranteeing debentures 
     under this Act to an amount that, taking into consideration 
     any available appropriated funds, would permit the 
     Administration to purchase or guarantee $2,000,000,000 of 
     debentures in fiscal year 1997''.
       (c) Fees To Offset Subsidy Cost.--Section 503(d) (15 U.S.C. 
     697(d)) is amended to read as follows:
       ``(d) Charges for Administration Expenses.--
       ``(1) Level of charges.--The Administration may impose an 
     additional charge for administrative expenses with respect to 
     each debenture for which payment of principal and interest is 
     guaranteed under subsection (a).
       ``(2) Participation fee.--The Administration shall collect 
     a one-time fee in an amount equal to 50 basis points on the 
     total participation in any project of any institution 
     described in subclause (I), (II), or (III) of section 
     502(3)(B)(i). Such fee shall be imposed only when the 
     participation of the institution will occupy a senior credit 
     position to that of the development company. All proceeds of 
     the fee shall be used to offset the cost (as that term is 
     defined in section 502 of the Credit Reform Act of 1990) to 
     the Administration of making guarantees under subsection (a).
       ``(3) Development company fee.--The Administration shall 
     collect annually from each development company a fee of 0.125 
     percent of the outstanding principal balance of any 
     guaranteed debenture authorized by the Administration after 
     September 30, 1996. Such fee shall be derived from the 
     servicing fees collected by the development company pursuant 
     to regulation, and shall not be derived from any additional 
     fees imposed on small business concerns. All proceeds of the 
     fee shall be used to offset the cost (as that term is defined 
     in section 502 of the Credit Reform Act of 1990) to the 
     Administration of making guarantees under subsection (a).''.
       (d) Effective Date.--Section 503 (15 U.S.C. 697) is amended 
     by adding at the end the following new subsection:
       ``(f) Effective Date.--The fees authorized by subsections 
     (b) and (c) shall apply to financings approved by the 
     Administration on or after October 1, 1996, but shall not 
     apply to financings approved by the Administration on or 
     after October 1, 1997.''.
       (e) Calculation of Subsidy Rate.--Section 503 (15 U.S.C. 
     697a) is amended by adding at the end the following new 
     subsection:
       ``(g) Calculation of Subsidy Rate.--All fees, interest, and 
     profits received and retained by the Administration under 
     this section shall be included in the calculations made by 
     the Director of the Office of Management and Budget to offset 
     the cost (as that term is defined in section 502 of the 
     Federal Credit Reform Act of 1990) to the Administration of 
     purchasing and guaranteeing debentures under this Act.''.

     SEC. 203. REQUIRED ACTIONS UPON DEFAULT.

       Section 503 (15 U.S.C. 697) is amended by adding at the end 
     the following new subsection:
       ``(h) Required Actions Upon Default.--
       ``(1) Initial actions.--Not later than the 45th day after 
     the date on which a payment on a loan funded through a 
     debenture guaranteed under this section is due and not 
     received, the Administration shall--
       ``(A) take all necessary steps to bring such a loan 
     current; or
       ``(B) implement a formal written deferral agreement.
       ``(2) Purchase or acceleration of debenture.--Not later 
     than the 65th day after the date on which a payment on a loan 
     described in paragraph (1) is due and not received, and 
     absent a formal written deferral agreement, the 
     administration shall take all necessary steps to purchase or 
     accelerate the debenture.
       ``(3) Prepayment penalties.--With respect to the portion of 
     any project derived from funds set forth in section 502(3), 
     the Administration--
       ``(A) shall negotiate the elimination of any prepayment 
     penalties or late fees on defaulted loans made prior to 
     September 30, 1996;
       ``(B) shall not pay any prepayment penalty or late fee on 
     the default based purchase of loans issued after September 
     30, 1996; and
       ``(C) for any project financed after September 30, 1996, 
     shall not pay any default interest rate higher than the 
     interest rate on the note prior to the date of default.''.

     SEC. 204. LOAN LIQUIDATION PILOT PROGRAM.

       (a) In General.--The Administration shall carry out a loan 
     liquidation pilot program (in this section referred to as the 
     ``pilot program'') in accordance with the requirements of 
     this section.
       (b) Selection of Development Companies.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Administrator shall establish 
     a pilot program under which certain development companies 
     authorized to make loans and issue debentures under title V 
     of the Small Business Investment Act of 1958 are selected by 
     the Administrator in accordance with this subsection to carry 
     out loan liquidations.
       (2) Conflicts of interest.--The development companies 
     selected under paragraph (1) shall agree not to take any 
     action that would create a potential conflict of interest 
     involving the development company, the third party lender, or 
     an associate of the third party lender.
       (3) Qualifications.--In order to qualify to participate in 
     the pilot program under this section, each development 
     company shall--
       (A) have not less than 6 years of experience in the program 
     established by title V of the Small Business Investment Act 
     of 1958;
       (B) have made, during the 6 most recent fiscal years, an 
     average of not less than 10 loans per year through the 
     program established by such title V of the Small Business 
     Investment Act of 1958;
       (C) have not less than 2 years of experience in liquidating 
     loans under the authority of a Federal, State, or other 
     lending program; and
       (D) meet such other requirements as the Administration may 
     establish.
       (c) Authority of Development Companies.--The development 
     companies selected under subsection (b) shall, for loans in 
     their portfolio of loans made through debentures

[[Page H11837]]

     guaranteed under title V of the Small Business Investment Act 
     of 1958 that are in default after the date of enactment of 
     this Act, be authorized to--
       (1) perform all liquidation and foreclosure functions, 
     including the acceleration or purchase of community injection 
     funds, subject to such company obtaining prior written 
     approval from the Administrator before committing the agency 
     to purchase any other indebtedness secured by the property: 
     Provided, That the Administrator shall approve or deny a 
     request for such purchase within a period of 10 business 
     days; and
       (2) liquidate such loans in a reasonable and sound manner 
     and according to commercially accepted practices pursuant to 
     a liquidation plan approved by the Administrator in advance 
     of its implementation. If the Administrator does not approve 
     or deny a request for approval of a liquidation plan within 
     10 business days of the date on which the request is made (or 
     with respect to any routine liquidation activity under such a 
     plan, within 5 business days) such request shall be deemed to 
     be approved.
       (d) Authority of the Administrator.--In carrying out the 
     pilot program, the Administrator shall--
       (1) have full authority to rescind the authority granted 
     any development company under this section upon a 10-day 
     written notice stating the reasons for the rescission; and
       (2) not later than 90 days after the admission of the 
     development companies specified in subsection (b), implement 
     the pilot program.
       (e) Report.--
       (1) In general.--The Administrator shall issue a report on 
     the results of the pilot program to the Committees on Small 
     Business of the House of Representatives and the Senate. The 
     report shall include information relating to--
       (A) the total dollar amount of each loan and project 
     liquidated;
       (B) the total dollar amount guaranteed by the 
     Administration;
       (C) total dollar losses;
       (D) total recoveries both as percentage of the amount 
     guaranteed and the total cost of the project; and
       (E) a comparison of the pilot program information with the 
     same information for liquidation conducted outside the pilot 
     program over the period of time.
       (2) Reporting period.--The report shall be based on data 
     from, and issued not later than 90 days after the close of, 
     the first eight fiscal quarters of the pilot program's 
     operation after the date of implementation.

     SEC. 205. REGISTRATION OF CERTIFICATES.

       (a) Certificates Sold Pursuant to Small Business Act.--
     Section 5(h) of the Small Business Act (15 U.S.C. 634(h)) is 
     amended--
       (1) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D);
       (2) by striking ``(h)'' and inserting ``(h)(1)'';
       (3) by striking subparagraph (A), as redesignated by 
     paragraph (1) of this subsection, and inserting the 
     following:
       ``(A) provide for a central registration of all loans and 
     trust certificates sold pursuant to subsections (f) and (g) 
     of this section;''; and
       (4) by adding at the end the following:
       ``(2) Nothing in this subsection shall prohibit the 
     utilization of a book-entry or other electronic form of 
     registration for trust certificates. The Administration may, 
     with the consent of the Secretary of the Treasury, use the 
     book-entry system of the Federal Reserve System.''.
       (b) Certificates Sold Pursuant to Small Business Investment 
     Company Program.--Section 321(f) (15 U.S.C. 687l(f)) is 
     amended--
       (1) in paragraph (1), by striking ``Such central 
     registration shall include'' and all that follows through the 
     period at the end of the paragraph; and
       (2) by adding at the end the following:
       (5) Nothing in this subsection shall prohibit the use of a 
     book-entry or other electronic form of registration for trust 
     certificates.''.
       (c) Certificates Sold Pursuant to Development Company 
     Program.--Section 505(f) (15 U.S.C. 697b(f) is amended--
       (1) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D);
       (2) by striking ``(f)'' and inserting ``(f)(1)'';
       (3) by striking paragraph (A), as redesignated by paragraph 
     (1) of this subsection, and inserting the following:
       ``(A) provide for a central registration of all trust 
     certificates sold pursuant to this section;'' and
       ``(4) by adding at the end the following:
       ```(2) Nothing in this subsection shall prohibit the 
     utilization of a book-entry or other electronic form of 
     registration for trust certificates.''.

     SEC. 206. PREFERRED SURETY BOND GUARANTEE PROGRAM.

       (a) Admission of Additional Program Participants.--Section 
     411(a) (15 U.S.C. 694(a)) is amended by adding a new 
     paragraph (5), as follows:
       ``(5)(A) The Administration shall promptly act upon an 
     application from a surety to participate in the Preferred 
     Surety Bond Guarantee Program, authorized by paragraph (3), 
     in accordance with criteria and procedures established in 
     regulations pursuant to subsection (d).
       ``(B) The Administration is authorized to reduce the 
     allotment of bond guarantee authority or terminate the 
     participation of a surety in the Preferred Surety Program 
     Guarantee Program based on the rate of participation of such 
     surety during the 4 most recent fiscal year quarters compared 
     to the median rate of participation by the other sureties in 
     the program.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply with respect to applications received (or pending 
     substantive evaluation) on or after October 1, 1995.

     SEC. 207. SENSE OF THE CONGRESS.

       (a) In General.--It is the sense of the Congress that the 
     subsidy models prepared by the Office of Management and 
     Budget relative to loan programs sponsored by the United 
     States Small Business Administration have a tendency to--
       (1) overestimate potential risk of loss; and
       (2) overemphasize historical losses that may be anomalous 
     and do not truly reflect the success of the programs as a 
     whole.
       (b) Independent Study.--Consequently, the Congress mandates 
     the independent study in section 103(h) in an attempt to 
     improve the ability of the Office of Management and Budget to 
     reflect more accurately the budgetary implications of such 
     programs.

     SEC. 208. SMALL BUSINESS INVESTMENT COMPANY IMPROVEMENTS.

       (a) Definitions.--
       (1) Small Business Concern.--Section 103(5) (15 U.S.C. 
     662(5)) is amended by inserting before the semicolon the 
     following: ``, except that, for purposes of this Act, an 
     investment by a venture capital firm, investment company 
     (including a small business investment company) employee 
     welfare benefit plan or pension plan, or trust, foundation, 
     or endowment that is exempt from Federal income taxation--
       ``(A) shall not cause a business concern to be deemed not 
     independently owned and operated;
       ``(B) shall be disregarded in determining whether a 
     business concern satisfies size standards established 
     pursuant to section 3(a)(2) of the Small Business Act; and
       ``(C) shall be disregarded in determining whether a small 
     business concern is a smaller enterprise''.
       (2) Private capital.--Section 103(9) (15 U.S.C. 662(9)) is 
     amended to read as follows:
       ``(9) the term `private capital'--
       ``(A) means the sum of--
       ``(i) the paid-in capital and paid-in surplus of a 
     corporate licensee, the contributed capital of the partners 
     of a partnership licensee, or the equity investment of the 
     members of a limited liability company licensee; and
       ``(ii) unfunded binding commitments, from investors that 
     meet criteria established by the Administrator, to contribute 
     capital to the licensee: Provided, That such unfunded 
     commitments may be counted as private capital for purposes of 
     approval by the Administrator of any request for leverage, 
     but leverage shall not be funded based on such commitments; 
     and
       ``(B) does not include any--
       ``(i) funds borrowed by a licensee from any source;
       ``(ii) funds obtained through the issuance of leverage; or
       ``(iii) funds obtained directly or indirectly from any 
     Federal, State, or local government, or any government agency 
     or instrumentality, except for--

       ``(I) funds invested by an employee welfare benefit plan or 
     pension plan; and
       ``(II) any qualified nonprivate funds (if the investors of 
     the qualified nonprivate funds do not control, directly or 
     indirectly, the management, board of directors, general 
     partners, or members of the licensee);''.

       (3) New definitions.--Section 103 (15 U.S.C. 662) is 
     amended by striking paragraph (10) and inserting the 
     following:
       ``(10) the term `leverage' includes--
       ``(A) debentures purchased or guaranteed by the 
     Administration;
       ``(B) participating securities purchased or guaranteed by 
     the Administration; and
       ``(C) preferred securities outstanding as of October 1, 
     1995;
       ``(11) the term `third party debt' means any indebtedness 
     for borrowed money, other than indebtedness owed to the 
     Administration;
       ``(12) the term `smaller enterprise' means any small 
     business concern that, together with its affiliates--
       ``(A) has--
       ``(i) a net financial worth of not more than $6,000,000, as 
     of the date on which assistance is provided under this Act to 
     that business concern; and
       ``(ii) an average net income for the 2-year period 
     preceding the date on which assistance is provided under this 
     Act to that business concern, of not more than $2,000,000, 
     after Federal income taxes (excluding any carryover losses); 
     or
       ``(B) satisfies the standard industrial classification size 
     standards established by the Administration for the industry 
     in which the small business concern is primarily engaged;
       ``(13) the term `qualified nonprivate funds' means any--
       ``(A) funds directly or indirectly invested in any 
     applicant or licensee on or before August 16, 1982, by any 
     Federal agency, other than the Administration, under a 
     provision of law explicitly mandating the inclusion of those 
     funds in the definition of the term `private capital';
       ``(B) funds directly or indirectly invested in any 
     applicant or licensee by any Federal agency under a provision 
     of law enacted after September 4, 1992, explicitly mandating 
     the inclusion of those funds in the definition of the term 
     `private capital'; and
       ``(C) funds invested in any applicant or licensee by one or 
     more State or local government entities (including any 
     guarantee extended by those entities) in an aggregate amount 
     that does not exceed 33 percent of the private capital of the 
     applicant or licensee;
       ``(14) the terms `employee welfare benefit plan' and 
     `pension plan' have the same meanings as in section 3 of the 
     Employee Retirement Income Security Act of 1974, and are 
     intended to include--
       ``(A) public and private pension or retirement plans 
     subject to such Act; and
       ``(B) similar plans not covered by such Act that have been 
     established and that are maintained by the Federal Government 
     or any State or political subdivision, or any agency or 
     instrumentality thereof, for the benefit of employees;
       ``(15) the term `member' means, with respect to a licensee 
     that is a limited ability company, a

[[Page H11838]]

     holder of an ownership interest or a person otherwise 
     admitted to membership in the limited liability company; and
       ``(16) the term `limited liability company' means a 
     business entity that is organized and operating in accordance 
     with a State limited liability company statute approved by 
     the Administration.''.
       (b) Organization of Small Business Investment Comnpanies.--
       (1) Limited liability companies.--Section 301(a) (15 U.S.C. 
     681(a)) is amended in the first sentence, by striking ``body 
     or'' and inserting ``body, a limited liability company, or''
       (2) Issuance of license.--Section 301(c) (15 U.S.C. 681(c)) 
     is amended to read as follows:
       ``(c) Issuance of License.--
       ``(1) Submission of application.--Each applicant for a 
     license to operate as a small business investment company 
     under this Act shall submit to the Administrator an 
     application, in a form and including such documentation as 
     may be prescribed by the Administrator.
       ``(2) Procedures.--
       ``(A) Status.--Not later than 90 days after the initial 
     receipt by the Administrator of an application under this 
     subsection, the Administrator shall provide the applicant 
     with a written report detailing the status of the application 
     and any requirements remaining for completion of the 
     application.
       ``(B) Approval or disapproval.--Within a reasonable time 
     after receiving a completed application submitted in 
     accordance with this subsection and in accordance with such 
     requirements as the Administrator may prescribe by 
     regulation, the Administrator shall--
       ``(i) approve the application and issue a license for such 
     operation to the applicant if the requirements of this 
     section are satisfied; or
       ``(ii) disapprove the application and notify the applicant 
     in writing of the disapproval.
       ``(3) Matters considered.--In reviewing and processing any 
     application under this subsection, the Administrator--
       ``(A) shall determine whether--
       ``(i) the applicant meets the requirements of subsections 
     (a) and (c) of section 302; and
       ``(ii) the management of the applicant is qualified and has 
     the knowledge, experience, and capability necessary to comply 
     with this Act;
       ``(B) shall take into consideration--
       ``(i) the need for and availability of financing for small 
     business concerns in the geographic area in which the 
     applicant is to commence business;
       ``(ii) the general business reputation of the owners and 
     management of the applicant; and
       ``(iii) the probability of successful operations of the 
     applicant, including adequate probability and financial 
     soundness; and
       ``(C) shall not take into consideration any projected 
     shortage or unavailability of leverage.
       ``(4) Exception.--
       ``(A) In general.--Notwithstanding any other provision of 
     this Act, the Administrator may, in the discretion of the 
     Administrator and based on a showing of special circumstances 
     and good cause, approve in application and issue a license 
     under this subsection with respect to any applicant that--
       ``(i) has private capital of not less than $3,000,000;
       ``(ii) would otherwise be issued a license under this 
     subsection, except that the applicant does not satisfy the 
     requirements of section 302(a); and
       ``(iii) has a viable business plan reasonably projecting 
     profitable operations and a reasonable timetable for 
     achieving a level of private capital that satisfies the 
     requirements of section 302(a).
       ``(B) Leverage.--An applicant licensed pursuant to the 
     exception provided in this paragraph shall not be eligible to 
     receive leverage as a licensee until the applicant satisfies 
     the requirements of section 302(a).''.
       (3) Specialized small business investment companies.--
       (A) Repeal.--Section 301(d) (15 U.S.C. 681(d)) is repealed.
       (B) Effect on existing licenses.--The repeal under 
     subparagraph (A) shall not be construed to require the 
     Administrator to cancel, revoke, withdraw, or modify any 
     license issued under section 301(d) of the Small Business 
     Investment Act of 1958 before the date of enactment of this 
     Act.
       (c) Capital Requirements.--
       (1) Increased minimum capital requirements.--Section 302(a) 
     (15 U.S.C. 682(a)) is amended by striking ``(a)'' and all 
     that follows through ``The Administration shall also 
     determine the ability of the company,'' and inserting the 
     following:
       ``(a) Amount.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     private capital of each licensee shall be not less than--
       ``(A) $5,000,000; or
       ``(B) $10,000,000, with respect to each licensee authorized 
     or seeking authority to issue participating securities to be 
     purchased or guaranteed by the Administration under this Act.
       ``(2) Exception.--The Administrator may, in the discretion 
     of the Administrator and based on a showing of special 
     circumstances and good cause, permit the private capital of a 
     licensee authorized or seeking authorization to issue 
     participating securities to be purchased or guaranteed by the 
     Administration to be less than $10,000,000, but not less than 
     $5,000,000, if the Administrator determines that such action 
     would not create or otherwise contribute to an unreasonable 
     risk of default or loss to the Federal Government.
       ``(3) Adequacy.--In addition to the requirements of 
     paragraph (1), the Administrator shall--
       ``(A) determine whether the private capital of each 
     licensee is adequate to assure a reasonable prospect that the 
     licensee will be operated soundly and profitably, and managed 
     actively and prudently in accordance with its articles; and
       ``(B) determine that the licensee will be able''.
       (2) Exemption for certain licensees.--Section 302(a) (15 
     U.S.C. 682(a)) is amended by adding at the end the following 
     new paragraph:
       ``(4) Exemption from capital requirements.--The 
     Administrator may, in the discretion of the Administrator, 
     approve leverage for any licensee licensed under subsection 
     (c) or (d) of section 301 before the date of enactment of the 
     Small Business Program Improvement Act of 1996 that does not 
     meet the capital requirements of paragraph (1), if--
       ``(A) the licensee certifies in writing that not less 50 
     percent of the aggregate dollar amount of its financings 
     after the date of enactment of the Small Business Program 
     Improvement Act of 1996 will be provided to smaller 
     enterprises; and
       ``(B) the Administrator determines that such action would 
     not create or otherwise contribute to an unreasonable risk of 
     default or loss to the United States Government.''.
       ``(3) Diversification of ownership.--Section 302(c) (15 
     U.S.C. 682(c)) is amended to read as follows:
       ``(c) Diversification of Ownership.--The Administrator 
     shall ensure that the management of each licensee licensed 
     after the date of enactment of the Small Business Program 
     Improvement Act of 1996 is sufficiently diversified from and 
     unaffiliated with the ownership of the licensee in a manner 
     that ensures independence and objectivity in the financial 
     management and oversight of the investments and operations of 
     the licensee.''.
       (d) Borrowing.--
       ``(2) Debentures.--Section 303(b) (15 U.S.C. 683(b)) is 
     amended in the first sentence, by striking ``(but only'' and 
     all that follows through ``terms)''.
       ``(2) Third party debt.--Section 303(c) (15 U.S.C. 683(c)) 
     is amended to read as follows:
       ``(c) Third Party Debt.--The Administrator--
       ``(1) shall not permit a licensee having outstanding 
     leverage to incur third party debt that would create or 
     contribute to an unreasonable risk of default or loss to the 
     Federal Government; and
       ``(2) shall permit such licensees to incur third party debt 
     only on such terms and subject to such conditions as may be 
     established by the Administrator, by regulation or 
     otherwise.''.
       (3) Requirement to finance smaller enterprises.--Section 
     303(d) (15 U.S.C. 683(d)) is amended to read as follows:
       ``(d) Requirement to Finance Smaller Enterprises.--The 
     Administrator shall require each licensee, as a condition of 
     approval of an application for leverage, to certify in 
     writing that not less than 20 percent of the aggregate dollar 
     amount of the financings of the licensee will be provided to 
     smaller enterprises.''.
       (4) Capital impairment requirements.--
       (A) In general.--Section 303(e) (15 U.S.C. 683(e)) is 
     amended to read as follows:
       ``(e) Capital Impairment.--Before approving any application 
     for leverage submitted by a licensee under this Act, the 
     Administrator--
       ``(1) shall determine that the private capital of the 
     licensee meets the requirements of section 302(a); and
       ``(2) shall determine, taking into account the nature of 
     the assets of the licensee, the amount and terms of any third 
     party debt owed by such licensee, and any other factors 
     determined to be relevant by the Administrator, that the 
     private capital of the licensee has not been impaired to such 
     an extent that the issuance of additional leverage would 
     create or otherwise contribute to an unreasonable risk of 
     default or loss to the Federal Government.''.
       (B) Regulations.--
       (i) Uniform applicability.--Any regulation issued by the 
     Administration to implement section 303(e) of the Small 
     Business Investment Act of 1958 that applies to any licensee 
     with outstanding leverage obtained before the effective date 
     of that regulation, shall apply uniformly to all licensees 
     with outstanding leverage obtained before that effective 
     date.
       (ii) Definitions.--For purposes of this subparagraph, the 
     terms ``Administration'', ``leverage'' and ``licensee'' have 
     the same meanings as in section 103 of the Small Business 
     Investment Act of 1958.
       (5) Equity investment requirement.--Section 303(g)(4) (15 
     U.S.C. 683(g)(4)) is amended by striking ``and maintain''.
       (6) Fees.--Section 303 (15 U.S.C. 683) is amended--
       (A) in subsection (b), in the fifth sentence, by striking 
     ``1 per centum'', and all that follows before the period at 
     the end of the sentence and inserting the following: ``1 
     percent, plus an additional charge of 1 percent per annum 
     which shall be paid to and retained by the Administration'';
       (B) in subsection (g)(2), by striking ``1 per centum,'' and 
     all that follows before the period at the end of the 
     paragraph and inserting the following: ``1 percent, plus an 
     additional charge of 1 percent per annum which shall be paid 
     to and retained by the Administration''; and
       (C) by adding at the end the following new subsections:
       ``(i) Leverage Fee.--With respect to leverage granted by 
     the Administration to a licensee, the Administration shall 
     collect from the licensee a nonrefundable fee in an amount 
     equal to 3 percent of the face amount of leverage granted to 
     the licensee, payable upon the earlier of the date of entry 
     into any commitment for such leverage or the date on which 
     the leverage is drawn by the licensee.
       ``(j) Calculation of Subsidy Rate.--All fees, interest, and 
     profits received and retained by the Administration under 
     this section shall be included in the calculations made by 
     the Director of the Office of Management and Budget to

[[Page H11839]]

     offset the cost (as that term is defined in section 502 of 
     the Federal Credit Reform Act of 1990) to the Administration 
     of purchasing and guaranteeing debentures and 
     participating securities under this Act.''.
       (e) Liability of the United States.--Section 308(e) (15 
     U.S.C. 687(e)) is amended by striking ``Nothing'' and 
     inserting ``Except as expressly provided otherwise in this 
     Act, nothing''.
       (f) Examinations; Valuations.--
       (1) Examinations.--Section 310(b) (15 U.S.C. 687b(b)) is 
     amended in the first sentence by inserting ``which may be 
     conducted with the assistance of a private sector entity that 
     has both the qualifications to conduct and expertise in 
     conducting such examinations,'' after ``Investment Division 
     of the Administration,''.
       (2) Valuations.--Section 310(d) (15 U.S.C. 687b(d)) is 
     amended to read as follows:
       ``(d) Valuations.--
       ``(1) Frequency of valuations.--
       ``(A) In general.--Each licensee shall submit to the 
     Administrator a written valuation of the loans and 
     investments of the licensee not less often than semiannually 
     or otherwise upon the request of the Administrator, except 
     that any licensee with no leverage outstanding shall submit 
     such valuations annually, unless the Administrator determines 
     otherwise.
       ``(B) Material adverse changes.--Not later than 30 days 
     after the end of a fiscal quarter of a licensee during which 
     a material adverse change in the aggregate valuation of the 
     loans and investments or operations of the licensee occurs, 
     the licensee shall notify the Administrator in writing of the 
     nature and extent of that change.
       ``(C) Independent certification.--
       ``(i) In General.--Not less than once during each fiscal 
     year, each licensee shall submit to the Administrator the 
     financial statements of the licensee, audited by an 
     independent certified public accountant approved by the 
     Administrator.
       ``(ii) Audit requirements.--Each audit conducted under 
     clause (i) shall include--

       ``(I) a review of the procedures and documentation used by 
     the licensee in preparing the valuations required by this 
     section; and
       ``(II) a statement by the independent certified public 
     accountant that such valuations were prepared in conformity 
     with the valuation criteria applicable to the licensee 
     established in accordance with paragraph (2).

       ``(2) Valuation criteria.--Each valuation submitted under 
     this subsection shall be prepared by the licensee in 
     accordance with valuation criteria, which shall--
       ``(A) be established or approved by the Administrator; and
       ``(B) include appropriate safeguards to ensure that the 
     noncash assets of a licensee are not overvalued.''.
       (g) Trustee or Receivership Over Licensees.--
       (1) Finding.--It is the finding of the Congress that 
     increased recoveries on assets in liquidation under the Small 
     Business Investment Act of 1958 are in the best interests of 
     the Federal Government.
       (2) Definitions.--For purposes of this subsection--
       (A) the term ``Administrator'' means the Administrator of 
     the Small Business Adminstration;
       (B) the term ``Administration'' means the Small Business 
     Administration; and
       (C) the term ``licensee'' has the same meaning as in 
     section 103.
       (3) Liquidation plan.--
       (A) In general.--Not later than October 15, 1996, the 
     Administrator shall submit to the Committees on Small 
     Business of the Senate and the House of Representatives a 
     detailed plan to expedite the orderly liquidation of all 
     licensee assets in liquidation, including assets of licensees 
     in receivership or in trust held by or under the control of 
     the Administration or its agents.
       (B) Contents.--The plan submitted under paragraph (1) shall 
     include a timetable for liquidating the liquidation portfolio 
     of small business investment company assets owned by the 
     Administration, and shall contain the findings and 
     recommendations of the Administrator on various options 
     providing for the fair and expeditious liquidation of such 
     assets within a reasonable period of time, giving due 
     consideration to the option of entering into one or more 
     contracts with private sector entities having the capability 
     to carry out the orderly liquidation of similar assets.
       (h) Technical and Conforming Amendments.--
       (1) Small business investment act of 1958.--The Small 
     Business Investment Act of 1958 (15 U.S.C. 661 et seq.) is 
     amended--
       (A) in section 303--
       (i) in subsection (a), by striking ``debenture bonds,'' and 
     inserting ``securities,'';
       (ii) by striking subsection (f) and inserting the 
     following:
         ``(f) Redemption or Repurchase of Preferred Stock.--
     Notwithstanding any other provision of law--
       ``(1) the Administrator may allow the issuer of any 
     preferred stock sold to the Administration before November 1, 
     1989 to redeem or repurchase such stock, upon the payment to 
     the Administration of an amount less than the par value of 
     such stock, for a repurchase price determined by the 
     Administrator after consideration of all relevant factors, 
     including--
       ``(A) the market value of the stock;
       ``(B) the value of benefits provided and anticipated to 
     accrue to the issuer;
       ``(C) the amount of dividends paid, accrued, and 
     anticipated; and
       ``(D) the estimate of the Administrator of any anticipated 
     redemption; and
       ``(2) any moneys received by the Administration from the 
     repurchase of preferred stock shall be available solely to 
     provide debenture leverage to licensees having 50 percent or 
     more in aggregate dollar amount of their financings invested 
     in smaller enterprises.''; and
       (iii) in subsection (g)(8)--

       (I) by striking ``partners or shareholders'' and inserting 
     ``partners, shareholders, or members'';
       (II) by striking ``partner's or shareholder's'' and 
     inserting ``partner's, shareholder's, or member's''; and
       (III) by striking ``partner or shareholder'' and inserting 
     ``partner, shareholder, or member'';

       (B) in section 308(h), by striking ``subsection (c) or (d) 
     of section 301'' each place that term appears and inserting 
     ``section 301'';
       (C) in section 310(c)(4), by striking ``not less than four 
     years in the case of section 301(d) licensees and in all 
     other cases,'';
       (D) in section 312--
       (i) by striking ``shareholders or partners'' and inserting 
     ``shareholders, partners, or members''; and
       (ii) by striking ``shareholder, or partner'' each place 
     that term appears and inserting ``shareholder, partner, or 
     member'';
       (E) by striking sections 317 and 218, and redesignating 
     sections 319 through 322 as sections 317 through 320, 
     respectively;
       (F) in section 319, as redesignated--
       (i) in subsection (a), by striking ``, including companies 
     operating under the authority of section 301(d),''; and
       (ii) in subsection (f)(2), by inserting ``or investments in 
     obligations of the United States'' after ``accounts'';
       (G) in section 320, as redesignated, by striking ``section 
     321'' and inserting ``section 319''; and
       (H) in section 509--
       (i) in subsection (a)(1), by striking the second sentence; 
     and
       (ii) in subsection (e)(1)(B), by striking ``subsection (c) 
     or (d) of section 301'' and inserting ``section 301''.
       (2) Amendment in other law.--Section 11(h) of the Federal 
     Home Loan Bank Act (12 U.S.C. 1431(h)) is amended by striking 
     ``301(d)'' and inserting ``301''.
         (i) Amendments to the Small Business Act.--
       (1) Powers of the administrator.--Section 5(b)(7) of the 
     Small Business Act (15 U.S.C. 634(b)(7)) is amended by 
     striking the colon and all that follows before the semicolon 
     at the end of the paragraph and inserting the following: ``: 
     Provided, That with respect to deferred participation loans, 
     the Administrator may, in the discretion of and pursuant to 
     regulations promulgated by the Administrator, authorize 
     participating lending institutions to take actions relating 
     to loan servicing on behalf of the Administrator, including 
     determining eligibility and creditworthiness and loan 
     monitoring, collection, and liquidation''.
       (2) Authorization of appropriations.--Section 20(p)(3) of 
     the Small Business Act (15 U.S.C. 631 note) is amended by 
     striking subparagraph (B) and inserting the following:
       ``(B) $300,000,000 in guarantees of debentures; and''.
         (j) Effective Date.--This section and the amendments made 
     by this section shall become effective on the date of 
     enactment of this Act.

                               DIVISION E

   TITLE I--CALIFORNIA BAY-DELTA ENVIRONMENTAL ENHANCEMENT AND WATER 
                              SECURITY ACT

       Sec. 101. Short Title.
       This title may be cited as the ``California Bay-Delta 
     Environmental Enhancement and Water Security Act.''
       Sec. 102. Program Funding.
       (a) Authorization of Appropriations.--For each of the 
     fiscal years 1998, 1999 and 2000, there are authorized to be 
     appropriated an additional $143,300,000 for both (1) the 
     initial Federal share of the cost of developing and 
     implementing that portion of an ecosystem protection plan for 
     the Bay-Delta, referred to as ``the Category III program'' 
     emanating out of the document entitled ``Principles for 
     Agreement on Bay-Delta Standards Between the State of 
     California and the Federal Government,'' dated December 15, 
     1994, and, (2) the initial Federal share of the cost of 
     developing and implementing the ecosystem restoration 
     elements of the long-term CALFED Bay-Delta Program, pursuant 
     to the cost-sharing agreement required by Section 78684.10 of 
     California Senate Bill 900, Chapter 135, Statutes of 1996, 
     signed by the Governor of California on July 11, 1996. Funds 
     appropriated pursuant to this section shall remain available 
     until expended and shall be administered in accordance with 
     procedures established by CALFED Bay-Delta Program until 
     Congress authorizes another entity that is recommended by 
     CALFED Bay-Delta Program to carry out this section.
       (b) Funds authorized to be appropriated pursuant to this 
     section to those agencies that are currently or subsequently 
     become participants in the CALFED Bay-Delta Program shall be 
     in addition to the baseline funding levels established 
     pursuant to section 103 of this title, for currently 
     authorized projects and programs under the Central Valley 
     Project Improvement Act, Title 34 of Public Law 102-575 and 
     other currently authorized Federal programs for the purpose 
     of Bay-Delta ecosystem protection and restoration.
       (c) Nothing in this title shall be deemed to diminish the 
     Federal interest in and responsibility for working with the 
     State of California through the CALFED Bay-Delta Program in 
     developing, funding and implementing a balanced, long-term 
     solution to the problems of ecosystem quality, water quality, 
     water supply and reliability, and system vulnerability 
     affecting the San Francisco Bay/Sacramento-San Joaquin Delta 
     Watershed in California. Participation in such long-term 
     solution shall only be undertaken pursuant to authorization 
     provided by law other

[[Page H11840]]

     than this title, and shall be based on the equitable 
     allocation of program costs among beneficiary groups that the 
     CALFED Bay-Delta programs shall develop.
       (d) To the extent not otherwise authorized, those agencies 
     and departments that are currently or subsequently become 
     participants in the CALFED Bay-Delta Program are hereby 
     authorized to undertake the activities and programs for which 
     Federal cost sharing is provided by this section. The United 
     States shall immediately initiate coordinated consultations 
     and negotiations with the State of California to 
     expeditiously execute the cost-sharing agreement required by 
     Section 78684.10 of California Senate Bill 900, Chapter 135, 
     Statutes of 1996, signed by the Governor of California on 
     July 11, 1996. Such activities shall include, but not be 
     limited to, planning, design, technical assistance and 
     construction for ecosystem restoration programs and projects.
       Sec. 103. Budget Crosscut.
       The Office of Management and Budget is directed to submit 
     the House and Senate Committees on Appropriations, as part of 
     the President's Fiscal Year 1998 Budget, an interagency 
     budget crosscut that displays Federal spending for fiscal 
     years 1993 through 1998 on ecosystem restoration and other 
     purposes in the Bay-Delta region, separately showing funding 
     provided previously or requested under both pre-existing 
     authorities and new authorities granted by this title.
       Sec. 104. Effective Date.
       Section 102 of this title shall take effect on the date of 
     passage of California State Proposition 204.
       This Act may be cited as the ``Omnibus Consolidated 
     Appropriations Act, 1997''
       And amend the title to read as follows:
       An Act making omnibus consolidated appropriations for the 
     fiscal year ending September 30, 1997, and for other 
     purposes.
       And the Senate agree to the same.
     Bill Young,
     Joseph M. McDade,
     Bob Livingston,
     Jerry Lewis (except for chapter 6 of title V of division A),
     Joe Skeen,
     Dave Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Ernest Istook,
     John P. Murtha,
     Norm Dicks,
     Charles Wilson,
     W.G. Bill Hefner,
     Martin Olav Sabo,
     David Obey,
                                Managers on the Part of the House.

     Ted Stevens,
     Thad Cochran,
     Pete V. Domenici,
     Christopher S. Bond (except for chapter 6 of title V of 
     division A),
     Mitch McConnell,
     Connie Mack,
     Richard C. Shelby,
     Mark O. Hatfield,
     Daniel K. Inouye (with reservation),
     Fritz Hollings,
     J. Bennett Johnson,
     Robert Byrd,
     Patrick J. Leahy,
     Frank R. Lautenberg,
                               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 
     amendment of the Senate to the bill (H.R. 3610) making 
     appropriations for the Department of Defense 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 effects of the action agreed 
     upon by the managers and recommended in the accompanying 
     report.
       The composition of this conference agreement includes more 
     than the Department of Defense Appropriations Act for fiscal 
     year 1997. While the House version of H.R. 3610 and the 
     Senate amendment in the nature of a substitute dealt only 
     with defense appropriations, the conference report was 
     expanded to include other matters, most significantly, other 
     fiscal year 1997 appropriations for other departments and 
     agencies. These appropriations are included in title I of 
     this conference agreement and are organized in groupings as 
     they would have been had they been enacted in their regular 
     appropriations act. Explanation of the matters included in 
     this conference agreement follows.

         ANTITERRORISM, COUNTERTERRORISM, AND SECURITY FUNDING

       The conference agreement includes funding for 
     antiterrorism, counterterrorism, and security initiatives. 
     The following table shows the programs, the location of the 
     funding provision in the conference agreement, and the amount 
     of funding for these initiatives.

          Antiterrorism, counterterrorism, and security funding         
               [Budget authority, in millions of dollars]               
                                                                        
                                                                FY 1997 
                                                              Conference
                                                               Agreement
                                                                        
 TITLE I, SEC. 101(a)--DEPARTMENTS OF COMMERCE, JUSTICE, AND            
         STATE, THE JUDICIARY, AND RELATED AGENCIES                     
                                                                        
The Judiciary: Antiterrorism and Effective Death Penalty Act            
 workload/security..........................................       10.0 
Department of Commerce: Export Administration: Hire criminal            
 investigators/engineers to review export licenses..........        3.9 
Department of Justice:                                                  
    Security upgrades from General Administration account...        3.6 
    Counterterrorism fund \1\...............................       20.0 
    Executive Office of Immigration Review: Removal of                  
     criminal aliens/immigration court security.............        1.0 
    Criminal Division: Investigations and prosecutions of               
     terrorist cases........................................        1.7 
    US Attorneys: Wiretap activity/computer fraud/building              
     security...............................................       10.9 
    Federal Bureau of Investigation:                                    
      Additional positions/antiterrorism support:                       
        Gore Commission Recommendation......................      168.6 
        Other...............................................        7.0 
    Drug Enforcement Administration: Additional security for            
     buildings and vehicles.................................        5.0 
    Immigration and Naturalization Service: Detention of                
     criminal aliens and enhanced intelligence..............       15.0 
    Office of Justice programs: Antiterrorism preparedness              
     training for rural law enforcement.....................       17.0 
Department of State: Upgrade security at US government                  
 facilities overseas........................................   \2\ 48.5 
United States Information Agency: Upgrade security at                   
 overseas and domestic facilities...........................    \2\ 1.4 
                                                             -----------
      Subtotal, Departments of Commerce, Justice, and State,            
       the Judiciary, and Related Agencies..................      313.6 
                                                             ===========
TITLE I, SEC. 101(b)--DEPARTMENT OF DEFENSE                             
                                                                        
Military personnel, Army....................................        4.8 
Military personnel, Air Force...............................        4.0 
Operation and maintenance, Army.............................       36.4 
Operation and maintenance, Navy.............................       24.0 
Operation and maintenance, Marine Corps.....................        0.6 
Operation and maintenance, Air Force........................       78.2 
Operation and maintenance, Defense-wide.....................       29.5 
Operation and maintenance, Navy Reserve.....................        0.5 
Other procurement, Army.....................................       16.9 
Other procurement, Air Force................................      115.1 
Procurement, Defense-wide...................................       35.4 
Research, Development, Test and Evaluation, Defense-wide....        8.0 
                                                             -----------

[[Page H11841]]

                                                                        
      Subtotal, Department of Defense.......................      353.3 
                                                             ===========
TITLE I, SEC. 101(c)--FOREIGN OPERATIONS, EXPORT FINANCING,             
 AND RELATED PROGRAMS                                                   
                                                                        
US Agency for International Development: Improve security               
 for overseas facilities/personnel..........................        0.6 
                                                                        
TITLE V, CHAPTER 7--FOREIGN OPERATIONS, EXPORT FINANCING,               
 AND RELATED PROGRAMS                                                   
                                                                        
Department of State: Provide training for foreign security              
 personnel..................................................       18.0 
                                                             -----------
      Subtotal, Foreign Operations (Title I and Title V)....       18.6 
                                                             ===========
TITLE I, SEC. 101(d)--DEPARTMENT OF THE INTERIOR AND RELATED            
 AGENCIES                                                               
                                                                        
Department of the Interior:                                             
    Fish and Wildlife Service: Security/antiterrorism                   
     upgrades...............................................        1.5 
    National Park Service: Upgrade security at high-profile             
     National Park Service sites............................        8.6 
Smithsonian:                                                            
    General upgrade of security systems.....................        0.9 
    Upgrade security at the Kennedy Center..................        5.0 
    Upgrade security at the National Gallery................        0.4 
Holocaust Memorial Council: Upgrade security at Holocaust               
 Museum.....................................................        1.0 
                                                             -----------
      Subtotal, Department of the Interior and Related                  
       Agencies.............................................       17.4 
                                                             ===========
TITLE I, SEC. 101(e)--DEPARTMENTS OF LABOR, HEALTH AND HUMAN            
        SERVICES, AND EDUCATION, AND RELATED AGENCIES                   
                                                                        
Department of Health and Human Services:                                
    Centers for Disease Control: Building security                      
     improvements at Atlanta headquarters...................       23.0 
    General Departmental Management: Terrorism consequence              
     management/Rapid Response Teams........................        5.8 
                                                             -----------
      Subtotal, Departments of Labor, Health and Human                  
       Services, and Education, and Related Agencies........       28.8 
                                                             ===========
TITLE V, CHAPTER 5--DEPARTMENT OF TRANSPORTATION AND RELATED            
                          AGENCIES                                      
                                                                        
Department of Transportation:                                           
    Federal Aviation Administration:                                    
      Purchase explosives detection devices/passenger                   
       profiling/screening..................................      197.6 
      Additional aviation safety inspectors, airline                    
       certification, safety data systems, contract weather             
       observers, and air traffic controller training.......       29.0 
    Research and Special Programs Administration:                       
     Vulnerability threat assessment........................        3.0 
National Transportation Safety Board:                                   
    TWA Flight 800 recovery (reimburse Navy)................        6.0 
    Replenish emergency fund................................        1.0 
                                                             -----------
      Subtotal, Department of Transportation and Related                
       Agencies.............................................      236.6 
                                                             ===========
 TITLE I, SEC. 101(f)--TREASURY, POSTAL SERVICE, AND GENERAL            
                       APPROPRIATIONS:                                  
Department of the Treasury:                                             
    Bureau of Alcohol, Tobacco, and Firearms:                           
      Taggant study (crime trust fund)......................       18.3 
      Federal training and certification for explosives                 
       detection............................................        7.5 
      Develop comprehensive training program for explosives             
       detection............................................        1.8 
      Increase inspections for businesses which manufacture/            
       use explosives.......................................        1.8 
      Expand study of car bombs.............................        3.0 
      Expand ability to collect and maintain data on                    
       explosives...........................................        2.1 
      Create equipped mobile forensics labs/rapid deployment            
       teams................................................        7.2 
      Provide additional personnel for intelligence and                 
       investigation........................................       14.2 
      Counterterrorism fund \1\.............................       15.0 
      Building security.....................................        6.7 
      Other Bureau of Alcohol, Tobacco, and Firearms........        3.0 
    Office of Foreign Assets Control: Implement additional              
     programs to seize assets of terrorism sponsors.........        0.3 
    Federal Law Enforcement Training Center:                            
      Provide training for additional Federal law                       
       enforcement personnel................................        1.4 
      Increase security at Glynco and Artesia site..........        2.7 
    Customs Service:                                                    
      Passenger screening...................................       58.0 
      Building security.....................................        2.2 
    Secret Service: Provide more effective security for                 
     president/White House complex..........................        2.5 
    Other Treasury: Increase security at Treasury facilities       14.7 
Office of Personnel Management: Upgrade security at                     
 headquarters...............................................        0.2 
                                                             -----------
      Subtotal, Treasury, Postal Service, and General                   
       Appropriations.......................................      162.4 
                                                             ===========
   TITLE V, CHAPTER 6--DEPARTMENTS OF VETERANS AFFAIRS AND              
   HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES              
                                                                        
Federal Emergency Management Agency:                                    
    Salaries and expenses...................................        3.0 
    Emergency Management Planning and Assistance............       12.0 
                                                             -----------
      Subtotal, Departments of Veterans Affairs and Housing             
       and Urban Development, and Independent Agencies......       15.0 
                                                             ===========

[[Page H11842]]

                                                                        
      Total antiterrorism funding...........................    1,145.7 
(Contingent emergency funds)................................      (15.0)
                                                             -----------
      (Other)...............................................   (1,130.7)
                                                                        
\1\ Requested as contingent emergency appropriations.                   
\2\ Security upgrades at overseas facilities of the International Trade 
  Administration and USIA are included under Department of State.       

                        NATURAL DISASTER FUNDING

       The conference agreement includes additional emergency 
     funding for assistance to recover from the impacts of natural 
     disasters such as Hurricane Fran. The following table shows 
     the programs, the location of the funding provision in the 
     conference agreement, and the amount of funding for this 
     assistance.

                        HURRICANE AND FLOOD RECOVERY ASSISTANCE, AND FIREFIGHTING FUNDING                       
                                   [Budget authority, in millions of dollars]                                   
----------------------------------------------------------------------------------------------------------------
                                                                      Administration   Conference    Conference 
                                                                        request \1\     agreement    vs. request
----------------------------------------------------------------------------------------------------------------
                    HURRICANE AND FLOOD RECOVERY                                                                
                                                                                                                
  Title V, Chapter 1--Department of Agriculture, Rural Development,                                             
         Food and Drug Administration, and Related Agencies                                                     
                                                                                                                
Natural Resources Conservation Service: Watershed and flood                                                     
 prevention operations..............................................          20.0           63.0         +43.0 
Farm Service Agency: Emergency conservation program.................          20.0           25.0          +5.0 
                                                                     -------------------------------------------
      Subtotal, Departments of Agriculture, Rural Development, Food                                             
       and Drug Administration, and Related Agencies................          40.0           88.0         +48.0 
                                                                     ===========================================
 Title I, Sec. 101(a)--Departments of Commerce, Justice, and State,                                             
                 the Judiciary, and Related Agencies                                                            
                                                                                                                
Department of Commerce: Economic Development Administration:                                                    
 Economic Development Assistance Programs \2\.......................          18.0           25.0          +7.0 
Small Business Administration:                                                                                  
    Disaster loans program account..................................          22.0          113.0         +91.0 
    Salaries and expenses...........................................  ..............         22.0         +22.0 
                                                                     -------------------------------------------
      Subtotal, Departments of Commerce, Justice, and State, the                                                
       Judiciary, and Related Agencies..............................          40.0          160.0        +120.0 
                                                                     ===========================================
          Title V, Chapter 3--Energy and Water Development.                                                     
                                                                                                                
Army Corps of Engineers: Operations and maintenance, general........          18.8           19.0          +0.2 
                                                                     -------------------------------------------
      Subtotal, Energy and Water Development........................          18.8           19.0          +0.2 
                                                                     ===========================================
    Title I, Sec. 101(d)--Department of the Interior and Related                                                
                              Agencies                                                                          
                                                                                                                
Department of the Interior:                                                                                     
    Bureau of Land Management:                                                                                  
      Management of lands and resources.............................  ..............          3.5          +3.5 
      Oregon and California grant lands.............................  ..............          2.5          +2.5 
    US Geological Survey: Surveys, investigations, and research.....  ..............          1.1          +1.1 
    Fish and Wildlife Service:                                                                                  
      Resource management...........................................  ..............          0.6          +0.6 
      Construction..................................................  ..............         15.9         +15.9 
    National Park Service: Construction.............................  ..............          3.0          +3.0 
    Bureau of Indian Affairs:                                                                                   
      Operation of Indian Programs..................................  ..............          6.6          +6.6 
      Construction..................................................  ..............          6.0          +6.0 
Department of Agriculture:                                                                                      
    Forest Service:                                                                                             
      National Forest System........................................  ..............          3.4          +3.4 
      Construction..................................................  ..............          5.2          +5.2 
                                                                     -------------------------------------------
        Subtotal, Department of the Interior and Related Agencies...  ..............         47.8         +47.8 
                                                                     ===========================================
    Title V. Chapter 5--Department of Transportation and Related                                                
                              Agencies                                                                          
                                                                                                                
Department of Transportation: Federal Highways Administration:                                                  
 Federal-aid Highways...............................................          82.0           82.0   ............
                                                                     -------------------------------------------
      Subtotal, Department of Transportation and Related Agencies...          82.0           82.0   ............
                                                                     ===========================================
 Title V, Chapter 6--Departments of Veterans Affairs and Housing and                                            
             Urban Development, and Independent Agencies                                                        
                                                                                                                
Department of Housing and Urban Development:                                                                    
    Housing Programs: Flexible subsidy fund \2\.....................          10.0    ............        -10.0 
    Community Planning and Development: Community Development Grants                                            
     \2\............................................................         100.0    ............       -100.0 
                                                                     -------------------------------------------
        Subtotal, Departments of Veterans Affairs and Housing and                                               
         Urban Development, and Independent Agencies................         110.0    ............       -110.0 
                                                                     -------------------------------------------
        Total hurricane and flood relief............................         290.8          396.8        +106.0 
                                                                     ===========================================
                            FIREFIGHTING                                                                        
                                                                                                                
    Title I, Sec. 101(d)--Department of the Interior and Related                                                
                              Agencies                                                                          
                                                                                                                
Department of the Interior: Bureau of Land Management: Wildland fire                                            
 management \3\.....................................................         300.0          550.0        +250.0 
                                                                     -------------------------------------------
Department of Agriculture: Forest Service: Wildland fire management.         100.0          100.0   ............
                                                                     -------------------------------------------
      Subtotal, Department of the Interior and Related Agencies.....         400.0          650.0        +250.0 
                                                                     -------------------------------------------
Total firefighting..................................................         400.0          650.0        +250.0 
                                                                     -------------------------------------------
      Total hurricane and flood relief, and firefighting............         690.8        1,046.8        +356.0 
(Contingent emergency funds)........................................        (178.0)        (100.0)       (-78.0)
                                                                     -------------------------------------------
      (Other).......................................................        (512.8)        (946.8)      (+434.0)
----------------------------------------------------------------------------------------------------------------
\1\ Funds were requested by the Administration as FY 1996 supplemental appropriations. The conference agreement 
  provides FY 1997 appropriations.                                                                              
\2\ Requested as contingent emergency appropriations.                                                           
\3\ $50 million requested as contingent emergency appropriations; conference agreement funds $100 million as    
  contingent.                                                                                                   


[[Page H11843]]

                             SECTION 101(a)

Departments of Commerce, Justice, and State, the Judiciary, and Related 
                   Agencies Appropriations Act, 1997

       The conferees on H.R. 3610 agree with the matter inserted 
     in this subsection of this conference agreement and the 
     following description of this matter. This matter was 
     developed through negotiations on the differences in the 
     House and Senate versions of H.R. 3814, the Departments of 
     Commerce, Justice, and State, the Judiciary, and Related 
     Agencies Appropriations Act, 1997, by members of the 
     appropriations subcommittee of both the House an Senate with 
     jurisdiction over H.R. 3814. The legislative intent in the 
     House and Senate versions of H.R. 3814 is set forth in the 
     accompanying House report (H. Rept. 104-676) and the 
     accompanying Senate report (S. Rept. 104-353).

                     TITLE I--DEPARTMENT OF JUSTICE

                         General Administration


                         salaries and expenses

       The conference agreement includes $79,373,000 for General 
     Administration, instead of $78,493,000 as proposed in the 
     House bill and $70,653,000 as proposed in the Senate-reported 
     bill. Of the amount provided $3,600,000 is designated by the 
     Congress and the President as emergency requirements pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended. The 
     conference agreement assumes that funding is provided in 
     accordance with the House and Senate reports with the 
     following exceptions:
       Counterterrorism initiative.--The conference agreement 
     provides $3,600,000, the full amount requested by the 
     Administration in its recent budget amendment, to address the 
     increasing threat of domestic and international terrorism. 
     Included in the amount provided is $1,430,000 for the Office 
     of Intelligence Policy and Review and $2,170,000 for security 
     enhancements of the Main Justice building and field offices.
       The conference agreement also provides $4,700,000 for 
     Federal drug testing initiatives to be administered by the 
     Attorney General in conjunction with the Federal Judiciary, 
     and $2,000,000 for additional staffing for the Office of 
     Professional Responsibility for investigations of allegations 
     of attorney misconduct.
       The conference agreement includes a provision, as proposed 
     in the Senate-reported bill, that limits the number of 
     positions and amounts for the Department Leadership program, 
     but does not include a provision, as proposed in the House 
     bill, that eliminates funding for the Office of the Associate 
     Attorney General. The conference agreement also includes a 
     provision as proposed in the Senate-reported bill, that 
     freezes legislative and public affairs activities at fiscal 
     year 1995 levels and prohibits these activities from being 
     supplemented by reimbursable and non-reimbursable details. 
     Similar provisions are included under other Department of 
     Justice programs as well, in order to ensure that scarce 
     resources are targeted to crime-fighting activities. These 
     limitations are not intended to reduce the level of resources 
     currently dedicated to casework activities.


                         counterterrorism fund

       The conference agreement includes $29,450,000 for the 
     Counterterrorism Fund, instead of $9,450,000 as proposed in 
     the House bill and $40,000,000 as proposed in the Senate-
     reported bill. Of the amount provided, $20,000,000 is 
     designated by the Congress and the President as emergency 
     requirements pursuant to section 251(b)(2)(D)(i) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.
       The conference agreement does not include provisions, 
     included in the Senate-reported bill, which would have 
     transferred funding from this Fund to the Department of State 
     and the U.S. Information Agency, the Commerce Department, and 
     the Judiciary, for counterterrorism activities. Instead the 
     conference agreement provides funding for counterterrorism 
     activities of these agencies directly under these accounts. 
     In addition, funding included in the Senate-reported bill for 
     Joint Terrorism Task Forces and increased State and local 
     support at the FBI Counterterrorism Center is included under 
     the amounts provided for the Federal Bureau of Investigation. 
     However, of the amount provided under this Fund, $3,000,000 
     is included for necessary counterterrorism security and 
     communications infrastructure enhancements and upgrades in 
     preparation for the 2002 Olympic games.
       The conferees understand that in addition to amounts 
     provided in this bill, unobligated balances of $8,982,000 
     remain available from previous appropriations for authorized 
     purposes of this Fund.


                   administrative review and appeals

       The conference agreement includes $111,000,000 for 
     Administrative Review and Appeals instead of $112,000,000 as 
     proposed in the House bill and $107,909,000 as proposed in 
     the Senate-reported bill, of which $48,000,000 is provided 
     from the Violent Crime Reduction Trust Fund (VCRTF) as 
     proposed in both the House and Senate-reported bills. Of the 
     total amount provided, $1,000,000 for enhanced security 
     measures is designated by the Congress and the President as 
     emergency requirements pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, for counterterrorism-related activities.
       The amount provided in the conference agreement is provided 
     in accordance with the House and Senate reports with the 
     following exceptions. The total amount provided includes 
     $1,481,000 for the Office of the Pardon Attorney and 
     $109,519,000 for the Executive Office for Immigration Review 
     (EOIR). Within amounts provided for EOIR, $6,496,000 is 
     included to support 24 additional immigration judges for 
     border control and removal of criminal and non-criminal 
     aliens, $1,935,000 is for 20 additional attorneys for the 
     Board of Immigration Appeals, $3,500,000 is for ADP systems 
     modernization, and $1,000,000 is for enhanced building and 
     court security.

                      Office of Inspector General

       The conference agreement includes $31,960,000 for the 
     Office of Inspector General, as proposed in both the House 
     and Senate-reported bills and assumes funding is provided in 
     accordance with the House and Senate reports.

                    United States Parole Commission


                         salaries and expenses

       The conference agreement includes $4,845,000 for the U.S. 
     Parole Commission, instead of $4,490,000 as proposed in the 
     House bill and $5,201,000 as proposed in the Senate-reported 
     bill.

                            Legal Activities


            salaries and expenses, general legal activities

       The conference agreement includes $430,262,000 for General 
     Legal Activities, instead of $428,543,000 as proposed in the 
     House bill and $429,028,000 as proposed in the Senate-
     reported bill, of which $7,750,0000 is provided from the 
     Violent Crime Reduction Trust Fund (VCRTF) as proposed in 
     both the House and Senate-reported bills. Of the total amount 
     provided, $1,719,000 is designated by the Congress and the 
     President as emergency requirements pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended, for counterterrorism-related 
     activities.
       The amount provided in the conference agreement is provided 
     in accordance with the House and Senate reports. In addition, 
     $1,719,000 is provided for the Criminal Division for 
     increased counterterrorism activities, including $629,000 and 
     6 attorneys for review of Title III wiretap requests, and 
     $1,090,000 and 13 attorneys for increased investigations and 
     prosecutions of domestic and international terrorism, as 
     proposed in the Administration's budget amendment.
       The conference agreement also includes a provision, 
     included in the Senate-reported bill, that freezes 
     legislative and public affairs staffing in this account at 
     fiscal year 1995 levels.


               the national childhood vaccine injury act

       The conference agreement includes a reimbursement of 
     $4,028,000 for fiscal year 1997 from the Vaccine Injury 
     Compensation Trust Fund to the Department of Justice, as 
     proposed in both the House and Senate-reported bills.


               salaries and expenses, antitrust division

       The conference agreement provides $92,447,000 for the 
     Antitrust Division, instead of $84,336,000 as proposed in the 
     House bill and $94,979,000 as proposed in the Senate-reported 
     bill. The conference agreement assumes that of the amount 
     provided, $58,905,000 will be derived from fees collected in 
     fiscal year 1997 and $16,000,000 will be derived from 
     estimated unobligated fee collections available from 1996. 
     Use of any unobligated fee collections from 1996 above 
     $16,000,000 is subject to the reprogramming requirements 
     outlined in section 605 of this Act.
       The conference agreement does not include a change in the 
     fee structure for Hart-Scott-Rodino fees as proposed in the 
     Senate-reported bill under the Federal Trade Commission, 
     which would have eliminated the direct appropriation for this 
     account.


             salaries and expenses, united states attorneys

       The conference agreement includes $978,116,000 for the U.S. 
     Attorneys, instead of $974,905,000 as proposed in the House 
     bill and $965,316,000 as proposed in the Senate-reported 
     bill, of which $43,876,000 is provided from the Violent Crime 
     Reduction Trust Fund (VCRTF) as proposed in the House bill 
     instead of $31,000,000 as proposed in the Senate-reported 
     bill. Of the total amount provided, $10,900,000 is designated 
     by the Congress and the President as emergency requirements 
     pursuant to section 251(b)(2)(D)(i) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended, for 
     counterterrorism-related activities.
       The conference agreement provides for the following: (1) 
     $4,641,000 and 35 attorneys to support immigration 
     initiatives and increased drug prosecutions on the Southwest 
     boarder; (2) $1,000,000 for Federal victims counselors to 
     address violence against women; and (3) $10,900,000 for 
     security upgrades at U.S. Attorneys offices to address the 
     increasing threat of terrorism. In addition, as stated in the 
     Senate report, to the extent possible within the resources 
     provided, the Department of Justice should expand the pilot 
     debt collection program.
       The conference agreement also provides $1,900,000 to pay 
     the costs of supervision and oversight of the Teamsters 
     election. In addition, the Attorney General may provide an 
     additional $1,900,000 for these costs from funds provided to 
     the Department of Justice, subject to either the 
     reprogramming requirements in section 605 of this Act or the 
     transfer authorities in section 107 of this Act. The

[[Page H11844]]

     conferees agree that this is the final payment for this 
     purpose.
       The conference agreement also includes bill language, 
     similar to language included in the House bill, to reflect 
     the total number of positions and full-time equivalent (FTE) 
     employment expected to be supported by the level of resources 
     provided for the U.S. Attorneys in fiscal year 1997.

                   United States Trustee System Fund

       The conference agreement provides $107,950,000 in budget 
     (obligational) authority for the U.S. Trustees, to be 
     entirely funded from offsetting fee collections, as proposed 
     in both the House and Senate-reported bills. The amount 
     provided in the conference agreement is provided in 
     accordance with the House and Senate reports.


      salaries and expenses, foreign claims settlement commission

       The conference agreement provides $953,000 for the Foreign 
     Claims Settlement Commission as proposed in the Senate-
     reported bill, instead of $878,000 as proposed by the House 
     and assumes funding is provided in accordance with the House 
     and Senate reports.


         salaries and expenses, united states marshals service

       The conference agreement includes $482,495,000 for the U.S. 
     Marshals Service as provided in the Senate-reported bill, 
     instead of $485,214,000 as proposed in the House bill. Of 
     this amount, the conference agreement provides that 
     $25,000,000 will be derived from the Violent Crime Reduction 
     Trust Fund (VCRTF) as proposed in both the House and Senate-
     reported bills.
       The amount included in the conference agreement is provided 
     in accordance with the House and Senate reports and includes 
     program increases as outlined in the Senate report. Increased 
     resources of $2,000,000 requested in the Administration's 
     recent budget amendment to support possible high-visibility 
     terrorist trials can be provided from the Counterterrorism 
     Fund, if needed.
       The conference agreement also includes a provision, 
     included in the Senate-reported bill, that freezes 
     legislative and public affairs staffing in this account at 
     fiscal year 1995 levels.


                       federal prisoner detention

       The conference agreement provides $405,262,000 for Federal 
     Prisoner Detention, as proposed in both the House and Senate-
     reported bills. The amount included in the conference 
     agreement is provided in accordance with the House and Senate 
     reports with the following exception.
       Detention of Criminal Aliens at the Naval Air Station 
     Miramar.--The conference agreement assumes that the Attorney 
     General will continue to pursue alternative detention 
     capacity in Southern California and consider potential Navy 
     counter proposals to alleviate the need to detain criminal 
     aliens at the Naval Air Station Miramar. While it is 
     understood that the Attorney General is exploring a long-term 
     solution involving a 1,000 bed private facility in San Diego 
     to detain criminal aliens awaiting trial, it is further 
     understood that this facility will not be available for at 
     least another 18 to 20 months. In order to ensure that there 
     is no negative impact on Federal prosecution policy by 
     limiting detention capacity, the conference agreement assumes 
     that the Miramar facility may be used in the short-term. The 
     Attorney general is expected to submit a report on her 
     efforts to find alternative detention space to Miramar to the 
     Committee on Appropriations of both the House and Senate, by 
     January 3, 1997. It is also expected that the Southern 
     District of California's long-term detention problem will be 
     addressed in the Department of Justice's updated Federal 
     Detention Plan requested in the Senate report.


                     fees and expenses of witnesses

       The conference agreement includes $100,702,000 for Fees and 
     Expenses of Witnesses as proposed by the House, instead of 
     $102,702,000 as proposed in the Senate-report bill and 
     assumes funding is provided in accordance with the House 
     report. Funds for alternative dispute resolution efforts may 
     be identified within other accounts subject to the 
     reprogramming requirements in section 605.


                      community relations service

       The conference agreement provides $5,319,000 for the 
     Community Relations Service, as proposed in both the House 
     and Senate-reported bills and in accordance with both the 
     House and Senate reports.

                         Assets Forfeiture Fund

       The conference agreement provides $23,000,000 for the 
     Assets Forfeiture Fund instead of $16,000,000 as proposed in 
     the House bill and $30,000,000 as proposed in the Senate-
     reported bill, and assumes funding is provided in accordance 
     with both the House and Senate reports.

                    Radiation Exposure Compensation


                        administrative expenses

       The conference agreement includes $2,000,000 for 
     administrative expenses in accordance with the Radiation 
     Exposure Compensation Act, as proposed by both the House and 
     Senate-reported bills.


         payment to radiation exposure compensation trust fund

       The conference agreement provides a program level of 
     $30,000,000 for fiscal year 1997 for payments to the 
     Radiation Exposure Compensation Trust Fund, as proposed by 
     both the House and Senate-reported bills, of which 
     $16,264,000 is available from an advance appropriation and 
     $13,736,000 is available on September 30, 1997. The 
     conference agreement assumes that funding is provided in 
     accordance with the House and Senate reports.

                      Interagency Law Enforcement


                 interagency crime and drug enforcement

       The conference agreement includes $359,430,000 for 
     Interagency Crime and Drug Enforcement instead of 
     $372,017,000 as proposed by the House and $352,461,000 as 
     proposed by the Senate-reported bill. The level of funding 
     provided by the conference agreement assumes that all 
     participating agencies will continue at levels provided in 
     1996.
       The conference agreement does not include language included 
     in the Senate-reported bill that would make this the final 
     Federal payment for this program. However, the conferees 
     recognize that this program continues to support funding for 
     non-Justice agencies and therefore restates the direction 
     provided in fiscal year 1996 that the Administration should 
     submit the budget requirements of non-Justice agencies for 
     fiscal year 1998 within the budgets proposed for those 
     agencies.

                    Federal Bureau of Investigation


                         salaries and expenses

       The conference agreement includes $2,735,971,000 for the 
     Federal Bureau of Investigation (FBI), instead of 
     $2,681,706,000 as proposed in the House bill and 
     $2,650,653,000 as proposed in the Senate-reported bill, of 
     which $169,000,000 is provided from the Violent Crime 
     Reduction Trust Fund (VCRTF), instead of $153,000,000 as 
     proposed in the House bill and $160,000,000 as proposed in 
     the Senate-reported bill. Of the total amount provided, 
     $115,610,000 is designated by the Congress and the President 
     as emergency requirements pursuant to section 251(b)(2)(D)(i) 
     of the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, for counterterrorism-related activities. In 
     addition, the conference agreement provides that not less 
     than $147,081,000 shall be used for counterterrorism 
     investigations, foreign counterintelligence, and other 
     activities related to national security, instead of 
     $133,081,000 as proposed by the House and $195,200,000 as 
     proposed by the Senate-report bill. This statement of 
     managers reflects the agreement of the conferees on how the 
     funds provided in the conference report are to be spent. The 
     total amount provided in the conference agreement reflects 
     the effects of the Health Insurance Portability and 
     Accountability Act of 1996 (Public Law 104-191) which shifts 
     $38,000,000 of base funding for FBI health care fraud 
     investigations to the Health Care Fraud and Abuse Control 
     Account. This legislation was enacted into law following 
     House passage and Senate Committee action on this bill.
       Comprehensive Counterterrorism Initiative.--The conference 
     agreement provides a significant increase for the FBI to 
     address the increasing threat of domestic and international 
     terrorism. It is noted that prior to the Administration's 
     submission of a budget amendment for counterterrorism, both 
     the House and Senate-reported bills exceeded the amount of 
     funding requested by the Administration for the FBI to 
     address terrorism. The Senate-reported bill, in particular, 
     provided more than three times the funding requested for FBI 
     counterterrorism activities. The conference agreement 
     provides $157,743,000 in program increases to enhance the 
     FBI's capability to address terrorism including: (1) 
     $81,755,000 to support over 500 agents and support staff to 
     combat terrorism, protect key physical assets, and establish 
     a capability for chemical, biological, and nuclear 
     investigations; (2) $2,700,000 to cover confidential case 
     funding for the FBI-sponsored Joint Terrorism Task Forces and 
     to increase State and local participation; (3) $3,750,000 for 
     field counterterrorism operational support, including case-
     related travel and undercover operations funding; (4) 
     $11,511,000 to support field electronic technicians for 
     technical support to investigative and counterterrorism 
     operations; (5) $1,172,000 to add FBI agents in Riyadh, Kiev, 
     Tallinn, Warsaw, and Pretoria; (6) $5,013,000 and 17 agents 
     to establish a Computer Investigations Threat Assessment 
     Center (CITAC) at FBI headquarters to provide the capability 
     to identify, investigate, and counter illegal intrusion into 
     government computer networks; (7) $2,000,000 to establish a 
     database to maintain and organize information relating to 
     physical key assets; (8) $2,420,000 for expansion of FBI's 
     Counterterrorism Special Projects aimed at gathering visual 
     intelligence data; (9) $4,780,000 to establish Field 
     Translation Centers staffed with contract translators to 
     transcribe Arabic and Farsi languages; (10) $1,988,000 for 
     State and local participation and administrative support at 
     the Counterterroism Center; (11) $7,516,000 to establish a 
     hazardous materials/chemical/biological/nuclear capability 
     within the FBI laboratory; (12) $1,580,000 for equipment and 
     training for Computer Analysis and Emergency Response Teams; 
     (13) $3,200,000 for two mobile/deployable evidence response 
     team laboratories and 12 evidence response team trailers; 
     (14) $3,000,000 for advance render-safe response team 
     equipment; (15) $1,618,000 to improve training provided to 
     State and local public safety personnel at the hazardous 
     devices school and to acquire advanced tools, crime scene 
     gear, and related materials; (16) $370,000 to enhance 
     criminal profiling for crimes involving terrorists and 
     organizations that use chemical/biological/

[[Page H11845]]

     nuclear materials, bombs, and arson; (17) $1,400,000 for 
     development and deployment of a hazardous response forensic 
     database; (18) $6,970,000 for upgraded security at FBI field 
     offices; (19) $3,826,000 to expand the lookout/surveillance 
     program to monitor State sponsors of terrorism; (20) 
     $9,500,000 for grants to States authorized under the 
     Antiterrorism and Effective Death Penalty Act of 1996 to 
     establish, develop, update, or upgrade computerized 
     identification systems that are compatible with NCIC, DNA 
     forensic laboratories, and IAFIS; and (21) $5,500,000 for the 
     FBI's Combined DNA Index System. The FBI should consider 
     State and local automation and forensic projects as outlined 
     in the House and Senate reports when providing grants to 
     States for Identification Systems and DNA laboratories and 
     should not provide ballistics imaging equipment to State or 
     local authorities who have obtained similar equipment through 
     another Federal grant or subsidy unless those State and local 
     authorities have returned the equipment or repaid the grant 
     or subsidy to the Federal government. In addition, the 
     conference agreement assumes that the FBI and Secretary of 
     State will provide a plan, as stated in the House report, to 
     ensure that Consular Offices will have access to information 
     currently available to the FBI to prevent the illegal entry 
     of criminals and terrorists into the United States.
       Violent Crime and Anti-Drug Initiative.--The conference 
     agreement also provides $66,572,000 to enhance the FBI's 
     capability to combat violent crime and drugs and to provide 
     vital assistance to State and local law enforcement officers, 
     including: (1) $14,289,000 and 75 agents to support a joint 
     FBI/DEA investigative initiative targeting Mexican Drug 
     Trafficking Organizations; (2) $5,734,000 to expand and 
     support the FBI's Safe Streets Task Forces which focus on 
     street gangs and drug-related violence; (3) $8,250,000 for 
     continuation of the NCIC 2000 project, including enhancements 
     to add a Deported Felon file and a Protective Order file to 
     this system; (4) $20,240,000 for the establishment of the 
     National Instant Criminal Background Check system for handgun 
     purchases; (5) $4,000,000 for State and local training and 
     investigative assistance; (6) $8,334,000 to replace agent 
     vehicles; and (7) $5,725,000 for wireless radio 
     communications.
       The conference agreement also includes $3,327,000 to 
     address Freedom of Information and Privacy Act backlogs.
       NCIC 2000.--The conference agreement adopts the 
     recommendation included in the Senate report regarding 
     baseline requirements of the NCIC 2000 system. This project, 
     which is of vital importance to law enforcement personnel, 
     has been delayed by over three and one half years and has 
     required over $100,000,000 in additional resources above the 
     original projected cost. The FBI has informed the Committees 
     on Appropriations of both the House and Senate that an 
     additional $30,000,000, above amounts provided to date, will 
     be required to complete this project by August 1999. The 
     conference agreement assumes that this funding will be 
     provided from unobligated balances that will be transferred 
     from the FBI to the Department of Justice Working Capital 
     Fund in fiscal year 1997. In addition, the conference 
     agreement provides $8,250,000 to add two new files to the 
     system. In order to ensure that further delays and cost 
     increases do not occur, the conference agreement supports the 
     recommendation included in the Senate report, that these 
     files are to be the last changes to the system until NCIC 
     2000 is fully operational and that any further cost over-runs 
     are to be absorbed within the operating budget of the FBI, 
     subject to the reprogramming procedures outlined in section 
     605 of this Act. In addition, the FBI is directed to continue 
     to provide quarterly status reports on this project and the 
     performance of the contractor.
       Integrated Automated Fingerprint Identification System 
     (IAFIS).--Similarly, it is noted that the IAFIS project is 
     currently $119,500,000 over budget and more than one year 
     behind schedule. The conference agreement adopts the 
     recommendation included in the Senate report requiring that 
     further cost over-runs for the IAFIS project are to be funded 
     from FBI base resources, subject to the reprogramming 
     requirements outlined in section 605 of this Act. The 
     conference agreement includes bill language which allows 
     $98,400,000 of resources provided to the FBI to remain 
     available until expended. Of this amount, the conference 
     agreement assumes that $84,400,000 will be used for expenses 
     related to automation of fingerprint identification services. 
     In addition, the FBI is directed to continue to provide 
     quarterly status reports on this project to the Committees on 
     Appropriations of both the House and Senate.
       Use of Unexpended Fiscal Year 1996 Funds.--As highlighted 
     in the Senate report, the FBI had unexpended balances of 
     $40,700,000 from 1996 resources and funds provided in the 
     1995 Counterterrorism Supplemental Appropriation, largely as 
     a result of hiring delays. The Senate report directed that 
     these funds be used for counterterrorism activities and to 
     cover cost over-runs for the NCIC 2000 and IAFIS projects. 
     The conference agreement assumes that $17,100,000 of these 
     funds will be used for certain counterterrorism activities 
     related to ongoing investigations in Saudi Arabia and in 
     connection with the TWA Flight 800 investigation and the 
     Olympic park bombing, $12,300,000 of these funds are to be 
     deposited into the Telecommunications Carrier Compliance Fund 
     for digital telephony requirements, and $11,400,000 will be 
     used to meet other operational requirements of the FBI in 
     1996.
       The conference agreement also includes a provision, 
     included in the Senate-reported bill, that freezes 
     legislative and public affairs staffing in this account at 
     fiscal year 1995 levels. It is noted that the level of 
     staffing in this provision does not include employees 
     assigned to the FBI Tour and Indoor Firearms Range Unit or 
     the Executive, Congressional and Public Constituent Services 
     Unit. The services provided by these units are considered to 
     be legislative and public affairs activities under the 
     provision contained in the conference agreement.

               Telecommunications Carrier Compliance Fund

       The conference agreement provides $60,000,000 to be 
     deposited into the Telecommunications Carrier Compliance 
     Fund, established under section 110 of this Act, for making 
     payments to telecommunications carriers, equipment 
     manufacturers, and providers of telecommunications support 
     services to implement technology changes under the 
     Communications Assistance for Law Enforcement Act (CALEA).
       The funds provided in the conference agreement are 
     designated by the Congress as emergency requirements pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 as amended, and are 
     available as emergency spending only to the extent that the 
     President also designates these funds as emergency 
     requirements.
       Both the House and Senate-reported bills included a 
     provision under section 110, which provided for the 
     establishment of a Telecommunications Carrier Compliance 
     Fund, that would authorize agencies will law enforcement and 
     intelligence responsibilities to transfer unobligated 
     balances into this Fund, subject to applicable reprogramming 
     requirements, for the purpose of providing reimbursement to 
     telecommunications carriers, in lieu of direct appropriations 
     for this purpose.
       However, the conference agreement recognizes the need to 
     provide ``start-up'' funds to address concerns that 
     implementation of CALEA was being delayed for two reasons: 
     (1) the lack of an agreed upon plan between the 
     telecommunications industry, equipment manufacturers and the 
     law enforcement community and (2) funding for the industry to 
     start developing the ``solutions'' necessary to upgrade their 
     systems. The conference agreement provides these funds but 
     requires the Attorney General to develop and submit an 
     implementation plan for approval by the Committees on 
     Appropriations and the Judiciary of both the House and Senate 
     before any of the funds in the Fund are expended. The Senate-
     reported bill did not include the requirement for an 
     implementation plan because of concerns relating to 
     provisions in the plan included in the House bill. The 
     conference agreement includes revised language to address 
     these concerns and maintains the requirement that an 
     implementation plan be developed before any expenditure of 
     funds. The modified plan requires that the Attorney General 
     set forth: (1) the law enforcement assistance capability 
     requirements and an explanation of law enforcement's 
     recommended interface; (2) the proposed actual and maximum 
     capacity requirements regarding the number of simultaneous 
     law enforcement communications intercepts, pen registers, and 
     trap and trace devices that authorized agencies may seek, 
     including a detailed county by county listing of proposed 
     actual and maximum capacity requirements; (3) a prioritized 
     list of embedded base technologies to be modified by 
     carriers; and (4) a projected reimbursement plan that 
     estimates for each fiscal year based upon the prioritization, 
     the costs of modifications by carriers. The conferees agree 
     that in addition to the above implementation plan, the 
     Attorney General shall develop, in consultation with the 
     industry, and provide to the Committees on Appropriations and 
     the Judiciary by June 30, 1997, an estimate of reasonable 
     costs of modifications to carrier equipment, facilities, and 
     services, based on law enforcement assistance capability and 
     capacity requirements.
       In addition, the conference agreement includes the 
     requirement for an annual report to be submitted to Congress 
     by the Attorney General, which details all deposits and 
     expenditures from the Telecommunications Carrier Compliance 
     Fund made pursuant to CALEA.


                              CONSTRUCTION

       The conference agreement includes $41,639,000 in direct 
     appropriations for Construction for the Federal Bureau of 
     Investigation (FBI), instead of $55,676,000 in direct funding 
     as proposed in the House bill and $28,144,000 from the 
     Violent Crime Reduction Trust Fund as proposed in the Senate-
     reported bill.
       The conference agreement provides for the following: (1) 
     $1,287,000 for completion of FBI Academy Upgrades included in 
     1996 and (2) $40,352,000 as the second installment toward 
     completion of the FBI Forensic Laboratory at Quantico. The 
     conference agreement also adopts the recommendation included 
     in the Senate report, to withhold funding necessary to 
     complete the laboratory, based on initial cost estimates, and 
     require the Department of Justice to review current design 
     options and submit a construction plan with cost estimates 
     and a time line for completion of this project to the 
     Committees on Appropriations of both the House and Senate by 
     November 1, 1996.

[[Page H11846]]

                    Drug Enforcement Administration


                         salaries and expenses

       The conference agreement includes $970,388,000 for the 
     salaries and expenses of the Drug Enforcement Administration 
     (DEA), instead of $976,038,000 as proposed in the House bill 
     and $924,000,000 as proposed in the Senate-reported bill, of 
     which $220,000,000 is provided from the Violent Crime 
     Reduction Trust Fund (VCRTF), instead of $243,000,000 as 
     proposed in the House bill and $165,000,000 as proposed in 
     the Senate-reported bill. Of the total amount provided, 
     $5,000,000 is designated by the Congress and the President as 
     emergency requirements pursuant to section 251(b)(2)(D)(i) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended. In addition to amounts appropriated, the 
     conference agreement assumes that $52,824,000 will be 
     available from the Diversion Control Fund for diversion 
     control activities. This statement of managers reflects the 
     agreement of the conferees on how the funds provided in the 
     conference report are to be spent.
       Source Country/International Strategy.--The conference 
     agreement adopts the recommendation in the House report, to 
     significantly expand DEA's current supply reduction effort by 
     restoring successful international drug control programs to 
     1992 levels. Program increases for this initiative include 
     the following: (1) $20,000,000 to support Vetted Units in 
     Peru, Colombia, Boliva and Mexico; (2) $5,000,000 for DEA 
     enforcement personnel to support Operation Gateway; (3) 
     $22,858,000 and 75 agents to increase on-site DEA agents in 
     source countries, as outlined in the House report, to provide 
     equipment and support to augment the intelligence effort, and 
     to train and work with newly emerging vetted units; (4) 
     $2,000,000 for DEA human intelligence, communications 
     equipment and maintenance costs for the Peru riverine 
     strategy; (5) $10,000,000 to restart the Andean initiative in 
     Bolivia and Peru; and (6) $632,000 and 2 agents to establish 
     a country office in Pretoria, South Africa. As stated in the 
     House report, DEA is directed to submit a quarterly report, 
     beginning with the first quarter of fiscal year 1997, that 
     provides investigative workhours and funding, by type, within 
     major drug source and transit countries, delineated by 
     country and function.
       Southwest Border Initiative.--To support counter-drug 
     efforts on the Southwest border, where over 70 percent of all 
     drugs enter the United States, the conference agreement 
     provides the following program increases: (1) $9,000,000 for 
     a cooperative effort with the FBI to penetrate command and 
     control communications of Mexican drug trafficking 
     organizations; (2) $8,131,000 and 50 agents for 
     investigations from Title III wire intercepts; (3) $4,133,000 
     to support a classified intelligence research project; and 
     (4) $2,394,000 and 4 agents and 15 diversion investigators to 
     focus on methamphetamine activity on the Southwest border.
       Domestic Enforcement and Infrastructure Enhancements.--The 
     conference agreement includes additional resources to support 
     domestic counter-drug activities, including critically-needed 
     support to State and local law enforcement, who are on the 
     front lines of the fight against drug and gang-related 
     violence. Included are the following program increases: (1) 
     $10,900,000 to add 130 more special agents to DEA domestic 
     field offices to support Mobil Enforcement Teams (MET), 
     including $4,000,000 for a new METs initiative focused on 
     drug problems in rural areas and $1,000,000 for METs focused 
     on methamphetamine-related problems; (2) $3,500,000 for 
     marijuana eradication activities; (3) $1,500,000 for 
     investigative equipment; (4) $8,000,000 for wireless radio 
     communications equipment; (5) $1,000,000 for aircraft 
     replacement; and (6) $5,000,000 for replacement vehicles.
       The conference agreement also includes a provision, 
     included in the Senate-reported bill, that freezes 
     legislative and public affairs staffing in this account at 
     fiscal year 1995 levels.


                              construction

       The conference agreement includes $30,806,000 in direct 
     appropriations for Construction for the Drug Enforcement 
     Administration (DEA), instead of $36,306,000 from the Violent 
     Crime Reduction Trust Fund as proposed in the Senate-reported 
     bill and no funding as proposed by the House.
       The conference agreement provides for the following: (1) 
     $1,500,000 for the highest priority renovation and upgrade 
     needs at DEA's current forensic laboratory facilities, and 
     (2) $29,306,000 to complete the Justice Training Center to be 
     located at the FBI Academy at Quantico, VA. As stated in the 
     Senate report, the conference agreement adopts the 
     recommendation that any increase in construction costs above 
     the amounts provided for the Justice Training Center are to 
     be absorbed within base DEA operations.

                 Immigration and Naturalization Service


                         salaries and expenses

                     (including transfer of funds)

       The conference agreement includes $2,105,159,000 for the 
     salaries and expenses of the Immigration and Naturalization 
     Service (INS), instead of $2,167,782,000 as proposed in the 
     House bill and $1,973,625,000 as proposed in the Senate-
     reported bill, of which $500,000,000 is provided from the 
     Violent Crime Reduction Trust Fund (VCRTF), instead of 
     $500,168,000 as proposed in the House bill and $539,476,000 
     as proposed in the Senate-reported bill. Of the total amount 
     provided, $15,000,000 is designated by the Congress and the 
     President as emergency requirements pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended. In addition to amounts 
     appropriated, the conference agreement assumes that 
     $975,774,000 will be available from offsetting fee 
     collections, instead of $919,285,000 as proposed by the House 
     and $1,029,991,000 as proposed by the Senate-reported bill. 
     Thus, including resources provided under construction, the 
     conference agreement provides a total operating level of 
     $3,090,774,000 for INS, instead of $3,096,908,000 as proposed 
     by the House, $3,009,157,000 as proposed by the Senate-
     reported bill, and $3,081,908,000 as requested by the 
     Administration. This statement of managers reflects the 
     agreement of the conferees on how the funds provided in the 
     conference report are to be spent.
       Border control.--The conference agreement includes: (1) 
     $121,426,000 for 1,000 new border patrol agents and 136 
     support personnel, instead of 700 new agents as requested by 
     the Administration; (2) $27,093,000 for infrared scopes, low 
     light television systems, sensors and the replacement of 
     three helicopters, including upgraded forward-looking 
     infrared systems; (3) $12,300,000 for 150 new land border 
     inspectors for the Southern border; (4) $1,000,000 to pilot 
     an automated arrival/departure system for pedestrian 
     crossers; (5) $5,000,000 for anti-smuggling and field 
     intelligence activities both domestic and overseas; (6) 
     $5,000,000 for expansion of the interior repatriation program 
     started in San Diego this fiscal year; and (7) $1,243,000 for 
     management support of border enforcement activities. The 
     conference agreement provides $7,000,000 more than requested 
     for additional investments in force-multiplying technology to 
     be deployed along the Southwest border. As stated in the 
     Senate report, allocation of these additional resources is 
     subject to the reprogramming procedures outlined in section 
     605 of this Act and within the overall amount recommended for 
     border automation and technology, INS should examine the use 
     of Smart Multisensor Acquisition and Remote Transmitting 
     System (SMARTS) technology, a network of sensor packages and 
     communication repeaters that can monitor large, sparsely 
     populated regions of the U.S./Mexico border, thermal imaging 
     sensor upgrades for Border Patrol helicopters, and a 
     prototype interagency enforcement program at the Otay Mesa 
     Port of Entry. In addition, the conference agreement assumes 
     that the San Clemente checkpoint will be operated in 
     accordance with the provision in the bill and the House 
     report.
       Detention and Removal of Deportable Aliens.--The conference 
     agreement provides over $70,000,000 more than requested by 
     the Administration because the current shortage of detention 
     space has forced INS to release illegal criminal and non-
     criminal aliens, who would otherwise be deported. Program 
     increases of $114,322,000 are provided in accordance with the 
     House report and include over 2,700 detention beds, and 
     $10,000,000 to address the deportation of terrorists 
     requested in the Administration's September 12, 1996 budget 
     amendment. As outlined in the House and Senate reports, the 
     INS is directed to submit a quarterly report on removals 
     beginning no later than January 1, 1997.
       Infrastructure.--The conference agreement also includes 
     $50,583,000 for infrastructure improvements, including: (1) 
     $16,250,000 for replacement of obsolete radios, weapons and 
     body armor; (2) $14,000,000 for replacement of vehicles and 
     buses; (3) $15,253,000 for 104 additional field 
     administrative and contract support personnel, 7 internal 
     audit positions, and training for new automated systems; and 
     (4) $5,380,000 for training to support long-range career 
     development of journeymen employees.
       The conference agreement adopts recommendations included in 
     the House and Senate reports with regard to deployment of 
     resources, INS management reforms, exit control strategy, and 
     increased cooperation of illegal immigration enforcement on 
     Federal lands. Furthermore, the INS is reminded that the 
     opening and closing of offices not identified and provided 
     for in this Act, is subject to the reprogramming requirements 
     in section 605 of this Act.
       The conference agreement also includes a provision that 
     provides the level of staffing included for the offices of 
     legislative and public affairs. Also included is technical 
     language included in the Senate-reported bill, that allows 
     prior year balances from the Community Relations Service, 
     Cuban and Haitian Resettlement Program, to be transferred to 
     INS.

                       Offsetting Fee Collections

       The conference agreement assumes that $975,774,000 will be 
     available from offsetting fee collections for INS, instead of 
     $919,285,000 as proposed by the House and $1,029,991,000 as 
     proposed by the Senate-reported bill, to support activities 
     related to the legal admission of persons into the United 
     States. These activities are supported entirely by fees paid 
     by persons who are either traveling internationally or are 
     applying for immigration benefits. The following increases 
     are recommended:
       Immigration Examinations Fees.--The conference agreement 
     assumes $567,550,000 of spending from the Immigration 
     Examinations Fee account, instead of $511,061,000 as proposed 
     by the House bill and $586,800,000 as proposed by the Senate-
     reported bill. The level provided in the conference agreement

[[Page H11847]]

     assumes that $56,489,000 of carryover available in this 
     account will be used to support $29,567,000 currently 
     provided under the Violent Crime Reduction Trust Fund (VCRTF) 
     for expenses in the citizenship and benefits budget activity 
     related to asylum processing, and $26,922,000 currently 
     provided under the VCRTF for automation programs and 
     infrastructure for exams-related projects. It is noted that 
     INS has over $225,000,000 in unobligated resources that will 
     carryover into fiscal year 1997 in the Examinations Fee 
     Account. The conference agreement adopts the recommendation 
     similar to that included in the Senate report, to transfer 
     base funding to the Immigration Examinations Fee account by 
     transfering the above-mentioned adjudication-related 
     activities from the VCRTF base funding to the Immigration 
     Examinations Fee account, in order to free up additional 
     resources for higher priority border control, deportation and 
     detention initiatives.
       In addition, the conference agreement assumes the following 
     program increases for this account: (1) $3,597,000 to 
     continue temporary staffing in Miami, New York, Chicago, Los 
     Angeles and San Francisco to handle naturalization caseload; 
     (2) $2,246,000 to continue temporary staffing in Miami, 
     Newark, New York, Los Angeles and San Francisco to handle 
     adjustment of status case processing; (3) $3,600,000 for FBI 
     fingerprint checks; (4) $2,217,000 to fund court costs for 
     naturalization ceremonies; (5) $6,591,000 to support the 
     Service Center Direct Mail Records contract; and (6) 
     $4,819,000 to continue the pilot records contract currently 
     ongoing in the Miami, Los Angeles, and Chicago District 
     offices.
       Inspections User Fees.--The conference agreement assumes 
     $388,664,000 of spending from the Inspections User Fee 
     account as proposed in the House bill, instead of 
     $423,631,000 as proposed in the Senate-reported bill. All 
     requested airport inspections staffing increases were fully 
     funded in both the House and Senate reports. Funding is 
     provided in accordance with the House report.
       Land Border Inspections Fees.--The conference agreement 
     includes $11,054,000 in spending from the Land Border 
     Inspection Fund, as proposed in both the House and Senate-
     reported bills, and assumes funding in accordance with the 
     House and Senate reports.


                              construction

       The conference agreement includes $9,841,000 for 
     construction for INS as proposed in the House bill, instead 
     of $5,541,000 as proposed in the Senate-reported bill. The 
     conference agreement assumes funding is provided in 
     accordance with the House report.

                         Federal Prison System


                         salaries and expenses

       The conference agreement includes $2,793,540,000 for the 
     salaries and expenses of the Federal Prison System as 
     proposed in the Senate-reported bill, instead of 
     $2,798,040,000 as proposed by the House bill. Of this amount, 
     the conference agreement provides that $25,224,000 will be 
     derived from the Violent Crime Reduction Trust Fund (VCRTF), 
     as proposed by both the House and Senate-reported bills. The 
     conference agreement also assumes that in addition to amounts 
     appropriated, $90,000,000 will be available from unobligated 
     balances from the prior year as proposed in the Senate-
     reported bill, instead of $50,000,000 as assumed in the House 
     bill. The amount provided is the full amount required to 
     activate all facilities that are scheduled to open in 1997 
     and is to be used for the purposes set forth in the House and 
     Senate reports, including activations and expansions of 
     prisons at the following locations: Beaumont, Texas; 
     Edgefield, South Carolina; Seattle, Washington; and Elkton, 
     Ohio. In addition, the conference agreement adopts the 
     recommendation included in the House report regarding the 
     Prime Vendor Assistance Program and the recommendation 
     included in the Senate report on privatization of the Federal 
     prison in Taft, California.

                        Buildings and Facilities

       The conference agreement includes $395,700,000 for 
     construction, modernization, maintenance and repair of prison 
     and detention facilities housing Federal prisoners as 
     proposed by the House, instead of $385,700,000 as proposed in 
     the Senate-reported bill. The conference agreement assumes 
     funding is provided in accordance with the House report and 
     supports the Senate report language regarding the detention 
     facility in Hawaii.

                 Federal Prison Industries Incorporated


                (limitation on administrative expenses)

       The conference agreement includes a limitation on 
     administrative expenses of $3,042,000 for the Federal Prison 
     Industries, as proposed in both the House and Senate-reported 
     bills, and assumes funding is provided in accordance with the 
     House and Senate reports.

                       Office of Justice Programs


                           justice assistance

       The conference agreement includes $118,429,000 for Justice 
     Assistance, instead of $105,000,000 as proposed in the House 
     bill and $101,629,000 as proposed in the Senate-reported 
     bill. Of the amount provided, $17,000,000 is designated by 
     the Congress as an emergency requirement pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended, and amounts above the 
     request are available as emergency spending only to the 
     extent that the President also designates these funds as 
     emergency requirements. The conference agreement provides the 
     following:

National Institute of Justice...............................$31,429,000
    Defense/Law Enforcement Technology Network..............(9,229,000)
Counterterrorism Technologies................................10,000,000
Grants to Firefighters/Emergency Service Personnel............5,000,000
State and Local Training--Counterterrorism....................2,000,000
Bureau of Justice Statistics.................................21,379,000
Missing Children..............................................5,971,000
Regional Information Sharing System..........................14,500,000
White Collar Crime Information Center.........................3,850,000
Management and Administration................................24,300,000
                                                       ________________
                                                       
      Total.................................................118,429,000

       National Institute of Justice. (NIJ).--In addition to the 
     above amount, $20,000,000 will be provided to NIJ in fiscal 
     year 1997 from the Local Law Enforcement Block Grant for 
     assisting units of local government to identify, select, 
     develop, modernize, and purchase new technologies for use by 
     law enforcement. The conference agreement adopts the 
     recommendation in the House report, that provides that within 
     the overall amount provided to NIJ, the Office of Justice 
     programs is expected to provide $11,500,000 for the Southwest 
     Border States Anti-Drug Information System, $3,500,000 for 
     Facial Recognition Technology, $1,000,000 for a national 
     study on the health care status of soon-to-be-released 
     inmates, and an appropriate level of resources to be 
     transferred to the FBI for continued operations of the Center 
     of Advanced Support in Technology for Law Enforcement. In 
     addition, as stated in the Senate report, the allowed use of 
     the remaining funds in this program should be modified to 
     include counterterrorism technologies, computerized 
     identification systems, and forensic DNA analysis 
     technologies as outlined in sections 811 and 821 of the 
     Antiterrorism and Effective Death Penalty Act of 1996. OJP is 
     also expected to submit quarterly reports on funding for 
     activities within NIJ and to utilize NIJ employees for 
     oversight of the Office of Law Enforcement Technology 
     Commercialization, as stated in the House report.
       Defense/law enforcement technology transfer.--The 
     conference agreement provides $7,800,000 to assist the NIJ in 
     its efforts to adopt technologies for law enforcement 
     purposes. Within this amount, $5,000,000 is provided for 
     continuation of the law enforcement technology center network 
     and $2,800,000 is provided to continue the technology 
     commercialization initiative at the National Technology 
     Transfer Center. In addition, to ensure adequate oversight of 
     the joint departmental initiative, $1,429,000 is provided for 
     management by NIJ personnel.
       Counterterrorism Technologies.--The conference agreement 
     provides $10,000,000 for counterterrorism technology programs 
     authorized under section 821 of the Antiterrorism and 
     Effective Death Penalty Act of 1996. These funds are 
     designated by the Congress as emergency requirements pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, and are 
     available as emergency spending only to the extent that the 
     President also designates these funds as emergency 
     requirements. The House bill included funding for these 
     programs within amounts provided to NIJ from the Local law 
     Enforcement Block Grant. The Senate bill included funding for 
     these programs under State and Local Law Enforcement 
     Assistance, Violent Crime Reduction Programs.
       Grants to Firefighters and Emergency Services Personnel.--
     The conference agreement provides $5,000,000 for local 
     firefighter and emergency service training grants as 
     authorized under section 819 of the Antiterrorism and 
     Effective Death Penalty Act of 1996. These funds are 
     designated by the Congress as emergency requirements pursuant 
     to section 251(b)(2)(D)(i) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, and are 
     available as emergency spending only to the extent that the 
     President also designates these funds as emergency 
     requirements. The House bill included funding for these 
     programs within amounts provided in this account. The Senate 
     bill included funding for these programs under State and 
     Local Law Enforcement Assistance, Violent Crime Reduction 
     Programs.
       State and local Antiterrorism Training.--The conference 
     agreement provides $2,000,000 as requested in the 
     Administration's recent budget amendment, for State and local 
     law enforcement training to address antiterrorism 
     preparedness. These funds are designated by the Congress and 
     the President as emergency requirements pursuant to section 
     251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.
       Missing children.--The conference agreement provides 
     $5,971,000 for the Missing Children Program as proposed by 
     both the House and Senate-reported bills.
       National White Collar Crime Center.--The conference 
     agreement includes $3,850,000 for the National White Collar 
     Crime Center as

[[Page H11848]]

     proposed by both the House and Senate-reported bills.
       Management and administration.--The conference agreement 
     provides $24,300,000 and 300 FTE for Management and 
     Administration expenses of the Office of Justice Programs as 
     proposed in both the House and Senate-reported bills. In 
     addition, reimbursable funding from VCRTF programs and 
     Community Oriented Policing Services and a transfer from the 
     Juvenile Justice account, will be provided for the 
     administration of grants under these activities. Total 
     funding for the administration of grants assumed in the 
     conference agreement is as follows:

------------------------------------------------------------------------
                                                      Amount       FTE  
------------------------------------------------------------------------
Direct Appropriation.............................   $24,300,000      300
Transfer from Juvenile Justice programs..........     4,800,000       71
Reimbursement from VCRTF.........................    32,325,000      286
Reimbursement from COPs..........................     2,500,000       23
                                                  ----------------------
    Total........................................    64,025,000      680
------------------------------------------------------------------------

               state and local law enforcement assistance

       The conference agreement includes $2,397,150,000 for State 
     and Local Law Enforcement Assistance instead of 
     $2,434,900,000 as proposed in the House bill and 
     $2,304,100,000 as proposed in the Senate-reported bill. Of 
     this amount, the conference agreement provides that 
     $2,036,150,000 shall be derived from the Violent Crime 
     Reduction Trust Fund (VCRTF), instead of $2,119,900,000 as 
     proposed in the House bill and $1,944,100,000 as proposed in 
     the Senate-reported bill.
       The conference agreement provides for the following 
     programs from direct appropriations and the VCRTF:

Direct Appropriation:
  Byrne Discretionary Grants................................$60,000,000
  Byrne Formula Grants......................................301,000,000
                                                       ________________
                                                       
Total Direct Appropriations.................................361,000,000
                                                       ================

Violent Crime Reduction Trust Fund:
  Byrne Formula Grants......................................199,000,000
  Local Law Enforcement Block Grant.........................523,000,000
    Boys and Girls Clubs...................................(20,000,000)
  Drug Courts................................................30,000,000
  Upgrade Criminal History Records (Brady Bill)..............50,000,000
  State Prison Grants.......................................670,000,000
    Cooperative Agreement Program..........................(12,500,000)
    Alien Incarceration...................................(170,000,000)
  State Criminal Alien Incarceration Program................330,000,000
  Violence Against Women Act Grants.........................196,500,000
  State Prison Drug Treatment................................30,000,000
  DNA Identification Grants...................................3,000,000
  Law Enforcement Family Support Programs.....................1,000,000
  Senior Citizens Against Marketing Scams.....................2,000,000
  Motor Vehicle Theft Prevention................................750,000
  Missing Alzheimer's Patient Program...........................900,000
                                                       ________________
                                                       
      Total, Violent Crime Reduction Trust Fund...........2,036,150,000

       Edward Byrne grants to States.--The conference agreement 
     provides $560,000,000 for the Edward Byrne Memorial State and 
     Local Law Enforcement Assistance Program, of which 
     $60,000,000 is for discretionary grants and $500,000,000 is 
     provided for formula grants under this program. The amount 
     provided in the conference agreement includes an additional 
     $25,000,000 as proposed by the House, to allow States to 
     implement drug testing initiatives.
       Byrne discretionary grants.--The conference agreement 
     provides $60,000,000 for discretionary grants under Chapter A 
     of the Edward Byrne Memorial State and Local Assistance 
     Program, as proposed in both the House and Senate-reported 
     bills. Within the amount provided, the conferees expect the 
     Bureau of Justice Assistance (BJA) to provide:
       $28,500,000 for the Weed and Seed program;
       $4,000,000 for the National Crime Prevention Council to 
     continue and expand the National Citizens Crime Prevention 
     Campaign (McGruff);
       $1,750,000 to continue and expand the Drug Abuse Resistance 
     Education (DARE AMERICA) program;
       $2,000,000 for continued funding for the Washington 
     Metropolitan Area Drug Enforcement Task Force;
       $775,000 for Project Return, a correctional options 
     program;
       $1,000,000 for continued funding for the National Judicial 
     College;
       $1,000,000 to SEARCH Group, Inc. to continue and expand the 
     National Technical Assistance Program, which provides support 
     to State and local criminal justice agencies to improve their 
     use of computers and information technology; and
       1,000,000 for the National Motor Vehicle Title Information 
     System, authorized by the Anti-Car Theft Improvement Act, to 
     begin pilot implementation and complete network 
     infrastructure.
       Within the available resources the conferees also urged BJA 
     to favorably consider funding for the trauma reduction 
     initiative, the victim information and notification everyday 
     (VINE) system, the National Night Out Program, establishment 
     of a Violence Institute and the community security program of 
     the Local Initiative Support Corporation, as stated in the 
     House and Senate reports.
       In addition, the conferees recommend that the Department of 
     Justice consider submission of a reprogramming to continue 
     support for State and local task forces to address church 
     burnings.


              violent crime reduction trust fund programs

       Local Law enforcement block grant.--The conference 
     agreement includes $523,000,000 for the Local Law Enforcement 
     Block Grant program, instead of $571,000,000 as proposed by 
     the House and $503,000,000 as proposed by the Senate-reported 
     bill, in order to continue the commitment to provide local 
     governments with the resources and flexibility to address 
     specific crime problems in their communities with their own 
     solutions. Within the amount provided, the conference 
     agreement includes language providing $20,000,000 to the Boys 
     and Girls Clubs of America. Funding provided for drug courts 
     is included under a separate account, instead of under this 
     account as proposed by the House.
       Drug Courts.--The conference agreement includes $30,000,000 
     for drug courts under a separate account, instead of 
     requiring a reprogramming of $18,000,000 from the Local Law 
     Enforcement Block Grant as proposed in the House bill, or a 
     reprogramming of $20,000,000 from the Community Oriented 
     Policing Services Program, as proposed in the Senate-reported 
     bill.
       Violence Against Women Act programs.--The conference 
     agreement includes $197,500,000 for grants to support the 
     Violence Against Women Act of which $196,500,000 is provided 
     under this account and $1,000,000 is provided under the U.S. 
     Attorneys, as proposed in both the House and Senate-reported 
     bills. Grants provided under this account are for the 
     following programs:

General Grants.............................................$145,000,000
Victims of Child Abuse Programs:
  Court-Appointed Special Advocates...........................6,000,000
  Training for Judicial Personnel.............................1,000,000
  Grants for Televised Testimony................................550,000
Grants to Encourage Arrest Policies..........................33,000,000
Rural Domestic Violence.......................................8,000,000
National Stalker and Domestic Violence........................1,750,000
Training Programs.............................................1,000,000
Study on Campus Sexual Assault..................................200,000
                                                       ________________
                                                       
      Total.................................................196,500,000

       National Instant Criminal Background Check System.--The 
     conference agreement provides $50,000,000, as proposed in 
     both the House and Senate-reported bills, for States to 
     upgrade criminal history records as required under the Brady 
     Bill. In addition, $20,240,000 is included in the conference 
     agreement under the FBI to complete development of the 
     National Instant Criminal Background Check System, as 
     proposed by both the House and Senate-reported bills.
       State prison grants.--The conference agreement provides 
     $670,000,000 for State Prison Grants, instead of $680,000,000 
     as proposed in the House bill and $630,000,000 as proposed in 
     the Senate-reported bill. Of the amount provided, 
     $170,000,000 is available to States for the incarceration of 
     criminal aliens and $12,500,000 is for the Cooperative 
     Agreement Program, as proposed in both the House and Senate-
     reported bills. The conference agreement also includes 
     language proposed in the House bill that allows California to 
     use funds provided under the State Prison Grant program to 
     support the cost of incarcerating criminal aliens. In 
     addition, the conference agreement includes new language, not 
     proposed in the House or Senate-reported bills, that requires 
     that beginning in fiscal year a State cannot receive a grant 
     under this program unless it has implemented a program of 
     drug testing for certain convicted offenders.
       State Criminal Alien Assistance Program.--The conference 
     agreement provides $330,000,000 for the State Criminal Alien 
     Assistance Program for reimbursement to States for the costs 
     of incarceration of criminal aliens, as proposed by both the 
     House and Senate. In addition to this amount the conference 
     agreement also provides $170,000,000 for this purpose under 
     the State Prison Grants program. Thus, the conference 
     agreement includes a total of $500,000,000 for reimbursement 
     to States for alien incarceration, as proposed in both the 
     House and Senate-reported bills.
       Substance Abuse Treatment for State Prisoners.--The 
     conference agreement includes $30,000,000 for substance abuse 
     treatment programs within State and local correctional 
     facilities, instead of $35,000,000 as proposed by the House 
     and $29,700,000 as proposed in the Senate-reported bill.
       State Courts Assistance Program.--The conference agreement 
     does not include $5,000,000 in funding under the State Courts 
     Assistance program, as proposed in the House, but instead 
     provides funding for State court programs under the State 
     Justice Institute as proposed in the Senate-reported bill.
       DNA Identification State grants.--The conference agreement 
     includes $3,000,000 for DNA Identification State Grants, as 
     proposed by both the House and Senate-reported

[[Page H11849]]

     bills. Within the amount made available under this program 
     and in conjunction with State grants for this purpose under 
     the FBI, the conferees expect the Office of Justice Programs 
     and the FBI to examine proposals to establish a South 
     Carolina State DNA identification record data base and a 
     Center for Forensic Science Standards, including an arson and 
     explosion reference laboratory in Central Florida, and 
     provide grants, if warranted.
       Law Enforcement Family Support Programs.--The conference 
     agreement includes $1,000,000 for law enforcement family 
     support programs, as proposed by the House, instead of no 
     funding as proposed in the Senate-reported bill.
       Senior Citizens Against Marketing Scams.--The conference 
     agreement includes $2,000,000 for programs to assist law 
     enforcement in preventing and stopping marketing scams 
     against senior citizens, as proposed in the House bill, 
     instead of no funding as proposed in the Senate-reported 
     bill.
       Motor vehicle theft prevention.--The conference agreement 
     includes $750,000 for grants to combat motor vehicle theft, 
     instead of $500,000 as proposed in the House bill and 
     $1,000,000 as proposed in the Senate-reported bill.
       Safe Return Program.--The conference agreement includes 
     $900,000 for the Missing Alzheimer's Patient Program, as 
     proposed in both the House and Senate-reported bills.
       The conference agreement adopts the recommendation included 
     in the Senate report which directs the Attorney General, to 
     the extent possible to ensure that State, local, and Indian 
     tribal criminal justice agency technology grant proposals 
     include technology that is compatible with or can interface 
     with other national law enforcement and criminal justice 
     information systems being developed, in particular, NCIC 
     2000, the National Instant Background Check System, the 
     national incident-based reporting system, and DRUGFIRE.


                       weed and seed program fund

       The conference agreement includes $28,500,000 for the Weed 
     and Seed program from discretionary grants under the Edward 
     Byrne Memorial State and Local Law Enforcement Assistance 
     Programs, as proposed by both the House and Senate-reported 
     bills.

                  Community Oriented Policing Services


                    violent crime reduction programs

       The conference agreement includes $1,400,000,000 for the 
     Community Oriented Policing Services (COPs) program, as 
     proposed by both the House and Senate-reported bills. In 
     addition to this amount, the conference agreement provides 
     $20,000,000 for the Police Corps program as proposed by the 
     Senate-reported bill, instead of $10,000,000 as proposed by 
     the House bill.
       The conference agreement does not include provisions 
     included in the House bill, which would have directed 
     $71,000,000 of the funds provided to be used to support local 
     police officers participating on DEA task forces and 
     $30,500,000 of the funds to be used to enhance grants 
     available to States to develop innovative and community 
     policing initiatives designed to address youth violence and 
     juvenile crime.
       The conference agreement also does not include provisions 
     included in the Senate-reported bill, which would have 
     allowed $20,000,000 of the funds provided to be used for drug 
     courts and $42,500,000 of the funds to be used for drug 
     testing initiatives, subject to reprogramming procedures in 
     section 605 of the Act.
       The conference agreement has not included these non-hiring 
     initiatives in order to address the Administration's concern 
     that sufficient funding be provided to maintain the 
     commitment to hiring 100,000 new police officers. Thus, 
     funding provided in this Act is to be used only for police 
     hiring grants, which include grants under the Universal 
     Hiring Program and the COPs MORE program. Funds available 
     from prior year carryover may be used for innovative 
     community policing programs, subject to the reprogramming 
     requirements in sections 605 of this Act. The conference 
     agreement has provided sufficient funding under other 
     programs to support initiatives such as training, overtime, 
     innovative prevention programs and technology enhancements, 
     which should not be duplicated under this program.
       The conference agreement also includes a provision that 
     provides that not to exceed 186 positions, 174 workyears, and 
     $19,800,000 shall be expended for management and 
     administration of the COPs program, as proposed by the 
     Senate-reported bill, instead of 130 positions, 130 
     workyears, and $14,602,000, as proposed in the House bill.


                       juvenile justice programs

       The conference agreement includes $174,500,000 for Juvenile 
     Justice programs, instead of $149,500,000 as proposed by the 
     House and $158,500,000 as proposed by the Senate-reported 
     bill.
       Juvenile justice and delinquency prevention.--Of the total 
     amount provided, $170,000,000 is for grants and 
     administrative expenses for Juvenile Justice and Delinquency 
     Prevention (JJDP) programs including:
       1. $5,000,000 for the Office of Juvenile Justice and 
     Delinquency Prevention (OJJDP) (Part A).
       2. $86,500,000 for Formula Grants for assistance to State 
     and local programs (Part B). A provision is included that 
     makes $16,500,000 of the amount available for formula grants 
     available to States that have adopted policies (or will have 
     in effect not later than one year after date of application) 
     and programs that ensure that juveniles are subject to 
     accountability-based sanctions for every act for which they 
     are adjudicated delinquent.
       3. $29,500,000 for Discretionary Grants for National 
     Programs and Special Emphasis Programs (Part C). Within the 
     amount provided for Part C discretionary grants, the 
     conference agreement adopts recommendations included in the 
     House and Senate reports that direct OJJDP to provide the 
     following:
       $2,300,000 to continue and expand the National Council of 
     Juvenile and Family Courts which provides continuing legal 
     education in family and juvenile law;
       $1,000,000 for the Teens, Crime and the Community program;
       $2,300,000 for the Angel Gate Academy;
       $1,900,000 for the National Institute for School/Community 
     Violence;
       $1,500,000 for the Jimmy Ryce Law Enforcement Training 
     Center at the Center for Missing and Exploited Children; and
       $800,000 for the Suffolk County Police Athletic League, a 
     program that serves over 26,000 high-risk, low-income youths.
       In addition, the conference agreement also adopts 
     recommendations included in the House and Senate reports that 
     direct OJJDP to examine each of the following proposals, to 
     provide grants if warranted, and to report to the Committees 
     on Appropriations of both the House and Senate on its 
     intentions for each proposal: a grant to the Institute on 
     Violence and Destructive Behavior; a grant to the Parents 
     Resource Institute for Drug Education (PRIDE); a grant to the 
     coalition for juvenile justice; restorative justice challenge 
     grants; a grant to the Teen Night Out Program; a grant to a 
     Kansas Juvenile Intake and Assessment Center; a grant to 
     Parents Anonymous, Inc.; a grant to Project O.A.S.I.S.; a 
     grant to Kids Peace National Center for Kids; a grant to the 
     Savannah Youth Futures Authority; a grant to the Consortium 
     on Children, Families, and Law; and continued support for 
     law-related education.
       4. $12,000,000 to expand the Youth Gangs (Part D) program 
     which provides grants to public and private nonprofit 
     organizations to prevent and reduce the participation of at-
     risk youth in the activities of gangs that commit crimes.
       5. $10,000,000 for Discretionary Grants for State Challenge 
     Activities (Part E) to increase the amount of a State's 
     formula grant by up to 10 percent, if that State agrees to 
     undertake some or all of the ten challenge activities 
     designed to improve various aspects of a State's juvenile 
     justice and delinquency prevention program.
       6. $7,000,000 for Juvenile Mentoring Program (Part G) to 
     reduce juvenile delinquency, improve academic performance, 
     and reduce the drop-out rate among at-risk youth through the 
     use of mentors by bringing together young people in high 
     crime areas with law enforcement officers and other 
     responsible adults who are willing to serve as long-term 
     mentors.
       7. $20,000,000 for Incentive Grants for Local Delinquency 
     Prevention Programs (Title V), to units of general local 
     government for delinquency prevention programs and other 
     activities for at-risk youth.
       In addition, the conferees urge OJJDP to pay particular 
     attention to intervention and crime prevention programs which 
     focus on addressing unique circumstances at Indian 
     reservations.
       Victims of Child Abuse Act.--The conference agreement 
     includes $4,500,000 for the various programs authorized under 
     the Victims of Child Abuse Act (VOCA), as proposed in both 
     the House and Senate-reported bills. In addition, funding of 
     $7,000,000 is provided for Victims of Child Abuse programs 
     under the Violence Against Women Programs funded by the 
     Violent Crime Reduction Trust Fund. The following programs 
     are included in the recommendation:
       $4,500,000 to Improve Investigations and Prosecutions 
     (Subtitle A) as follows:
       $500,000 to establish Regional Children's Advocacy Centers, 
     as authorized by section 213 of VOCA;
       $2,000,000 to establish local Children's Advocacy Centers, 
     as authorized by section 214 of VOCA;
       $1,500,000 for a continuation grant to the National Center 
     for Prosecution of Child Abuse for specialized technical 
     assistance and training programs to improve the prosecution 
     of child abuse cases, as authorized by section 214a of VOCA; 
     and
       $500,000 for a continuation grant to the National Network 
     of Child Advocacy Centers for technical assistance and 
     training, as authorized by section 214a of VOCA.


                    public safety officers benefits

       The conference agreement includes $2,200,000 for the Public 
     Safety Officers benefits as proposed by both the House and 
     the Senate-reported bills.

               General Provisions--Department of Justice

       The conference agreement includes the following general 
     provisions for the Department of Justice:
       Sec. 101.--The conference agreement includes section 101 as 
     proposed by both the House and Senate-reported bills, which 
     makes up to $45,000 of the funds appropriated to the 
     Department of Justice available for reception and 
     representation expenses.
       Sec. 102.--The conference agreement includes section 102 as 
     proposed by both the

[[Page H11850]]

     House and Senate-reported bills, which continues certain 
     authorities for the Justice Department in fiscal year 1997 
     that were contained in the Department of Justice 
     Authorization Act, fiscal year 1980.
       Sec. 103.--The conference agreement includes section 103 as 
     proposed by both the House and Senate-reported bills, which 
     prohibits the use of funds to perform abortions in the 
     Federal Prison System.
       Sec. 104.--The conference agreement includes section 104 as 
     proposed by both the House and Senate-reported bills, which 
     prohibits use of the funds to require any person to perform, 
     or facilitate the performance of, an abortion.
       Sec. 105.--The conference agreement includes section 105 as 
     proposed by both the House and Senate-reported bills, which 
     states that nothing in the previous section removes the 
     obligation of the Director of the Bureau of Prisons to 
     provide escort services to female inmates who seek to obtain 
     abortions outside a Federal facility.
       Sec. 106.--The conference agreement includes section 106 as 
     proposed by both the House and Senate-reported bills, which 
     allows the Department of Justice to spend up to $10,000,000 
     for rewards for information regarding acts of terrorism 
     against a United States person or property at levels not to 
     exceed $2,000,000 per reward.
       Sec. 107.--The conference agreement includes section 107 as 
     proposed by both the House and Senate-reported bills, which 
     allows the Department of Justice, subject to reprogramming 
     procedures, to transfer up to 5 percent between any 
     appropriation, but limits to 10 percent the amount that can 
     be transferred into any one appropriation.
       Sec. 108.--The conference agreement includes section 108 as 
     proposed in the House and Senate-reported bills, that allows 
     balances remaining in the Assets Forfeiture Fund after 
     September 30, 1996 to be available to the Attorney General 
     for any authorized purpose of the Department of Justice.
       Sec. 109.--The conference agreement includes section 109 as 
     proposed in the Senate bill, and similar to language included 
     in the House bill, which restructures quarterly fee payments 
     for debtors under chapter 11 of the Bankruptcy Code, and 
     which allows all fees to be used as offsetting collections to 
     the U.S. Trustees Program and which amends a provision 
     included in the 1996 Appropriations Act, to clarify that fees 
     collected under post-confirmation status are to be assessed 
     in all pending chapter 11 cases.
       Sec. 110.--The conference agreement includes section 110 
     which establishes the telecommunications carrier compliance 
     fund for payments to telecommunications carriers and 
     equipment manufacturers to implement technology changes 
     required under the Communications Assistance for Law 
     Enforcement Act (CALEA), as proposed by both the House and 
     Senate. However, revisions have been made to this language to 
     address concerns over the requirements set forth in the 
     implementation plan and are explained under the heading 
     Federal Bureau of Investigation, Telecommunications Carrier 
     Compliance Fund.
       Sec. 111.--The conference agreement includes section 111 as 
     proposed by the House which states the sense of the Congress 
     with regard to the illegal importation of the drug Rohypnol.
       Sec. 112.--The conference agreement includes section 111 as 
     proposed by the Senate and changes the number to section 112, 
     which allows funds available to States from the Victims of 
     Crime Fund to be available for expenditure over a two-year 
     period instead of one year, as provided in current law, and 
     allows $500,000 of funds available in the reserve fund held 
     by the Department of Justice, to be available to assist the 
     victims of the Oklahoma City bombing throughout the trial.
       Sec. 113.--The conference agreement includes new language, 
     to replace language included in the Senate-reported bill 
     under section 112, which amends Section 732 of the 
     Antiterrorism and Effective Death Penalty Act of 1996 (Public 
     Law 104-132). First, the provision expands the evaluation 
     under subsection (a) to include an evaluation and concurrent 
     report by the Secretary of the Treasury, in consultation with 
     the Attorney General, on the possible use and exploitation of 
     special technologies, such as ``vapor detection devices, 
     computer tomography, nuclear quadrupole resonance, thermal 
     neutron analysis, pulsed fast neutron-analysis, and other 
     technologies''. Because special technologies have developed 
     and advanced, this study directs the Secretary of the 
     Treasury to investigate and recommend to Congress a course of 
     action on the further study and possible use of these special 
     technologies to detect explosive devices before they can do 
     any harm. Second, the provision requires the Secretary of the 
     Treasury to enter into a contract with the National Academy 
     of Sciences to conduct a study of the feasibility of adding 
     taggants to black and smokeless powder. The study will be 
     supervised by an independent panel of five experts appointed 
     by the Academy and will consider six elements, each of which 
     is important to determining whether the possible use of 
     taggants is both desirable and feasible. Additionally, the 
     study requires that the Academy consult with Federal, state, 
     and local officials, non-governmental organizations, 
     including national police organizations, national sporting 
     organizations and national industry associations with 
     expertise in this area, as well as other individuals as the 
     Academy deems necessary. The conferees expect to have as 
     broad and comprehensive a consultation process as is 
     practical. The Academy is required to present this study to 
     Congress, twelve months after the enactment of these 
     subsections, and both the study and any data used to 
     formulate the study are to be made publicly available. The 
     Congress may then take action on the matter in accord with 
     its usual procedure.
       Sec. 114.--The conference agreement includes new language, 
     not included in the House or Senate-reported bills, that 
     allows the portion of an award payment associated with a 
     forfeiture to be paid for out of the permanent indefinite 
     appropriation of the Asset Forfeiture Fund and conforms these 
     expenses to the method of payment for other costs of 
     forfeiture.
       Sec. 115.--The conference agreement includes new language, 
     not included in the House or Senate-reported bills, which 
     authorizes the Attorney General to reimburse employees paid 
     for under any appropriation account of the Department of 
     Justice for additional Federal, State and local income taxes 
     incurred as the result of extended temporary duty status when 
     traveling on behalf of the United States to investigate, 
     prosecute, or litigate a criminal or civil matter, or for 
     other similar special circumstances.
       Sec. 116.--The conference agreement includes new language, 
     not included in the House or Senate-reported bills, which 
     provides the Attorney General with authorization to accept 
     gifts of personal property for the purpose of aiding or 
     facilitating the work of the Department of Justice and its 
     agencies.
       Sec. 117.--The conference agreement includes new language, 
     not included in the House or Senate-reported bills, which 
     authorizes the Attorney General for fiscal year 1997, to 
     transfer certain forfeited properties to State and local 
     governments, or their designated contractor or transferee, 
     for public health, safety and welfare purposes. The conferees 
     expect the Attorney General to notify the Committees on 
     Appropriations of the House and Senate prior to the transfer 
     of properties under this provision.
       Sec. 118.--The conference agreement includes new language, 
     not included in the House or Senate-reported bills, which 
     allows the Independent Counsel to extend by successive six-
     month periods, the travel status of an employee and the 
     appropriate reimbursement of travel expenses.
       Sec. 119.--The conference agreement includes new language, 
     not included in the House or Senate-reported bills, which 
     restores the public safety exemption under the Age 
     Discrimination in Employment Act, thereby allowing police and 
     fire departments to use maximum hiring ages and mandatory 
     retirement ages as elements of their overall personnel 
     policies.
       Sec. 120.--The conference agreement includes new language, 
     not included in the House or Senate-reported bills, which 
     clarifies the original intent of a provision included in the 
     Violent Crime Control and Law Enforcement Act of 1994 
     concerning Federal rules of evidence in Federal sex offense 
     trials. The amendment ensures that evidence of a defendant's 
     prior sexual assaults is admissible in all Federal sex 
     offense trials conducted after the effective date (including 
     cases which were indicted before the effective date) 
     established in the 1994 Act.
       Sec. 121.--The conference agreement includes new language, 
     not included in the House or Senate-reported bills, to 
     address the growing problem of child pornograhic materials 
     produced using new computer imaging and ``morphing'' 
     technologies. Current law covers only materials produced 
     using actual children engaging in sexually explicit conduct. 
     This section amends U.S. Code Title 18, Section 2256, to 
     establish a specific statutory definition of child 
     pornography. Under this section, any visual depiction, such 
     as a photograph, film, videotape or computer image, which is 
     produced by any means, including electronically by computer, 
     of sexually explicit conduct will be classified as child 
     pornography if: (a) its production involved the use of a 
     minor engaging in sexually explicit conduct; (b) it depicts, 
     or appears to depict, a minor engaging in sexually explicit 
     conduct; (c) it has been created, adapted or modified to 
     appear that an identifiable minor is engaging in sexually 
     explicit conduct; or (d) it is promoted or advertised as 
     depicting a minor engaging in sexually explicit conduct. It 
     would increase the penalties for child sexual exploitation, 
     child sexual abuse and child pornography offenses, 
     particularly for repeat offenders.
       This section would also protect federal, state and local 
     governments, and state and local law enforcement officials, 
     from the threat of civil lawsuits and the awarding of damages 
     as the result of searches and seizures made in connection 
     with child pornography investigations or prosecutions. It 
     does so by extending current Privacy Protection Act (U.S. 
     Code Title 42, Section 2000aa) exceptions allowing certain 
     searches and seizures where the offense consists of the 
     receipt, possession of communication of information 
     pertaining to the national defense, classified information or 
     restricted data to offenses involving the production, 
     possession, sale or distribution of child pornography, the 
     sexual exploitation of children, or the sale or purchase of 
     children.

[[Page H11851]]

         TITLE II--DEPARTMENT OF COMMERCE AND RELATED AGENCIES

                  Trade and Infrastructure Development

                            RELATED AGENCIES

            Office of the United States Trade Representative


                         salaries and expenses

       The conference agreement includes $21,449,000 for the 
     salaries and expenses of the Office of the United States 
     Trade Representative, the same amount as proposed in both the 
     House and Senate-reported bills.

                     International Trade Commission


                         salaries and expenses

       The conference agreement includes $40,850,000 for the 
     salaries and expenses of the International Trade Commission 
     (ITC) for fiscal year 1997, instead of $40,000,000 as 
     proposed in the House bill and $41,707,000 as proposed in the 
     Senate-reported bill.
       Within the amounts provided, the conference agreement 
     assumes that not less than 3 permanent full time equivalents 
     (FTE) and 1 temporary FTE will be allocated to the Office of 
     the Inspector General, and contract funds will be provided to 
     the IG at not less than the fiscal year 1996 level.

                         DEPARTMENT OF COMMERCE

                   International Trade Administration


                     operations and administration

       The conference agreement includes $270,000,000 for the 
     operations and administration of the International Trade 
     Administration for fiscal year 1997, instead of $272,000,000 
     as proposed by the House bill, and $267,939,000 recommended 
     in the Senate-reported bill. The following table reflects the 
     distribution of these funds by activity included in the 
     conference agreement:

Trade Development...........................................$59,400,000
Int'l Economic Policy........................................17,100,000
  (Trade Compliance Center).................................(2,500,000)
Import Administration........................................29,500,000
U.S. & F.C.S................................................168,200,000
Carryover.....................................................4,200,000
                                                       ________________
                                                       
      Total, ITA............................................270,000,000
       The conferees remind ITA that any changes to this 
     distribution are subject to the reprogramming procedures set 
     forth in section 605 of this Act.
       The conferences approved the recent reorganization of the 
     International Economic Policy (IEP) unit which established a 
     Trade Compliance Center (TCC) to compile and utilize a 
     comprehensive database of trade and other relevant 
     agreements. The conference agreement includes $17,100,000 for 
     IEP, of which $2,500,000 and 25 full time equivalents (FTE) 
     are provided for the TCC.
       Within the amounts provided under this account, 
     $168,200,000 is for the U.S. and Foreign Commercial Service 
     (U.S.&FCS). The conference agreement assumes this level is 
     sufficient to support the full request for U.S.&FCS domestic 
     and international operations, and assumes they any reductions 
     will be taken from headquarters functions.
       The conference agreement provides $59,400,000 for Trade 
     Development, including funding at levels provided in the 
     House report for the current participants in the National 
     Textile Center (NTC) Consortium and the Textile/Clothing 
     Technology Corporation. In addition, within the increase 
     provided for Trade Development, the conferees expect ITA to 
     provide support for items included in the Senate report 
     related to the expansion of the NTC and to international 
     environmental regulations, as well as initiatives previously 
     supported by ITA to help small businesses improve their 
     international competitiveness, and to increase small business 
     global competitiveness in biotechnology. Further, the Market 
     Development Cooperator Program is funded at $1,500,000, the 
     same level provided in the fiscal year 1996. In addition, any 
     reductions in Trade Development are to be taken 
     proportionately across all programs and functions.
       Further, the conference agreement adopts language included 
     in the House report concerning the Technology Village 
     Partnership, unfair trade practices with respect to Canadian 
     lumber, and privatization of certain trade shows. The 
     conferees expect ITA to follow the language included in the 
     Senate report regarding reorganization of the domestic field 
     office structure.
       In addition, the conference agreement provides $9,400,000 
     in fiscal year 1997 emergency funding in title IV of the bill 
     as part of the counterterrorism initiative for the U.S.&FCS 
     to address its overseas security requirements. It is the 
     conferees intent that the U.S.&FCS determine requirements and 
     that program management and administration be carried out by 
     the Department of State.

                         Export Administration


                     operations and administration

       The conference agreement includes $39, 900,000 for the 
     Bureau of Export Administration (BXA), instead of $38,604,000 
     as proposed in the House bill, and $34,698,000 as proposed in 
     the Senate-reported bill. When combined with carryover 
     balances of approximately $1,800,000, a total of $41,700,000 
     will be available to the BXA in fiscal year 1997. The 
     conference agreement provides increases above the fiscal year 
     1996 appropriated level for counterterrorism initiatives and 
     implementation of the Fastener Quality Act.
       Counterterrorism Initiative.--Of the amounts provided under 
     this account for BXA, the conference agreement includes 
     $3,900,000 and 22 FTE for the Office of Export Enforcement to 
     expand BXA's nonproliferation enforcement efforts. Such 
     amounts are designated as emergency requirements pursuant to 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, as requested in the budget amendment 
     submitted September 12, 1996. Neither the House nor Senate-
     reported bills included emergency funding for this purpose. 
     Instead, the Senate-reported bill proposed to transfer of 
     $2,500,000 from the Department of Justice to BXA for 
     counterterrorism activities. The conference agreement does 
     not include this transfer.

                  Economic Development Administration


                economic development assistance programs

       The conference agreement includes $328,500,000 for the 
     Economic Development Administration grant programs as 
     proposed in the House bill, instead of $273,500,000 as 
     proposed in the Senate-reported bill.
       The following table shows the distribution of these funds 
     by activity as agreed to by the conferees:

Public Works (Title I).....................................$165,200,000
Planning.....................................................24,000,000
Technical Assistance.........................................17,600,000
Defense Conversion...........................................90,000,000
Economic Adjustment (Title IX)...............................31,200,000
Research and Evaluation.........................................500,000

       The conference agreement provides funding for the Title I 
     Public Works and Defense Conversion programs at the fiscal 
     year 1996 level. In addition, $17,600,000 is included for 
     EDA's technical assistance programs, including the University 
     Centers and Trade Adjustment Assistance Centers programs.
       The conference agreement increases amounts for Economic 
     Adjustment (Title IX) above the request in order to allow EDA 
     to complete is activities pursuant to section 11(b) of Public 
     Law 99-663 as in the Senate report. In addition, the 
     Committees expect EDA to continue its effort to assist 
     communities impacted by economic dislocations related to coal 
     industry downswings. Further, the conference agreement 
     endorses the recommendations in the House report regarding 
     targeting of resources to the most severely distressed 
     communities.


                         salaries and expenses

       The conference agreement includes $20,036,000 for salaries 
     and expenses for the EDA as proposed in the Senate-reported 
     bill, instead of $20,000,000 as proposed in the House bill. 
     The conference agreement assumes EDA will use either the 
     Salaries and Expenses appropriation or the revolving fund 
     (under 42 U.S.C. 3143) to pay the salaries and expenses of 
     the EDA Liquidation Division. The conference agreement adopts 
     the recommendations included in both the House and Senate 
     reports.

                  Minority Business Development Agency


                     minority business development

       The conference agreement includes $28,000,000 for the 
     programs of the Minority Business Development Agency (MBDA), 
     instead of $29,000,000 proposed in the House bill and 
     $26,000,000 as proposed in the Senate-reported bill. The 
     conferees direct that to the maximum extent possible these 
     reductions should come from downsizing MBDA headquarters and 
     regional staff in order to maintain program delivery to 
     minority entrepreneurs.
       The conference recommendation reflects concerns expressed 
     in both the House and Senate reports regarding continued 
     duplication and lack of coordination between the MBDA and the 
     Small Business Administration (SBA). The conference agreement 
     adopts the House concept setting aside $2,000,000 of MBDA's 
     funding to be used only for projects jointly developed, 
     implemented, and administered in conjunction with the SBA. 
     Further, an additional $1,000,000 is provided under the Small 
     Business Administration in title V of the bill as part of 
     this initiative. The conferees direct the interagency working 
     group to submit a plan for the use of these funds no later 
     than November 15, 1996, and to submit a reprogramming 
     notification in accordance with section 605 of this Act.
       The conference agreement assumes that MBDA will continue 
     its support for the Entrepreneurial Technology Apprenticeship 
     Program. The conferees believe this program provides unique 
     experiences and opportunities in the field of technology to 
     minority students, and expects the agency to continue its 
     commitment to this important initiative and report back to 
     the Appropriations Committees on its intentions regarding 
     this matter by December 1, 1996.


                economic and information infrastructure

                   economic and statistical analysis

                         salaries and expenses

       The conferees have provided $45,900,000 for salaries and 
     expenses of the activities funded under the Economic and 
     Statistical Analysis account as proposed in the House bill, 
     instead of $49,400,000 as proposed in the Senate-reported 
     bill. The conference agreement adopts the directive included 
     in the House report regarding the Integrated Environmental-
     Economic Accounting or ``Green GDP'' initiative. In addition, 
     the conference agreement assumes that BEA, within the 
     resources provided, will place a high priority on its 
     initiative to improve gross domestic product (GDP) data. The 
     Committees would be willing to entertain a transfer of funds 
     from within the Department to augment this activity if 
     additional funds are required.

[[Page H11852]]

         economics and statistics administration revolving fund

       The conference agreement includes language allowing the 
     dissemination of economic and statistical data products at 
     full cost as proposed in both the House and Senate bills.

                          Bureau of the Census


                         salaries and expenses

       The conference agreement includes $135,000,000 for the 
     Bureau of the Census Salaries and Expenses account, instead 
     of $133,617,000 as proposed in the House bill and 
     $139,700,000 as proposed in the Senate bill. The conference 
     agreement provides an increase above the fiscal year 1996 
     level for the Bureau's initiative to restructure the national 
     standard industrial codes system. Further, the conference 
     agreement adopts the recommendations included in both the 
     House and Senate reports regarding reprioritization of 
     programs funded under this account as well as reimbursements 
     from other Federal agencies and private organizations.


                     periodic censuses and programs

       The conference agreement provides $210,500,000 for the 
     Census Bureau's Periodic Censuses and Programs account as 
     proposed in the Senate-reported bill, instead of $205,100,000 
     as proposed in the House bill.
       The conferees have included the following amounts for 
     Census programs:

Economic Censuses...........................................$25,000,000
Census of governments.........................................2,000,000
Intercensal Demographic estimates.............................5,200,000
Decennial Census.............................................84,110,000
Continuous measurement.......................................16,600,000
Sample redesign...............................................3,800,000
CASIC.........................................................6,000,000
Geographic support...........................................43,000,000
Data processing systems......................................24,790,000
                                                       ________________
                                                       
      Total.................................................210,500,000

       The conference agreement assumes that this distribution 
     will be used as the basis for any proposed reprogramming of 
     funds in accordance with section 605 of this Act.
       The conference agreement adopts recommendations included in 
     the House report regarding prioritization of national 
     statistical programs.
       Census 2000.--The conference agreement provides an increase 
     of $60,400,000 in the overall account for decennial-related 
     activities, including a $35,285,000 increase for the Year 
     2000 Decennial Census direct activities. The conferees 
     reiterate the concern expressed in the House report regarding 
     the inability of the Bureau to produce an adequate plan that 
     accurately predicts and budgets for the costs of the Year 
     2000 Census. In addition, the conferees reiterate concerns in 
     the House report regarding the Bureau's lack of adequate 
     plans to develop options and alternatives adequately 
     addressing issues of accuracy and cost. Therefore, within the 
     amounts provided, the conference agreement intends that the 
     funds provided be devoted to those activities most critical 
     to preparation for the 2000 Census in fiscal year 1997, 
     namely geographic and address list preparation, and data 
     capture and processing systems activities. Further, the 
     conference agreement adopts the directive included in the 
     House report requiring the Bureau to develop and submit a 
     plan for the expenditure of the increases provided in 
     accordance with section 605 of this Act, prior to the 
     expenditure of such funds.
       Finally, the conferees are disappointed that the Bureau has 
     failed to act on the stipulation included in both the fiscal 
     years 1995 and 1996 reports directing the Bureau to work to 
     obtain reimbursement from other Federal agencies for the 
     costs associated with obtaining information on the decennial 
     census. Therefore, the conference agreement adopts 
     recommendation included in the House report regarding this 
     matter.

       National Telecommunications and Information Administration

                         salaries and expenses

       The conference agreement includes $15,000,000 for the 
     National Telecommunications and Information Administration 
     salaries and expenses as proposed in the House bill, instead 
     of $16,003,000 as proposed in the Senate-reported bill.
       In addition, the conference agreement includes new language 
     at the request of the Administration clarifying the authority 
     of NTIA to obtain reimbursement from other government 
     agencies for activities related to spectrum management, 
     analysis and operations. The conference agreement assumes 
     that NTIA will receive an additional $5,000,000 from such 
     reimbursements, resulting in a total availability to NTIA of 
     $20,000,000.
       The conference agreement does not include funds proposed in 
     the Senate-reported bill to pay for costs associated with the 
     International Telecommunications Union. This matter is 
     further addressed under title IV.

       Public Broadcasting facilities, Planning and Construction

       The conference agreement includes $15,250,000 for Public 
     Broadcasting Facilities, Planning and Construction grants as 
     proposed in both the House bill and the Senate-reported bill. 
     The conference agreement allows up to $1,500,000 of this 
     amount to be used for program administration, as provided in 
     both the House bill and the Senate-reported bill. The 
     conference agreement adopts recommendations included in both 
     the House and Senate reports regarding this program.


                   information infrastructure grants

       The conference agreement includes $21,490,000 for NTIA's 
     Information Infrastructure Grant program as recommended by 
     the House, instead of $4,075,000 as proposed in the Senate-
     reported bill.
       As proposed in the House bill, within the amount provided, 
     the conference agreement designates $3,000,000 for program, 
     administration and allows not to exceed five percent of the 
     total amount provided to be used for certain 
     telecommunications research activities. The Senate-reported 
     bill contained no provision on these matters.
       The conference agreement adopts recommendations included in 
     the House report regarding this program.

                      Patent and Trademark Office


                         salaries and expenses

       The conference agreement provides $61,252,000 in direct 
     appropriations for the Patent and Trademark Office (PTO) as 
     proposed in both the House bill and Senate-reported bill. The 
     conference agreement, when combined with additional fee 
     collections and $30,000,000 in estimated carryover, will 
     provide the PTO will total resources of $692,975,000 for the 
     PTO in fiscal year 1997, an increase of $79,623,000 over the 
     current operating level. The conferees concur with the 
     concerns included in the House report. In addition, the 
     conferees expect the PTO to promulgate rules and regulations 
     with regard to the issuance of patents only in accordance 
     with its existing statutory authorities.

                         Science and Technology

                       Technology Administration

       Under Secretary for Technology/Office of Technology Policy


                         salaries and expenses

       The conference agreement includes 9,500,000 for the 
     Technology Administration, instead of $500,000,000 proposed 
     in the House bill and $7,500,000 as proposed in the Senate-
     reported bill. The conference agreement adopts the 
     recommendations included in the House and Senate reports with 
     the following exception. The conference agreement designates 
     $2,500,000 of the amounts provided to be used to fund the 
     U.S.-Israel Science and Technology Commission as proposed in 
     the Senate-reported bill. The conference agreement retains 
     the heading proposed for this account in the House bill, 
     instead of the heading included in the Senate-reported bill.

             National Institute of Standards and Technology

             Scientific and Technical Research and Services

       The conference agreement includes $268,000,000 for the 
     internal (core) research account of the National Institute of 
     Standards and Technology as proposed in the House bill, 
     instead of $270,400,000 as proposed in the Senate-reported 
     bill.
       The conference agreement adopts the allocation of funds 
     provided in this account as delineated in the House report, 
     with the following exception. The conference agreement 
     assumes that, of the amounts provided, $1,200,00 is provided 
     for NIST to expand its activities related to a national 
     resource construction program utilizing natural resources.


                     Industrial Technology Services

       The conference agreement includes 320,000,000 for the NIST 
     external research account instead of $200,400,000 as proposed 
     in the House bill and $159,900,000 as proposed in the Senate-
     reported bill.
       Of the amounts provided, $95,000,000 is for the 
     Manufacturing Extension Partnership Program instead of 
     $89,900,000 as proposed in the House bill and $99,000,000 as 
     proposed in the Senate-reported bill. Language is included in 
     the bill to allow one additional year of support for 
     manufacturing technology centers which have already existed 
     for six years. The Senate-reported bill proposed a three year 
     extension of support for these centers. The House bill 
     contained no extension. The conference agreement reflects the 
     belief that this matter is most appropriately addressed 
     through the authorization process. The conference agreement 
     has included the funding increase above the House in order to 
     allow continued funding of these centers for one year.
       The conference agreement provides $225,000,000 for the 
     Advanced Technology Program (ATP), instead of $110,500,000 as 
     proposed in the House bill and $60,000,000 as proposed in the 
     Senate-reported bill. The conference agreement included in 
     the House and Senate-reported bills deletes limitations 
     restricting the use of funds provided for this program.


                  construction of research facilities

       The conference agreement provides no appropriation for the 
     NIST Construction account instead of $15,000,000 as proposed 
     in the Senate-reported bill. The House bill recommended no 
     appropriation for this account.
       The conference agreement also includes, at the end of this 
     title, the rescission of $16,000,000 of prior year carryover 
     amounts from this account. The result of the conference 
     action will allow NIST to obligate $27,600,000 under this 
     account for fiscal year 1997. The conference agreement adopts 
     the recommendations included in the Senate report allowing 
     these funds to be used only for maintenance and necessary 
     fire and safety upgrades for existing NIST facilities, and 
     for the completion of the Advanced Chemical Sciences 
     Laboratory at the NIST Gaithersburg campus. The conferees 
     expect NIST to follow the direction included in both

[[Page H11853]]

     the House and Senate reports regarding an evaluation of 
     NIST's long-term facilities requirements.

            National Oceanic and Atmospheric Administration


                  operations, research and facilities

                     (including transfer of funds)

       The conference agreement includes $1,854,067,000 for the 
     Operations, Research, and Facilities account of the National 
     Oceanic and Atmospheric Administration (NOAA) instead of 
     $1,738,200,000 as proposed by the House and $1,933,703,000 as 
     proposed in the Senate-reported bill. In addition, the 
     conference agreement allows $3,000,000 in offsetting fees 
     related to the aeronautical charting program to be collected 
     to offset this amount, resulting in a final direct 
     appropriation of $1,851,067,000 instead of $1,735,200,000 as 
     proposed by the House and $1,930,703,000 as proposed in the 
     Senate-reported bill.
       In addition to the new budget authority provided, the 
     conference agreement allows a transfer of $66,000,000 from 
     balances in the account titled ``Promote and Develop Fishery 
     Products and Research Related to American Fisheries'', 
     instead of $68,000,000 as proposed by the Hose and 
     $62,000,000 as proposed in the Senate-reported bill. In 
     addition, the conference agreement assumes NOAA will use the 
     Federal Ship Financing Fund to cover administrative expenses 
     related to that account.
       The conference agreement does not include language proposed 
     in the House bill designating the amounts provided under this 
     account for the six NOAA line offices. The Senate-reported 
     bill contained no similar provision. The conference agreement 
     adopts the direction included in the House report regarding 
     the development of a revised budget structure for NOAA in 
     consultation with the House and Senate Appropriations 
     Committees, as well as recommendations concerning financial 
     and budgetary management deficiencies at NOAA.
       NOAA Commissioned Corps.--The conference agreement includes 
     new language setting the ceiling on the number of 
     commissioned corps officers in fiscal year 1997 at not more 
     than 299 by September 30, 1997 and requires the Department of 
     Commerce, in conjunction with NOAA, to submit to the Congress 
     by November 15, 1996 a long-term plan and legislative 
     proposal to implement its recommendations regarding the NOAA 
     commissioned corps. The House bill contained a provision to 
     eliminate all commissioned corps officers by September 30, 
     1997 in accordance with the Administrator of NOAA's 
     announcement on January 25, 1996 to eliminate the 
     commissioned corps in fiscal year 1997. The Senate-reported 
     bill set a ceiling of not to exceed 358 officers in fiscal 
     year 1997.
       Marine Services.--The conference agreement adopts the House 
     recommendation to eliminate the Marine Services subactivity 
     and provide funding directly to the line offices under the 
     heading ``Acquisition of Data.'' The conferees believe this 
     reform will provide NOAA line organizations with an incentive 
     to make cost-benefit tradeoffs between using NOAA and charter 
     vessels. As the NOAA fleet has downsized, NOAA line 
     organizations are seeking alternatives to fleet resources to 
     meet their data collection needs. This reform will provide 
     NOAA line offices additional flexibility necessary to meet 
     their needs. The conferees expect NOAA to follow the guidance 
     in the House report regarding the use of these funds.
       Unless specifically stated otherwise in this Statement of 
     the Committee of the Conference, amounts expended from the 
     NOAA Operations, Research and Facilities account are to be 
     allocated in accordance with the recommendations previously 
     described in the Committee reports of the House and Senate.
       The following table reflects the distribution of the funds 
     provided in this conference agreement:

                    NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION--FISCAL YEAR 1997 BUDGET                    
                                             [Dollars in thousands]                                             
----------------------------------------------------------------------------------------------------------------
                                                Fiscal year                   Fiscal year 1997--                
                                                    1996     ---------------------------------------------------
                                               appropriation    Request       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
NATIONAL OCEAN SERVICE:                                                                                         
    Navigation Services:                                                                                        
        Mapping and Charting.................      $36,500       $38,586      $38,000      $35,500      $38,000 
        Geodesy..............................       20,167        20,330       20,330       19,367       20,167 
        Tide and Current Data................       11,000        11,679       11,000       13,679       12,500 
            Chesapeake Bay observation buoys.          400    ...........  ...........         400   ...........
                                              ------------------------------------------------------------------
                Total, Navigation Services...       68,067        70,595       69,330       68,946       70,667 
                                              ==================================================================
    Ocean Resources Conservation and                                                                            
     Assessment:                                                                                                
        Estuarine and Coastal Assessment.....        2,674         2,674        2,674        2,674        2,674 
            Ocean assessment program.........       21,925        24,204       12,600       28,619       27,300 
            Damage assessment................        1,200         3,200        2,200        3,200        2,200 
            Transfer from Damage Assessment                                                                     
             Fund............................        6,550         5,276        5,276        5,276        5,276 
            Oil Pollution Act of 1990........        1,000         1,000        1,000        1,000        1,000 
            Ocean Services...................        3,000         3,000        2,500        3,000        2,500 
                                              ------------------------------------------------------------------
                Subtotal.....................       36,349        39,354       26,250       43,769       40,950 
                                              ==================================================================
        Coastal Ocean Science: Coastal ocean                                                                    
         program.............................       11,500        14,841       11,700       15,200       15,200 
                                              ------------------------------------------------------------------
            Subtotal.........................       11,500        14,841       11,700       15,200       15,200 
                                              ------------------------------------------------------------------
            Total, Ocean Resources Conserv. &                                                                   
             Assess..........................       47,849        54,195       37,950       58,969       56,150 
                                              ==================================================================
    Ocean and Coastal Management:                                                                               
        Coastal Management:                                                                                     
            CZM grants.......................       46,200        46,200       46,200       49,800       46,200 
            Estuarine research reserve system        1,000         4,088        1,000        4,588        1,300 
            Nonpoint pollution control.......  .............       2,552   ...........       2,552   ...........
                                              ------------------------------------------------------------------
                Subtotal.....................       47,700        52,840       47,200       57,440       47,500 
        Ocean Management: Marine sanctuary                                                                      
         program.............................       11,685        11,876       11,685       11,876       11,685 
                                              ------------------------------------------------------------------
            Subtotal.........................       11,685        11,876       11,685       11,876       11,685 
            Total, Ocean and Coastal                                                                            
             Management......................       59,385        64,716       58,885       69,316       59,185 
                                              ------------------------------------------------------------------
    Acquisition of Data \1\..................  .............  ...........      16,495   ...........      18,200 
                                              ------------------------------------------------------------------
        TOTAL, NOS...........................      175,301       189,506      182,660      197,231      204,202 
                                              ==================================================================
NATIONAL MARINE FISHERIES SERVICE:                                                                              
    Information Collection & Analyses:                                                                          
        Resource Information.................       83,171        95,285       87,000       98,513       91,330 
            Antarctic research...............        1,200         1,200        1,200        1,200        1,200 
            Chesapeake Bay Studies...........        1,500         1,500        1,890        1,500        1,890 
            Right whale research.............          200           200          200          300          250 
            MARFIN...........................        3,000         3,000        3,000        3,000        3,000 
            SEAMAP...........................        1,200         1,200          900        1,200        1,200 
            Alaskan groundfish surveys.......          661           661          661          661          661 
            Bering Sea pollock research......          945           945          945          945          945 
            West Coast groundfish............          780           780          780          780          780 
            New England stock depletion......        1,000         1,000        1,000        1,000        1,000 
            Hawaii stock management plan.....          500    ...........  ...........         500          500 
            Yukon River chinook salmon.......          700           700          700          700          700 
            Atlantic salmon research.........          710           710          500          710          710 
            Gulf of Maine groundfish survey..          567           567          567          567          567 
            Dolphin/Yellowfin Tuna Research..          250           250          250          250          250 
            Habitat research/evaluation......          450           450          450          450          450 
            Pacific salmon treaty program....        5,587         5,587        5,000        5,587        5,587 
            Fisheries Cooperative Institute..          410           410          410          410          410 
            Hawaiian monk seals..............          500           500   ...........         520          500 
            Stellar sea lion recovery plan...        1,440         1,440        1,440        1,770        1,770 
            Hawaiian sea turtles.............          240           240   ...........         248          248 
            Bluefish/Striped Bass............  .............  ...........         785   ...........         785 
            Halibut/Sablefish................        1,200         1,200        1,200        1,200        1,200 

[[Page H11854]]

                                                                                                                
            Gulf of Mexico Mariculture.......  .............  ...........         300   ...........         300 
                                              ------------------------------------------------------------------
                Subtotal.....................      107,461       117,825      109,178      122,011      116,233 
        Fishery Industry Information:                                                                           
            Fish statistics..................       13,000        13,481       13,000       14,000       13,000 
            Alaska groundfish monitoring.....        5,200         5,200        5,200        5,400        5,200 
            PACFIN/catch effort data.........        3,000         3,000        3,000        3,000        3,000 
            Rec. fishery harvest monitoring..        2,900         2,900        2,900        3,900        3,400 
                                              ------------------------------------------------------------------
                Subtotal.....................       24,100        24,581       24,100       26,300       24,600 
                                              ==================================================================
        Information Analyses & Dissemination.       20,913        21,471       18,400       21,500       20,900 
            Computer hardware and software...        4,000         4,000        4,000        4,000        4,000 
                                              ------------------------------------------------------------------
                Subtotal.....................       24,913        25,471       22,440       25,500       24,900 
                                              ------------------------------------------------------------------
                Total, Info., Collection &                                                                      
                 Analyses....................      156,474       167,877      155,678      173,811      165,733 
                                              ==================================================================
    Conservation and Management Operations:                                                                     
        Fisheries Management Programs........       19,500        25,597       18,000       26,100       22,000 
            Columbia River hatcheries........       10,300        10,300        9,000       10,955       10,955 
            Columbia River end species                                                                          
             studies.........................          288           288          144          288          288 
            Regional councils................       10,200        10,200        9,500       10,500       10,200 
            International fisheries                                                                             
             commissions.....................          400           400          400          400          950 
            Management of George's Bank......          478           478          478          478          478 
            Beluga whale committee...........          200    ...........         200          200          200 
            Pacific tuna management..........        1,500         1,500        1,500        1,900        1,900 
                                              ------------------------------------------------------------------
                Subtotal.....................       42,866        48,763       39,222       50,821       46,971 
                                              ==================================================================
        Protected Species Management.........        6,225         6,750        5,000        6,500        5,700 
            Driftnet Act implementation......        3,278         3,278        2,500        3,278        3,278 
            Marine Mammal Protection Act.....        9,000        10,250        8,000       10,250        9,125 
            Endangered Species Act recovery                                                                     
             plan............................       13,000        14,800       13,000       14,800       13,500 
            Fishery observer training........          417    ...........         417          417          417 
            East Coast observers.............          350           350          350          350          350 
                                              ------------------------------------------------------------------
                Subtotal.....................       32,270        35,428       29,267       35,595       32,370 
                                              ------------------------------------------------------------------
    Habitat Conservation.....................        8,000        10,300        8,000       10,300        8,000 
    Enforcement & Surveillance...............       15,800        17,790       15,800       17,700       16,500 
                                              ------------------------------------------------------------------
        Total, Conservation and Mgmt. Opns...       98,936       112,281       92,289      114,416      103,841 
                                              ==================================================================
        State and Industry Assistant                                                                            
         Programs:                                                                                              
            Interjurisdictional fisheries                                                                       
             grants..........................        2,600         2,600        2,000        2,600        2,600 
            Anadromous grants................        2,108         2,108        1,000        2,108        2,108 
            Anadromous fishery project.......          250           250   ...........         250   ...........
            Interstate fish commissions......        4,000         4,000        4,000        5,700        5,000 
                                              ------------------------------------------------------------------
                Subtotal.....................        8,958         8,958        7,000       10,658        9,708 
                                              ==================================================================
        Fisheries Development Program:                                                                          
            Product quality and safety/                                                                         
             Seafood Inspection..............       14,624        14,624       14,000       14,624       14,624 
            Hawaiian Fisheries Development...          750    ...........  ...........         750          750 
            Marine Biotechnology.............        1,900         1,900   ...........       1,900        1,900 
                                              ------------------------------------------------------------------
                Subtotal.....................       17,274        16,524       14,000       17,274       17,274 
                Total, State & Industry                                                                         
                 Assist. Progs...............       26,232        25,482       21,000       27,932       26,982 
    Acquisition of Data \1\..................  .............  ...........      29,940   ...........      26,840 
                                              ------------------------------------------------------------------
        TOTAL, NMFS..........................      281,642       305,640      298,907      316,159      323,396 
                                              ==================================================================
OCEANIC AND ATMOSPHERIC RESEARCH:                                                                               
    Climate and Air Quality Research:                                                                           
        Interannual & Seasonal/Climate &                                                                        
         Global..............................       65,500        76,712       67,000       73,500       68,000 
        GLOBE................................  .............       7,000   ...........       7,000        6,000 
                                              ------------------------------------------------------------------
            Subtotal.........................  .............      83,712       67,000       80,500       74,000 
        Long-Term Climate & Air Quality                                                                         
         Research............................       27,272        29,402       27,272       29,402       28,372 
            VENTS............................        2,500    ...........  ...........  ...........  ...........
            High Performance Computing.......        6,500         9,567        6,500        9,000        7,500 
                                              ------------------------------------------------------------------
                Subtotal.....................       36,272        38,969       33,772       38,402       35,872 
                                              ------------------------------------------------------------------
                Total, Climate and Air                                                                          
                 Quality.....................      101,772       122,681      100,772      118,902      109,872 
                                              ==================================================================
    Atmospheric Programs:                                                                                       
        Weather Research.....................       33,613        33,905       33,613       33,613       33,613 
            Wind profiler....................        4,350         4,350        4,350        4,350        4,350 
                                              ------------------------------------------------------------------
                Subtotal.....................       37,963        38,255       37,963       37,963       37,963 
        Solar/Geomagnetic Research...........        5,483         5,511        5,219        5,493        5,493 
                                              ------------------------------------------------------------------
            Total, Atmospheric Program.......       43,446        43,766       43,182       43,456       43,456 
    Ocean and Great Lakes Programs:                                                                             
        Marine Prediction Research...........       10,226         9,608       10,608       12,151       15,651 
            GLERL............................        5,200         5,200        5,200        5,200        5,200 
            Great Lakes Sea Lampricide.......  .............  ...........       4,099        4,099   ...........
            VENTS............................  .............       2,500   ...........       2,500   ...........
                                              ------------------------------------------------------------------
                Subtotal.....................       15,426        17,308       19,907       23,950       20,851 
        Sea Grant:                                                                                              
            Sea grant college program........       53,300        48,793       53,300       55,300       54,300 
                                              ------------------------------------------------------------------
                Subtotal.....................       53,300        48,793       53,300       55,300       54,300 
            National Undersea Research                                                                          
             Program.........................       12,000    ...........  ...........      14,900       12,000 
                                              ------------------------------------------------------------------
                Subtotal.....................       12,000    ...........  ...........      14,900       12,000 
                                              ------------------------------------------------------------------
                Total, Ocean & Great Lakes                                                                      
                 Programs....................       80,726        66,101       73,207       94,150       87,151 
                                              ==================================================================
    Acquisition of Data \1\..................  .............  ...........      14,665   ...........      12,690 
                                              ------------------------------------------------------------------
        TOTAL, OAR...........................      225,944       232,548      231,826      256,508      253,169 
NATIONAL WEATHER SERVICE:                                                                                       
    Operations and Research:                                                                                    
        Local Warnings and Forecasts.........      405,300       399,020      387,020      392,337      390,000 

[[Page H11855]]

                                                                                                                
        Radiosonde replacement...............  .............       4,255   ...........       4,255        1,500 
        Susquehanna River Basin Flood Sys....          669           669        1,000        1,000        1,000 
        Aviation forecasts...................       35,596        35,596       35,596       35,596       35,596 
        Regional climate centers.............        2,000    ...........       2,000        2,000        2,000 
                                              ------------------------------------------------------------------
                Subtotal.....................      443,565       439,540      425,616      435,188      430,096 
                                              ==================================================================
        Central Forecast Guidance............       28,193        29,543       28,193       29,543       28,700 
        Atmospheric and Hydrological Research        2,000         2,589        2,000        2,589        2,000 
                                              ------------------------------------------------------------------
            Total, Operations and Research...      473,758       471,672      455,809      467,320      460,796 
                                              ==================================================================
    Systems Acquisition; Public Warning and                                                                     
     Forecast Systems:                                                                                          
        NEXRAD...............................       53,335        53,145       53,145       53,145       53,145 
        ASOS.................................       16,952        10,056       10,056       10,056       10,056 
        AWIPS/NOAAPort.......................       50,000       119,800      100,000      100,000      100,000 
        Computer Facility Upgrades...........       12,000        15,993       14,000       15,993       14,000 
                                              ------------------------------------------------------------------
            Total, Systems Acquisition.......      132,287       198,994      177,201      179,194      177,201 
                                              ------------------------------------------------------------------
            TOTAL, NWS.......................      606,045       670,666      633,010      646,514      637,997 
                                              ==================================================================
NATIONAL ENVIRONMENTAL SATELLITE, DATA, AND                                                                     
 INFORMATION SERVICE:                                                                                           
    Satellite Observing Systems:                                                                                
        Polar spacecraft and launching.......      174,765       147,644      147,300      147,644      147,300 
        Polar convergence/IPO................       39,500        78,200       19,000       29,000       29,000 
        Geostationary spacecraft and                                                                            
         launching...........................      153,106       205,922      171,480      191,922      171,480 
        Ocean remote sensing.................        4,000         1,552   ...........       6,000        4,000 
        Environmental observing services.....       49,000        53,615       49,000       52,600       51,000 
                                              ------------------------------------------------------------------
            Total, Satellite Observing                                                                          
             Systems.........................      430,371       486,933      386,780      427,166      402,780 
                                              ==================================================================
    Environmental Data Management Systems....       29,865        30,098       30,002       27,515       30,002 
        Data and Information Services........       11,300        14,800       14,800       11,300       14,800 
                                              ------------------------------------------------------------------
            Total, EDMS......................       41,165        44,898       44,802       38,815       44,802 
                                              ------------------------------------------------------------------
    Undistributed Reduction..................  .............  ...........      (5,685)  ...........  ...........
        TOTAL, NESDIS........................      471,536       531,831      425,897      465,981      447,582 
                                              ==================================================================
PROGRAM SUPPORT:                                                                                                
    Administration and Services:                                                                                
        Executive direction and                                                                                 
         administration......................       20,000        19,512       17,520       19,500       19,200 
            Systems Program Office (SPO).....        1,500         1,497        1,497        1,497        1,497 
                                              ------------------------------------------------------------------
                Subtotal.....................       21,500        21,009       19,017       20,997       20,697 
    Central Administrative Support...........       33,000        35,573       31,000       35,500       33,000 
    Retired Pay Commissioned Officers........        7,706         8,112        7,706        8,112        8,000 
                                              ------------------------------------------------------------------
        Total, Administration and Services...       62,206        64,694       57,723       64,609       61,697 
    Marine Services \2\......................       61,100        56,292   ...........      56,292   ...........
    Aircraft Services........................        9,153        10,182        9,153       10,182       10,000 
        Total, Aircraft Services.............        9,153        10,182        9,153       10,182       10,000 
                                              ------------------------------------------------------------------
        TOTAL, PS............................      132,459       131,168       66,876      131,083       71,697 
                                              ------------------------------------------------------------------
Direct Obligations...........................    1,892,927     2,061,539    1,839,176    2,013,476    1,938,043 
                                              ==================================================================
Reimbursable Obligations.....................      309,715       310,515      313,515      313,515      313,515 
New offsetting collections (data sales)......  .............       1,200        1,200        1,200        1,200 
Anticipated Collections......................        3,000         3,000        3,000        3,000        3,000 
                                              ------------------------------------------------------------------
    Subtotal--Reimbursables..................      312,715       314,715      317,715      317,715      317,715 
                                              ==================================================================
TOTAL OBLIGATIONS............................    2,205,642     2,376,074    2,156,891    2,331,191    2,255,758 
                                              ==================================================================
FINANCING:                                                                                                      
    Deobligations............................      (29,000)      (13,800)     (29,000)     (13,800)     (14,000)
    Fish Fees................................  .............     (10,000)  ...........  ...........  ...........
    Unobligated balance transferred, net.....       (2,650)   ...........  ...........  ...........  ...........
    Federal Ship Financing Fund expenses.....       (1,700)   ...........      (1,700)      (1,700)      (1,700)
    New offsetting collections (data sales)..  .............      (1,200)      (1,200)      (1,200)      (1,200)
    Anticipated offsetting collections.......       (3,000)       (3,000)      (3,000)      (3,000)      (3,000)
    Federal funds............................     (272,207)     (282,500)    (282,500)    (282,500)    (282,500)
    Non-federal funds........................      (37,508)      (31,015)     (31,015)     (31,015)     (31,015)
SUBTOTAL--FINANCING..........................     (346,065)     (341,515)    (348,415)    (333,215)    (333,415)
BUDGET AUTHORITY.............................    1,859,577     2,037,559    1,808,476    1,997,976    1,922,343 
FINANCING FROM:                                                                                                 
    Promote and devleop American fisheries...      (63,000)      (61,068)     (68,000)     (62,000)     (66,000)
    Damage assessment & restoration revolving                                                                   
     fund....................................       (3,900)       (5,276)      (5,276)      (5,276)      (5,276)
                                               =                                                                
                                                              =                                                 
                                                                           =                                    
                                                                                        =                       
                                                                                                                
APPROPRIATION, ORF...........................    1,792,677     1,971,215    1,735,200    1,930,700    1,851,067 
----------------------------------------------------------------------------------------------------------------
\1\ Funding for this item previously appeared under Marine Services in Program Support.                         
\2\ Funding for this item appears under Acquisition of Data in NOS, NMFS, and OAR.                              

       The following narrative provides additional information 
     related to certain items included in the preceding table.


                         national ocean service

       The conferees have provided a total of $204,202,000 under 
     this account for the activities of the National Ocean 
     Service. In addition, the conference agreement adopts changes 
     proposed by the House to reorder and rename certain 
     activities under NOS to more clearly identify their 
     functions.
       Mapping and Charting.--The conference agreement provides 
     $38,000,000 for NOAA's mapping and charting programs for the 
     purposes as described in the House report. The conferees 
     continue their direction included in the fiscal year 1996 
     conference report that no funds available to NOAA should be 
     used to procure equipment that replaces or modernizes NOAA's 
     in-house measurement capabilities when similar services may 
     be obtained by contract through the private sector.
       Coastal Ocean Program.--The conference agreement provides 
     $15,200,000 for the Coastal Ocean Program. The conference 
     agreement adopts the recommendation included in the House 
     report regarding efforts to respond to the algae bloom in the 
     Peconic Estuary system and adjacent Long Island waters, as 
     well as the Gulf of Mexico waters. In addition, within the 
     increase provided, the conference agreement recommends that 
     the Coastal Ocean Program managers initiate a national 
     harmful algal bloom program focused on the causes and 
     different types of blooms, and long-term strategies for 
     examining and alleviating them. Further, the conference 
     agreement includes support for the high-salinity estuary 
     activities as directed in the Senate report. Further, the 
     conferees recommend a moderate portion of the increase 
     provided for COP to be used for restoration of the South 
     Florida ecosystem, but

[[Page H11856]]

     encourage NOAA to consolidate these activities within 
     existing programs whenever possible. In addition, the 
     conferees would support funding for this activity from within 
     NMFS.
       Coastal Zone Management Program.--The conference agreement 
     includes $46,200,000 for CZM program grants. An additional 
     $1,300,000 is provided for the National Estuarine Research 
     Reserve program, in addition to $3,000,000 provided under the 
     Coastal Zone Management Fund described later in this report.
       Marine Sanctuary Program.--The conference agreement 
     includes $11,685,000 for the National Marine Sanctuary 
     Program. The conferees direct that no user fees be imposed 
     with respect to the Hawaiian Islands National Humpback Whale 
     Sanctuary.
       Other.--Within the amounts provided for geodesy, the 
     conference agreement includes $500,000 for continuation of 
     geodetic survey work as described in the Senate report, and 
     adopts the recommendations in the House report concerning the 
     completion of the multipurpose land information system 
     project. The conferees expect NOAA to provide a report within 
     30 days of enactment of the accompanying Act on its plans to 
     implement this guidance.
       Within the amounts provided for tide and current data, 
     $1,500,000 is provided for a one-time effort to establish a 
     national coastal data center as identified in the Senate 
     report.
       Within the amounts provided for ocean assessment, the 
     conference agreement includes a total of $12,000,000 for 
     NOAA's Coastal Services Center, including activities related 
     to coastal hazards research and defense technology as 
     provided in the Senate report. In addition, the conference 
     agreement provides $2,700,000 as described in the Senate 
     report for research efforts to apply innovative technologies 
     to the monitoring, management, and prevention of 
     contamination of estuaries and coastal waters.
       Within the amounts provided for acquisition of data under 
     the National Ocean Service, the conference agreement includes 
     $1,705,000 for operation of the RONALD H. BROWN in fiscal 
     year 1997 in accordance with the direction included in the 
     Senate report.


                   national marine fisheries service

       The conference agreement includes a total of $323,396,000 
     for the National Marine Fisheries Service.
       The conference agreement provides $91,330,000 for fisheries 
     resource information. Within the funds provided, the 
     conference agreement adopts the recommendations included in 
     the Senate report with respect to experimental by-catch 
     research, MARMAP, research related to rehabilitation of Gulf 
     Coast fisheries, red drum research and research related to 
     pollution and depletion of stocks in the Narragansett Bay. In 
     addition, the conference agreement provides $5,200,000 for 
     Alaska groundfish to be allocated per the distribution in the 
     Senate report, and $1,770,000 for Stellar Sea Lion recovery 
     plans in accordance with the direction included in the Senate 
     report.
       Within the funds provided for Fishery Industry Information, 
     the conference agreement provides $3,400,000 for recreational 
     fishery harvest monitoring to be expended in accordance with 
     the direction included in the Senate report.
       The conference agreement includes $22,000,000 for fisheries 
     management programs. Within the amounts provided, the 
     conference agreement includes funding at levels recommended 
     in the Senate report for the Alaska Native Harbor Seal 
     Commission, the Advisory Committee to the International 
     Convention for the Conservation of the Atlantic Tuna, and 
     pelagic fisheries research and management. The conference 
     agreement also provides $10,955,000 for Mitchell Act hatchery 
     programs, including $655,000 for mass marking of Mitchell Act 
     hatchery salmon, and concurs with the Senate Report regarding 
     these programs and regarding NMFS staffing needs in the 
     Northwest. Within the amounts provided for international 
     fisheries commissions, the conference agreement provides 
     $450,000 for the Arctic Council Sustainable Development 
     Secretariat.
       Within the funds provided for protected species management, 
     the conferees expect that no reductions will be taken against 
     field activities.
       In addition, the conference agreement adopts the 
     recommendations included in the House report regarding the 
     funding and direction for sea turtle protection except that 
     the sea protection activities at Rancho Nuevo shall also 
     include the implementation of tagging all of the released 
     hatchlings to improve data on survivability, and the 
     implementation of a Kemp's Ridley headstart program in 
     Mexico. The conferees also concur in the direction included 
     in the House report regarding See Turtle/Shrimp Fishery 
     Response Plan activities. In addition, the conferees 
     reiterate the previous direction provided to NOAA that NOAA 
     and NMFS provide an independent peer review of the NMFS 
     November 14, 1994 and subsequent Biological Opinions on sea 
     turtle conservation. The conferees direct NMFS and the 
     Department not to decertify any turtle excluder devices until 
     every effort has been made, working with industry and others, 
     to improve or modify existing devices to increase turtle 
     escapement. The conference agreement assumes that funds will 
     be made available under Resource Information and other NMFS 
     programs to enable an independent entity to collect and 
     assess data on catch effort and by-catch in the shrimp 
     fishery. This independent effort shall provide site-to-site 
     and long term information regarding the relative abundance of 
     sea turtles, and NMFS may use its authority to provide 
     scientific exemption permits to collect shrimp trawl by-catch 
     data in non-turtle excluder device equipped trawls. The 
     conferees reiterate the funding direction provided in fiscal 
     year 1996 for the establishment of a systematic stranding 
     monitoring program and direct that these funds be used to 
     establish a scientifically sound program based on transect 
     survey techniques that will provide data suitable for 
     analytical stock assessments.
       Within the funds provided for the Marine Mammal Protection 
     Act, the conference agreement adopts recommendations 
     specified in the Senate report, and includes $100,000 for 
     data collection regarding bowhead whales in the North Slope 
     Borough.


                    oceanic and atmospheric research

       The conference agreement includes a total of $253,169,000 
     for Oceanic and Atmospheric Research activities.
       Interannual and seasonal climate research.--The conferees 
     have provided $68,000,000 for interannual and seasonal 
     climate research under the structure proposed by the House, 
     of which $60,000,000 is to continue the basic Climate and 
     Global Change program. The remaining $8,000,000 is to carry 
     out the base interannual and seasonal research programs. The 
     increases are provided in accordance with the direction 
     included in the House report.
       The conference agreement provides $6,000,000 for the Global 
     Learning to Benefit the Environment (GLOBE) program; instead 
     of no funding as proposed by the House, and $7,000,000 as 
     proposed in the Senate-reported bill.
       Marine prediction research.--The conference agreement 
     provides $15,651,000 for marine prediction research. Within 
     this amount, the Arctic Research Initiative is to be funded 
     according to the House report, and the tsunami mitigation, 
     Lake Champlain and VENTS programs are to be funded according 
     to direction in the Senate report.
       GLERL.--Within the $5,200,000 provided for the Great Lakes 
     Environmental Research Laboratory, the conferees expect NOAA 
     to continue to support the Great Lakes nearshore research and 
     GLERL zebra mussel research programs.
       Sea grant.--The conferees have included $54,300,000 for the 
     National Sea Grant program, and expect NOAA to continue to 
     fund oyster disease research, zebra mussel research and the 
     National Coastal Research and Development Institute within 
     these amounts. The conferees continue to urge NOAA to fund 
     proposals related to the Vibrio vulnificus issue and the 
     education of at-risk consumers regarding raw molluscan 
     shellfish.


                        national weather service

       The conference agreement includes a total of $637,997,000 
     for the National Weather Service.
       The amount provided includes $390,000,000 for local 
     warnings and forecasts, including the staffing related to the 
     modernization of the weather service, data buoy maintenance, 
     and Pacific and Alaska regional headquarters.
       The conferees direct that any reductions required be 
     applied to the operations and staffing levels at NWS central 
     headquarters in the national capital area, and adopt the 
     directive included in the House report that NWS submit a 
     streamlining plan for such reductions not later than November 
     1, 1996. The conference agreement adopts the direction in the 
     House report regarding notification prior to NWS office 
     closures. In addition, the conference agreement includes the 
     House recommendation regarding radiosonde replacement.
       The conference agreement provides the full request for 
     acquisition of the next-generation radar (NEXRAD) and the 
     automated surface observing system (ASOS), including funding 
     for the three additional NEXRADs identified as necessary in 
     the Secretary's report concerning the adequacy of coverage, 
     and the conferees encourage NOAA to have such equipment in 
     place and operational prior to the 1997 tornado season.
       The conferees remain concerned about gaps in coverage 
     provided by NOAA Weather Radio in eastern Kentucky and 
     Kansas. NOAA is directed to promptly update its 1994 study of 
     radio coverage and provide recommendations for the placement 
     of additional or upgraded transmitters by March 30, 1997. 
     NOAA is further directed to immediately implement 
     recommendations of the 1994 study by placing 1000 watt 
     transmitters at Ezel, Pineville, and Pikeville, Kentucky.
       Advanced Weather Interactive Processing Systems (AWIPS).--
     The conferees are extremely concerned about the AWIPS 
     program. The AWIPS program has been plagued by cost growth, 
     scheduling delays, management changes, and slow technical 
     progress. The conferees remind NOAA that the original plans 
     estimated a total cost at completion of $350,000,000. Earlier 
     this year, the Administrator of NOAA testified to the House 
     Science Committee that the estimated cost at completion (EAC) 
     for the program was $525,000,000 and that the AWIPS program 
     could be operated under such a cost cap. The conferees note 
     that Congress, through the end of fiscal year 1996, will have 
     already invested $261,335,000 in the AWIPS program. 
     Therefore, the conferees direct the AWIPS

[[Page H11857]]

     program to be delivered within the $525,000,000 EAC, and put 
     NOAA on notice that additional resources will not be 
     available should NOAA fail to deliver the system within the 
     current $525,000,000 cost estimate.
       Further, the conferees continue to have reservations about 
     NOAA's current plan to make the final production decision on 
     full-scale deployment of AWIPS in September 1996. The 
     conferees agree with the Department of Commerce Inspector 
     General and believe that sufficient operational testing of 
     the system must occur prior to the final decision being made 
     for full scale deployment. The conferees note that a small 
     delay in the final production decision would not impede the 
     ability of NWS to complete deployments scheduled in fiscal 
     year 1997. Therefore, the conferees believe the most prudent 
     course would be for the NWS and the Department to delay such 
     decisions until additional operational testing has been 
     completed.
       Therefore, the conference agreement provides $100,000,000 
     for the AWIPS program, a 100 percent increase over the 
     current fiscal year, an amount sufficient to enable a two 
     year deployment of the system within a $525,000,000 total EAC 
     for the program. The conference agreement adopts the 
     directives included in the House report directing NOAA to 
     submit a reprogramming in accordance with section 605 of the 
     accompanying Act prior to the expenditure of funds for full-
     scale acquisition and deployment of the system. Such 
     reprogramming should include a certification by the Secretary 
     of Commerce to address the criteria specified in the House 
     report, with the following modification: the cost to complete 
     development, acquisition and deployment of the AWIPS through 
     build six and associated activities, including program 
     management and operations and maintenance through completion 
     of deployment will not exceed $263,665,000.


     national environmental satellite, data and information service

       The conference agreement includes $447,582,000 for NOAA's 
     satellite and data management programs.
       The conference agreement includes $44,802,000 for 
     environmental data management systems within the amount 
     provided for NESDIS in accordance with the recommendations 
     included in the House report.
       The conference agreement includes $29,000,000 for the 
     interagency program office to converge the NOAA and 
     Department of Defense (DOD) polar satellite convergence 
     programs. The funding level provided meets the revised 
     estimate of need for this fiscal year and was agreed upon 
     jointly by NOAA and DOD. The conferees continue to assume 
     that NOAA and DOD will share equally the costs for all common 
     activities for this program. Further, the conferees expect 
     NOAA to report to them should any additional revisions to the 
     program be contemplated.
       In addition, the conferees encourage NESDIS to work closely 
     with the national coastal data center discussed under the 
     National Ocean Service.


                            program support

       The conference agreement provides $71,697,000 for NOAA 
     program support.
       Marine services.--The conference agreement adopts the House 
     recommendation to eliminate the Marine Services account and 
     to provide funding for these activities directly to the line 
     offices. This matter is further discussed elsewhere in this 
     title. In addition, the conference agreement adopts the 
     Senate position regarding the new oceanographic research 
     vessel, the RONALD H. BROWN, coming online in fiscal year 
     1997. The vessel will be homeported at the NOAA Coastal 
     Services Center as proposed by NOAA, and operational funds 
     have been included under NOS data acquisition.

                      Coastal Zone Management Fund

       The conference agreement includes an appropriation of 
     $7,800,000, as provided in both the House bill and the 
     Senate-reported bill, from the Coastal Zone Management Fund 
     for the purposes designated in both bills. The conference 
     agreement allocates these funds as follows: $4,300,000 for 
     program administration, $500,000 for State development 
     grants, and $3,000,000 for the National Estuarine Research 
     Reserve Program. The conference agreement provides an 
     additional $1,300,000 in direct appropriations under the NOAA 
     Operations, Research, and Facilities account for the National 
     Estuarine Research Reserve Program.

                              Construction

       The conference agreement includes a total of $58,250,000 
     for the NOAA Construction account, instead of $36,000,000 as 
     proposed in the House bill and $58,000,000 as proposed in the 
     Senate-reported bill. The conference agreement provides these 
     funds for the purposes described in the following paragraphs.
       The Conference agreement provides $2,000,000 for general 
     facilities maintenance, $1,750,000 for the Sandy Hook lease, 
     $2,000,000 for environmental compliance, and $2,000,000 for 
     above-standard costs at the Boulder laboratory.
       The conference agreement includes a total of $12,000,000 
     for weather forecast office (WFO) construction, including 
     $2,000,000 for the construction costs of WFO/Center for 
     Environmental Studies and Management in Albany, New York. In 
     addition, the conference agreement includes $1,000,000 for 
     WFO maintenance.
       The conference agreement provides $4,700,000 for Columbia 
     River facilities.
       The conference agreement includes $2,000,000 for NMFS 
     Honolulu laboratory renovations, $3,500,000 for the Newport 
     Science Center renovation and expansion, $5,000,000 to 
     complete the NMFS Southeast laboratory project, and 
     $6,000,000 for the NMFS Juneau laboratory.
       In addition, the conference agreement designates $8,500,000 
     for construction and related expenses for an environmental 
     technology facility in New Hampshire.
       As provided by both the House and Senate, the conference 
     agreement includes $5,000,000 for Pribilof Island cleanup. In 
     addition, $1,000,000 is provided for National Estuarine 
     Research Reserves construction.

            Fleet Modernization, Shipbuilding and Conversion

       The conference agreement includes $8,000,000 for the NOAA 
     Fleet Modernization account, as provided in the Senate-
     reported bill, instead of $6,000,000 as provided in the House 
     bill. The conference agreement provides funding for necessary 
     maintenance costs as well as funds to complete the outfitting 
     of the oceanographic vessel scheduled to come on line in 
     fiscal year 1997. This matter is further addressed elsewhere 
     in this title under the NOAA Operations, Research and 
     Facilities account. In addition, the conference agreement 
     contains language included in section 612 further clarifying 
     the uses of these funds.

           Fishing Vessels and Gear Damage Compensation Fund

       The conference agreement includes $200,000 for an 
     appropriation to the Fishing Vessel and Gear Damage Fund as 
     provided in both the House bill and the Senate-reported bill.

                      Fishermen's Contingency Fund

       The conference agreement includes $1,000,000 for the 
     Fishermen's Contingency Fund, as provided in both the House 
     bill and the Senate-reported bill.

                     Foreign Fishing Observer Fund

       The conference agreement includes $196,000 for the expenses 
     related to the Foreign Fishing Observer Fund, as provided in 
     both the House bill and Senate-reported bill.

                 Fishing Vessel Obligations Guarantees

       The conference agreement provides $250,000 in subsidy 
     amounts for Fishing Vessel Obligations Guarantees as proposed 
     by the House bill and the Senate-reported bill.

                         General Administration


                         SALARIES AND EXPENSES

       The conference agreement includes $28,490,000 for the 
     general administration of the Commerce Department, instead of 
     $27,400,000 as provided in the House bill and $29,100,000 as 
     provided in the Senate-reported bill. The conferees are 
     concerned that disproportionate reductions have been taken 
     against the Departmental support functions. Therefore, the 
     conferees expect that any further reductions necessary will 
     be taken from Executive Direction, and expect the Department 
     to submit a plan for meeting the reductions assumed in the 
     bill in accordance with section 605 of this Act.


                      OFFICE OF INSPECTOR GENERAL

       The conference agreement includes $20,140,000 for the 
     Commerce Department Inspector General, instead of $19,445,000 
     as proposed in the House bill and $20,849,000 as proposed in 
     the Senate-reported bill.

             National Institute of Standards and Technology


                  CONSTRUCTION OF RESEARCH FACILITIES

                              (RESCISSION)

       The conference agreement includes a rescission of 
     $16,000,000 from the NIST Construction account, instead of 
     $31,800,000 as proposed in the Senate-reported bill. This 
     rescission of $16,000,000 reduces the carryover appropriation 
     under this account to $27,600,000. Uses of these remaining 
     funds are addressed in the description of the fiscal year 
     1997 appropriation under this account.

            National Oceanic and Atmospheric Administration


                  OPERATIONS, RESEARCH AND FACILITIES

                              (RESCISSION)

       The conference agreement includes a rescission of 
     $20,000,000 from the NOAA Operations, Research and Facilities 
     account, instead of $10,000,000 as proposed in both the House 
     and Senate-reported bills. This rescission is derived from 
     balances no longer required in the NOAA satellites programs 
     due to re-estimates of program needs.

               General Provisions--Department of Commerce

       The conference agreement includes the following general 
     provisions for the Department of Commerce:
       Sec. 201.--The conference agreement includes section 201, 
     identical in both the House and Senate versions of the bill, 
     regarding certifications of advanced payments.
       Sec. 202.--The conference agreement includes section 202, 
     identical in both the House and Senate versions of the bill, 
     allowing funds to be used for hire of passenger motor 
     vehicles.
       Sec. 203.--The conference agreement includes section 203, 
     identical in both the House and Senate versions of the bill, 
     prohibiting reimbursement to the Air Force for hurricane 
     reconnaissance planes.
       Sec. 204.--The conference agreement includes section 204, 
     identical in both the House and Senate versions of the bill, 
     prohibiting funds from being used to reimburse the 
     Unemployment Trust Fund for temporary census workers.
       Sec. 205.--The conference agreement includes section 205, 
     identical in both the House and Senate versions of the bill, 
     regarding transfer authority between Commerce Department 
     appropriation accounts.

[[Page H11858]]

       Sec. 206.--The conference agreement includes section 206, 
     identical in both the House and Senate-reported versions of 
     the bill, providing for the notification of the House and 
     Senate committees on Appropriations of a plan for 
     transferring funds to appropriate successor organizations 
     within 90 days of enactment of any legislation dismantling or 
     reorganizing the Department of Commerce.
       Sec. 207.--The conference agreement includes section 207, 
     identical in both the House and Senate-reported versions of 
     the bill, requiring that any costs related to personnel 
     actions incurred by a Department or agency funded in title II 
     of the accompanying Act, be absorbed within the total 
     budgetary resources available to such Department or agency.
       Sec. 208.--The conference agreement includes a modified 
     general provision, similar to language included in the House 
     and Senate bills, permanently prohibiting funds to develop or 
     implement new individual fishing quota programs, whether such 
     quota are transferable or not, until offsetting fees to pay 
     for the cost of administrating such quotas are authorized. 
     The modified provision also clarifies the application of this 
     provision to certain fisheries.
       Sec. 209.--The conference agreement includes section 209, 
     included in the House bill and in the fiscal year 1996 
     appropriations Act, allowing the Secretary to award contracts 
     for certain mapping and charting activities in accordance 
     with the Federal Property and Administrative Services Act. 
     The Senate bill contained no similar provision.
       Sec. 210.--The conference agreement includes section 210, 
     identical in both the House and Senate-reported versions of 
     the bill, establishing a working capital fund in the Bureau 
     of the Census to be available without fiscal year limitation.
       The conference agreement does not include a new section, 
     included in the Senate-reported bill, prohibiting the 
     Department of Commerce from developing, implementing or 
     collecting any user fees for any activity within the Hawaiian 
     Islands National Humpback Whale Sanctuary. However, this 
     matter is addressed elsewhere in the Statement of Managers of 
     the Committee of Conference under the National Oceanic and 
     Atmospheric Administration Operations, Research and 
     Facilities account. The House bill contained no provision on 
     this matter.
       Sec. 211.--The conference agreement includes a new 
     provision, not in either the House or Senate-reported bills, 
     renaming the ``Magnuson Fishery Conservation and Management 
     Act'' as the ``Magnuson-Stevens Fishery Conservation and 
     Management Act''.

                        TITLE III--THE JUDICIARY

                   Supreme Court of the United States


                         Salaries and Expenses

       The conference agreement includes $27,157,000 for the 
     salaries and expenses of the Supreme Court as provided in 
     both the House and Senate-reported bills.


                    Care of the building and grounds

       The conference agreement includes $2,800,000 for the 
     Supreme Court Care of the Buildings and Grounds account, 
     compared with $2,490,000 as proposed in the House bill and 
     $3,100,000 as proposed in the Senate-reported bill. No 
     funding is provided for the Schematic Systems Study in this 
     fiscal year requested in the budget, and the balance of the 
     reduction from the request is to be taken from funding 
     requested for staff, to bring funding in line with actual on-
     board staffing levels.

         United States Court of Appeals for the Federal Circuit


                         Salaries and Expenses

       The conference agreement includes $15,013,000 for the U.S. 
     Court of Appeals for the Federal Circuit as proposed by the 
     House and the Senate-reported bills.

               United States Court of International Trade


                         Salaries and Expenses

       The conference agreement includes $11,114,000 for the U.S. 
     Court of International Trade as provided in both the House 
     and Senate-reported bills.

                Courts of Appeals, District Courts, and

                        Other Judicial Services


                         salaries and expenses

                     (Including Transfer of Funds)

       The conference agreement provides $2,566,000,000 for the 
     salaries and expenses of the Federal Judiciary, instead of 
     $2,538,956,000 as proposed in the House bill and 
     $2,578,646,000 as proposed in the Senate-reported bill. This 
     includes $10,000,000 provided for increased workload 
     associated with the Antiterrorism and Effective Death Penalty 
     Act of 1996 and Court Security needs. Funding for these 
     purposes was not considered by either House, and is provided 
     in response to the Administration's budget amendment 
     submitted on September 12, 1996.
       Including amounts provided under the Violent Crime 
     Reduction Trust Fund, addressed below, the total amount 
     available in this conference agreement for the salaries and 
     expenses of the courts is $2,596,000,000 rather than 
     $2,568,956,000 as proposed in the House bill and 
     $2,608,646,000 as proposed in the Senate-reported bill.
       In addition to these appropriated resources, there is 
     likely to be available at least $121,000,000 in carryover, 
     $115,000,000 in current year fees and $15,000,000 from prior 
     year funding no longer needed for the original purpose. As a 
     result, a total of at least $2,847,000,000 will be available 
     for the salaries and expenses of the Judiciary in fiscal year 
     1997.
       Within the overall funding available for fiscal year 1997, 
     the conferees expect the Judiciary to fund its highest 
     program priorities, including additional magistrate judges to 
     eliminate existing backlogs in caseloads, and bankruptcy 
     personnel to address the record number of bankruptcy filings 
     currently taking place.
       The conference agreement provides that within the total 
     provided, $500,000 shall be transferred to the Commission on 
     Structural Alternatives for the Federal Courts of Appeals, 
     subject to authorization of the Commission. The Senate-
     reported bill proposed this transfer of $500,000, but did not 
     make it subject to authorization of the Commission. Instead, 
     the Senate-reported bill included the authorization for the 
     Commission under section 307. The conference agreement does 
     not include section 307, due to the expectation that 
     legislation authorizing the Commission will be moved 
     separately. The conference agreement includes a change in the 
     heading of this account, as proposed in the Senate-reported 
     bill, to indicate that this account contains a transfer of 
     funds. The House bill contained no provision on this matter.
       The conference agreement also appropriates $2,390,000 from 
     the Vaccine Injury Compensation Trust Fund for expenses 
     associated with the National Childhood Vaccine Injury Act of 
     1986, as provided in both the House and Senate-reported 
     bills.
       Optimal utilization of judicial resources.--The conferees 
     believe that the review underway within the Judiciary to 
     review the optimal utilization of judicial resources, in 
     response to the fiscal year 1996 House and Conference reports 
     accompanying the fiscal year 1996 appropriations Act, has the 
     capability to make important contributions to ensure that the 
     Judiciary operates in the most efficient and cost-effective 
     manner and expect the language in the House report 
     accompanying H.R. 3814 to be followed.
       Violent crime reduction trust-fund.--The conference 
     agreement includes an appropriation of $30,000,000 from the 
     Violent Crime Reduction Trust Fund, the same amount provided 
     in the House and Senate-reported bills. The conferees intend 
     that these funds be used to offset workload requirements of 
     the Federal Judiciary related to the Violent Crime Control 
     and Law Enforcement Act of 1994.


                           defender services

       The conferees have included $308,000,000 for the Federal 
     Judiciary's Defender Services account, instead of 
     $297,000,000 as proposed in the House bill and $311,900,000 
     as proposed in the Senate-reported bill. The amount provided 
     is for the operation of Federal public defender and community 
     defender organizations and the compensation, reimbursement, 
     and expenses of attorneys appointed to represent persons 
     under the Criminal Justice Act, as amended. If additional 
     funds are required, funding provided to the Judiciary under 
     the Violent Crime Reduction Trust Fund and fee carryover is 
     available by transfer, and funding for increases in workload 
     and costs related to the Antiterrorism and Effective Death 
     Penalty Act of 1996 is available as a result of the 
     $10,000,000 provided under the Salaries and Expenses account.
       The conferees are concerned about the rapidly rising costs 
     in this account, and believe that the Administrative Office 
     of the Courts needs to move as quickly as possible to 
     understand the reason for these increases and to take such 
     steps as may be advisable to moderate the rate of increase. 
     Because the costs of the existing program have been rising so 
     rapidly, sufficient funds are not available to provide an 
     increase in the rate for panel attorneys, excluding the 
     increase provided in fiscal year 1996, and so funding for 
     this purpose has not been provided. Funding of new defender 
     organizations, in addition to any that have already been 
     proposed, should be considered only after it is clear that 
     sufficient funding is available for the costs of existing 
     organizations.


                    fees of jurors and commissioners

       The conference agreement includes $67,000,000 for Fees of 
     Jurors and Commissioners, instead of $66,000,000 as proposed 
     in the House bill and $68,083,000 as proposed in the Senate-
     reported bill.

                             Court Security

       The conference agreement includes $127,000,000 for the 
     Federal Judiciary's Court Security account as proposed by the 
     Senate instead of $131,000,000 as proposed by the House. The 
     Senate-reported bill included an additional $4,000,000 by 
     transfer from the Counterterrorism Fund under the Department 
     of Justice. The conferees expect that an additional 
     $4,000,000 will be available for court security from within 
     the $10,000,000 provided within the Salaries and Expenses 
     account for increases in workload and costs related to the 
     Antiterrorism and Effective Death Penalty Act of 1996.

           Administrative Office of the United States Courts


                         salaries and expenses

       The conference agreement includes $49,450,000 for the 
     Administrative Office of the United States Courts, instead of 
     $48,500,000 as provided in the House bill and $50,900,000 as 
     provided in the Senate-reported bill. Funding is provided for 
     staffing at the current services level. The conferees assume 
     that additional financial resources of $1,080,000 in fee 
     carryover, $6,065,000 in new fee collections, and $212,000 in 
     Independent Counsel funding will be available for the 
     operations of the Administrative Office.

[[Page H11859]]

                        Federal Judicial Center


                         salaries and expenses

       The conference agreement includes $17,495,000 for the 
     fiscal year 1997 salaries and expenses of the Federal 
     Judicial Center, as proposed in the House bill, instead of 
     $17,914,000 as proposed in the Senate-reported bill. The 
     conferees applaud the Federal Judicial Center for the efforts 
     underway to increase the use of video-conferencing and other 
     innovative methods of education and training, and intend that 
     reductions be reflected in travel costs.

                       Judicial Retirement Funds


                  payment to the judiciary trust funds

       The conference agreement includes $30,200,000 for payment 
     to the various Judicial retirement funds as provided in both 
     the House and Senate-reported bills.

                  United States Sentencing Commission


                         salaries and expenses

       The conferees have included $8,490,000 for the U.S. 
     Sentencing Commission, instead of $8,300,000 as provided in 
     the House bill, and $8,867,000 as provided in the Senate-
     reported bill. The conferees understand that the Commission 
     has available to it at least $800,000 in carryover, which 
     will provide an operating level in fiscal year 1997 of 
     $9,290,000.

                             The Judiciary

                           General Provisions

       Sec. 301.--The conference agreement includes section 301 as 
     provided in both the House and Senate-reported bills allowing 
     appropriations to be used for services as authorized by 5 
     U.S.C. 3109.
       Sec. 302.--The conference agreement includes section 302 as 
     provided in both the House and Senate-reported bills which 
     allows appropriations to be available to the Special Court 
     established under the Regional Rail Reorganization Act of 
     1973.
       Sec. 303.--The conference agreement includes section 303, 
     included in both the House and Senate-reported bills, 
     providing the Judiciary with the authority to transfer funds 
     between appropriations accounts. The conference agreement 
     includes language exempting the Judiciary's Defender Services 
     and Fees of Jurors and Commissioners account from the 10 
     percent increase ceiling set by this provision.
       Sec. 304.--The conference agreement includes section 304, 
     identical in both the House and Senate-reported versions of 
     the bill, allowing up to $10,000 of salaries and expenses 
     funds provided in this title to be used for official 
     reception and representation expenses of the Judicial 
     Conference of the United States.
       Sec. 305.--The conference agreement includes section 305, 
     as proposed in both the House and Senate-reported bills, 
     which provides a one-year extension to September 30 1998 of 
     the authorization for Judiciary Automation Fund.
       Sec. 306.--The conference agreement includes section 306, 
     as proposed in the Senate-reported bill, which clarifies that 
     the Judiciary bear the cost only of special master appointed 
     subsequent to the enactment of the Prison Litigation Reform 
     Act passed as part of the fiscal year 1996 Omnibus 
     Appropriations Act. The House bill contained no similar 
     provision.
       Sec. 307.--The conference agreement includes section 307, 
     which was not provided in either the House or Senate-reported 
     bill, to name the United States courthouse in Medford, 
     Oregon, as the James A. Redden Federal Courthouse.
       The conference agreement does not contain section 307, as 
     proposed in the Senate-reported bill, which authorizes the 
     establishment of a commission to study the structure and 
     alignment of the Federal Courts of Appeals. The House bill 
     contained no similar provision. Under the ``Courts of 
     Appeals, District Courts, and Other Judicial Services, 
     Salaries and Expenses'' account, $500,000 has been provided 
     to fund this commission, subject to enactment of legislation 
     authorizing the commission.

           TITLE IV--DEPARTMENT OF STATE AND RELATED AGENCIES

                          Department of State


                   administrarion of foreign affairs

                    diplomatic and consular programs

       The conference agreement includes a total of $1,725,300,000 
     for Diplomatic and Consular Programs. This amount includes: a 
     direct appropriation of $1,700,450,000, the same as the 
     amount in the Senate-reported bill, instead of $1,691,000,000 
     as proposed in the House bill; $450,000 from the reserve fund 
     for the International Center, as provided in both the House 
     and Senate-reported bill; $700,000 to be derived from 
     registration fees, as provided in both the House and the 
     Senate-reported bill; and $23,700,000 for increased security 
     overseas, designated as an emergency requirement under the 
     Balanced Budget and Emergency Deficit Control Act of 1985, 
     which is described in more detail below, and which is 
     provided in response to the antiterrorism budget amendment 
     submitted by the Administration on September 12, 1996. The 
     Senate-reported bill included $8,400,000 for security 
     enhancements at overseas posts in the Counterterrorism Fund 
     under the Department of Justice.
       The conferees agree that the language in both the House and 
     Senate reports under this heading is to be followed in 
     expending fiscal year 1997 funds, with the following 
     exceptions: the Arctic Council Sustainable Development 
     Secretariat is addressed in this conference report under the 
     National Oceanic and Atmospheric Administration; funding is 
     included for the continuation of the National law Center for 
     Inter-American Free Trade; and the International 
     Telecommunications Union Conference funding is intended to be 
     addressed as provided in the House report. Funding for this 
     Conference will be addressed only after the State and 
     Commerce Departments have exhausted every potential source of 
     private financing to assure that the costs of this 
     international conference are not borne by the taxpayer.
       The conference agreement includes language that was 
     included in both the House and Senate-reported bills 
     requiring that in fiscal year 1998, a system be in place that 
     allocates to each department and agency the full costs of its 
     presence outside the United States. The conferees direct that 
     the new International Cooperative Administrative Support 
     Services (ICASS) system is to be implemented in fiscal year 
     1998, and intend that the Department of State, the Office of 
     Management and Budget and all agencies with a presence 
     overseas cooperate to make this happen. The Office of 
     Management and Budget is directed to ensure that the fiscal 
     year 1998 budget submission for each Federal agency include 
     the cost of its overseas presence in accordance with ICASS.
       Security Enhancements. The conference agreement provides 
     $23,700,000, to be available until expended, to improve the 
     security of U.S. diplomatic facilities and increases the 
     protection of personnel overseas. This is the amount 
     requested in the budget amendment submitted on September 12, 
     1996. The funding is provided for the following:
       $12,352,000 is provided for overseas physical security 
     support, including local guards, residential security 
     upgrades, fully and lightly armored vehicles, public access 
     control equipment, and special protective equipment;
       $6,800,000 is provided for overseas technical security 
     support, including electronic security equipment, increased 
     maintenance of security equipment overseas, strengthened 
     Seabees and security engineering support, and explosive 
     detection equipment;
       $500,000 for training; and
       $4,048,000 for security positions, including 53 positions 
     in the Gulf Region.
       The conferees believe that all necessary steps should be 
     taken to protect Americans working overseas. The conferees 
     recommend that the Department take into consideration off-
     the-shelf security technology that has been approved and 
     tested by the Department of Justice, Department of State, and 
     the Department of Defense. Such technological enhancements as 
     security barriers, security film, improved intelligence 
     communications, and security scanning devices have been shown 
     to greatly decreased the vulnerability, improve initial 
     safety, and decrease the level and number of injuries from 
     terrorist attacks.
       The House and Senate Committees expect to receive a full 
     assessment of the adequacy of the security measures being 
     undertaken as soon as possible.


                         salaries and expenses

       The conference agreement includes a total of $352,300,000 
     for Salaries and Expenses, as proposed in the House bill, 
     instead of $357,000,000 as proposed in the Senate-reported 
     bill. The conferees adopt by reference the provisions of both 
     the House and the Senate reports under this heading.


                        capital investment fund

       The conference agreement includes $24,600,000 for the 
     Capital Investment Fund, instead of $16,400,000 as proposed 
     in the House bill, and $32,800,000 as proposed in the Senate-
     reported bill. The conferees adopt by reference the 
     provisions of both the House and the Senate reports under 
     this heading. The conferees look forward to the submission of 
     a fully developed plan for the Department's information 
     management effort at the earliest possible time.

                      Office of Inspector General

       The conference agreement includes $27,495,000 for the 
     Office of Inspector General, which has jurisdiction over the 
     Department of State, the United States Information Agency, 
     and the Arms Control and Disarmament Agency, the same amount 
     as provided in both the House and the Senate-reported bills. 
     The conference agreement includes language proposed in the 
     Senate-reported bill that makes permanent the consolidation 
     of the Inspector General Office of the United States 
     Information Agency into this Office that was enacted in the 
     fiscal year 1996 appropriations Act. The House bill included 
     the same language as in fiscal year 1996, the legal 
     interpretation of which is not clear as to whether the 
     consolidation is permanent.
       The conferees recommend that the fiscal year 1998 budget 
     include all funds for the oversight of ACDA directly as part 
     of the Inspector General's budget.


                       representation allowances

       The conference agreement includes $4,490,000 for 
     Representation Allowances, as provided in both the House and 
     the Senate-reported bill.


              protection of foreign missions and officials

       The conference agreement includes $8,332,000 for Protection 
     of Foreign Missions and Officials, as provided in both the 
     House and the Senate-reported bills.


           security and maintenance of united states missions

       The conference agreement includes $389,320,000 for this 
     account, which is comprised of the following: $364,495,000 
     for the

[[Page H11860]]

     regular operations of the Security and Maintenance account, 
     instead of $370,000,000 as proposed in the House bill, and 
     $360,000,000 as proposed in the Senate-reported bill; and 
     $24,825,000, to remain available until expended, provided in 
     response to the Administration's antiterrorism budget 
     amendment submitted on September 12, 1996 and designated as 
     an emergency requirement under the Balanced Budget and 
     Emergency Deficit Control Act of 1985, which is described in 
     more detail below.
       The conference agreement assumes the sale of the residence 
     in Hamilton, Bermuda.
       The conference agreement does not provide funds for any new 
     facilities, nor is it likely that such funds will be 
     available in the near future, due to budget constraints. As a 
     result, it is incumbent upon the Department to step up its 
     management of its existing real estate portfolio.
       The April, 1996 General Accounting Office report 
     recommended that the Secretary of State establish an 
     independent panel to make recommendations regarding the sale 
     of excess real estate to reduce the current inventory of 
     property. While the conferees support the trust of GAO's 
     findings, they are concerned that directing the Department to 
     sell what GAO has identified as surplus overseas properties 
     without adequate knowledge of market conditions in those 
     countries could cost taxpayers millions of dollars.
       Consequently, the conferees direct that by no later than 
     December 30, 1996, the Secretary establish an advisory board 
     on real property management to (1) review information on 
     Department of States properties proposed for sale by the 
     Department, the Office of the Inspector General, the GAO or 
     any other agency of the federal government; and (2) compile a 
     list of properties recommended for sale to the Under 
     Secretary of State for Management for approval. This list 
     should be transmitted to the appropriate committees of the 
     Congress. At any time when appropriate market conditions 
     exist, the State Department is to proceed with the immediate 
     sale of items on the approved list.
       In order to assure oversight of the disposition and 
     acquisition of facilities, the Department is expected to 
     submit a quarterly report on its transactions, and to seek a 
     reprogramming with respect to plans for any major new 
     facility, such as an embassy, or consulate.
       Security Enhancement. The conference agreement includes 
     $24,825,000 for security improvements, necessary relocation 
     expenses and security equipment for United States diplomatic 
     facilities and missions overseas. The amount is provided in 
     response to the funding requested by the Administration's 
     September 12, 1996 antiterrorism budget amendment under three 
     separate accounts: $14,300,000 under this account; $9,400,000 
     under the International Trade Administration in the 
     Department of Commerce for United States and Foreign 
     Commercial Service posts overseas, and the overseas portion, 
     totaling $1,125,000, of the $2,500,000 requested under the 
     Salaries and Expenses account of the United States 
     Information Agency. All of these requests are intended to 
     provide funds to upgrade the security of overseas facilities. 
     Generally, the State Department has management responsibility 
     for overseas facilities, and the conferees believe it would 
     be more prudent to provide these requests under this account 
     in order to assure the management of these funds by the 
     entity that has the most experience in providing for facility 
     needs overseas. The conference agreement earmarks the amounts 
     intended for US&FCS and USIA to assure that the requested 
     funds are available for these agencies.
       Funding is provided for the following:
       $14,300,000 for the Department of State, for security 
     upgrades at Gulf region posts, the Cairo embassy, and 
     relocation of US&FCS facilities in Cairo and Jeddah, and 
     security upgrades, to U.S. owned residences.
       $9,400,000 to provide security upgrades and relocations for 
     42 non-chancery US&FCS locations worldwide. The conferees 
     direct that a plan be provided to the Committees on 
     Appropriation within 30 days describing how these funds will 
     be expended and for what locations; and
       $1,125,000 for USIA for overseas security, including 
     radios, security enhancement projects, and light armored 
     vehicles.


           emergencies in the diplomatic and consular service

       The conference agreement includes $5,800,000 for 
     Emergencies in the Diplomatic and Consular Service account, 
     as provided in both the House and Senate-reported bills.


                   repatriation loans program account

       The conference agreement includes a total appropriation of 
     $1,256,000 for the Repatriation Loans Program account, as 
     provided in both the House and Senate-reported bills.


              payment to the american institute in taiwan

       The conference agreement includes $14,490,000 for the 
     Payment to the American Institute in Taiwan account, instead 
     of $15,001,000 as proposed in the House bill, and $14,165,000 
     as proposed in the Senate-reported bill.


     payment to the foreign service retirement and disability fund

       The conference agreement includes $126,491,000 for the 
     Payment to the Foreign Service Retirement and Disability Fund 
     account, as provided in both the House and Senate-reported 
     bills.

              International Organizations and Conferences


              contributions to international organizations

       The conference agreement includes $892,000,000 for 
     Contributions to International Organizations to pay the costs 
     assessed to the United States for membership in international 
     organizations, instead of $875,000,000, as proposed in the 
     House bill, and $550,000,000 as proposed in the Senate-
     reported bill.
       The conference agreement provides that $100,000,000 of the 
     assessment for the United Nations can be made available only 
     after the Secretary of State certifies by January 30, 1997 
     that the United Nations has taken no action during calendar 
     year 1996 to increase funding for any United Nations program 
     without identifying an offsetting decrease elsewhere in the 
     United Nations budget and cause the United Nations to exceed 
     its no growth budget for the biennium 1996-1997 adopted in 
     December, 1995. The House and Senate-reported bills contained 
     language that would have made the funds available on a 
     quarterly basis in fiscal year 1997 only after such a 
     certification.
       The conference agreement provides that if the Secretary 
     cannot make such a certification by January 30, 1997, the 
     $100,000,000 is to be applied to the assessments for other 
     international organizations in the current or next fiscal 
     year, subject to reprogramming.
       The Senate-reported bill stated that the amount was to be 
     applied to reducing the fiscal year 1998 obligations for 
     specific organizations. The House bill contained no provision 
     on this issue.
       The conference agreement provides that $10,000,000 may be 
     transferred to the International Conferences and 
     Contingencies account for contributions to new or provisional 
     international organizations or to provide funding for the 
     travel expenses of official delegates to international 
     conferences, subject to reprogramming. Both the House and 
     Senate-reported bills provided that the transfer could be 
     made only for new or provisional international organizations.
       The conference agreement includes all language that was 
     identical in the House and Senate-reported bills.
       The conferees agree that from the amounts provided, five 
     organizations be provided the full assessment: the 
     International Atomic Energy Agency, the North Atlantic Treaty 
     Organization and the related North Atlantic Assembly, the 
     United Nations, and the International Civil Aviation 
     Organization (ICAO). Funding for ICAO is provided as part of 
     the comprehensive counterterrorism initiative included in 
     this conference report, and the conferees urge the U.S. 
     delegation to place increased emphasis on international 
     flight safety and airport security.
       The conferees agree that no funding is to be provided to 
     the five organizations for which funding was not provided in 
     fiscal year 1996.
       Allocation of the remaining funds included in the 
     conference agreement is to be made in conjunction with an 
     assessment of the importance of the international 
     organizations to the national interest of the United States. 
     The Department is expected to report the results of its 
     review of these organizations to the Appropriations 
     Committees no later than January 30, 1997.
       The conferees adopt by reference the language in the Senate 
     report concerning the Framework Convention on Climate Change.
       The conferees agree that no funding is provided for world-
     wide conferences.
       The conferees are aware that despite the position of the 
     United States that reductions are required, the budget for 
     the United Nations Conference on Trade and Development 
     (UNCTAD) is exactly the same during the current biennium as 
     it was in the last. The Department is asked to report within 
     30 days of enactment of this legislation on the efforts it is 
     making, in conjunction with the Under-Secretary-General for 
     Management of the United Nations, to find additional budget 
     savings in UNCTAD.
       The conferees are aware that the World Intellectual 
     Property Organization is running a surplus of approximately 
     $100,000,000, and is proposing to spend those funds on a new 
     building. The conferees applaud the position of the United 
     States in opposition to the new building and encourage 
     efforts to use the budget surplus to reduce assessments or to 
     provide rebates to participants.
       The Pan American Health Organization (PAHO) is to be 
     commended for its improved efforts to keep the Congress 
     informed of its activities. PAHO is urged to maintain these 
     efforts.


        contributions for international peacekeeping activities

       The conference agreement provides $352,400,000 for 
     Contributions for International Peacekeeping Activities, 
     instead of $332,400,000, as proposed by the House, and 
     $282,600,000 as proposed in the Senate-reported bill.
       The conference agreement includes language included in the 
     House bill, provided that of the total amount $50,000,000 is 
     for payment of arrearages, which shall be available only upon 
     certification by the Secretary of State that at least two of 
     the following have been achieved: (1) savings of at least 
     $100,000,000 in the biennial expenses of certain United 
     Nations divisions and activities; (2) the number of 
     professional and general service staff employed by the United 
     Nations at the end of the current biennium will be at least 
     ten percent below the number of such

[[Page H11861]]

     positions at the beginning of the biennium; and (3) the 
     United Nations has adopted a budget outline for the 1998-1999 
     biennium that is below the current biennial budget, as part 
     of a five-year program to achieve major cost-saving reforms 
     in the United Nations and specialized agencies. The Senate-
     reported bill contained no provision on payment of 
     arrearages.
       The conferees cannot support payment of arrearages if the 
     funding will be used to support wasteful, business-as-usual 
     practices. Any effort to address arrearages will be taken a 
     step at a time, and a year at a time, and should be 
     proportional to the reform that the United Nations achieves.
       Of the funds provided by the conference agreement, up to 
     $20,000,000 is for contingencies related to African crises, 
     particularly Burundi. If contingencies related to potential 
     African crises arise that require use of these funds, the 
     funds will be subject to the regular Committee review 
     procedures under this heading prior to obligation.
       The conference report contains all other language that was 
     identical in the House and Senate-reported bills.

                       International Commissions

 International Boundary and Water Commission, United States and Mexico


                         salaries and expenses

       The conference agreement includes $15,490,000 for Salaries 
     and Expenses of the International Boundary and Water 
     Commission (IBWC), instead of $18,490,000 as proposed in both 
     the House and the Senate-reported bills. The reason for the 
     reduction is that the International Boundary and Water 
     Commission has indicated that the results of contract 
     negotiations on pending contracts have resulted in lower 
     requirements than anticipated.


                              construction

       The conference agreement includes $6,463,000 for the 
     Construction account of the IBWC, as proposed by the House, 
     instead of $7,568,000, as proposed by the Senate. The amount 
     provided in the conference agreement, together with remaining 
     funds previously appropriated for Mexican participation in 
     the International Wastewater Treatment Plant, for which no 
     use has been identified, is sufficient to fund all 
     construction projects requested in the budget.
       The conferees recognize that the issue of responsibility 
     for the repair and maintenance of the International Outfall 
     Line that conveys sewage from Mexico to the Nogales 
     International Water Treatment Plant has not been resolved. 
     The Committee requests that IBWC work diligently to resolve 
     the issues with the City of Nogales, Arizona, and finalize an 
     agreement by October 1, 1997.

              American Sections, International Commissions

       The conference agreement includes $5,490,000 for the U.S. 
     share of expenses of the International Boundary Commission, 
     the International Joint Commission, United States and Canada, 
     and the Border Environment Cooperation Commission, as 
     provided in the House bill, instead of $5,627,000 as provided 
     in the Senate-reported bill. The reduction from the budget 
     request is to be taken proportionately from the three 
     Commissions.

                  International Fisheries Commissions

       The conference agreement includes $14,549,000 for the U.S. 
     share of the expenses of the International Fisheries 
     Commissions and related activities. The House bill provided 
     $10,450,000. The Senate-reported bill provided $9,051,000. 
     Both bills provided that $4,099,000 for the Great Lakes 
     Fishery Commission sea lampricide program be funded under the 
     National Oceanic and Atmospheric Administration. The 
     conference agreement includes funding for that program under 
     this account. The reduction from the budget request is to be 
     taken from increases requested for any Commission over its 
     fiscal year 1996 funding level.
       For the Great Lakes Fishery Commission, the conferees 
     intend that the U.S. participation in the Commission be 
     provided in a comparable manner to Canadian participation.
       The conferees request that in the fiscal year 1998 budget, 
     the Department display funding for this account in a manner 
     that makes it clear how much of the funding for each 
     Commission is related to supporting the cost of the 
     international secretariat of each Commission, and how much of 
     the cost is related to supporting other programmatic 
     activities, and what those activities are.

                                 Other

                     Payment to the Asia Foundation

       The conference agreement includes $8,000,000 for the 
     Payment to the Asia Foundation account, the amount provided 
     in the House bill, instead of no funding, as provided in the 
     Senate-reported bill.

                            RELATED AGENCIES

                  Arms Control and Disarmament Agency

                Arms Control and Disarmament Activities

       The conference agreement includes $41,500,000 for the Arms 
     Control and Disarmament Agency (ACDA), instead of 
     $38,495,000, as proposed in the House bill, and instead of 
     $30,000,000 as proposed in the Senate-reported bill. To the 
     maximum extent possible, reductions from the current year 
     operating level should be taken from administrative 
     functions, rather than from programmatic staff involved in 
     technical aspects of ACDA's activities, including monitoring 
     functions.

                    United States Information Agency


                         salaries and expenses

       The conference agreement includes $441,375,000 for Salaries 
     and Expenses of the United States Information Agency (USIA), 
     of which $440,000,000 is for the regular operations of the 
     Agency, as proposed in the Senate-reported bill, instead of 
     $439,300,000, as proposed in the House bill; and $1,375,000 
     is for antiterrorism and security purposes, provided in 
     response to the Administration's antiterrorism budget 
     amendment submitted on September 12, 1996 and designated as 
     an emergency requirement under the Balanced Budget and 
     Emergency Deficit Control Act of 1985, which is described in 
     more detail below. All other bill language, which is 
     identical in the House and Senate bills, is included in the 
     conference agreement, except for one technical modification 
     to assure that fees from student advising and counseling may 
     be credited to this appropriation in the absence of an 
     authorization.
       Security Enhancements. The conference agreement includes 
     $1,375,000 for enhanced security for U.S. personnel and 
     facilities for USIA's five main facilities in Washington, and 
     19 facilities throughout the U.S. The funding will provide 
     for additional guard staff, glass protection, construction of 
     package/mail/visitor screening areas, alarms, locks and video 
     surveillance.


                            technology fund

       The conference agreement includes $5,050,000 for the 
     Technology Fund, as provided in both the House and Senate-
     reported bills.


               educational and cultural exchange programs

       The conference agreement includes $185,000,000 for 
     Educational and Cultural Exchange Programs, as proposed in 
     the House bill, instead of $183,000,000, as proposed in the 
     Senate-reported bill.
       To the maximum extent possible, the conferees urge that the 
     following exchange programs be supported: the International 
     Visitors Program, the Pepper Scholarships, including the 
     Executive Education Program for Central European Business and 
     Professional Leaders, the Muskie Fellowships, the Humphrey 
     Fellowships, the Disability Exchange Clearinghouse, the 
     Congress Bundestag Exchanges, the South Pacific Exchanges, 
     other Asian exchanges, the Institute for Representative 
     Government, and the United States/Mexico Conflict Resolution 
     Center.
       USIA shall disburse funds to the Mansfield Center for 
     Pacific Affairs as provided in the Senate report.
       The conferees intend that $1,000,000 is to be available for 
     the Center for Irish Management.
       The conferees intend that the remaining program direction 
     included in both the House and the Senate reports be 
     followed.
       The conferees expect that a proposal for the distribution 
     of the available resources among exchange programs, as well 
     as propose enhancements for exchanges with the Newly 
     Independent States, will be submitted through the normal 
     reprogramming process prior to final decisions being made.


           eisenhower exchange fellowship program trust fund

       The conference agreement includes language as provided in 
     both the House and Senate bills, allowing all interest and 
     earnings accruing to the Trust Fund in fiscal year 1997 to be 
     used for necessary expenses of the Eisenhower Exchange 
     Fellowships.


                    israeli arab scholarship program

       The conference agreement language as provided in both the 
     House and Senate bills, allowing all interest and earnings 
     accruing to the Scholarship Fund in fiscal year 1997 to be 
     used for necessary expenses of the Israeli Arab Scholarship 
     Program.


                 international broadcasting operations

       The conference agreement includes $325,000,000 for 
     International Broadcasting Operations, as proposed in the 
     Senate-reported bill, instead of $335,700,000 as proposed in 
     the House bill. The conference agreement does not include 
     funds for radio broadcasting to Cuba under this account, as 
     proposed by the House, but rather includes all funding for 
     Broadcasting to Cuba under a separate account, as proposed by 
     the Senate, consistent with the fiscal year 1996 
     appropriations Act.
       The conference agreement does not contain a provision 
     included in the House bill stating that $9,300,000 may be 
     made available for the operating costs of Radio Free Asia. 
     However, the conferees are agree that up to $9,300,000 may be 
     made available for this purpose from the funding available 
     under this account.
       The conferees note that the Broadcasting Board of Governors 
     has submitted an operating plan for Radio Free Asia. However, 
     before such a plan can be approved, and additional FY 1997 
     funds expended, more specific information must be provided to 
     the committees concerning transmission facilities, costs, and 
     potential offsets for broadcast hours and costs from the 
     Voice of America and from the rest of the Bureau of 
     Broadcasting. The conferees are aware that RFA has carryover 
     balances of at least $5,000,000 that may be expended in FY 
     1997 pending approval of a final FY 1997 operating plan. 
     Because RFA is a new organization, the conferees request 
     monthly progress reports and expect that a complete plan for 
     the total broadcasts to be funded in FY 1997 be submitted no 
     later than December 1, 1996 in accordance with Section 605 
     reprogramming requirements. Thereafter, the conferees direct

[[Page H11862]]

     that quarterly progress reports be submitted to the 
     appropriate committees of jurisdiction concerning 
     implementation of the plan
       The conference agreement does not contain a provision 
     included in the Senate-reported bill, making $5,000,000 
     available until expended.
       The conference agreement includes citations of underlying 
     authorization statutes in the form proposed in the House 
     bill, instead of in the form proposed in the Senate-reported 
     bill.
       The conferees expect that the Committees will be notified 
     of the final distribution of funding among the activities 
     under this account pursuant to the normal reprogramming 
     procedures.


                          broadcasting to cuba

       The conference agreement includes $25,000,000 for 
     Broadcasting to Cuba under a separate account, as proposed in 
     the Senate-reported bill, instead of $13,375,000 for radio 
     broadcasting to Cuba within the total for International 
     Broadcasting Operations, as proposed in the House bill.

                           Radio Construction

       The conference agreement includes $35,490,000 for Radio 
     Construction, instead of $39,000,000, as proposed in the 
     House bill, and $32,000,000, as proposed in the Senate-
     reported bill. The account provides funding for the following 
     activities: maintenance, improvements, replacements and 
     repairs; satellite and terrestrial program feeds; engineering 
     support activities; and broadcast facility leases and land 
     rentals.
       The conferees expect USIA to report on the expected 
     distribution of funds in fiscal year 1997 including carryover 
     through the normal reprogramming procedure.


                            east-west center

       The conference agreement includes $10,000,000 for 
     operations of the East-West Center, instead of no funds, as 
     proposed in the House bill, and $11,750,000, as proposed in 
     the Senate-reported bill.


                           north/south center

       The conference agreement includes $1,495,000 for operations 
     of the North/South Center, instead of no funds, as proposed 
     in the House bill, and $2,000,000, as proposed in the Senate-
     reported bill.


                    national endowment for democracy

       The conference agreement includes $30,000,000 for the 
     National Endowment for Democracy, as provided in the House 
     bill, instead of no funds, as provided in the Senate-reported 
     bill.

      General Provisions--Department of State and Related Agencies

       Sec. 401.--The conference agreement includes section 401, 
     as provided in both the House and Senate-reported bills, 
     permitting use of funds for allowances, differentials, and 
     transportation.
       Sec. 402.--The conference agreement includes section 402, 
     as provided in both the House and Senate-reported bills, 
     dealing with transfer authority.
       Sec. 403.--The conference agreement includes section 403, 
     as provided in both the House and Senate bills, dealing with 
     the compensation of the United States Commissioner of the 
     International Boundary Commission, United States and Canada.
       Sec. 404.--The conference agreement includes a provision 
     waiving provisions of existing legislation that require 
     authorizations to be in place for State Department, United 
     States Information Agency, including International 
     Broadcasting Operations, and Arms Control and Disarmament 
     Agency activities prior to the expenditure of any 
     appropriated funds, as provided in both the House- and 
     Senate-reported bills.
       Sec. 405.--The conference agreement includes a provision 
     requiring any personnel costs incurred by any Department or 
     agency funded under this title as a result of funding 
     reductions be absorbed within the total budgetary resources 
     available to the Department or agency, and providing 
     authority to transfer funds between appropriations accounts 
     for that purpose, as proposed in both the House and Senate-
     reported bills.
       Sec. 406.--The conference agreement includes a provision 
     stating that starting sixty days after the enactment of this 
     Act, none of the funds made available by this Act may be used 
     to fund the Standing Consultative Commission unless the 
     President provides a report to the Congress containing a 
     detailed analysis of whether the Memorandum of Understanding 
     on Succession and the Agreed Statement regarding Demarcation 
     agreed to by the Standing Consultative Commission represent 
     substantive changes to the Anti-Ballistic Missile Treaty of 
     1972 and whether these agreements will require the advice and 
     consent of the Senate of the United States. The House bill 
     contained a provision prohibiting funding for the Standing 
     Consultative Commission or to implement changes to the Anti-
     Ballistic Missile Treaty unless the President certifies to 
     the Congress that any such changes will be submitted to the 
     Senate for its advice and consent. The Senate-reported bill 
     contained no provision on this matter.
       Sec. 407.--The conference agreement includes a provision, 
     not in either the House or the Senate-reported bill, which 
     permits the Secretary of State to authorize State officials 
     or the United States Postal Service to collect and retain the 
     execution fee for passport applications.

                       TITLE V--RELATED AGENCIES

                        Maritime Administration


                    operating-differential subsidies

                  (liquidation of contract authority)

       The conference agreement includes $148,430,000 for payment 
     of obligations incurred for the Maritime Administration 
     (MARAD) operating differential subsidy program, as provided 
     in both the House and Senate-reported bills.


                       maritime security program

       The conference agreement includes $54,000,000 for the 
     Maritime Security Program (MSP) which provides payments to 
     maintain and preserve a U.S.-flag merchant fleet for the 
     national security needs of the United States, subject to the 
     authorization of the program. The Senate-reported bill 
     contained no funding for MSP. The House bill includes 
     $63,000,000. This program is funded under the allocation for 
     national security programs. The conferees expect MARAD to 
     submit a notification of the proposed distribution of these 
     funds to the House and Senate Committees on Appropriations 
     prior to the initiation of the program.


                        operations and training

       The conference agreement includes $65,000,000 for the 
     Maritime Administration Operations and Training account 
     instead of $66,600,000 as proposed by the Senate and instead 
     of $62,300,000 as proposed by the House. The conferees intend 
     that funding for the operation and maintenance of the U.S. 
     Merchant Marine Academy and the State maritime schools be at 
     no less than their respective fiscal year 1996 appropriated 
     levels. The conference agreement does not specifically 
     allocate the balance of the funds in this account.


          maritime guaranteed loan (title xi) program account

       The conference agreement provides $37,450,000 is subsidy 
     appropriations for the Maritime Guaranteed Loan Program as 
     proposed by the House and Senate-reported bills. This amount 
     will subsidize a program level of not more than 
     $1,000,000,000 as proposed by both the House and Senate-
     reported bills.
       The conferees have also included $3,450,000 for 
     administrative expenses associated with the Maritime 
     Guaranteed Loan Program, as proposed in the House and Senate-
     reported bills. These amounts may be transferred to and 
     merged with amounts under the MARAD Operations and Training 
     account.

           Administrative Provisions--Maritime Administration

       The conference agreement includes provisions contained in 
     both the House and Senate-reported bills involving Government 
     property controlled by MARAD, the accounting for certain 
     funds received by MARAD, and a prohibition on obligations 
     from the MARAD construction fund.

      Commission for the Preservation of America's Heritage Abroad


                         salaries and expenses

       The conference agreement provides $206,000 for the 
     Commission on the Preservation of America's Heritage Abroad, 
     as provided in both the House and Senate-reported bills.

                       Commission on Civil Rights


                         salaries and expenses

       The conference agreement includes $8,740,000 for the 
     salaries and expenses of the Commission on Civil Rights, as 
     proposed in both the House and Senate-reported bills.

                    Commission on Immigration Reform


                         salaries and expenses

       The conference agreement $2,196,000, as proposed in both 
     the House and Senate-reported bills.

            Commission on Security and Cooperation in Europe


                         salaries and expenses

       The conference agreement includes $1,090,000 for the 
     Commission on Security and Cooperation in Europe, as provided 
     in both the House and Senate-reported bills.

                Equal Employment Opportunity Commission


                         salaries and expenses

       The conference agreement includes $239,740,000 for the 
     salaries and expenses of the Equal Employment Opportunity 
     Commission, as provided in both the House and Senate-reported 
     bills. The House bill provided $232,740,000 under this 
     account, but under section 618, an additional $7,000,000 was 
     provided.
       Within the total amount, the conference agreement includes 
     $27,500,000 for payments to State and local enforcement 
     agencies for services to the Commission, instead of 
     $26,500,000, as provided in both the House and Senate-
     reported bills.

                   Federal Communications Commission


                         salaries and expenses

       The conference agreement provides a total of $189,079,000 
     for the salaries and expenses of the Federal Communications 
     Commission instead of $185,619,000 as proposed by the House, 
     and $192,538,00 as proposed in the Senate-reported bill. The 
     conference agreement provides for the collection and 
     retention of $152,523,000 in offsetting fee collections as 
     provided in the Senate-reported bill instead of $126,400,000 
     as provided in the House bill.
       The conference agreement includes language proposed by the 
     House and included in previous appropriations Acts, allowing 
     fees in excess of the amounts specified to remain available 
     for expenditure in future years.
       The conference agreement does not include language, 
     proposed in the Senate-reported

[[Page H11863]]

     bill, to prohibit funds from being used to relocate the FCC 
     headquarters to the Portals. However, the conference 
     agreement does not include the requested $30,000,000 increase 
     for costs related to this relocation. The conferees 
     understand that there have been delays, thereby reducing the 
     fiscal year 1997 requirements to $19,000,000. However, even 
     with the reduced requirement, the funding allocation provided 
     in this conference agreement will not support such 
     significant increases for this agency in the current fiscal 
     climate. The conferees direct the FCC to work with the 
     General Services Administration to decrease the overall cost 
     of the relocation and to identify alternative mechanisms to 
     finance the relocation. The conferees expect the FCC to take 
     actions to further streamline its operations as recommended 
     in the House report, and intend that no funds be diverted 
     from FCC activities directly related to implementation of the 
     Telecommunications Act. Should actions relating to this 
     proposed relocation be necessary in fiscal year 1997, the FCC 
     would be required to submit a reprogramming in accordance 
     with section 605 of this Act to cover the costs from within 
     available resources.
       The conference agreement does not include a provision 
     proposed in the House bill prohibiting funds provided in the 
     Act to be used to deny or delay action on licenses for any 
     religious or religiously affiliated entity on the basis of 
     certain employment practices. The Senate-reported bill 
     contained no provision on this matter. However, while this 
     provision has been deleted from the bill, concerns remain 
     that actions taken by the FCC to challenge radio license 
     applications or renewals for religious broadcasters on the 
     grounds that requiring religious knowledge, training or 
     expertise for employees is discriminatory. These concerns 
     have arisen because of the potential impact of such actions 
     on legitimate religious free speech. Therefore, the conferees 
     direct the FCC not to deny any license application or renewal 
     on these grounds inconsistent with the right to exercise this 
     free speech in recruitment and hiring practices. If the FCC 
     does move to deny a license application or renewal for a 
     religious broadcaster according to its policy, it shall 
     report to the Committees on its actions and include a 
     demonstration that is not abridging the free speech of 
     religious broadcasters.

                      Federal Maritime Commission


                         salaries and expenses

       The conference agreement includes $14,000,000 for the 
     salaries and expenses of the Federal Maritime Commission, 
     instead of $14,450,000 as proposed in the Senate-reported 
     bill and $11,000,000 as proposed in the House bill.

                        Federal Trade Commission


                         salaries and expenses

       The conference agreement allows a total operating level of 
     $101,930,000 for the Federal Trade Commission, instead of 
     $93,819,000 as proposed in the House bill and $104,462,000 as 
     proposed in the Senate-reported bill. The conference 
     agreement assumes that of the amount provided, $58,905,000 
     will be derived from fees collected in fiscal year 1997 and 
     $16,000,000 will be derived from estimated unobligated fee 
     collections available from 1996. These actions result in a 
     final appropriated level of $27,025,000, the same as provided 
     by the House.
       Use of any unobligated fee collections from 1996 above 
     $16,000,000 are subject to the reprogramming requirements 
     outlined in section 605 of this Act.
       The conference agreement does not include a change in the 
     fee structure for Hart-Scott-Rodino fees as proposed in the 
     Senate-reported bill, which would have eliminated the 
     requirement for any direct appropriation for this account.

                    Gambling Impact Study Commission


                         salaries and expenses

       The conference agreement includes $4,000,000 for the 
     salaries and expenses of the Gambling Impact Study 
     Commission, instead of $2,000,000 as proposed by the Senate. 
     The House bill did not include a provision. This commission 
     was authorized by Public Law 104-169, signed into law on 
     August 3, 1996.

               Japan-United States Friendship Commission


               japan-united states friendship trust fund

       The conference agreement does not provide an appropriation 
     for the Japan-United States Friendship Commission, as 
     proposed in the House bill, instead of $1,250,000 from 
     interest earned on the Japan-United States Friendship Trust 
     Fund and an amount of Japanese currency not to exceed the 
     equivalent of $1,420,000 for the expenses of the Japan-United 
     States Friendship Commission, as provided in the Senate-
     reported bill.
       Under terms of Public Law 94-118, which established the 
     Commission, it was authorized to spend up to five percent of 
     the principal of the Japan-United States Friendship Trust 
     Fund. Since 1990, however, the Commission has operated under 
     a policy of not spending funds out of the principal and 
     relying on appropriations of interest earned on the Fund to 
     finance its operations, supplemented by gifts from outside 
     sources.
       The conferees believe that, in this time of fiscal 
     restraint, it makes better sense for the Commission to 
     operate on a self-financing basis, as was apparently 
     envisioned in the original legislation, by spending five 
     percent of its Fund capital per year. The Fund currently 
     contains approximately $15,000,000. These funds, together 
     with funds obtained from outside sources, would allow the 
     Commission to maintain its highest priority activities 
     without the need for annual appropriations. Any interest 
     earnings of the fund that accrue in the Commission's account 
     will be considered to be original principal.

                       Legal Services Corporation


               payment to the legal services corporation

       The conference agreement includes $283,000,000 for payment 
     to the Legal Services Corporation instead of $250,000,000 as 
     proposed in the House bill and $288,000,000 as proposed in 
     the Senate-reported bill.
       The conference agreement provides $274,400,000 for grants 
     to basic field programs and independent audits, $7,100,000 
     for management and administration, and $1,500,000 for the 
     Office of the Inspector General.


         administrative provisions--legal services corporation

       The conference agreement contains language, identical in 
     both the House bill and Senate-reported bill, continuing all 
     statutory requirements and restrictions included in the 
     fiscal year 1996 appropriations Act, with one modification. 
     Section 502 of both bills contains an exception to the 
     restrictions to allow non-Federal funds to be used to provide 
     legal assistance in domestic violence and related matters.
       The conference agreement makes several technical changes to 
     correct statutory citations that were incorrectly cited in 
     the House and Senate-reported bills.

                        Marine Mammal Commission


                         salaries and expenses

       The conference agreement includes $1,189,000 for the 
     salaries and expenses of the Marine Mammal Commission instead 
     of $1,385,000 as proposed in the Senate-reported bill and 
     $975,000 as proposed in the House bill.

                 National Bankruptcy Review Commission


                         salaries and expenses

       The conference agreement includes $494,000 for the salaries 
     and expenses of the National Bankruptcy Review Commission 
     instead of $498,000, as proposed in the Senate-reported bill, 
     and $490,000, as proposed in the House bill.

                      Ounce of Prevention Council

       The conference agreement includes $1,500,000 for the Ounce 
     of Prevention Council. Neither the House nor Senate-reported 
     bills proposed funding for this program.

                   Securities and Exchange Commission


                         salaries and expenses

       The conference agreement provides a total operating level 
     of $305,400,000 for the Securities and Exchange Commission, 
     instead of $297,021,000, as proposed in the House bill, and 
     $306,400,000, as proposed in the Senate-reported bill. The 
     conference agreement includes a reduction in registration 
     fees under section 6(b) of the Securities Act of 1933 from 
     fiscal year 1996, to one thirty-third of one percent, as 
     provided in both the House and Senate-reported bills, and a 
     transaction fee on over-the-counter transactions in the 
     amount of one three-hundredth of one percent of the aggregate 
     dollar amount of sales of last sale reported securities, to 
     be collected on a semi-annual basis, starting on January 1, 
     1997, instead of one eight-hundredth of one percent for each 
     $1,000,000 of the aggregate dollar amount of sales, starting 
     on September 1, 1996 or the date of enactment of this Act, 
     whichever is later, as provided in both the House and Senate-
     reported bills. These offsetting fees are expected to provide 
     $222,622,000 in fiscal year 1997. In addition, the conference 
     agreement assumes the use of $45,000,000 in carryover funds 
     from fiscal year 1996. These actions result in a net direct 
     appropriation of $37,778,000, instead of $58,047,000, as 
     provided in the House bill, and $64,426,000, as provided in 
     the Senate-reported bill.

                     Small business Administration


                         salaries and expenses

       The conference agreement provides an appropriation of 
     $235,047,000 for the Small Business Administration (SBA) 
     Salaries and Expenses account, instead of $214,419,000 as 
     proposed in the House bill and $33,190,000 as proposed in the 
     Senate-reported bill. In addition, the conference agreement 
     allows for the collection of $4,500,000 in offsetting fees to 
     offset this appropriation, instead of $6,000,000 in 
     offsetting fee collections proposed in the House bill and 
     $3,300,000 in fee collections proposed in the Senate-reported 
     bill, thus making $239,547,000 available under this account.
       In addition to amounts made available under this heading, 
     the conference agreement includes $94,000,000 for 
     administrative expenses under the Business Loans Program 
     Account and $86,500,000 for administrative expenses under the 
     Disaster Loans Program account, and $22,000,000 in emergency 
     fiscal year 1997 funding related to Hurricane Fran and 
     Hurricane Hortense provided in title IX of this bill. These 
     amounts are transferred to and merged with amounts available 
     under Salaries and Expenses, resulting in a total level of 
     $442,047,000 for SBA operating programs, noncredit and other 
     initiatives, instead of $414,482,000 as proposed in the House 
     bill and $408,580,000 as proposed in the Senate-reported 
     bill.
       The conference agreement provides that of the amounts 
     available under this account, $1,000,000 is designated only 
     for projects

[[Page H11864]]

     jointly developed, implemented and administered with the 
     Department of Commerce's Minority Business Development 
     Agency, instead of $3,000,000 designated for this purpose in 
     the House bill. The conference agreement provides this 
     funding under the 7(j) technical assistance program under 
     noncredit initiatives. In addition, the conference agreement 
     adopts the recommendations included in the House report 
     regarding this matter. The Senate-reported bill contained no 
     provision on this matter.
       The conference agreement includes a provision, not included 
     in either the House bill or Senate-reported bill, providing 
     two year availability for funds provided for the Small 
     Business Development Center program. Of this amount, 
     $2,000,000 is to continue efforts by the SBDC defense 
     transition programs started in fiscal year 1995.
       The conference agreement includes the following amounts for 
     noncredit programs:

Small Business Development Centers..........................$73,500,000
SBDC Defense Transition.......................................2,000,000
7(j) Technical Assistance.....................................2,600,000
  (Joint MBDA/SBA Technical Assistance).....................(1,000,000)
SCORE.........................................................3,300,000
Business Information Centers....................................485,000
Women's Demonstration.........................................4,000,000
Women's Council.................................................194,000
EZ/EC One Stop Capital Shops..................................2,767,000
Microloan Technical Assistance...............................12,000,000
US Export Assistance Centers..................................2,500,000
                                                       ________________
                                                       
    Total...................................................103,346,000

       The conference agreement provides no funds for Advocacy 
     Research. However, the conferees would be willing to 
     entertain a reprogramming subject to section 605 of this Act 
     to maintain activities approved in fiscal year 1996.
       The conference agreement adopts language included in the 
     House report directing the SBA to continue to support 
     activities assisting small businesses to adapt to a paperless 
     procurement environment, and activities assisting small 
     businesses in complying with the requirements of the Clean 
     Air Act. In addition, the conference agreement expects that 
     SBA will support activities which assist small businesses in 
     making the transition to meet both military and ISO 9000 
     quality systems requirements. The conferees also expect SBA 
     to support business outreach programs at urban universities 
     referenced in the Senate report.
       The conferees have provided $4,000,000 for the Women's 
     Outreach Program. Within these amounts, the conferees expect 
     SBA to follow the direction given in the Senate report with 
     respect to this program.
       In June 1996, the Committees approved a reorganization 
     proposal submitted by the SBA as part of its Reinventing 
     Government (REGO) II proposal to downsize its regional 
     offices in order to devote additional resources to the 
     district offices. The conferees are concerned that SBA may be 
     taking actions to reorganize and augment its regional office 
     structure, contrary to the intent of REGO II, and are 
     disturbed that such action is being taken without proper 
     notification to the Committees in accordance with section 605 
     of this, and prior, appropriations Acts. Therefore, the 
     conferees direct SBA to immediately cease all activities to 
     increase staffing in the regional offices.
       In addition, the conferees expect the SBA to follow the 
     direction included in the Senate report concerning filling 
     vital technical and support positions. In addition, the 
     conference agreement includes the following small business 
     initiatives: $3,000,000 for continuation of an outreach 
     program to assist small business development; $7,000,000 for 
     small business and rural technology development assistance, 
     $1,000,000 for construction activities increasing small 
     business opportunities and economic development; and $500,000 
     for continuation of a program for small business consulting 
     and technical assistance.
       Further, the conferees continue to believe the SBA should 
     move forward with a program to consolidate and streamline 
     activities. The conferees believe that SBA can satisfy the 
     increased demands on its programs by greater reliance on 
     centralization of loan processing, servicing, and liquidation 
     activities, and encourage SBA to continue to work with the 
     Committees regarding this matter. In addition,the conferees 
     encourage SBA to explore opportunities for privatization of 
     some functions, such as the disaster loan servicing and 
     liquidation, to help improve management of the portfolio.
       In addition, the conferees are supportive of efforts to 
     upgrade SBA's computer systems to improve the financial 
     management of its operations and loan portfolios. Therefore, 
     the conferees urge the SBA to work with the Committees in 
     this endeavor.


                      office of inspector general

       The conference agreement provides $9,000,000 for the SBA 
     Office of Inspector General as proposed in the Senate-
     reported bill instead of $8,900,000 as proposed in the House 
     bill.
       Further, as proposed in both the House bill and the Senate-
     reported bill, an additional $500,000 has been provided under 
     the administrative expenses of the Disaster Loans Program to 
     be made available to the Office of Inspector General for work 
     associated with oversight of the disaster loans program.


                     business loans program account

       The conference agreement includes $277,708,000 in 
     appropriations under the SBA Business Loans Program Account, 
     instead of $258,153,000 as proposed in the House bill and 
     $309,199,000 as proposed in the Senate-reported bill.
       Of the amounts provided under this account, $1,691,000 is 
     for the microloan direct loan program. Both the House bill 
     and the Senate-reported bill provided $2,792,000 for this 
     program. The conference agreement reduces this amount due to 
     the availability of $5,000,000 in unobligated balances 
     carrying forward into fiscal year 1997 for this program.
       The conference agreement also designates $40,510,000 of the 
     total amount provided shall be available until September 30, 
     1998, as provided in both the House bill and the Senate-
     reported bill.
       The conference agreement provides $158,000,000 in subsidy 
     appropriations for the 7(a) general business guaranteed loan 
     program, instead of $144,200,000 as proposed in the House 
     bill and $174,500,000 as proposed in the Senate-reported 
     bill. When combined with prior year carryover balances of 
     $40,500,000 in subsidy appropriations, this amount will 
     subsidize a $7,900,000,000 program level upon enactment of 
     legislative changes under consideration by the Congress, as 
     compared to a $7,200,000,000 program level in fiscal year 
     1996.
       In addition, $21,700,000 is provided for the Small Business 
     Investment Corporation debenture and participating securities 
     programs, instead of $16,459,000 as proposed in the House 
     bill and $35,500,000 as proposed in the Senate-reported bill. 
     Upon enactment of legislative changes under consideration by 
     the Congress, these subsidy amounts will result in a program 
     level of $225,000,000 for the SBIC debenture program and 
     $400,000,000 for the SBIC participating securities program.
       Within the total amount provided under this account, the 
     conference agreement provides $2,317,000 for the microloan 
     guaranty program as proposed in the Senate-reported bill, 
     instead of $1,216,000 included in the House bill. The 
     conferees continue to support the transition of microloans 
     from a direct loan program to a guaranteed loan program.
       In addition, the conference agreement includes $94,000,000 
     for administrative expenses to carry out the direct and 
     guaranteed loan programs, instead of $93,485,000 proposed in 
     the House bill and $94,090,000 as proposed in the Senate-
     reported bill. The amount provided for administrative 
     expenses is available to be transferred to and merged with 
     the appropriations for Salaries and Expenses.


                     disaster loans program account

       The conference agreement includes $105,432,000 for subsidy 
     costs associated with the SBA Disaster Loan Program as 
     proposed in the House bill, the same amount that was made 
     available in fiscal year 1996 through a combination of 
     regular and emergency appropriations. The conference 
     agreement provides a $39,632,000 increase above the amounts 
     requested by the Administration and provided in the Senate-
     reported bill for disaster loan subsidy costs. In addition to 
     amounts made available under this title for disaster 
     assistance, an additional $113,000,000 in emergency fiscal 
     year 1997 funding is included in title IX of the bill to 
     provide disaster loans for individuals and businesses 
     impacted by Hurricanes Fran and Hortense, and other natural 
     disasters.
       The conference agreement provides $86,500,000 for 
     administrative expenses under this account, instead of 
     $92,578,000 as proposed by the House and $78,000,000 as 
     proposed in the Senate-reported bill. In addition to amounts 
     made available under this title, an additional $22,000,000 in 
     emergency appropriations is provided in title IX of the bill 
     to provide necessary administrative expenses for SBA disaster 
     loan administrative activities related to Hurricane Fran and 
     Hurricane Hortense.


                 surety bond guarantees revolving fund

       The conference agreement provides $3,730,000 for additional 
     capital for the SBA Surety Bond Guarantees Revolving Fund as 
     proposed in both the House bill and the Senate-reported bill.


        administrative provision--small business administration

       The conference agreement includes section 504, providing 
     SBA with the authority to transfer funds between 
     appropriations accounts, as provided in the House bill and 
     the Senate-reported bill.

                        State Justice Institute


                         salaries and expenses

       The conference agreement provides $6,000,000 for the 
     salaries and expenses of the State Justice Institute (SJI) 
     instead of $10,000,000 as proposed by the Senate and instead 
     of no funds as proposed by the House.
       The House report directed the Office of Justice Programs 
     (OJP) to provide a portion of State court assistance funds to 
     SJI under State and Local Law Enforcement Assistance under 
     title I. The Senate-reported bill did not provide funds for 
     State court assistance. The conference agreement does not 
     provide funds to OJP for State court assistance.

                      TITLE VI--GENERAL PROVISIONS

       The conference agreement includes the following general 
     provisions:
       Sec. 601.--The conference agreement includes section 601, 
     identical in both the House and Senate-reported versions of 
     the

[[Page H11865]]

     bill, regarding the use of appropriations for publicity or 
     propaganda purposes.
       Sec. 602.--The conference agreement includes section 602, 
     identical in both the House and Senate-reported versions of 
     the bill, regarding the availability of appropriations for 
     obligation beyond the current fiscal year.
       Sec. 603.--The conference agreement includes section 603, 
     identical in both the House and Senate-reported versions of 
     the bill, regarding the use of funds for consulting services.
       Sec. 604.--The conference agreement includes section 604, 
     identical in both the House and Senate-reported versions of 
     the bill, providing that should any provision of the Act be 
     held to be invalid, the remainder of the Act would not be 
     affected.
       Sec. 605.--The conference agreement includes section 605, 
     identical in both the House and Senate-reported versions of 
     the bill, establishing the policy by which funding available 
     to the agencies funded under this Act may be reprogrammed for 
     other purposes.
       Sec. 606.--The conference agreement includes section 606, 
     identical in both the House and Senate-reported versions of 
     the bill, regarding the construction, repair or modification 
     of National Oceanic and Atmospheric Administration vessels in 
     overseas shipyards.
       Sec. 607.--The conference agreement includes section 607 
     regarding the purchase of American-made products, as provided 
     in both the House and Senate-reported bills.
       Sec. 608.--The conference agreement includes section 608 
     which prohibits funds in the bill from being used to 
     implement, administer, or enforce any guidelines of the equal 
     Employment Opportunity Commission covering harassment based 
     on religion similar to proposed guidelines published by the 
     EEOC in October, 1993, as provided in both the House and 
     Senate-reported bills.
       Sec. 609.--The conference agreement repeats language 
     contained in P.L. 104-134 which prohibits use of funds in 
     this Act to expand U.S. diplomatic presence in Vietnam beyond 
     the level in effect on July 11, 1995, unless the President 
     certifies that Vietnam is cooperating in full faith with the 
     United States on POW/MIA issues, as proposed in the House 
     bill. The Senate-reported bill deleted this provision.
       Sec. 610.--The conference agreement includes section 610, 
     which repeats language contained in P.L. 104-134, prohibiting 
     the use of funds for any United Nations peacekeeping mission 
     that involves U.S. Armed Forces under the command or 
     operational control of a foreign national, unless the 
     President certifies that the involvement is in the national 
     security interest, as proposed in both the House and the 
     Senate-reported bills.
       Sec. 611.--The conference agreement includes section 611 
     which prohibits the use of funds to provide certain amenities 
     for Federal prisoners as provided for in both the House and 
     Senate-reported bills.
       Sec. 612.--The conference agreement includes a modified 
     version of section 612 restricting the use of funds provided 
     under the National Oceanic and Atmospheric Administration 
     Fleet Modernization account, as proposed in the House bill. 
     The Senate-reported bill deleted this provision. The 
     modification permits NOAA to develop long term plans to 
     support its fisheries research requirements.
       The conference agreement does not include section 613, as 
     proposed by the House, but deleted by the Senate-reported 
     bill, imposing a limitation on funding for TV Marti when it 
     is made known that such funds would be inconsistent with the 
     March 1995 Office of Cuba Broadcasting Reinventing Plan of 
     the United States Information Agency.
       Sec. 613.--The conference agreement includes section 613, 
     which requires agencies and Departments funded in this Act to 
     absorb any necessary costs related to downsizing or 
     consolidations within the amounts provided to the agency or 
     Department. Both the House and the Senate-reported bills 
     included this section as section 614.
       Sec. 614.--The conference agreement includes section 614, 
     which prohibits funds made available to the Federal Bureau of 
     Prisons from being used to make available any commercially 
     published information or material to a prisoner when it is 
     made known that such information or material is sexually 
     explicit or features nudity. Both the House and the Senate-
     reported bills included this section as section 615.
       Sec. 615.--The conference agreement includes section 615, 
     which requires a combined ten percent reduction in Community 
     Oriented Policing grants and the Local Law Enforcement Block 
     Grant, to a locality if it is made known that public safety 
     officers in that locality, who retire as a result of injuries 
     sustained in the line of duty do not continue to receive 
     health insurance benefits at the same or better level of 
     benefits as would be paid by the locality under a regular 
     retirement plan. The House bill proposed this provision as 
     section 616. The Senate-reported bill deleted this provision.
       The conference agreement does not include a provision 
     included in the House bill as section 617, and deleted in the 
     Senate-reported bill, which would have required a ten percent 
     reduction in funds provided to a State, local or Federal 
     prison, if the facility had not reported to the Attorney 
     General each death of any individual who dies in custody of 
     that prison and the circumstances surrounding the death. The 
     conferees agree that in developing the fiscal year 1997 
     solicitation for grant applications for the State Corrections 
     Grant program, the conferees direct the Office of Justice 
     Programs to review the feasibility of requiring States to 
     report the name and circumstance of deaths that occur at a 
     municipal or county jail, State or Federal prison, or other 
     similar facility for the confinement of accused or convicted 
     criminals. The conferees further direct the Office of Justice 
     Programs to provide the House and Senate Committees on 
     Appropriations with a report outlining recommendations for 
     the implementation of such a requirement by December 15, 
     1996.
       The conference agreement does not include a provision that 
     was included in the House bill as section 618, which was 
     deleted by the Senate-reported bill, that increased funding 
     for the Equal Employment Opportunity Commission and decreased 
     funding for Small Business Administration Disaster loan 
     program administrative expenses. Funding for these accounts 
     has been addressed in this conference agreement under title 
     V.
       Sec. 616.--The conference agreement includes section 616, 
     which includes language not in either the House or Senate-
     reported bill, that addresses the subject included in the 
     House bill as section 619 and deleted by the Senate-reported 
     bill. The provision included in this conference agreement 
     precludes the filing of civil action for damages or 
     injunctive relief against a medical practitioner licensed by 
     the State to provide the medical activity or related health 
     care entity who performs a medical activity that would 
     otherwise constitute an infringement or inducement to 
     infringe under 35 U.S.C. 271(a) or (b) for patents issued 
     after its enactment.
       The term ``medical activity'' as defined in subsection 
     287(c)(2)(A) does not include ``the practice of a patented 
     use of a composition of matter.'' The term ``patented use of 
     a composition of matter'' as used in subsection (c)(2)(A)(ii) 
     is limited by subsection (c)(2)(F). Subsection (c)(2)(F) 
     provides that the term ``patented use of a composition of 
     matter'' does not include any claim for performing a medical 
     or surgical procedure on a body that recites the use of the 
     composition of matter where the use of the composition of 
     matter does not directly contribute to the achievement of the 
     objective of the claimed method. A use of a composition of 
     matter as a step in a claim will direct contribute to the 
     achievement of the objective of the claimed method if it is 
     itself novel or if it contributes to or is necessary to 
     establish the non-obviousness of the claim as a whole.
       For a method claim in which each of the method steps 
     recites a ``use of a composition of matter'' the claim cannot 
     represent a ``medical activity'' because the use of a 
     composition of matter must necessarily contribute to the 
     novelty--and, therefore, to the objective--of the claimed 
     method. ``Uses of compositions of matter'' include, without 
     limitation, novel uses of drugs, novel uses of chemical or 
     biological reagents for diagnostic purposes, novel methods 
     for scheduling or timing administration of drugs, novel 
     methods for combining drug therapies, and novel methods for 
     providing genetic or other biological materials to a patient 
     (including gene therapies.) A particular example would be a 
     claim that recites only the novel use of a drug for the 
     treatment of diabetes that involves the administration of a 
     drug at a particular time of day and/or at a specified dose 
     and/or with a specified concomitant medicinal therapy could 
     not be construed as a ``medical activity.''
       For a ``hybrid'' claim, ie., a claim with at least one step 
     that recites the use of a composition of matter and at least 
     one step that is not directed to the use of a composition of 
     matter (e.g., a surgical step), the test established by 
     subsection (c)(2)(F) must be applied to determine whether the 
     claim as a whole is exempted from the definition of a 
     ``medical activity'' because it is a patented use of a 
     composition of matter. The first step in this test is to 
     determine the objective of the claimed method taking into 
     account all of the process steps set forth in the claim. The 
     second part of this test is to determine whether the steps 
     involving the use of one or more compositions of matter 
     either alone or in combination contribute directly to the 
     achievement of the objective of the claimed method. It is 
     interested that this part of the test will have been met if 
     the uses of the compositions of matter, either individually 
     or collectively, represents novel subject matter, or if one 
     or more of these steps contributes to or are necessary to 
     establish the non-obviousness of the claim as a whole. Thus, 
     even where the steps involving uses of one or more 
     compositions of matter are not novel individually or in 
     combination with each other, these uses may still directly 
     contribute to the achievement of the objective of the claimed 
     method if, in combination with the steps that involve 
     collectively obvious medical or surgical techniques, they 
     produce a novel and non-obvious method.
       As an example, in the case of a surgical method for 
     transplanting a healthy heart into a patient with a diseased 
     heart, the inclusion of the step administering a conventional 
     anaesthetic in a claim reciting a novel and non-obvious 
     surgical transplantation procedure would not cause the 
     surgical procedure to be treated as a patented use of a 
     composition of matter within the meaning of subsection 
     (c)(2)(A)(ii). Therefore, assuming none of the other 
     exceptions in subsection (c)(2)(A) apply, the claimed 
     surgical method would necessarily qualify as a medical 
     activity. In contrast, where the administration of

[[Page H11866]]

     the anaesthesia was accomplished, for example, using a novel 
     anaesthetic or a novel dosing schedule, the objective of the 
     claimed method would include the provision of a novel use of 
     an anaesthetic in transplantation surgery and the use of the 
     composition of matter (ie., the anaesthetic) would directly 
     contribute to the achievement of the objective.
       It is intended that the applicability of the exception in 
     (c)(2)(A)(ii) for a patented use of a composition of matter 
     can usually be decided by a motion to dismiss or summary 
     judgment under Rule 12(b) or Rule 56, respectively, of the 
     Federal Rules of Civil Procedure. For example, an accused 
     infringer seeking to invoke the relief from remedies afforded 
     under 287(c)(1) would ordinarily prevail under such a motion 
     if the following conditions are met: (1) the movant shows by 
     clear and convincing evidence that the recited uses of the 
     compositions of matter, both individually and collectively, 
     lack novelty, and (2) the movant also shows by a 
     preponderance of the evidence that the steps of the claimed 
     method that do not involve uses of compositions of matter 
     (ie., the medical or surgical procedure steps) are, by 
     themselves, novel and non-obvious, provided, however, that 
     the movant may concede the non-obviousness in lieu of making 
     the required evidentiary showing.
       Paragraph (c)(2)(A)(iii) excludes from the definition of 
     ``medical activity'' the practice of a patented process in 
     violation of a biotechnology patent. For the purposes of this 
     provision, the definition of the term ``biotechnology 
     patent'' includes a patent on a ``biotechnological process'' 
     as defined in 35 U.S.C. Sec. 103(b), as well as a patent on a 
     process of making or using biological materials, including 
     treatment using those materials, where those materials have 
     been manipulated ex vivo at the cellular or molecular level.
       Biological materials which may be manipulated ex vivo at 
     the cellular or molecular level include a variety of 
     cellular, intracellular, extracellular, and acellular 
     substances. Cellular substances include (but are not limited 
     to) cultured microbial and mammalian cells. Intracellular 
     substances include (but are not limited to) genetic 
     materials, such as DNA and RNA that is obtained from within 
     the cell. Extracellular substances include (but are not 
     limited to) proteins and other molecules that are secreted or 
     excreted by cells. Acellular substances include (but are not 
     limited to) viruses and other vectors for transmitting 
     genetic material.
       Ex vivo manipulation includes propagation, expansion, 
     selection, purification, pharmaceutical treatment, or 
     alteration of the biological characteristics of these 
     substances outside of a human body.
       This definition excluded medical procedures which do not 
     involve ex vivo cellular or molecular manipulation of a 
     biological material. For example, a patent on a method of 
     performing heart transplantation surgery, including the use 
     of a heart-lung machine, is excluded from this definition on 
     two grounds: first, the method involves manipulation in vivo, 
     not ex vivo, and second, the method does not manipulate the 
     cellular or molecular characteristics of the heart.
       The House bill included a provision which prohibited funds 
     from being used by the Patent and Trademark Office to issue 
     patents for surgical and medical procedures and diagnoses, 
     with certain exceptions for medical and biomedical devices 
     and processes.
       Sec. 617.--The conference agreement includes section 617, 
     which eliminates current reprogramming requirements which are 
     redundant with section 605 of this Act. The Senate-reported 
     bill included this provision as section 620. The House bill 
     contained no similar provision.
       Sec. 618.--The conference agreement includes section 618, 
     which permits the Secretary of Transportation to issue a 
     guarantee under title XI of the Merchant Marine Act, 1936, 
     upon such terms as the Secretary may prescribe, to assist in 
     the reactivation and modernization of currently closed 
     shipyards that historically built military vessels if the 
     State in which it is located is making a significant 
     financial investment and is paying the credit subsidy cost of 
     the guarantee. The provision requires the Secretary to impose 
     such conditions as are necessary to protect the interests of 
     the United States from the risk of a default. Total 
     guarantees under this section are not to exceed $50,000,000, 
     and no commitment to guarantee obligations under this 
     provision may be issued more than one year from the date of 
     enactment of this section. The Senate-reported bill contained 
     a provision under section 622 that provided authority to make 
     these guarantees, but did not require State contributions or 
     require the imposition of any conditions relating to the risk 
     of default. The House bill did not contain any provision on 
     this matter.

                         TITLE VII--RESCISSIONS

                         DEPARTMENT OF JUSTICE

                         General Administration


                          Working Capital fund

                              (rescission)

       The conference agreement includes a rescission of 
     $30,000,000 from unobligated balances under this heading, as 
     proposed in the Senate-reported bill. The House bill did not 
     include a rescission from this account.

                 Immigration and Naturalization Service


                       immigration emergency fund

                              (rescission)

       The conference agreement includes a rescission of 
     $34,779,000 from unobligated balances under this heading, as 
     proposed in the Senate-reported bill. The House bill did not 
     include a rescission from this account.

        TITLE VIII--FISCAL YEAR 1996 SUPPLEMENTAL AND RESCISSION

                         DEPARTMENT OF JUSTICE

                         Federal Prison System

                         salaries and expenses

       The conference agreement includes a $40,000,000 
     supplemental appropriation for fiscal year 1996, for the 
     Federal Prison System and makes these funds available until 
     September 30, 1997, in order to allow total carryover funding 
     for this account to be $90,000,000. This provision was not 
     included in the House and Senate-reported bills, but is 
     necessary for technical reasons to ensure that adequate funds 
     are available for prison activations which were scheduled for 
     1996, but have been delayed until 1997.


                              (rescission)

       The conference agreement includes a rescission of 
     $40,000,000 from funds appropriated in fiscal year 1996 for 
     the Federal Prison System. Neither the House nor the Senate-
     reported bills included this rescission. Funding is available 
     for rescission as a result of delayed activations of prisons 
     scheduled to open in fiscal year 1996. This provision, in 
     conjunction with the previous provision, is necessary to 
     ensure that additional resources may carry forward from 
     fiscal year 1996 to fiscal year 1997 to support ongoing 
     prison system operations.

             TITLE IX--FISCAL YEAR 1997 DISASTER ASSISTANCE

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration


                economic development assistance programs

       The conference agreement includes $25,000,000 in emergency 
     fiscal year 1997 funding for infrastructure expenses related 
     to recovery efforts associated with Hurricanes Fran and 
     Hortense and other natural disasters, instead of $18,000,000 
     requested as a fiscal year 1996 emergency supplemental 
     appropriation. Amounts provided under this account are 
     designated as emergency requirements pursuant to the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended.


                             related agency

                     Small Business Administration


                     disaster loans program account

       In addition to amounts provided under title V of the bill, 
     the conference agreement provides an additional $113,000,000 
     in emergency fiscal year 1997 subsidy appropriations for 
     disaster loans for recovery efforts related to Hurricanes 
     Fran and Hortense, and other natural disasters.
       In addition to amounts provided under title V of the bill, 
     the conference agreement includes an additional $22,000,000 
     in emergency fiscal year 1997 funding for administrative 
     expenses necessary to carry out the disaster loan program for 
     Hurricanes Fran and Hortense and other natural disasters, 
     instead of $22,000,000 requested as a fiscal year 1996 
     emergency supplemental appropriation. Amounts provided under 
     this account are designated as emergency requirements 
     pursuant to the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.


                             section 101(b)

             Department of Defense Appropriations Act, 1997

       The conference agreement on the Department of Defense 
     Appropriations Act, 1997, incorporates some of the provisions 
     of both the House and Senate versions of the bill. The 
     language and allocations set forth in House Report 104-617 
     and Senate Report 104-286 should be complied with unless 
     specifically addressed in the accompanying bill and statement 
     of the managers to the contrary.


              definition of program, project, and activity

       The conferees agree that for the purposes of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 (Public Law 
     99-177) as amended by the Balanced Budget and Emergency 
     Deficit Control Reaffirmation Act of 1987 (Public Law 100-
     119) and by the Budget Enforcement Act of 1990 (Public Law 
     101-508), the term program, project, and activity for 
     appropriations contained in this Act shall be defined as the 
     most specific level of budget items identified in the 
     Department of Defense Appropriations Act, 1997, the 
     accompanying House and Senate Committee reports, the 
     conference report and accompanying joint explanatory 
     statement of the mangers of the Committee of Conference, the 
     related classified annexes and reports, and the P-1 and R-1 
     budget justification documents as subsequently modified by 
     Congressional action. The following exception to the above 
     definition shall apply:
       For the Military Personnel and the Operation and 
     Maintenance accounts, the term, ``program, project, and 
     activity'' is defined as the appropriations accounts 
     contained in the Department of Defense Appropriations Act. At 
     the time the President submits his budget for fiscal year 
     1998, the conferees direct the Department of Defense to 
     transmit

[[Page H11867]]

     to the congressional defense committees a budget 
     justification document to be known as the ``O-1'' which shall 
     identify, at the budget activity, activity group, and 
     subactivity group level, the amounts requested by the 
     President to be appropriated to the Department of Defense for 
     operation and maintenance in any budget request, or amended 
     budget request, for fiscal year 1998.

                      TITLE I--MILITARY PERSONNEL

       The conferees agree to the following amounts and end 
     strength totals for the Military Personnel accounts as 
     follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Active personnel:                                                                                               
    Army....................................................   20,580,738   20,692,838   20,559,042   20,633,998
    Navy....................................................   16,942,956   17,000,856   16,943,581   16,986,976
    Marine Corps............................................    6,102,108    6,103,808    6,099,182    6,111,728
    Air Force...............................................   17,043,150   17,099,550   17,021,810   17,069,490
Reserve personnel:                                                                                              
    Army....................................................    2,043,679    2,083,379    2,052,136    2,073,479
    Navy....................................................    1,386,306    1,392,406    1,396,989    1,405,606
    Marine Corps............................................      381,143      387,943      389,325      388,643
    Air Force...............................................      775,967      780,497      785,842      783,697
National Guard personnel:                                                                                       
    Army....................................................    3,242,493    3,279,393    3,259,169    3,266,393
    Air Force...............................................    1,284,290    1,294,490    1,295,511    1,296,490
                                                             ---------------------------------------------------
      Total, Military Personnel.............................   69,782,830   70,115,160   69,802,587   70,016,500
----------------------------------------------------------------------------------------------------------------

                        force structure changes

       The fiscal year 1997 budget request included reductions in 
     the size of Primary Aircraft Authorized (PAA) levels for Air 
     Force B-52's, and Air National Guard C-130's and General 
     Purpose fighter units. In addition, the budget reduced the 
     number of both active and reserve P-3 squadrons. The 
     conferees have recommended a total of $163,600,000 to 
     maintain these units at the fiscal year 1996 levels as 
     follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                   Milpers     O&M      Proc      Total 
------------------------------------------------------------------------
Navy, P-3's.....................    22,100    16,100  ........    38,200
Air Force, B-52's...............     4,400    47,900    11,500    63,800
ANG, C-130's....................     2,000     6,700  ........     8,700
ANG, General Purpose Fighters...     8,500    44,400  ........    52,900
                                 ---------------------------------------
      Total.....................    37,000   115,100    11,500   163,600
------------------------------------------------------------------------

                           housing allowances

       The conferees agree to provide $58,230,000, for a 4.6 
     percent increase in the Basic Allowance for Quarters (BAQ), 
     to be effective January 1, 1997, and $35,000,000 for an 
     increase to the Variable Housing Allowance (VHA) to help 
     offset the cost to service members who live in high cost 
     geographical areas.


                          dental incentive pay

       The conferees recommend an increase of $11,100,000 for 
     special pays and allowances to retain dental officers serving 
     in the military services.


                        board certification pay

       The conferees encourage the Department to expand board 
     certification pay to all board certified medical department 
     personnel, including nurses and veterinarians, who are 
     involved in the health and well being of our service members 
     and their families.


                   permanent change of station costs

       The conferees are concerned that the Department of Defense 
     is expending excessive amounts each year for permanent change 
     of station (PCS) travel. Accordingly, the conferees direct 
     the Department to reduce the level of funds budgeted for PCS 
     moves in the fiscal year 1998 budget submission by three 
     percent. Further, the conferees recommend a reduction of two 
     percent to the fiscal year 1997 military personnel 
     appropriations accounts.

                           ACTIVE END STRENGTH                          
                           [Fiscal year 1997]                           
------------------------------------------------------------------------
                                                              Conference
                                        Budget    Conference  vs. Budget
------------------------------------------------------------------------
Army................................     495,000     495,000  ..........
Navy................................     406,900     407,266        +366
Marine Corps........................     174,000     174,000  ..........
Air Force...........................     381,100     381,100  ..........
                                     -----------------------------------
  Total, Active Personnel...........   1,457,000   1,457,366        +366
------------------------------------------------------------------------

                        Military Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                          House      Senate   Conference
------------------------------------------------------------------------
Basic Allowance for Quarters..........     17,300     10,784      17,300
Variable Housing Allowance............      5,900  .........       7,200
Dislocation Allowance.................     15,500  .........      14,300
Temporary Lodging Expense.............     12,000  .........  ..........
Permanent Change of Station...........  .........    -41,280     -20,640
Dental Incentive Pay..................      5,000      2,400       3,700
Special Duty Assignment Pay...........      6,400      6,400       6,400
Manpower Shortfalls...................     50,000  .........      25,000
                                       ---------------------------------
      Total, Military Personnel, Army.    112,100    -21,696      53,260
------------------------------------------------------------------------

                        Military Personnel, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                          House      Senate   Conference
------------------------------------------------------------------------
Basic Allowance for Quarters..........     15,400      9,885      15,400
Variable Housing Allowance............     15,200  .........      14,100
Dislocation Allowance.................     10,900  .........       7,200
Temporary Lodging Expense.............      4,400  .........  ..........
Permanent Change of Station...........  .........    -23,760     -11,880
Dental Incentive Pay..................      5,000      3,900       3,700
P-3 Squadron..........................      7,000     10,600      15,500
                                       ---------------------------------
      Total, Military Personnel, Navy.     57,900        625      44,020
------------------------------------------------------------------------

                    Military Personnel, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                          House      Senate   Conference
------------------------------------------------------------------------
Basic Allowance for Quarters..........      4,500      2,834       4,500
Variable Housing Allowance............     10,600  .........       3,300
Dislocation Allowance.................      3,900  .........       3,000
Temporary Lodging Expense.............      3,100  .........  ..........
Permanent Change of Station...........  .........     -9,160      -4,580
Embassy Support.......................    -20,400  .........  ..........
Selective Reenlistment Bonus..........  .........      3,400       3,400
                                       ---------------------------------
      Total, Military Personnel,                                        
       Marine Corps...................      1,700     -2,926       9,620
------------------------------------------------------------------------

                         Marine Security Guards

       The conference agreement fully funds the amounts requested 
     in the budget for the Marine Security Guard program. The 
     Marine Corps has traditionally provided security support at 
     United States Embassies and other overseas diplomatic posts, 
     and the personnel and support costs of these operations have 
     been shared jointly between the Departments of Defense and 
     State. This year's budget submission proposed changing this 
     relationship, with the Department of Defense bearing nearly 
     all the costs of this program.
       The conferees are concerned that this decision, along with 
     proposals to increase the scope of overseas Marine Corps 
     diplomatic security support, has been made without sufficient 
     regard to recurring funding shortfalls in the Marine Corps 
     budget as well as manpower constraints stemming from the high 
     tempo of personnel moves and operations. The conferees 
     believe the Departments of Defense and State, along with the 
     Marine Corps, should work together to rationalize the overall 
     requirements stemming from the Marine Security Program in 
     order to strike an appropriate balance between providing 
     essential security support for overseas diplomatic operations 
     and the Marine Corps' military missions. The conferees 
     believe Marine Corps support for our overseas diplomatic 
     efforts should not come at the expense of combat readiness 
     and fully expect future budget submissions to adequately 
     resource both activities.

                     Military Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                          House      Senate   Conference
------------------------------------------------------------------------
Basic Allowance for Quarters..........     14,700      9,280      14,700
Variable Housing Allowance............     11,500  .........       7,600
Dislocation Allowance.................     18,600  .........      12,400
Temporary Lodging Expense.............      4,000  .........  ..........
Permanent Change of Station...........  .........    -32,920     -16,460
Dental Incentive Pay..................      5,000      2,300       3,700
Reliability Testing...................      2,600  .........  ..........
B-52 Force Structure..................  .........  .........       4,400
                                       ---------------------------------
      Total, Military Personnel, Air                                    
       Force..........................     56,400    -21,340      26,340
------------------------------------------------------------------------

                   National Guard and Reserve Forces

       The conferees agree to provide $9,214,308,000 in Reserve 
     personnel appropriations, $8,582,539,000 in Operation and 
     maintenance appropriations, and $780,000,000 in the National 
     Guard and Reserve Equipment appropriation. These funds 
     support a Selected Reserve strength as shown below.

                            RESERVE STRENGTHS                           
                           [Fiscal year 1997]                           
------------------------------------------------------------------------
                                                              Conference
                                         Budget   Conference  vs. Budget
------------------------------------------------------------------------
Selected Reserve:                                                       
  Army Reserve.......................    214,925     215,179        +254
  Navy Reserve.......................     95,941      96,304        +363
  Marine Corps Reserve...............     42,000      42,000  ..........
  Air Force Reserve..................     73,281      73,377         +96
  Army National Guard................    366,758     366,758  ..........
  Air National Guard.................    108,018     109,178      +1,160
                                      ----------------------------------
    Total............................    900,923     902,796      +1,873
                                      ==================================
AGR/TARS:                                                               
  Army Reserve.......................     11,550      11,804        +254
  Navy Reserve.......................     16,506      16,626        +120
  Marine Corps Reserve...............      2,559       2,559  ..........
  Air Force Reserve..................        625         625  ..........
  Army National Guard................     23,040      23,040  ..........
  Air National Guard.................     10,129      10,403        +274
                                      ----------------------------------
    Total............................     64,409      65,057        +648
                                      ==================================
Technicians:                                                            
  Army Reserve.......................      6,799       6,799  ..........
  Air Force Reserve..................      9,704       9,704  ..........
  Army National Guard................     25,500      25,500  ..........
  Air National Guard.................     22,881      23,274        +393
                                      ----------------------------------
    Total............................     64,884      65,277        +393
------------------------------------------------------------------------

                        Reserve Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                          House      Senate   Conference
------------------------------------------------------------------------
Unit Readiness/Training...............     30,000  .........      20,000
Basic Allowance for Quarters..........        700        457         700
Variable Housing Allowance............        400  .........         500
Dislocation Allowance.................        600  .........         600
Full Time Support/AGR's...............      8,000      8,000       8,000
                                       ---------------------------------
    Total, Reserve Personnel, Army....     39,700      8,457      29,800
------------------------------------------------------------------------

                        Reserve Personnel, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                             House    Senate  Conference
------------------------------------------------------------------------
Basic Allowance for Quarters..............    1,100      683      1,100 

[[Page H11868]]

                                                                        
Variable Housing Allowance................    1,300  .......        700 
Dislocation Allowance.....................      600  .......        900 
Temporary Lodging Expense.................      100  .......  ..........
P-3 Squadron..............................    3,000  .......      6,600 
Contributory Support......................  .......   10,000     10,000 
                                           -----------------------------
      Total, Reserve Personnel, Navy......    6,100   10,683     19,300 
------------------------------------------------------------------------

                    Reserve Personnel, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                             House    Senate  Conference
------------------------------------------------------------------------
Annual Training/School Tours..............    6,000  .......      3,000 
Basic Allowance for Quarters..............      300      182        300 
Variable Housing Allowance................      400  .......        100 
Dislocation Allowance.....................      100  .......        100 
Active Duty Special Work..................  .......    8,000      4,000 
                                           -----------------------------
      Total, Reserve Personnel, Marine                                  
       Corps..............................    6,800    8,182      7,500 
------------------------------------------------------------------------

                      Reserve Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                             House    Senate  Conference
------------------------------------------------------------------------
BRAC Closure..............................    4,000    9,000      6,500 
Basic Allowance for Quarters..............      430      275        430 
Variable Housing Allowance................      100  .......        100 
Dislocation Allowance.....................  .......  .......        100 
Family Support Centers....................  .......      600        600 
                                           -----------------------------
      Total, Reserve Personnel, Air Force.    4,530    9,875      7,730 
------------------------------------------------------------------------

                     National Guard Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                             House    Senate  Conference
------------------------------------------------------------------------
School/Special Training...................   31,000   15,000     20,000 
Basic Allowance for Quarters..............    2,700    1,676      2,700 
Variable Housing Allowance................      800  .......        900 
Dislocation Allowance.....................    2,400  .......        300 
                                           -----------------------------
      Total, National Guard Personnel,                                  
       Army...............................   36,900   16,676     23,900 
------------------------------------------------------------------------

                  National Guard Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                             House    Senate  Conference
------------------------------------------------------------------------
Basic Allowance for Quarters..............    1,100      721      1,100 
Variable Housing Allowance................      600  .......        500 
C-130 Force Structure.....................  .......    2,000      2,000 
Dislocation Allowance.....................  .......  .......        100 
Fighter Force Structure...................    8,500    8,500      8,500 
                                           -----------------------------
      Total, National Guard Personnel, Air                              
       Force..............................   10,200   11,221     12,200 
------------------------------------------------------------------------

                  TITLE II--OPERATION AND MAINTENANCE

       A summary of the conference agreement on the items 
     addressed by either the House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference  
----------------------------------------------------------------------------------------------------------------
 28500         RECAPITULATION                                                                                   
 28550 O&M. ARMY                                18,031,145       18,365,679       17,700,859       17,519,340   
 28600     TRANSFER--STOCKPILE                     (83,334)         (50,000)         (50,000)         (50,000)  
 28650 O&M. NAVY                                20,112,864       20,390,397       20,241,517       20,061,961   
 28700     TRANSFER--STOCKPILE                     (83,333)         (50,000)         (50,000)         (50,000)  
 28750 O&M. MARINE CORPS                         2,203,777        2,465,077        2,275,977        2,254,119   
 28800 O&M. AIR FORCE                           17,830,122       17,938,755       17,331,309       17,263,193   
 28850     TRANSFER--STOCKPILE                     (83,333)         (50,000)         (50,000)         (50,000)  
 28900 O&M. DEFENSEWIDE                         10,156,468       10,212,985        9,953,142       10,044,200   
 29000 O&M. ARMY RESERVE                         1,084,436        1,116,436        1,129,436        1,119,436   
 29050 O&M. NAVY RESERVE                           843,927          882,927          861,527          886,027   
 29100 O&M. MARINE CORPS RESERVE                    99,667          108,467          115,367          109,667   
 29150 O&M. AIR FORCE RESERVE                    1,488,553        1,491,553        1,494,953        1,496,553   
 29200 O&M. ARMY NATIONAL GUARD                  2,208,477        2,268,477        2,294,477        2,254,477   
 29250 O&M. AIR NATIONAL GUARD                   2,654,473        2,671,373        2,721,973        2,716,379   
 29260 UNITED STATES COURT OF APPEALS FOR            6,797            6,797            6,185            6,797   
        THE ARMED FORCES                                                                                        
 29300 ENVIRONMENTAL RESTORATION, ARMY             356,916   ...............         356,916          339,109   
 29350 ENVIRONMENTAL RESTORATION, NAVY             302,900   ...............         302,900          287,780   
 29400 ENVIRONMENTAL RESTORATION, AIR              414,700   ...............         414,700          394,010   
        FORCE                                                                                                   
 29450 ENVIRONMENTAL RESTORATION, DEFENSE-         258,500   ...............          38,650           36,722   
        WIDE                                                                                                    
 29455 ENVIRONMENTAL RESTORATION, FORMERLY  ...............  ...............         269,850          256,387   
        USED DEFENSE SITES                                                                                      
 29500 ENVIRONMENTAL RESTORATION, DEFENSE   ...............       1,333,016   ...............  ...............  
 29550 FORMER SOVIET UNION THREAT                  327,900          302,900          327,900          327,900   
        REDUCTION                                                                                               
 29600 OVERSEAS HUMANITARIAN, DISASTER,             80,544           60,544           49,000           49,000   
        AND CIVIC AID                                                                                           
 29750 QUALITY OF LIFE ENHANCEMENTS,        ...............         975,000   ...............         600,000   
        DEFENSE                                                                                                 
 29755 OVERSEAS CONTINGENCY OPERATIONS      ...............  ...............       1,069,957        1,140,157   
        TRANSFER FUND                                                                                           
 29800 REDUCTION OF FUNDS                   ...............         -35,000   ...............  ...............  
      ----------------------------------------------------------------------------------------------------------
 29850       GRAND TOTAL, O&M.                  78,462,166       80,555,383       78,956,595       79,163,222   
----------------------------------------------------------------------------------------------------------------

                          antiterrorism issues

       The conferees support DoD efforts to prevent terrorist 
     attacks on US Government personnel overseas and believe that 
     adoption of recommendations contained in the Antiterrorism 
     Task Force Report is a good first step toward improving the 
     security of US Government personnel worldwide. In order to 
     establish a more effective program, the conferees direct the 
     Secretary of Defense, in conjunction with the Secretary of 
     State, to conduct security audits of facilities overseas to 
     ensure that all possible action is being taken, and enforced, 
     to protect US Government personnel against terrorist attacks. 
     These audits should include, but not be limited to, physical 
     and operational security measures; crisis planning; special 
     security measures at nonpermanent facilities; cooperative 
     security measures with host nations; education and training 
     of personnel, and communications security. The results of 
     these audits, and accompanying recommendations, should be 
     provided to the congressional defense committees not later 
     than March 15, 1997.


                        dod travel reengineering

       The conferees are aware of the DoD efforts to reengineer 
     the travel process and fully support those objectives. The 
     Department is commended for taking on this effort given the 
     significance of the potential savings. The conferees are 
     aware that many issues have not been resolved regarding the 
     acquisition strategy and how it will be implemented. Given 
     these circumstances, the conferees believe that DoD should 
     provide industry sources with another opportunity to comment 
     on any revised strategy in order to ensure that industry 
     ``best practices'' will be employed. The conferees are also 
     concerned about the Department's continued award of contracts 
     under the old travel system. A tremendous amount of time and 
     expense is incurred by the government and all vendors on 
     these new contracts. Inasmuch as DoD intends to recast the 
     entire travel system, the justification for the Department to 
     award new five year contracts under the old travel system is 
     considered inappropriate. Consequently, the conferees urge 
     the Department to consider placing a moratorium on awarding 
     any new contracts until the new travel system is defined and 
     can be implemented.


                     chemical-biological equipment

       The conferees direct the Secretary of Defense to provide 
     the congressional defense committees with a report on the 
     actual and projected status of execution of funds 
     appropriated to each of the services in support of chemical-
     biological protective training and equipment for fiscal years 
     1996 and 1997, not later than March 1, 1997.


                        ustranscom efficiencies

       The conferees are aware that the effort to consolidate 
     responsibilities and assets under the charter of USTRANSCOM 
     is a continuing evolution and are encouraged by the potential 
     for a more streamlined and efficient logistics support system 
     for the Department of Defense. The Department is strongly 
     discouraged from redistributing these reductions to the 
     individual service accounts without simultaneously directing 
     a rebate or reduction to the customer rates charged by 
     USTRANSCOM, thereby defeating any effort to capture savings 
     resulting from these consolidation efforts, and the conferees 
     will continue to monitor the progress of this endeavor.


                          vietnamese commandos

       The Conferees urge the Department of Defense to make 
     available up to $20,000,000 for payments to Vietnamese 
     commandos captured and incarcerated by North Vietnam pursuant 
     to operations under a Vietnam ear operation plan known as 
     OPLAN 34A or its predecessor, and to Vietnamese operatives 
     captured and incarcerated by North Vietnamese forces pursuant 
     to OPLAN 35 who remained in captivity after 1973, and who 
     have

[[Page H11869]]

     not received payment from the United States for the period 
     spent in captivity.


                        environmental compliance

       The conferees are aware of the Department's requirement for 
     funding within the environmental compliance accounts, and are 
     concerned with the amount of training and administrative 
     travel within these accounts. Therefore, the conferees direct 
     that each of the services reduce by $5,000,000 the training 
     and administrative travel within the environmental compliance 
     program.


               reengineering of Personal Property Program

       The conferees recognize the urgency of improving the 
     Department of Defense personal property relocation program, 
     and do not object to the conduct of a pilot program in order 
     to validate this concept. The conferees commend the 
     Department for including industry representatives in the 
     development of the pilot program.
       The conferees believe there are still several significant 
     concerns that should be addressed in the final pilot 
     proposal, and encourage the Department to continue their work 
     with the industry representatives to resolve these 
     outstanding issues concerning the structure of the pilot 
     program.
       The conferees understand the proposed pilot program 
     involves outbound household goods from a three state region, 
     and direct that this outbound portion of the pilot program 
     not be expanded beyond this area during fiscal years 1997 and 
     1998. The conferees direct that before the Department 
     proposes further expansion of this program, or any other 
     household goods relocation pilot program, the General 
     Accounting Office (GAO) should review data collected during 
     fiscal year 1997, and validate the results and savings 
     achieved by such pilot programs.

                    Operation and Maintenance, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference  
----------------------------------------------------------------------------------------------------------------
  100 OPERATION AND MAINTENANCE, ARMY                                                                           
  150 BUDGET ACTIVITY 1: OPERATING FORCES                                                                       
  200 LAND FORCES                                                                                               
  250 COMBAT UNITS                               1,785,131        1,785,131        1,785,131        1,785,131   
  255 CONTINGENCY OPERATIONS TRANSFER                  ---              ---         -378,657         -382,857   
  300 TACTICAL SUPPORT                           1,144,383        1,144,383        1,144,383        1,144,383   
  305 HUNTER UAV                                       ---              ---           12,000           12,000   
  350 THEATER DEFENSE FORCES                       150,569          150,569          150,569          150,569   
  400 FORCE RELATED TRAINING/SPECIAL             1,410,908        1,468,008        1,410,908        1,453,908   
       ACTIVITIES                                                                                               
  450 FORCE COMMUNICATION                           65,150           65,150           65,150           65,150   
  500 DEPOT MAINTENANCE                            845,251          894,951          845,251          879,951   
  505 SPARES AND REPAIR PARTS                          ---              ---          -30,000          -60,000   
  510 DEPOT MAINTENANCE RMS PROGRAM                    ---              ---           20,000              ---   
  515 CH-47 HELICOPTER ENGINE UPGRADE                  ---              ---            4,600            4,600   
       SUPPORT                                                                                                  
  550 JCS EXERCISES                                 55,087           55,087           55,087           55,087   
  600 BASE SUPPORT                               2,686,320        2,689,320        2,731,720        2,719,912   
  650 MAINTENANCE OF REAL PROPERTY                 835,451          835,451          904,051          835,451   
  700 LAND OPERATIONS SUPPORT                                                                                   
  750 COMBAT DEVELOPMENTS                          206,538          206,538          206,538          206,538   
  800 UNIFIED COMMANDS                              63,769           63,769           63,769           63,769   
     -----------------------------------------------------------------------------------------------------------
  850       TOTAL, BUDGET ACTIVITY 1             9,248,557        9,358,357        8,990,500        8,933,592   
     ===========================================================================================================
  900 BUDGET ACTIVITY 2: MOBILIZATION                                                                           
  950 MOBILITY OPERATIONS                                                                                       
 1000 POMCUS                                        82,303           82,303           82,303           82,303   
 1050 STRATEGIC MOBILIZATION                       287,934          314,934          314,934          314,934   
 1100 WAR RESERVE ACTIVITIES                       150,971          150,971          150,971          150,971   
 1150 INDUSTRIAL PREPAREDNESS                       65,235           65,235           65,235           65,235   
     -----------------------------------------------------------------------------------------------------------
 1200       TOTAL, BUDGET ACTIVITY 2               586,443          613,443          613,443          613,443   
     ===========================================================================================================
 1250 BUDGET ACTIVITY 3: TRAINING AND                                                                           
       RECRUITING                                                                                               
 1300 ACCESSION TRAINING                                                                                        
 1350 OFFICER ACQUISITION                           61,442           61,442           61,442           61,442   
 1400 RECRUIT TRAINING                              13,131           13,131           13,131           13,131   
 1450 ONE STATION UNIT TRAINING                     16,679           16,679           16,679           16,679   
 1500 RESERVE OFFICER TRAINING CORPS               120,634          120,634          120,634          120,634   
       (ROTC)                                                                                                   
 1550 BASE SUPPORT (ACADEMY ONLY)                   81,493           81,493           82,893           82,234   
 1600 MAINTENANCE OF REAL PROPERTY                  40,821           40,821           40,821           40,821   
       (ACADEMY ONLY)                                                                                           
 1650 BASIC SKILL/ADVANCE TRAINING                                                                              
 1700 SPECIALIZED SKILL TRAINING                   242,298          240,498          242,298          240,498   
 1750 FLIGHT TRAINING                              225,460          214,160          225,460          214,160   
 1800 PROFESSIONAL DEVELOPMENT EDUCATION            68,478           68,478           68,478           68,478   
 1850 TRAINING SUPPORT                             405,222          403,322          405,222          401,822   
 1900 BASE SUPPORT (OTHER TRAINING)                898,954          898,954          913,654          906,742   
 1950 MAINTENANCE OF REAL PROPERTY (OTHER          274,999          274,999          297,599          274,999   
       TRAINING)                                                                                                
 2000 RECRUITING/OTHER TRAINING                                                                                 
 2050 RECRUITING AND ADVERTISING                   228,234          228,234          232,234          232,234   
 2100 EXAMINING                                     72,125           72,125           72,125           72,125   
 2150 OFF-DUTY AND VOLUNTARY EDUCATION             101,970          101,970          101,970          101,970   
 2200 CIVILIAN EDUCATION AND TRAINING               83,296           80,296           83,296           80,296   
 2250 JUNIOR ROTC                                   76,640           76,640           76,640           76,640   
 2300 BASE SUPPORT (RECRUITING LEASES)             158,064          158,064          158,064          158,064   
     -----------------------------------------------------------------------------------------------------------
 2350       TOTAL, BUDGET ACTIVITY 3             3,169,940        3,151,940        3,212,640        3,158,969   
     ===========================================================================================================
 2400 BUDGET ACTIVITY 4: ADMIN &                                                                                
       SERVICEWIDE ACTIVITIES                                                                                   
 2450 SECURITY PROGRAMS                                                                                         
 2500 SECURITY PROGRAMS                            364,270          352,770          364,270          352,770   
 2550 LOGISTICS OPERATIONS                                                                                      
 2600 SERVICEWIDE TRANSPORTATION                   515,541          515,541          515,541          515,541   
 2650 CENTRAL SUPPLY ACTIVITIES                    398,003          414,203          398,003          429,203   
 2700 LOGISTIC SUPPORT ACTIVITIES                  308,497          303,697          358,497          302,697   
 2750 AMMUNITION MANAGEMENT                        257,812          307,812          297,812          277,812   
 2800 SERVICEWIDE SUPPORT                                                                                       
 2850 ADMINISTRATION                               309,075          309,075          309,075          309,075   
 2900 SERVICEWIDE COMMUNICATIONS                   689,100          689,100          689,100          689,100   
 2905 POWER PROJECTION C4I                  ...............  ...............          20,000           15,000   
 2950 MANPOWER MANAGEMENT                          158,424          158,424          158,424          158,424   
 3000 OTHER PERSONNEL SUPPORT                      171,661          171,661          171,661          171,661   
 3050 OTHER SERVICE SUPPORT                        596,539          596,539          600,439          600,439   
 3100 ARMY CLAIMS ACTIVITIES                       175,881          175,881          175,881          175,881   
 3150 REAL ESTATE MANAGEMENT                        79,628           79,628           79,628           79,628   
 3200 BASE SUPPORT                                 666,216          666,216          676,716          671,776   
 3205 PENTAGON RESERVATION FUND TRANSFER    ...............  ...............         -59,100          -59,100   
 3250 MAINTENANCD OF REAL PROPERTY                 106,065          106,065          114,865          106,065   
 3300 SUPPORT OF OTHER NATIONS                                                                                  
 3350 INTERNATIONAL MILITARY HEADQUARTERS          273,924          273,924          267,861          267,861   
 3400 MISC SUPPORT OF OTHER NATIONS                 38,903           38,903           38,903           38,903   
     -----------------------------------------------------------------------------------------------------------
 3450       TOTAL, BUDGET ACTIVITY 4             5,109,539        5,159,439        5,177,576        5,102,736   
     ===========================================================================================================
 3550 CLASSIFIED PROGRAMS UNDISTRIBUTED     ...............           6,600   ...............           7,800   
 3600 CIVILIAN PERSONNEL UNDERSTRENGTH      ...............         -19,000         -133,000          -19,000   
 3700 GENERAL REDUCTION, NATIONAL DEFENSE          -83,334          -50,000          -50,000          -50,000   
       STOCKPILE FUND                                                                                           
 3710 GENERAL REDUCTION, NATL DEFENSE       ...............  ...............  ...............         -10,000   
       STOCKPILE FUND/OTHER                                                                                     

[[Page H11870]]

                                                                                                                
 3750 FOREIGN CURRENCY FLUCTUATION          ...............  ...............  ...............         -69,000   
 3850 PRINTING EFFICIENCIES                 ...............          -3,000   ...............          -3,000   
 4180 ACQUISITION WORKFORCE REDUCTION       ...............         -14,000   ...............         -14,000   
 4190 FUEL TAX CREDIT                       ...............         -13,800          -13,800          -13,800   
 4200 USTRANSCOM EFFICIENCIES               ...............         -37,000          -33,000          -37,000   
 4210 OSA FLYING HOUR REDUCTION             ...............         -20,000   ...............          -5,000   
 4260 CHEMICAL-BIOLOGICAL EQUIP MAINT       ...............          13,200   ...............          10,200   
       SUPPORT                                                                                                  
 4280 REAL PROPERTY MAINTENANCE             ...............         155,000   ...............  ...............  
 4290 NON-LETHAL WEAPONS                    ...............  ...............           2,000   ...............  
 4320 FORSCOM UNDEREXECUTION                ...............           2,000           -5,100           -5,100   
 4322 MWR OVERHEAD                          ...............  ...............          -1,500           -1,500   
 4325 INFORMATION RESOURCE MANAGEMENT       ...............          32,500   ...............         -50,000   
 4330 BASE OPERATIONS SHORTFALL             ...............          30,000   ...............  ...............  
 4337 DBOF PASSTHROUGH                      ...............  ...............         -58,900          -29,000   
 4340 ENVIRONMENTAL COMPLIANCE              ...............  ...............  ...............          -5,000   
     -----------------------------------------------------------------------------------------------------------
 4350       TOTAL, OPERATION AND                18,031,145       18,365,679       17,700,859       17,519,340   
             MAINTENANCE, ARMY                                                                                  
 4400           TRANSFER                           (83,334)         (50,000)         (50,000)         (50,000)  
     -----------------------------------------------------------------------------------------------------------
 4450           TOTAL FUNDING AVAILABLE        (18,114,479)     (18,415,679)     (17,750,859)     (17,569,340)  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  255  Contingency Operations Transfer.........................-382,857
  305  Hunter UAV................................................12,000
  400  Soldier Enhancement/Initial Issue.........................43,000
  500  Depot Maintenance RMS Program.............................20,000
  500  Depot Maintenance-Vehicle Backlog.........................14,700
  505  Spares-Spare and Repair Parts............................-60,000
  515  CH-47 Helicopter Engine Upgrade Support....................4,600
  600  Base Operations Support...................................22,992
  600  BOS-McGregor Range EIS.....................................7,100
  600  BOS-UXO Cleanup Ft. Bliss..................................1,000
  600  JRTC/Ft. Polk................................................500
  600  Rotational Airhead.........................................2,000
Budget Activity 2: Mobilization:
  1050  Strategic Mobility-Movement of Prepositioned Stocks......27,000
Budget Activity 3: Training and Recruiting:
  1550  Base Operations Support.....................................741
  1700  Specialized Skill Training...............................-1,800
  1750  Flight Training.........................................-11,300
  1850  TNET......................................................3,500
  1850  Training Support.........................................-6,900
  1900  Base Operations Support...................................7,788
  2050  Recruiting and Advertising................................4,000
  2200  Civilian Education & Training............................-3,000
Budget Activity 4: Administration and Servicewide Activities:
  2500  Security Programs.......................................-11,500
  2650  Acquisition Workforce Reduction..........................-8,800
  2650  End Item Management......................................40,000
  2700  Acquisition Workforce Reduction..........................-8,800
  2700  Depot Maintenance Logistics Tail..........................3,000
  2750  Ammunition Management....................................20,000
  2905  Power Projection C4I.....................................15,000
  3050  Conservation and Ecosystem Management Program.............3,000
  3050  Life Science Equipment Lab..................................550
  3050  Waste Water Treatment Planning..............................350
  3200  Base Operations Support...................................5,560
  3205  Pentagon Reservation Fund Transfer......................-59,100
  3350  NATO Headquarters Reduction..............................-6,063
Undistributed:
  3550  Classified (Undistributed)................................7,800
  3600  Civilian Personnel Underexecution.......................-19,000
  3700  DNSC Transfer............................................33,334
  3710  National Defense Stockpile Fund/Other...................-10,000
  3750  Foreign Currency Fluctuation............................-69,000
  3850  Printing Efficiencies....................................-3,000
  4180  Acquisition Workforce Reduction.........................-14,000
  4190  Fuel Tax Credit.........................................-13,800
  4200  USTRANSCOM Efficiencies.................................-37,000
  4210  OSA Flying Hour Reduction................................-5,000
  4260  Chem-Bio Equipment Support...............................10,200
  4320  FORSCOM Underexecution...................................-5,100
  4322  MWR Overhead.............................................-1,500
  4325  Information Resource Management.........................-50,000
  4337  DBOF Passthrough........................................-29,000
  4340  Environmental Compliance Reduction.......................-5,000


                               hunter uav

       Until the Tactical Unmanned Aerial Vehicle (TUAV) is 
     fielded in the fiscal year 1998 or 1999 time frame, the 
     Hunter UAV is the only system available for tactical 
     warfighters. The Army has several additional Hunter systems 
     but these are currently in storage. These systems have 
     already been procured and are currently consuming resources 
     without providing any return. These assets could contribute 
     by providing warfighters the opportunity to refine doctrine, 
     gain tactical experience, fulfill contingency requirements, 
     and work on critical issues such as airspace management and 
     command and control. Therefore, the conferees agree to 
     provide $12,000,000 to remove three Hunter systems from 
     storage to provide a capability to further develop UAV 
     concepts of operation. The conferees' action is not to be 
     interpreted as authority to upgrade or further develop the 
     Hunter UAV system.


                            memorial events

       The conference agreement includes language suggested by the 
     Department of Defense clarifying the Army's authority to 
     continue its practice of supporting several national 
     patriotic events. The conferees expect that funds will be 
     made available pursuant to this provision, in addition to the 
     budgeted amount, for operational expenses necessary for the 
     successful conduct of national memorial and patriotic events.


                    parachute maintenance and repair

       Of the funds provided under this heading, the conferees 
     direct that $2,000,000 be made available for the purpose of 
     contracting out the workload as necessary to reduce the 
     backlog of maintenance and repair work on cargo and personnel 
     parachutes at Fort Bragg.


                           cement production

       In response to a recommendation by the US Army Crops of 
     Engineers following a preliminary review of burning hazardous 
     waste in cement kilns, the conferees believe that the 
     Waterways Experiment Station of the US Army Corps of 
     Engineers should use $200,000 of existing funds for a study 
     to research the long term durability and quality of cement 
     produced by using hazardous waste materials as fuels.

                    Operation and Maintenance, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
  4500 OPERATION AND MAINTENANCE, NAVY                                                                          
  4550 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
  4600 AIR OPERATIONS                                                                                           
  4650 MISSION AND OTHER FLIGHT OPERATIONS          1,867,999       1,867,999       1,867,999       1,867,999   
  4655 P-3 SQUADRON                             ..............  ..............         10,600          10,600   
  4700 FLEET AIR TRAINING                             606,264         606,264         606,264         606,264   
  4750 INTERMEDIATE MAINTENACE                         64,855          64,855          64,855          64,855   
  4800 AIR OPERATIONS AND SAFETY SUPPORT               65,742          65,742          65,742          65,742   
  4850 AIRCRAFT DEPOT MAINTENANCE                     602,679         643,979         616,679         604,679   
  4900 AIRCRAFT DEPOT OPERATIONS SUPPORT               24,613          24,613          24,613          24,613   
  4950 BASE SUPPORT                                   807,680         827,680         830,855         814,567   
  5000 MAINTENANCE OF REAL PROPERTY                   346,107         346,107         373,707         346,107   
  5050 SHIP OPERATIONS                                                                                          
  5100 MISSION AND OTHER SHIP OPERATIONS            1,919,975       1,919,975       1,935,975       1,928,975   
  5150 SHIP OPERATIONAL SUPPORT AND TRINING           457,005         457,005         457,005         457,005   

[[Page H11871]]

                                                                                                                
  5200 INTREMEDIATE MAINTENANCE                       396,844         396,844         422,844         417,844   
  5250 SHIP DEPOT MAINTENANCE                       1,803,854       1,818,854       1,953,854       1,963,854   
  5300 SHIP DEPOT OPERATIONS SUPPORT                  787,330         787,330         787,330         787,330   
  5350 BASE SUPPORT                                   828,295         848,295         841,795         835,447   
  5400 MAINTENANCE OF REAL PROPERTY                   289,182         289,182         312,282         289,182   
  5450 COMBAT OPERATION/SUPPORT                                                                                 
  5500 COMBAT COMMUNICATIONS                          206,422         206,422         206,422         206,422   
  5550 ELECTRONIC WARFARE                               7,589           7,589           7,589           7,589   
  5600 SPACE SYSTEM AND SURVEILLANCE                  144,806         144,806         144,806         144,806   
  5650 WARFARE TACTICS                                138,113         138,113         138,113         138,113   
  5700 OPERATIONAL METEOROLOGY AND                    212,854         212,854         212,854         212,854   
        OCEANOGRAPHY                                                                                            
  5750 COMBAT SUPPORT FORCES                          386,011         386,011         386,011         386,011   
  5800 EQUIPMENT MAINTENANCE                          163,038         164,038         163,038         164,038   
  5850 DEPOT OPERATIONS SUPPORT                         1,146           1,146           1,146           1,146   
  5900 BASE SUPPORT                                   327,468         337,468         317,809         325,445   
  5950 MAINTENANCE OF REAL PROPERTY                    49,511          49,511          43,411          49,511   
  6000 WEAPONS SUPPORT                                                                                          
  6050 CRUISE MISSILE                                  79,828         120,428         120,428         107,528   
  6100 FLEET BALLISTIC MISSILE                        756,722         756,722         756,722         756,722   
  6150 IN-SERVICE WEAPONS SYSTEMS SUPPORT              50,875          50,875          50,875          50,875   
  6200 WEAPONS MAINTENANCE                            389,406         389,406         389,406         389,406   
  6250 BASE SUPPORT                                    63,750          73,750          65,150          64,492   
  6300 MAINTENANCE OF REAL PROPERTY                    31,247          31,247          33,747          31,247   
  6305 DEPOT MAINTENANCE RMS PROGRAM            ..............  ..............         20,000   ..............  
  6310 CONTINGENCY OPERATIONS TRANSFER          ..............  ..............       -126,300        -126,300   
  6350 DBOF SUPPORT                                                                                             
                                               -----------------------------------------------------------------
  6450       TOTAL, BUDGET ACTIVITY 1              13,877,210      14,035,110      14,113,626      13,994,968   
                                               =================================================================
  6500 BUDGET ACTIVITY 2: MOBILIZATION                                                                          
  6550 READY RESERVE AND PREPOSITIONING FORCES                                                                  
  6600 SHIP PREPOSITIONING AND SURGE                  497,905         497,905         497,905         497,905   
  6650 ACTIVATIONS/INACTIVATIONS                                                                                
  6700 AIRCRAFT ACTIVATIONS/INACTIVATIONS               2,699           2,699           2,699           2,699   
  6750 SHIP ACTIVATIONS/INACTIVATIONS                 568,307         568,307         568,307         568,307   
  6800 MOBILIZATION PREPAREDNESS                                                                                
  6850 FLEET HOSPITAL PROGRAM                          19,374          19,374          19,374          19,374   
  6900 INDUSTRIAL READINESS                               722             722             722             722   
  6950 COAST GUARD SUPPORT                             21,929          21,929          21,929          21,929   
                                               -----------------------------------------------------------------
  7000       TOTAL, BUDGET ACTIVITY 2               1,110,936       1,110,936       1,110,936       1,110,936   
                                               =================================================================
  7050 BUDGET ACTIVITY 3: TRAINING AND                                                                          
        RECRUITING                                                                                              
  7100 ACCESSION TRAINING                                                                                       
  7150 OFFICER ACQUISITION                             66,825          66,825          66,825          66,825   
  7200 RECRUIT TRAINING                                 4,887           4,887           4,887           4,887   
  7250 RESERVE OFFICERS TRAINING CORPS (ROTC)          67,777          67,777          67,777          67,777   
  7300 BASE SUPPORT                                    54,338          54,338          54,338          54,868   
  7350 MAINTENANCE OF REAL PROPERTY                    64,553          64,553          69,653          64,553   
  7400 BASIC SKILLS AND ADVANCED TRAINING                                                                       
  7450 SPECIALIZED SKILL TRAINING                     218,689         207,989         218,689         207,989   
  7500 FLIGHT TRAINING                                295,280         295,280         295,280         295,280   
  7550 PROFESSIONAL DEVELOPMENT EDUCATION              65,981          59,681          65,981          63,181   
  7600 TRAINING SUPPORT                               119,098         119,098         119,098         120,098   
  7650 BASE SUPPORT                                   316,260         316,260         321,560         319,068   
  7700 MAINTENANCE OF REAL PROPERTY                   111,355         111,355         120,255          11,355   
  7750 RECRUITING, AND OTHER TRAINING AND                                                                       
        EDUCATION                                                                                               
  7800 RECRUITING AND ADVERTISING                     136,474         136,474         136,474         136,474   
  7850 OFF-DUTY AND VOLUNTARY EDUCATION                61,643          61,643          61,643          61,643   
  7900 CIVILIAN EDUCATION AND TRAINING                 22,218          22,218          22,218          22,218   
  7950 JUNIOR ROTC                                     24,902          24,902          24,902          24,902   
  8000 BASE SUPPORT                                       439             439             439             439   
  8050 MAINTENANCE OF REAL PROPERTY                        59              59              59              59   
                                               -----------------------------------------------------------------
  8100       TOTAL, BUDGET ACTIVITY 3               1,630,778       1,613,778       1,651,078       1,621,616   
                                               =================================================================
  8150 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
  8200 SERVICEWIDE SUPPORT                                                                                      
  8250 ADMINISTRATION                                 570,921         570,921         570,921         570,921   
  8300 EXTERNAL RELATIONS                              21,406          21,406          21,406          21,406   
  8350 CIVILIAN MANPOWER AND PERSON MANAGEMENT         69,426          69,426          69,426          69,426   
  8400 MILITARY MANPOWER AND PERSON MANAGEMENT        129,426         129,426         129,426         129,426   
  8450 OTHER PERSONNEL SUPPORT                        237,647         237,647         237,647         237,647   
  8500 SERVICEWIDE COMMUNICATIONS                     230,240         244,240         230,240         237,240   
  8550 BASE SUPPORT                                   200,375         200,375         203,475         202,017   
  8650 MAINTENANCE OF REAL PROPERTY                    45,196          45,196          48,796          45,196   
  8700 LOGISTICS OPERATIONS AND TECHNICAL                                                                       
        SUPPORT                                                                                                 
  8750 SERVICEWIDE TRANSPORTATION                     151,371         151,371         151,371         151,371   
  8800 PLANNING, ENGINEERING AND DESIGN               284,268         284,268         284,268         284,268   
  8850 ACQUISITION AND PROGRAM MANAGEMENT             467,318         441,718         470,122         444,522   
  8900 AIR SYSTEMS SUPPORT                            276,446         276,446         276,446         276,446   
  8950 HULL, MECHANICAL AND ELECTRICAL SUPPORT         48,613          48,613          48,613          48,613   
  9000 COMBAT/WEAPONS SYSTEMS                          39,083          39,083          39,083          39,083   
  9050 SPACE AND ELECTRONIC WARFARE SYSTEMS            72,540          72,540          72,540          72,540   
  9100 BASE SUPPORT                                   145,338         145,338         147,638         146,556   
  9105 PENTAGON RESERVATION FUND TRANSFER       ..............  ..............        -38,300         -38,300   
  9150 MAINTENANCE OF REAL PROPERTY                    11,967          11,967          11,967          11,967   
  9200 SECURITY PROGRAMS                                                                                        
  9250 SECURITY PROGRAMS                              555,721         552,721         555,721         552,721   
  9300 BASE SUPPORT                                     7,344           7,344           7,344           7,344   
  9350 MAINTENANCE OF REAL PROPERTY                     5,083           5,083           5,083           5,083   
  9400 SUPPORT OF OTHER NATIONS                                                                                 
  9450 INTERNATIONAL HEADQUARTERS AND AGENCIES          7,544           7,544           7,544           7,544   
                                               -----------------------------------------------------------------
  9500       TOTAL, BUDGET ACTIVITY 4               3,577,273       3,562,673       3,550,777       3,523,037   
                                               =================================================================
  9550 CLASSIFIED PROGRAMS UNDISTRIBUTED        ..............          4,600            -900           5,204   
  9600 INFORMATION RESOURCE MANAGEMENT          ..............         50,000   ..............        -50,000   
  9650 GENERAL REDUCTION, NATIONAL DEFENSE            -83,333         -50,000         -50,000         -50,000   
        STOCKPILE FUND                                                                                          
  9660 GENERAL REDUCTION, NATL DEFENSE          ..............  ..............  ..............        -10,000   
        STOCKPILE FUND / OTHER                                                                                  
  9700 FOREIGN CURRENCY FLUCTUATION             ..............  ..............  ..............         -2,100   
  9800 PRINTING EFFICIENCIES                    ..............         -4,000   ..............         -4,000   
 10100 CIVILIAN PERSONNEL UNDERSTRENGTH         ..............        -44,600        -125,000         -44.600   
 10110 ACQUISITION WORKFORCE REDUCTION          ..............        -14,000   ..............        -14,000   
 10120 USTRANSCOM EFFICIENCIES                  ..............        -10,000          -9,000         -10,000   
 10130 OSA FLYING HOUR REDUCTION                ..............        -20,000   ..............         -5,000   
 10140 WAKE ISLAND HYDROACOUSTIC SYSTEM         ..............            900   ..............            900   
 10260 MAINTENANCE OF REAL PROPERTY             ..............        125,000   ..............  ..............  
 10300 BASE OPERATION SHORTFALL                 ..............         30,000   ..............  ..............  
 10305 ENVIRONMENTAL COMPLIANCE                 ..............  ..............  ..............         -5,000   
                                               =================================================================
 10350       TOTAL, OPERATION AND MAINTENANCE,     20,112,864      20,390,397      20,241,517      20,061,961   
              NAVY                                                                                              
 10400 TRANSFER                                       (83,333)        (50,000)        (50,000)        (50,000)  
                                               -----------------------------------------------------------------

[[Page H11872]]

                                                                                                                
 10450       TOTAL FUNDING AVAILABLE              (20,196,197)    (20,440,397)    (20,291,517)    (20,111,961)  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  4655  P-3 Squadron.............................................10,600
  4850  Depot Maintenance RMS Program............................10,000
  4850  Depot Maintenance-Aviation Backlog.......................24,000
  4850  Spares-Aviation Spares Reduction........................-32,000
  4950  Base Operations Support...................................6,887
  5100  Mission Operations........................................9,000
  5200  Intermediate Maintenance.................................21,000
  5250  Depot Maintenance RMS Program............................10,000
  5250  Depot Maintenance-Ship Overhaul Backlog.................150,000
  5350  Base Operations Support...................................7,152
  5800  Reverse Osmosis Desalinators..............................1,000
  5900  Base Operations Support...................................2,861
  5900  NAF Adak.................................................10,000
  5900  NAS Fallon Aquifer Study....................................175
  5900  NATO Infrastructure Reduction...........................-15,059
   6050  Cruise Missile Recertification..........................27,700
  6250  Basse Operations Support....................................742
  6310  Contingency Operations Transfer........................-126,300
Budget Activity 3: Training and Recruiting:
  7300  Base Operations Support.....................................530
  7450  Specialized Skill Training..............................-10,700
  7550  Professional Development Education.......................-2,800
  7600  Chief of Naval Education and Training (CNET)..............1,000
  7650  Base Operations Support...................................2,808
Budget Activity 4: Administration and Servicewide Activities:
  8500  Servicewide Communications-Challenge Athena...............7,000
  8550  Base Operations Support...................................1,642
  8850  Acquisition and Program Management........................2,804
  8850  Acquisition Workforce Reduction.........................-25,600
  9100  Base Operations Support...................................1,218
  9105  Pentagon Reservation Fund Transfer......................-38,300
  9250  Security Program.........................................-3,000
Undistributed:
  9550   Classifed (Undistributed)................................5,204
  9600   Information Resource Management........................-50,000
  9650   DNSC Transfer...........................................33,333
  9660   National Defense Stockpile Fund/Other..................-10,000
  9700   Foreign Currency Fluctuation............................-2,100
  9800   Printing Efficiencies...................................-4,000
  10100  Civilian Personnel Underexecution......................-44,600
  10110  Acquisition Workforce Reduction........................-14,000
  10120  USTRANSCOM Efficiencies................................-10,000
  10130  OSA Flying Hour Reduction...............................-5,000
  10140  Wake Island Hydro- acoustic System.........................900
  10305  Environmental Compliance Reduction......................-5,000


                            Challenge athena

       Last year, the Navy requested and the conferees provided 
     $27,000,000 for Challenge Athena and directed the Department 
     to include this requirement in future budget submissions (S. 
     Report 104-124). Despite this direction and the Department's 
     claims that this program is the Navy's number one C4I 
     priority, the Navy once again failed to include Challenge 
     Athena in its budget request. Because of the critical 
     importance of this project to the morale and well-being of 
     deployed fleet sailors, the conferees hereby provide an 
     additional $7,000,000 in servicewide communications.


                 Chief of naval education and training

       The conferees direct that the Chief of Naval Education and 
     Training (CNET), as the Navy's organization responsible for 
     training technology matters, undertake efforts that will lead 
     to maximizing returns on technology investment in distance 
     learning and computer mediated learning. This would include 
     developing more efficient use of the Internet for training 
     requirements, developing models for appropriate applications 
     of training technologies, and developing models to assess 
     leadership training effectiveness. The conferees agree to add 
     $1,000,000 to initiate this effort.


                     oceanographic ship operations

       The conferees direct that up to $7,500,000 be made 
     available for university research fleet oceanographic ship 
     operations out of funds made available in the mission 
     operations line.


                         intrepid refurbishment

       The conferees agree that the Department of Defense should 
     review the cost and feasibility of refurbishing the deck of 
     the USS Intrepid in time for possible inclusion in the fiscal 
     year 1998 budget submission if deemed appropriate.

                Operation and Maintenance, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
 10500 OPERATION AND MAINTENANCE, MARINE CORPS                                                                  
 10550 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
 10600 EXPEDITIONARY FORCES                                                                                     
 10650 OPERATIONAL FORCES                              331,478         377,478         331,478         365,478  
 10655 INITIAL ISSUE EQUIPMENT                  ..............  ..............          25,000  ..............  
 10660 WARFIGHTING LAB                          ..............  ..............           8,000  ..............  
 10665 CONTINGENCY OPERATION TRANFER            ..............  ..............            -200            -200  
 10700 FIELD LOGISTICS                                 171,056         171,056         171,056         171,056  
 10750 DEPOT MAINTENANCE                               155,168         165,168         155,168         155,168  
 10800 BASE SUPPORT                                    593,307         659,307         593,307         608,307  
 10850 MAINTENANCE OF REAL PROPERTY                    252,570         252,570         252,570         252,570  
 10855 NON-LETHAL WEAPONS                       ..............  ..............           3,000  ..............  
 10900 USMC PREPOSITIONING                                                                                      
 10950 MARITIME PREPOSITIONING                          74,003          74,003          74,003          74,003  
 11000 NORWAY PREPOSITIONING                             3,748           3,748           3,748           3,748  
 11010 PERSONNEL SUPPORT EQUIPMENT              ..............  ..............          15,000  ..............  
 11015 CORROSION CONTROL                        ..............  ..............          10,000  ..............  
      ----------------------------------------------------------------------------------------------------------
 11050       TOTAL, BUDGET ACTIVITY 1                1,581,330       1,703,330       1,642,130       1,630,130  
      ==========================================================================================================
 11100 BUDGET ACTIVITY 3: TRAINING AND                                                                          
        RECRUITING                                                                                              
 11150 ACCESSION TRAINING                                                                                       
 11200 RECRUIT TRAINING                                  8,139           8,139           8,139           8,139  
 11250 OFFICER ACQUISITION                                 270             270             270             270  
 11300 BASE SUPPORT                                     47,092          47,092          47,792          47,463  
 11350 MAINTENANCE OF REAL PROPERTY                     17,590          17,590          18,990          17,590  
 11400 BASIC SKILLS AND ADVANCED TRAINING                                                                       
 11450 SPECIALIZED SKILLS TRAINING                      26,578          26,578          26,578          26,578  
 11500 FLIGHT TRAINING                                     155             155             155             155  
 11550 PROFESSIONAL DEVELOPMENT EDUCATION                5,929           5,929           5,929           5,929  
 11600 TRAINING SUPPORT                                 74,859          74,859          74,859          74,859  
 11650 BASE SUPPORT                                     51,086          51,086          51,786          51,457  
 11700 MAINTENANCE OF REAL PROPERTY                     24,402          24,402          26,402          24,402  
 11750 RECRUITING AND OTHER TRAINING EDUCATION                                                                  
 11800 RECRUITING AND ADVERTISING                       65,382          70,082          70,082          70,082  
 11850 OFF-DUTY AND VOLUNTARY EDUCATION                 10,593          15,093          10,593          15,093  
 11900 JUNIOR ROTC                                       8,562           8,562           8,562           8,562  
 11950 BASE SUPPORT                                      8,427           8,427           8,427           8,427  
 12000 MAINTENANCE OF REAL PROPERTY                      2,336           2,336           3,436           2,336  
      ----------------------------------------------------------------------------------------------------------
 12050       TOTAL, BUDGET ACTIVITY 3                  351,400         360,600         362,000         361,342  
      ==========================================================================================================
 12100 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
 12150 SERVICEWIDE SUPPORT                                                                                      

[[Page H11873]]

                                                                                                                
 12250 SPECIAL SUPPORT                                 196,367         196,367         196,367         196,367  
 12300 SERVICEWIDE TRANSPORTATION                       38,479          38,479          38,479          38,479  
 12350 ADMINISTRATION                                   25,459          25,459          25,459          25,459  
 12400 BASE SUPPORT                                      9,283           9,283           9,283           9,283  
 12450 MAINTENANCE OF REAL PROPERTY                      1,459           1,459           1,459           1,459  
      ----------------------------------------------------------------------------------------------------------
 12500       TOTAL, BUDGET ACTIVITY 4                  271,047         271,047         271,047         271,047  
      ==========================================================================================================
 12550 CLASSIFIED PROGRAMS                      ..............  ..............           5,300           2,900  
 12600 FOREIGN CURRENCY FLUCTUATION             ..............  ..............  ..............          -2,100  
 12710 MAINTENANCE OF REAL PROPERTY             ..............         140,000  ..............  ..............  
 12750 ACQUISITION WORKFORCE REDUCTION          ..............          -2,200  ..............          -2,200  
 12755 USTRANSCOM EFFICIENCIES                  ..............          -5,000          -4,500          -5,000  
 12760 OSA FLYING HOUR REDUCTION                ..............          -4,000  ..............          -2,000  
 12765 EMBASSY SUPPORT                          ..............          -8,700  ..............  ..............  
 12770 BASE OPERATIONS SHORTFALL                ..............          10,000  ..............  ..............  
      ----------------------------------------------------------------------------------------------------------
 12800       TOTAL, OPERATION AND MAINTENANCE,       2,203,777       2,465,077       2,275,977       2,254,119  
              MARINE CORPS                                                                                      
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  10650  Commandant's Warfighting Lab.............................8,000
  10650  Corrosion Control........................................7,000
  10650  Soldier Enhancement/Initial Issue.......................19,000
  10665  Contingency Operations Transfer...........................-200
  10800  Personnel Support Equipment.............................15,000
Budget Activity 3: Training and Recruiting:
  11300  Base Operations Support....................................371
  11650  Base Operations Support....................................371
  11800  Recruiting and Advertising...............................4,700
  11850  Off-Duty & Voluntary Education...........................4,500
Undistributed:
  12550  Classified Programs......................................2,900
  12600  Foreign Currency Fluctuation............................-2,100
  12750  Acquisition Workforce Reduction.........................-2,200
  12755  USTRANSCOM Efficiencies.................................-5,000
  12760  OSA Flying Hour Reduction...............................-2,000

                  Operation and Maintenance, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference  
----------------------------------------------------------------------------------------------------------------
 12950 OPERATION AND MAINTENANCE, AIR                                                                           
        FORCE                                                                                                   
 13000 BUDGET ACTIVITY 1: OPERATING FORCE                                                                       
 13050 AIR OPERATIONS                                                                                           
 13100 PRIMARY COMBAT FORCES                     2,314,739        2,308,039        2,403,739        2,391.339   
 13105 CONTINGENCY OPERATIONS TRANSFER      ...............  ...............        -414,000         -414,000   
 13110 SPARES INVENTORY REDUCTION           ...............  ...............         -40,000          -80,000   
 13115 AIRCRAFT COMPONENT RECLAMATION       ...............  ...............         -80,000   ...............  
 13120 DEPOT MAINTENANCE RMS PROGRAM        ...............  ...............          20,000   ...............  
 13125 DEPOT MAINTENANCE                    ...............  ...............          41,200           33,200   
 13150 PRIMARY COMBAT WEAPONS                      394,408          394,408          394,408          394,408   
 13200 COMBAT ENHANCEMENT FORCES                   250,614          250,614          250,614          250,614   
 13250 AIR OPERATIONS TRAINING                     570,948          570,948          570,948          570,948   
 13300 COMBAT COMMUNICATIONS                       893,912          893,912          867,912          880,912   
 13350 BASE SUPPORT                              1,680,275        1,680,275        1,716.275        1.699.347   
 13400 MAINTENANCE OF REAL PROPERTY                694,867          694,867          749,067          694.867   
 13445 CAPITAL ASSETS REDUCTION             ...............  ...............          -3,745           -3,745   
 13450 COMBAT RELATED OPERATIONS                                                                                
 13500 GLOBAL C3I AND EARLY WARNING                736,038          736,038          746,038          746,338   
 13550 NAVIGATION/WEATHER SUPPORT                  114,842          114,842          114,842          114,842   
 13600 OTHER COMBAT OPS SUPPORT PROGRAMS           197.861          200,361          197,861          199,361   
 13650 JCS EXERCISES                                37,973           37,973           37,973           37,973   
 13700 MANAGEMENT/OPERATIONAL HEADQUARTERS         106,309          106,309          106,309          106,309   
 13750 TACTICAL INTEL AND OTHER SPECIAL            216,743          210,043          216,743          216,743   
        ACTIVITIES                                                                                              
 13800 SPACE OPERATIONS                                                                                         
 13850 LAUNCH FACILITIES                           237,508          237,508          237,508          237,508   
 13900 LAUNCH VEHICLES                             106,266          106,266          106,266          106,266   
 13950 SPACE CONTROL SYSTEMS                       311,304          311,304          311,304          311,304   
 14000 SATELLITE SYSTEMS                            44,301           44,301           44,301           44,301   
 14050 OTHER SPACE OPERATIONS                      101,723          101,723          101,723          101,723   
 14055 DOD SPACE ARCHITECT                  ...............  ...............           2,399            2,400   
 14100 BASE SUPPORT                                291,242          291,242          291,242          291,421   
 14150 MAINTENANCE OF REAL PROPERTY                109,736          109,736          118,336          109,736   
                                           ---------------------------------------------------------------------
 14200       TOTAL, BUDGET ACTIVITY 1            9,385.609        9,400,709        9,115,563        9,047,115   
                                           ---------------------------------------------------------------------
 14250 BUDGET ACTIVITY 2: MOBILIZATION                                                                          
 14300 MOBILITY OPERATIONS                                                                                      
 14350 AIRLIFT OPERATIONS                        1,584,175        1,584,175        1,584,175        1,584,175   
 14400 AIRLIFT OPERATIONS C3I                       13,784           13,784           13,784           13,784   
 14450 MOBILIZATION PREPAREDNESS                   138,167          138,167          138,167          138,167   
 14500 PAYMENTS TO TRANSPORTATION BUSINESS         422,700          422,700          422,700          422,700   
        AREA                                                                                                    
 14550 BASE SUPPORT                                408,945          408,945          417,945          413,713   
 14600 MAINTENANCE OF REAL PROPERTY                121,486          121,486          130,986          121,486   
                                           ---------------------------------------------------------------------
 14650       TOTAL, BUDGET ACTIVITY 2            2,689,257        2,689,257        2,707,757        2,694,025   
                                           =====================================================================
 14700 BUDGET ACTIVITY 3: TRAINING AND                                                                          
        RECRUITING                                                                                              
 14750 ACCESSION TRAINING                                                                                       
 14800 OFFICER ACQUISITION                          48,213           48,213           48,213           48,213   
 14850 RECRUIT TRAINING                              4,586            4,586            4,586            4,586   
 14900 RESERVE OFFICER TRAINING CORPS               42,738           42,738           42,738           42,738   
        (ROTC)                                                                                                  
 14950 BASE SUPPORT (ACADEMIES ONLY)                56,843           56,843           56,843           56,843   
 15000 MAINTENANCE OF REAL PROPERTY                 40,050           40,050           40,050           40,050   
        (ACADEMIES ONLY)                                                                                        
 15050 BASIC SKILLS AND ADVANCED TRAINING                                                                       
 15100 SPECIALIZED SKILL TRAINING                  195,098          185,698          195,098          185,698   
 15150 FLIGHT TRAINING                             331,663          331,663          331,663          331,663   
 15200 PROFESSIONAL DEVELOPMENT EDUCATION           74,060           66,660           74,060           66,660   
 15250 TRAINING SUPPORT                             59,607           53,707           59,607           53,707   
 15300 BASE SUPPORT (OTHER TRAINING)               388,965          388,965          397,215          393,336   
 15350 MAINTENANCE OF REAL PROPERTY (OTHER         117,335          117,335          126,435          117,335   
        TRAINING)                                                                                               
 15400 RECRUITING, AND OTHER TRAINING AND                                                                       
        EDUCATION                                                                                               
 15450 RECRUITING AND ADVERTISING                   52,218           52,218           54,718           54,718   
 15500 EXAMINING                                     1,954            1,954            1,954            1,954   
 15550 OFF DUTY AND VOLUNTARY EDUCATION             71,210           80,710           80,710           80,710   
 15600 CIVILIAN EDUCATION AND TRAINING              66,791           66,791           66,791           66,791   
 15650 JUNIOR ROTC                                  25,233           25,233           25,233           25,233   
                                           ---------------------------------------------------------------------

[[Page H11874]]

                                                                                                                
 15700       TOTAL, BUDGET ACTIVITY 3            1,576,564        1,563,364        1,605,914        1,570,235   
                                           =====================================================================
 15750 BUDGET ACTIVITY 4: ADMIN &                                                                               
        SERVICEWIDE ACTIVITIES                                                                                  
 15800 LOGISTICS OPERATIONS                                                                                     
 15850 LOGISTICS OPERATIONS                      1,042,759        1,031,159        1,042,759        1,021,159   
 15900 TECHNICAL SUPPORT ACTIVITIES                371,521          371,521          371,521          371,521   
 15950 SERVICEWIDE TRANSPORTATION                  240,740          240,740          240,740          240,740   
 16000 BASE SUPPORT                                581,182          581,182          593,932          587,937   
 16050 MAINTENANCE OF REAL PROPERTY                217,991          217,991          234,991          217,991   
 16100 SERVICEWIDE ACTIVITIES                                                                                   
 16150 ADMINISTRATION                              121,337          113,337          121,337          111,337   
 16200 SERVICEWIDE COMMUNICATIONS                  268,687          268,687          268,687          268,687   
 16250 PERSONNEL PROGRAMS                           89,196           89,196           89,196           89,196   
 16300 RESCUE AND RECOVERY SERVICES                 44,413           44,413           44,413           44,413   
 16400 ARMS CONTROL                                 28,418           28,418           28,418           28,418   
 16450 OTHER SERVICEWIDE ACTIVITIES                482,192          482,192          482,192          482,192   
 16500 OTHER PERSONNEL SUPPORT                      30,873           30,873           30,873           30,873   
 16550 CIVIL AIR PATROL CORPORATION                 14,526           15,426           17,926           17,926   
 16600 BASE SUPPORT                                145,053          145,053          148,053          146,642   
 16605 PENTAGON RESERVATION FUND TRANSFER   ...............  ...............         -40,300          -27,200   
 16650 MAINTENANCE OF REAL PROPERTY                 20,127           20,127           21,727           20,127   
 16700 SECURITY PROGRAMS                                                                                        
 16750 SECURITY PROGRAMS                           550,240          548,340          550,240          548,340   
 16800 SUPPORT TO OTHER NATIONS                                                                                 
 16850 INTERNATIONAL SUPPORT                        12,374           12,374           12,374           12,374   
                                           ---------------------------------------------------------------------
 16900       TOTAL, BUDGET ACTIVITY 4            4,262,025        4,241,425        4,259,475        4,213,069   
                                           =====================================================================
 16950 CLASSIFIED PROGRAMS UNDISTRIBUTED    ...............         -24,700           -5,000          -23,476   
 17050 CIVILIAN PERSONNEL UNDERSTRENGTH     ...............         -12,200          -94,600          -12,200   
 17100 GENERAL REDUCTION, NATIONAL DEFENSE         -83,333          -50,000          -50,000          -50,000   
        STOCKPILE FUND                                                                                          
 17110 GENERAL REDUCTION, NATL DEFENSE      ...............  ...............  ...............         -10,000   
        STOCKPILE FUND / OTHER                                                                                  
 17150 FOREIGN CURRENCY FLUCTUATION         ...............  ...............  ...............         -26,700   
 17350 PRINTING EFFICIENCIES                ...............          -3,000   ...............          -3,000   
 17560 MAINTENANCE OF REAL PROPERTY         ...............          70,500   ...............  ...............  
 17570 REAL PROPERTY MAINTENANCE--          ...............           9,500   ...............  ...............  
        FAIRCHILD AFB                                                                                           
 17580 CHEMICAL/BIOLOGICAL PROTECTIVE       ...............           3,000   ...............           2,000   
        EQUIPMENT                                                                                               
 17595 FUEL TAX CREDIT                      ...............          -8,500           -8,500           -8,500   
 17615 ACQUISITION WORKFORCE REDUCTION      ...............          -8,600   ...............          -8,600   
 17617 DBOF PASSTHROUGH                     ...............  ...............        -194,500   ...............  
 17619 AIRCRAFT MAINTENANCE DATA SYSTEM     ...............  ...............          15,000           15,000   
 17620 USTRANSCOM EFFICIENCIES              ...............         -22,000          -19,800          -22,000   
 17625 OSA FLYING HOUR REDUCTION            ...............         -24,000   ...............          -8,000   
 17630 RELIABILITY TESTING                  ...............          23,000   ...............             300   
 17635 BASE OPERATIONS SHORTFALLS           ...............          30,000   ...............  ...............  
 17640 INFORMATION RESOURCE MANAGEMENT      ...............          61,000   ...............         -50,000   
 17646 INVESTMENT ITEM TRANSFER             ...............  ...............  ...............         -51,075   
 17648 ENVIRONMENTAL COMPLIANCE             ...............  ...............  ...............          -5,000   
                                           =====================================================================
 17650       TOTAL, OPERATION AND               17,830,122       17,938,755       17,331,309       17,263,193   
              MAINTENANCE, AIR FORCE                                                                            
 17770 TRANSFER                                    (83,333)         (50,000)         (50,000)         (50,000)  
                                           ---------------------------------------------------------------------
 17750       TOTAL FUNDING AVAILABLE           (17,913,455)     (17,988,755)     (17,381,309)     (17,313,193)  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  13100  B-52 Attrition Reserve..................................47,900
  13100  C-130 Transfer to ANG...................................-6,700
  13100  Ellsworth AFB B-1 Squadron...............................5,400
  13100  SR-71...................................................30,000
  13105  Contingency Operations Transfer.......................-414,000
  13110  Spares-Aviation Spares Reduction.......................-80,000
  13125  Depot Maintenance.......................................33,200
  13300  RIVET JOINT Communication Installations.................13,000
  13350  Base Operations Support.................................19,072
  13445  Capital Asset Reduction.................................-3,745
  13500  AWACS EXTEND SENTRY......................................7,100
  13500  JSAS.....................................................3,200
  13600  Reverse Osmosis Desalinators.............................1,500
  14055  DoD Space Architect......................................2,400
  14100  Base Operations Support..................................3,179
Budget Activity 2: Mobilization:
  14550  Base Operations Support..................................4,768
Budget Activity 3: Training and Recruiting:
  15100  Specialized Skill Training..............................-9,400
  15200  Professional Development Education......................-7,400
  15250  Training Support........................................-5,900
  15300  Base Operations Support..................................4,371
  15450  Recruiting and Advertising...............................2,500
  15550  Off-Duty & Voluntary Education...........................9,500
Budget Activity 4: Administration and Servicewide Activities
  15850  Acquisition Workforce Reduction........................-41,600
  15850  Depot Maintenance RMS Program...........................20,000
  16000  Base Operations Support..................................6,755
  16150  Air Staff Liaison......................................-12,000
  16150  STRATCOM.................................................2,000
  16550  Civil Air Patrol, Counternarcotics.......................2,500
  16550  Civil Air Patrol, Other....................................900
  16600  Base Operations Support..................................1,589
  16605  Pentagon Reservation Fund Transfer.....................-27,200
  16750  Security Programs.......................................-1,900
Undistributed:
  16950  Classified (Undistributed).............................-23,476
  17050  Civilian Personnel Underexecution......................-12,200
  17100  DNSC Transfer...........................................33,333
  17110  National Defense Stockpile Fund/Other..................-10,000
  17150  Foreign Currency Fluctuation...........................-26,700
  171350  Printing Efficiencies..................................-3,000
  17580  Chem-Bio Protective Equipment............................2,000
  17595  Fuel Tax Credit.........................................-8,500
  17615  Acquisition Workforce Reduction.........................-8,600
  17619  Aircraft Maintenance Data System........................15,000
  17615  Acquisition Workforce Reduction.........................-8,600
  17619  Aircraft Maintenance Data System........................15,000
  17620  USTRANSCOM Efficiencies................................-22,000
  17625  OSA Flying Hour Reduction...............................-8,000
  17630  Reliability Testing........................................300
  17640  Information Resources Management.......................-50,000
  17646  Investment Item Transfer...............................-51,075
  17648  Environmental Compliance Reduction......................-5,000


                       corrosion control facility

       The conferees urge the Air Force to consider submitting a 
     reprogramming for construction of an aircraft towway between 
     Tinker Air Force Base and a privately built and operated 
     corrosion control and paint facility to be constructed on a 
     site adjacent to the Base. This would be implemented in 
     cooperation with the initiative of the city of Oklahoma City 
     to secure a private company to build and operate the new 
     corrosion control and paint facility.


                 missile crew member education program

       The conferees are aware of a recent decision by the Air 
     Force Space Command to discontinue the Missile Crew Member 
     Education Program that, for over thirty years, has covered 
     100 percent of the cost of tuition and books for missile crew 
     officers pursuing masters degrees. The conferees recognize 
     that the program has been an effective means of retaining 
     officers and also maintaining the high educational standards 
     of the Air Force, and requests the Space Command consider 
     continuing the program at the level of assistance provided 
     prior to the decision to terminate the program.


                     instrument routes 102 and 141

       The conferees recognize the need for Air Force low altitude 
     training and strongly support this requirement. The conferees 
     urge the Air Force to give every consideration to public 
     comments and community concerns

[[Page H11875]]

     in the impacted areas when modifying Instrument Routes 102 
     and 141 for such training. The Air Force should report to the 
     congressional defense committees by March 31, 1997, on 
     possible alternative routes to the currently proposed 
     training routes.


                     former olmsted air force base

       The conferees are pleased that the final restoration by the 
     Air Force of the former Olmsted Air Force Base in 
     Pennsylvania is proceeding smoothly and the the Environmental 
     Protection Agency projects a delisting of the base 
     (Middletown Airfield EPA National Priorities List Site) from 
     the NPL by the end of 1996. The conferees feel that following 
     delisting of the site it will be necessary to maintain near 
     the site a comprehensive database which incorporates data 
     from all current and future environmental investigations to 
     provide a comprehensive look at the environmental status of 
     the site for future development or emergency response 
     situations and to maintain institutional controls. Therefore, 
     the conferees recommend that, commencing in fiscal year 1997, 
     the Air Force expend funds necessary (estimated at $123,000 
     over five years) for such a comprehensive site database to be 
     located at the Pennsylvania State University at Harrisburg, 
     Pennsylvania.


                        fairchild air force base

       The conferees direct that, of the funds provided in this 
     account, and additional $9,500,000 be provided above the 
     budgeted amount for facilities maintenance and repair at 
     Fairchild Air Force Base.

                Operation and Maintenance, Defense-Wide

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
 17800 OPERATION AND MAINTENACE, DEFENSE-WIDE                                                                   
 17850 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
 17900 JOINT CHIEFS OF STAFF                           464,199         564,899         469,199         509,199  
 17950 SPECIAL OPERATIONS COMMAND                      962,319         985,119         977,619         978,119  
 17955 SOCOM RPM                                ..............  ..............           2,000           2,000  
                                               -----------------------------------------------------------------
 18000       TOTAL, BUDGET ACTIVITY 1                1,426,518       1,550,018       1,448,818       1,489,318  
                                               =================================================================
 18050 BUDGET ACTIVITY 2: MOBILIZATION                                                                          
 18100 DEFENSE LOGISTICS AGENCY                         21,942          21,942          21,942          21,942  
 18200 BUDGET ACTITIVITY 3: TRAINING AND                                                                        
        RECRUITING                                                                                              
 18250 DEFENSE ACQUISITION UNIVERSITY                  100,417         100,417          90,417          85,417  
 18350 SPECIAL OPERATION COMMAND                        35,500          35,500          35,500          35,500  
                                               -----------------------------------------------------------------
 18400       TOTAL, BUDGET ACTIVITY 3                  135,917         135,917         125,917         120,917  
                                               =================================================================
 18450 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
 18500 AMERICAN FORCES INFORMATION SERVICE             100,558         100,558         100,558         100,558  
 18550 CORPORATE INFORMATION MANAGEMENT                 46,367          46,367          46,367          46,367  
 18600 CLASSIFIED AND INTELLIGENCE                   3,384,576       3,384,093       3,333,876       3,382,376  
 18650 DEFENSE CIVILIAN PERSONNEL, MANAGEMENT           49,302          49,302          49,302          49,302  
        SERVICE                                                                                                 
 18700 DEFENSE CONTRACT AUDIT AGENCY                   335,486         327,486         335,486         327,486  
 18750 DEFENSE INVESTIGATIVE SERVICE                   193,323         193,232         193,232         193,232  
 18800 DEFENSE LOGISTICS AGENCY                      1,181,738       1,108,338       1,083,938       1,090,738  
 18850 DEFENSE LEGAL SERVICE AGENCY                      7,297           7,297           7,297           7,297  
 18900 DEFENSE MAPPING AGENCY                          741,157         768,257         721,157         758,257  
 18950 DEFENSE NUCLEAR AGENCY                           85,083          85,083          88,083          85,083  
 19000 DEFENSE POW/MIA OFFICE                           12,694          12,694          12,694          12,694  
 19050 FEDERAL ENERGY MANAGEMENT PROGRAM               116,853         116,853          20,000          15,000  
 19100 DEPARTMENT OF DEFENSE DEPENDENTS              1,322,254       1,342,254       1,322,854       1,342,254  
        EDUCATION                                                                                               
 19150 DEFENSE SUPPORT ACTIVITIES                      125,269         125,269         125,269         125,269  
 19200 DEFENSE TECHNOLOGY SECURITY                      10,504          10,504          10,504          10,504  
        ADMINISTRATION                                                                                          
 19250 JOINT CHIEFS OF STAFF                           121,295         121,295         121,295         121,295  
 19300 OFFICE OF ECONOMIC ADJUSTMENT                    39,330          39,330          39,330          53,330  
 19350 OFFICE OF THE SECRETARY OF DEFENSE              339,558         259,858         239,185         319,858  
 19450 ON SITE INSPECTION AGENCY                       109,030          87,030          95,030          87,030  
 19500 SPECIAL OPERATIONS COMMAND                       55,200          55,200          55,200          55,200  
 19550 WASHINGTON HEADQUARTERS SERVICES                195,308         195,308         181,308         176,293  
                                               -----------------------------------------------------------------
 19600       TOTAL, BUDGET ACTIVITY 4                8,572,091       8,435,608       8,271,965       8,359,423  
                                               =================================================================
 19675 LEGACY                                   ..............  ..............          15,000          12,500  
 19700 PENTAGON RENOVATION TRANSFER             ..............  ..............          83,100          70,000  
 19750 CIVILIAN PERSONNEL UNDERSTRENGTH         ..............         -14,200         -51,600         -14,200  
 19900 FOREIGN CURRENCY FLUCTUATION             ..............  ..............  ..............          -7,400  
 19950 IMPACT AID                               ..............          58,000  ..............          35,000  
 19955 REPAIRS TO FEDERALLY-FUNDED SCHOOLS      ..............  ..............          20,000          20,000  
 20025 INDIAN LAND REMEDIATION                  ..............  ..............           8,000           8,000  
 20075 EMERGENCY PREPAREDNESS AND RESPONSE      ..............  ..............           5,000           4,000  
 20130 ACQUISITION WORKFORCE REDUCTIONS         ..............          -4,300  ..............          -4,300  
 20160 USTRANSCOM EFFICIENCIES                  ..............         -26,000  ..............         -26,000  
 20170 INFORMATION RESOURCE MANAGEMENT          ..............          56,000  ..............          16,000  
 20175 INNOVATION READINESS TRAINING            ..............  ..............           5,000           5,000  
 20185 UNDISTRIBUTED REDUCTION (NUNN-LUGAR)     ..............  ..............        -138,000  ..............  
 20190 CONTINGENCY OPERATIONS TRANSFER DEFENSE- ..............  ..............  ..............         -66,000  
        WIDE                                                                                                    
 20195 DEFENSE AGAINST WEAPONS OF MASS          ..............  ..............         138,000  ..............  
        DESTRUCTION                                                                                             
                                               =================================================================
 20200       TOTAL, OPERATION AND MAINTENANCE,      10,156,468      10,212,985       9,953,142      10,044,200  
              DEFENSE-WIDE                                                                                      
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  17900  Exercise Northern Edge...................................5,000
  17900  Strategic Mobility--Mobility Enhancements...............40,000
  17950  Emergent Operations......................................5,000
  17950  Intell Support to Naval Special Ops Training...............500
  17950  SOCOM OPTEMPO/DLRs......................................10,300
  17955  Real Property Maintenance (SOCOM)........................2,000
Budget Activity 3: Training and Recruiting:
  18250  Defense Acquisition University.........................-15,000
Budget Activity 4: Administration and Servicewide Activities:
  18600  Classified and Intell...................................-2,200
  18700  Acquisition Workforce Reduction.........................-8,000
  18800  Acquisition Workforce Reduction........................-24,000
  18800  Civilian Personnel Under- execution....................-13,000
  18800  Depot Maintenance RMS Program..........................-90,000
  18800  Procurement Technical Assistance Program................18,000
  18800  Security Locks..........................................15,000
  18800  Tent Repair and Maintenance..............................3,000
  18900  Defense Mapping Agency..................................17,100
  19050  Federal Energy Management Program.....................-101,853
  19100  Department of Defense Dependents Education..............20,000
  19300  OEA-San Diego Conversion Center..........................7,000
  19300  OEA-California State University Monterey Bay/Fort Ord....7,000
  19350  Civil/Military Programs.................................-5,000
  19350  OSD Administrative Savings.............................-20,400
  19350  Recruiting and Advertising/JRAP/Defense Manpower Data 
    Center.......................................................10,300
  19350  Seismic System Communication Links.........................400
  19450  Security Programs-On Site Inspection Agency............-22,000
  19550  Recruiting and Advertising/Washington Headquarters Service/
    JRAP Offset.................................................-10,000
  19550  Washington Headquarters Service/Other...................-9,015
Undistributed:
  19675  Legacy..................................................12,500

[[Page H11876]]

  19700  Pentagon Reservation Fund Transfer......................70,000
  19750  Civilian Personnel Under execution.....................-14,200
  19900  Foreign Currency Fluctuation............................-7,400
  19950  Impact Aid..............................................35,000
  19955  Repairs to Federally-Funded Schools.....................20,000
  20025  Indian Land Remediation..................................8,000
  20075  Emergency Preparedness and Response......................4,000
  20130  Acquisition Workforce Reduction.........................-4,300
  20160  USTRANSCOM Efficiencies................................-26,000
  20170  Information Resource Management.........................16,000
  20175  Innovative Readiness Training............................5,000
  20190  Contingency Operations Transfer........................-66,000


                         defense mapping agency

       The conferees concur in the House direction that the 
     Defense Mapping Agency's private contracting be conducted in 
     compliance with the normal qualifications based selection 
     process found in 40 U.S.C. 541 and 10 U.S.C. 2855. These 
     provisions in Federal law provide the authority for agencies 
     to use the qualifications based selection process, including 
     selection of surveying and mapping firms, for all services 
     described therein, not just those related to construction. 
     The conferees agree that these provisions regarding private 
     contracting apply only to mapping, charting and geodetic 
     activities.


                             natural fibers

       The conferees note the preponderance of synthetic fibers in 
     most uniforms and strongly support efforts to improve the 
     quality of life for our forces. Given the greater comfort of 
     natural fibers, the conferees direct the Department of 
     Defense to report to the congressional defense committees on 
     the potential for increasing the natural fiber content of 
     uniforms by January 31, 1997.


                       law enforcement equipment

       The conferees direct the Department of Defense to forgive 
     the remaining 5,000 ballistic helmets and their monetary 
     value loaned to the Los Angeles County Sheriff's Department 
     (since April 1993).


                        civil/military programs

       The conferees recommend a total of $59,500,000 for civil/
     military programs for fiscal year 1997 and direct the 
     Department to provide the level of funding as shown below to 
     those programs. The conferees further direct the Department 
     to report to the congressional defense committees, not later 
     than February 15, 1997, on the status of the obligation of 
     these funds.

                       [In thousands of dollars]

Challenge youth program.........................................$39,000
Starbase youth program............................................4,500
Innovative Readiness Training....................................16,000
                                                             __________
                                                             
    Total........................................................59,500


            department of defense dependents schools (dodds)

       The conferees urge the Department to continue to fund the 
     DoDDS mathematics teachers leadership development project out 
     of the funds provided in this appropriation. In addition, the 
     conferees direct the Department to provide the congressional 
     defense committees with a report, not later than March 1, 
     1997, on the actual and projected status of execution of 
     funds appropriated for the Department of Defense Dependents 
     Schools for fiscal years 1996 and 1997.

                Operation and Maintenance, Army Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [in thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
 20350 OPERATION AND MAINTENANCE, ARMY RESERVE                                                                  
 20400 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
 20450 MISSION OPERATIONS                                                                                       
 20500 BASE SUPPORT                                    258,273         258,273         258,273         258,273  
 20550 MAINTENANCE OF REAL PROPERTY                     50,913          50,913          80,913          50,913  
 20600 DEPOT MAINTENANCE                                45,853          45,853          45,853          45,853  
 20650 RECRUITING AND RETENTION                         36,998          41,998          36,998          41,998  
 20700 TRAINING OPERATIONS                             578,482         605,482         578,482         598,482  
                                               -----------------------------------------------------------------
 20750       TOTAL, BUDGET ACTIVITY 1                  970,519       1,002,519       1,000,519         995,519  
                                               =================================================================
 20800 BUDGET ACTIVITY 4: ADMIN. & SERVICEWIDE                                                                  
        ACTIVITIES                                                                                              
 20850 ADMINISTRATION AND SERVICEWIDE                                                                           
        ACTIVITIES                                                                                              
 20900 INFORMATION MANAGEMENT                           20,772          20,772          20,772          20,772  
 20950 PUBLIC AFFAIRS                                      467             467             467             467  
 21000 PERSONNEL ADMINISTRATION                         63,521          63,521          63,521          63,521  
 21050 STAFF MANAGEMENT                                 29,157          29,157          29,157          29,157  
                                               -----------------------------------------------------------------
 21100       TOTAL, BUDGET ACTIVITY 4                  113,917         113,917         113,917         113,917  
 21205 PERSONNEL ADMINISTRATION                 ..............  ..............          15,000          10,000  
                                               =================================================================
 21300       TOTAL, OPERATION AND MAINTENANCE,       1,084,436       1,116,436       1,129,436       1,119,436  
              ARMY RESERVE                                                                                      
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  20650  Recruiting and Retention.................................5,000
  20700  Training Operations/Ground OPTEMPO......................20,000
Other Adjustments:
  21205  Personnel Administration/civilian manpower shortfall....10,000
                                                             __________
                                                             
   Total adjustments............................................+35,000

                Operation and Maintenance, Navy Reserve

       The conference agreement on items addressed by either th4e 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                       Budget     House      Senate   Conference
----------------------------------------------------------------------------------------------------------------
 21450 OPERATION AND MAINTENANCE, NAVY RESERVE                                                                  
 21500 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
 21550 RESERVE AIR OPERATIONS                                                                                   
 21600 MISSION AND OTHER FLIGHT OPERATIONS                           275,838    275,838    275,838     275,838  
 21650 P-3 SQUADRON OPERATIONS                                     .........  .........  .........       5,500  
 21700 FLEET AIR TRAINING                                              1,299      1,299      1,299       1,299  
 21750 INTERMEDIATE MAINTENANCE                                       17,499     17,499     17,499      17,499  
 21800 AIR OPERATION AND SAFETY SUPPORT                                2,048      2,048      2,048       2,048  
 21850 AIRCRAFT DEPOT MAINTENANCE                                     70,560     75,560     75,560      75,560  
 21900 AIRCRAFT DEPOT OPS SUPPORT                                        341        341        341         341  
 21950 BASE SUPPORT                                                  117,353    117,353    117,353     117,353  
 22000 MAINTENANCE OF REAL PROPERTY                                   24,920     24,920     36,920      24,920  
 22050 RESERVE SHIP OPERATORS                                                                                   
 22100 MISSION AND OTHER SHIP OPERATIONS                              61,784     61,784     61,784      61,784  
 22150 SHIP OPERATIONAL SUPPORT AND TRAINING                             642        642        642         642  
 22200 INTERMEDIATE MAINTENANCE                                        9,961      9,961      9,961       9,961  
 22250 SHIP DEPOT MAINTENANCE                                         83,969     83,969     83,969      83,969  
 22300 SHIP DEPOT OPERATIONS SUPPORT                                   1,811      1,811      1,811       1,811  
 22350 RESERVE COMBAT OPERATIONS SUPPORT                                                                        
 22450 COMBAT SUPPORT FORCES                                          27,905     27,905     27,905      27,905  
 22500 BASE SUPPORT                                                   41,769     41,769     41,769      41,769  
 22550 MAINTENANCE OF REAL PROPERTY                                    8,960      8,960     11,960       8,960  
 22600 RESERVE WEAPONS SUPPORT                                                                                  
 22650 WEAPONS MAINTENANCE                                             6,121      6,121      6,121       6,121  

[[Page H11877]]

                                                                                                                
 22655 CONTINGENCY OPERATIONS TRANSFER                             .........  .........     -2,400      -2,400  
                                                                  ----------------------------------------------
 22700       TOTAL, BUDGET ACTIVITY 1                                752,780    757,780    770,380     760,880  
                                                                  ==============================================
 22750 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE ACTIVITIES                                                        
 22800 ADMINISTRATION AND SERVICEWIDE ACTIVITIES                                                                
 22850 ADMINISTRATION                                                  6,153      6,153      6,153       6,153  
 22900 CIVILIAN MANPOWER AND PERSONNEL MANAGEMENT                      2,764      2,764      2,764       2,764  
 22950 MILITARY MANPOWER AND PERSONNEL                                28,349     28,349     28,349      28,349  
 23050 SERVICEWIDE COMMUNICATIONS                                     19,427     19,427     19,427      19,427  
 23100 BASE SUPPORT                                                   26,488     26,488     26,488      26,488  
 23150 MAINTENANCE OF REAL PROPERTY                                    4,906      4,906      4,906       4,906  
 23200 COMBAT/WEAPONS SYSTEMS                                          2,555      2,555      2,555       2,555  
 23250 GENERAL DEFENSE INTELLIGENCE PROGRAM                              505        505        505         505  
 23260 BASE OPERATING SUPPORT                                      .........      7,000  .........       7,000  
                                                                  ----------------------------------------------
 23300       TOTAL, BUDGET ACTIVITY 4                                 91,147     98,147     91,147      98,147  
 23350 NSIPS                                                       .........     27,000  .........      27,000  
                                                                  ==============================================
 23450       TOTAL, OPERATION AND MAINTENANCE, NAVY RESERVE          843,927    882,927    861,527     886,027  
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  21650  P-3 Squadron operations..................................5,500
  21850  Aircraft Depot Maintenance/airframes and engines.........5,000
  22655  Contingency Operations Transfer.........................-2,400
Budget Activity 4: Administration and Servicewide Activities:
  23260  Base Operating Support...................................7,000
  23300  NSIPS...................................................27,000
                                                             __________
                                                             
    Total adjustments...........................................+42,100

            Operation and Maintenance, Marine Corps Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
 23600 OPERATION AND MAINTENANCE, MARINE CORPS                                                                  
        RESERVE                                                                                                 
 23650 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
 23700 MISSION FORCES                                                                                           
 23750 TRAINING                                         13,611          17,611          13,611          15,611  
 23800 OPERATING FORCES                                 27,569          32,369          38,269          35,569  
 23850 BASE SUPPORT                                     14,628          14,628          14,628          14,628  
 23900 MAINTENANCE OF REAL PROPERTY                      4,967           4,967           9.967           4,967  
 23950 DEPOT MAINTENANCE                                 2,953           2,953           2,953           2,953  
                                               -----------------------------------------------------------------
 24000       TOTAL, BUDGET ACTIVITY 1                   63,728          72,528          79,428          73,728  
                                               =================================================================
 24050 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
 24150 ADMINISTRATION AND SERVICEWIDE                                                                           
        ACTIVITIES                                                                                              
 24150 RECRUITING AND ADVERTISING                        7,538           7,538           7,538             ???  
 24200 SPECIAL SUPPORT                                   10477           10477          10,477          10,477  
 24250 SERVICEWIDE TRANSPORTATION                        4,507           4,507           4,507           4,507  
 24300 ADMINISTRATION                                    6,151           6,151           6,151           6,151  
 24350 BASE SUPPORT                                      7,266           7,266           7,266          27,266  
                                               -----------------------------------------------------------------
 24450       TOTAL, BUDGET ACTIVITY 4                   35,939          35,939          35,939          35,939  
                                               =================================================================
 24550       TOTAL, O&M, MARINE CORPS RESERVE           99,667         108,467         115,367         109,667  
----------------------------------------------------------------------------------------------------------------

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  23750  Training/M1A1 Tank Training..............................2,000
  23800  Operating Forces/Initial Issue...........................8,000
                                                             __________
                                                             
    Total adjustments...........................................+10,000

              Operation and Maintenance, Air Force Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
 24700 OPERATION AND MAINTENANCE, AIR FORCE                                                                     
        RESERVE                                                                                                 
 24750 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
 24800 AIR OPERATIONS                                                                                           
 24850 AIRCRAFT OPERATIONS                           1,102,739       1,105,739       1,109,139       1,110,739  
 24900 MISSION SUPPORT OPERATIONS                       38,645          38,645          38,645          38,645  
 24950 BASE SUPPORT                                    222,851         222,851         222,851         222,851  
 25000 MAINTENANCE OF REAL PROPERTY                     48,037          48,037          48,037          48,037  
 25050       TOTAL, BUDGET ACTIVITY 1                1,412,272       1,415,272       1,418,672       1,420,272  
                                               =================================================================
 25100 BUDGET ACTIVITY 4: ADMIN & SERVICE WIDE                                                                  
        ACTIVITIES                                                                                              
 25150 ADMINISTRATION AND SERVICEWIDE                                                                           
        ACTIVITIES                                                                                              
 25200 ADMINISTRATION                                   42,799          42,799          42,799          42,799  
 25250 MILITARY MANPOWER AND PERSONNEL                  19,386          19,386          19,386          19,386  
        MANAGEMENT                                                                                              
 25300 RECRUITING AND ADVERTISING                        7,714           7,714           7,714           7,714  
 25350 OTHER PERSONNEL SUPPORT                           6,047           6,047           6,047           6,047  
 25400 AUDIOVISUAL                                         335             335             335             335  
                                               -----------------------------------------------------------------
 25450       TOTAL, BUDGET ACTIVITY 4                   76,281          76,281          76,281          76,281  
                                               =================================================================
 25600       TOTAL, O&M, AIR FORCE RESERVE           1,488,553       1,491,553       1,494,953       1,496,553  
----------------------------------------------------------------------------------------------------------------


[[Page H11878]]

                    adjustments to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  24850  Aircraft Operations/WC-130 Training Hours................1,000
  24850  Aircraft Operations/AWACS Flying Hours...................2,000
  24850  Aircraft Operations/AWACS Reserve Program................5,000
                                                             __________
                                                             
    Total adjustments............................................+8,000

             Operation and Maintenance, Army National Guard

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
 25750 OPERATION AND MAINTENANCE, ARMY                                                                          
        NATIONAL GUARD                                                                                          
 25800 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
 25850 MISSION OPERATIONS                                                                                       
 25900 TRAINING OPERATIONS                           1,736,633       1,786,633       1,736,633       1,766,633  
 25950 RECRUITING AND RETENTION                         20,214          20,214          20,214          20,214  
 26000 MEDICAL SUPPORT                                  18,514          18,514          18,514          18,514  
 26050 DEPOT MAINTENANCE                                36,099          46,099          36,099          41,099  
 26100 BASE SUPPORT                                    196,070         196,070         196,070         196,070  
 26150 MAINTENANCE OF REAL PROPERTY                     48,041          48,041         123,041          48,041  
      ----------------------------------------------------------------------------------------------------------
 26200       TOTAL, BUDGET ACTIVITY 1                2,055,571       2,115,571       2,130,571       2,090,571  
      ==========================================================================================================
 26250 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
 26300 ADMINISTRATION AND SERVICEWIDE                                                                           
        ACTIVITIES                                                                                              
 26350 INFORMATION MANAGEMENT                           42,461          42,461          53,461          53,461  
 26400 PUBLIC AFFAIRS                                    1,463           1,463           1,463           1,463  
 26450 PERSONNEL ADMINISTRATION                         60,730          60,730          60,730          60,730  
 26500 STAFF MANAGEMENT                                 48,252          48,252          48,252          48,252  
      ----------------------------------------------------------------------------------------------------------
 26550       TOTAL, BUDGET ACTIVITY 4                  152,906         152,906         163,906         163,906  
      ==========================================================================================================
 26700       TOTAL, O&M, ARMY NATIONAL GUARD         2,208,477       2,268,477       2,294,477       2,254,477  
----------------------------------------------------------------------------------------------------------------

                    Adjustments to Budget Activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  25900  Training Operations/Ground Optempo......................30,000
  26050  Depot Maintenance........................................5,000
Budget Activity 4: Administration and Servicewide Activities:
  26350  Information Management/Distance Learning................11,000
                                                             __________
                                                             
    Total adjustments...........................................+46,000


                    national guard training support

       The conferees are aware of the work of the National Guard 
     Training Support Branch in development training procedures, 
     devices and simulations, such as FIST I and II and SIMITAR, 
     which have led to improvement in training and readiness for 
     our National Guard. The conferees are also aware that the 
     results of these efforts were successfully employed in 
     Operation Joint Endeavor. The conferees support these 
     training efforts and recommend that they be continued and 
     expanded. The conferees further recommend that the Training 
     Readiness Operations Directorate develop a comprehensive 
     funding plan to ensure continuation of these valuable 
     programs.


                        joint aviation facility

       The conferees believe that funds appropriated in Public Law 
     103-110 for the purpose of a joint armed forces aviation 
     support facility at Johnstown, Pennsylvania should be 
     available for a joint air traffic control tower at Johnstown, 
     Pennsylvania which is necessary for aviation safety.

             Operation and Maintenance, Air National Guard

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
 26850 OPERATION AND MAINTENANCE, AIR NATIONAL                                                                  
        GUARD                                                                                                   
 26900 BUDGET ACTIVITY 1: OPERATING FORCES                                                                      
 26950 AIR OPERATIONS                                                                                           
 27000 AIRCRAFT OPERATIONS                           1,935,403       1,952,303       2,002,903       1,998,003  
 27050 MISSION SUPPORT OPERATIONS                      325,996         325,996         325,996         325,996  
 27100 BASE SUPPORT                                    285,396         285,396         285,396         285,396  
 27150 MAINTENANCE OF REAL PROPERTY                     80,255          80,255          80,255          80,255  
 27200 DEPOT MAINTENANCE                                19,483          19,483          19,483          19,483  
      ----------------------------------------------------------------------------------------------------------
 27250       TOTAL, BUDGET ACTIVITY 1                2,646,533       2,633,433       2,714,033       2,709,133  
      ==========================================================================================================
 27300 BUDGET ACTIVITY 4: ADMIN & SERVICEWIDE                                                                   
        ACTIVITIES                                                                                              
 27350 SERVICEWIDE ACTIVITIES                                                                                   
 27400 ADMINISTRATION                                    3,076           3,076           3,076           3,076  
 27450 RECRUITING AND ADVERTISING                        4,864           4,864           4,864           4,864  
      ----------------------------------------------------------------------------------------------------------
 27500       TOTAL, BUDGET ACTIVITY 4                    7,940           7,940           7,940           7,940  
      ==========================================================================================================
 27570 INVESTMENT ITEM TRANSFER                 ..............  ..............  ..............            -694  
      ----------------------------------------------------------------------------------------------------------
 27650       TOTAL, O&M, AIR NATIONAL GUARD          2,654,473       2,671,373       2,721,973       2,716,379  
----------------------------------------------------------------------------------------------------------------

                    adjustment to budget activities

       Adjustments to the budget activities are as follows:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
  27000  Aircraft Operations/159th Fighter Group..................1,500
  27000  Aircraft Operations/General Purpose Fighters............44,400
  27000  Aircraft Operations/Flying Hour Program.................10,000
  27000  Aircraft Operations/C-130 PAA............................6,700
Other Adjustments:
  27570  Investment Item Transfer..................................-694
                                                             __________
                                                             
    Total adjustments...........................................+61,906

          United States Court of Appeals for the Armed Forces

       The conference agreement provides $6,797,000 for the United 
     States Court of Appeals for the Armed Forces as requested in 
     the budget.


                court of military appeals reprogramming

       The conferees direct the Office of the Under Secretary of 
     Defense (Comptroller) to develop a plan that provides the 
     Court of Military Appeals with a mechanism by which the court 
     has the option to reprogram funds into the Operation and 
     Maintenance. Defensewide account when it experiences an 
     underexecution of appropriated funds and to provide the 
     congressional defense committees with a summary of this plan 
     by February 1, 1997.

                    Environmental Restoration, Army

       The conferees agree to provide $339,109,000 for 
     Environmental Restoration, Army.

                    Environmental Restoration, Navy

       The conferees agree to provide $287,788,000 for 
     Environmental Restoration, Navy.

[[Page H11879]]

                  Environmental Restoration, Air Force

       The conferees agree to provide $394,010,000 for 
     Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

       The conferees agree to provide $36,722,000, for 
     Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

       The conferees agree to provide $256,387,000 for 
     Environmental Restoration, Formerly Used Defense Silos.

             Overseas Humanitarian, Disaster, and Civic Aid

       The conferees agree to provide $49,000,000 for Overseas 
     Humanitarian, Disaster and Civic Aid.

                  Former Soviet Union Threat Reduction

       The conferees agree to provide $327,900,000, for the Former 
     Soviet Union Threat Reduction program.

                 Quality of Life Enhancements, Defense

       The conferees agree to provide $600,000,000 for Quality of 
     Life Enhancements, Defense. The conferees are concerned about 
     the condition of barracks, dining halls and related 
     facilities throughout the Department of Defense. Accordingly, 
     the conferees agree that reducing the backlog of maintenance 
     and repair for such facilities should be the Department's 
     highest priority.

                         Title III--Procurement

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
                           SUMMARY                                                                              
                                                                                                                
ARMY:                                                                                                           
    AIRCRAFT................................................      970,815    1,308,709    1,283,815    1,348,434
    MISSILES................................................      766,329      988,567      982,829    1,041,867
    WEAPONS, TRACKED COMBAT VEHICLES........................    1,102,014    1,500,414    1,449,714    1,470,286
    AMMUNITION..............................................      853,428    1,150,128    1,118,329    1,127,149
    OTHER...................................................    2,627,440    2,899,040    3,295,486    3,172,485
                                                             ---------------------------------------------------
      TOTAL, ARMY...........................................    6,320,026    7,846,858    8,130,173    8,160,221
                                                             ===================================================
NAVY:                                                                                                           
    AIRCRAFT................................................    5,881,952    6,896,552    7,239,704    7,027,010
    WEAPONS.................................................    1,400,363    1,384,408    1,500,154    1,389,913
    AMMUNITION..............................................  ...........      341,689  ...........      289,695
    SHIPS...................................................    4,911,930    4,469,930    6,193,330    5,613,665
    OTHER...................................................    2,714,195    2,889,591    2,944,519    3,067,944
    MARINE CORPS............................................      555,507      623,973      660,507      569,073
                                                             ---------------------------------------------------
      TOTAL, NAVY...........................................   15,463,947   16,606,143   18,538,214   17,957,300
                                                             ===================================================
AIR FORCE:                                                                                                      
    AIRCRAFT................................................    5,779,228    7,274,628    6,630,370    6,404,980
    MISSILES................................................    2,733,877    2,279,500    2,713,944    2,297,145
    AMMUNITION..............................................  ...........      272,177  ...........      293,153
    OTHER...................................................    5,998,819    6,078,539    5,577,787    5,944,680
                                                             ---------------------------------------------------
      TOTAL, AIR FORCE......................................   14,511,924   15,904,844   14,922,101   14,939,958
                                                             ===================================================
DEFENSE-WIDE................................................    1,841,212    2,247,812    1,773,794    1,978,005
NATIONAL GUARD AND RESERVE EQUIPMENT........................  ...........      908,000      759,800      780,000
                                                             ---------------------------------------------------
      TOTAL PROCUREMENT.....................................   38,137,109   43,513,657   44,124,082   43,815,484
----------------------------------------------------------------------------------------------------------------

                         special interest items

       The conferees direct that the direction contained under the 
     heading ``Special Interest Items'' in the House report also 
     shall apply to items identified in the same manner in the 
     Senate report. The conferees direct that items appearing in 
     the project and subproject level tables in the House and 
     Senate reports, and in the conference managers' statement, 
     shall be reflected in the Form DD-1414 ``Base for 
     Reprogramming'' and treated accordingly.


            LRIP test articles and reprogramming thresholds

       The conferees strongly agree with the concerns expressed by 
     both the House and the Senate with respect to changes 
     contemplated by the Department of Defense (DoD) in the 
     budgeting for low-rate initial production (LRIP) test 
     articles and in reprogramming thresholds. The conferees note 
     that the Department's budgeting policies for LRIP test 
     articles have been applied inconsistently in the past. The 
     conferees reserve judgment as to the desirability of changing 
     the budgeting practice for LRIP test articles, and they 
     intend to evaluate the ramifications of this change during 
     the fiscal year 1998 budget review. Unlike the circumstances 
     associated with creation of the fiscal year 1997 budget 
     request, the conferees expect the Department to consult with 
     the Committees on Appropriations well in advance about the 
     justification and implications of this change.
       To ensure such consultation occurs, the conferees direct 
     that DoD may not modify its policies or practices with 
     respect to budgeting for LRIP test articles until 90 days 
     after any proposed modification is reported to the 
     congressional defense committees, along with a detailed 
     justification for that proposed modification. Further, this 
     issue underscores the lack of visibility of test article 
     quantities in current budget exhibits. Given that test 
     articles are significant cost drivers in research and 
     development programs, the conferees direct that RDT&E budget 
     exhibits for fiscal year 1998 and subsequent years must 
     clearly denote the number and type of test articles budgeted, 
     in total, over the life of the R&D program.
       The conferees also direct that none of the funds available 
     to DoD during fiscal year 1997 may be obligated or expended 
     to modify established reprogramming procedures, including 
     modifying below threshold reprogramming dollar thresholds, 
     until 90 days after any proposed modification is reported to 
     the congressional defense committees, along with a detailed 
     justification for that proposed modification.


                   ammunition and missile quantities

       The conferees agree that if missiles and ammunition 
     quantities are noted in the following tables, they are to be 
     considered estimates of the minimum number of rounds than can 
     be procured in fiscal year 1997 with the funds provided. 
     Continuing a longstanding policy, the conferees do not intend 
     that quantity notations in the tables are to be a limitation 
     on the number of rounds that can be procured and further 
     direct the Department to buy as many rounds as appropriated 
     funds will allow. In no case, however, shall the Department 
     buy less than the quantities requested or noted in the tables 
     unless the congressional defense committees are informed as 
     to why these levels are not achievable.


    gps and flight data recorders and passenger safety modifications

       The conferees agree with the language included under these 
     headings in their respective House and Senate committee 
     reports. The conferees agree with the Secretary of Defense 
     that military passenger aircraft should be modified with 
     modern safety-related equipment such as global positioning 
     system receivers, flight data recorders, cockpit voice 
     recorders, ground proximity warning systems, and traffic 
     collision and avoidance systems. The conferees direct the 
     Department of Defense to evaluate using commercial equipment 
     to meet these requirements. The conferees direct that House 
     and Senate reporting requirements be combined, and that no 
     fiscal year 1997 funds be obligated until these reports are 
     provided to the congressional defense committees.


                      information systems security

       The conferees are concerned about the potential for 
     unauthorized entry into Department of Defense information 
     systems. The intelligence community believes that numerous 
     foreign countries are developing ``information warfare'' 
     capabilities designed to exploit the accessibility of 
     computer and communications systems. Department of Defense 
     personnel must understand how they are impacted by this 
     threat as well as what their roles and responsibilities are 
     as key implementors of the Department's information 
     protection strategy. Consequently, effective information 
     security training is an essential component of countering 
     this threat. The conferees recommend that services and 
     defense agencies which have not yet developed computer 
     security procedures should consider the procurement of 
     commercial-off-the-shelf computer security training

[[Page H11880]]

     and training management software such as the Air Force's 
     Safeware.


                       secure terminal equipment

       The Secure Terminal Equipment (STE) program has developed 
     the next generation secure terminal for use by U.S. military 
     forces, the intelligence community, and other government 
     agencies requiring secure voice and data communications. The 
     conferees have provided $11,319,000 within the Other 
     Procurement, Navy appropriation under ``Secure Voice 
     Systems'' and $7,300,000 in Other Procurement, Army under 
     ``Information Systems Security'' for the procurement of 
     tactical STE, consistent with the President's budget request. 
     The conferees support STE as a vital step in ensuring 
     necessary voice and data security enhancements and therefore 
     designate the Army and Navy procurement lines as programs of 
     special congressional interest and expect the Department of 
     Defense Form 1414 to reflect this designation.
       Furthermore, the conferees direct that $17,000,000 of the 
     funds appropriated for Procurement, Defense-Wide be made 
     available only for the procurement of the tactical STE. None 
     of these funds are to be used for the development of cellular 
     equipment without prior notification to the congressional 
     defense committees.

                       Aircraft Procurement, Army

       The conference agreement is as follows:

                                                                                                                
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, ARMY                                                                                      
ARL (TIARA)....................................       24,742       35,242       24,742  ...........       29,942
C-XX (MEDIUM RANGE) AIRCRAFT...................  ...........  ...........       35,000            8       22,000
GUARDRAIL COMMON SENSOR (TIARA)................        1,081       11,081        1,081  ...........        5,000
AH-64 ATTACK HELICOPTER (APACHE)...............  ...........  ...........       53,000  ...........  ...........
UH-60 BLACKHAWK (MYP)..........................      161,279      161,279      290,379           34      225,379
UH-60 BLACKHAWK (MYP) (AP-CY)..................       75,000       61,000       75,000  ...........       68,000
CH-47 CARGO HELICOPTER MODS (MYP)..............        7,802       59,802       51,502  ...........       51,502
LONGBOW........................................      356,957      356,957      356,957  ...........      383,457
KIOWA WARRIOR..................................        9,115      242,115        9,115  ...........      199,115
EH-60 QUICKFIX MODS............................       13,912       36,612       13,912  ...........       13,912
AIRBORNE AVIONICS..............................       40,819       60,919       40,819  ...........       48,319
PASSENGER SAFETY MODIFICATIONS.................  ...........  ...........        3,200  ...........        3,200
ASE MODS.......................................        4,801        4,801        4,801  ...........       25,801
SPARES AND REPAIR PARTS........................       51,106       34,700       51,106  ...........       41,106
AIRCRAFT SURVIVABILITY EQUIPMENT...............          436       20,436       34,436  ...........          436
AVIONICS SUPPORT EQUIPMENT.....................        7,449        7,449       12,449  ...........        9,949
AVIATION LIFE SUPPORT EQUIPMENT (ALSE).........        6,292        6,292       16,292  ...........       13,292
AIR TRAFFIC CONTROL............................        8,401        8,401        8,401  ...........        6,401
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
AH-64 Attack Helicopter.....................................            0            0       53,000            0
    Training Devices........................................  ...........            0       53,000            0
    (Note: $26,500,000 transferred to Longbow)                                                                  
UH Blackhawk (MYP)..........................................      161,279      161,279      290,379      225,379
    (Note: Additional funds are to procure 6 additional                                                         
     aircraft for the Army National Guard. The conferees                                                        
     also direct that 4 of the 34 aircraft must be                                                              
     configured as UH-60Q platforms for enhanced medical                                                        
     evacuation)                                                                                                
Longbow.....................................................      356,957      356,957      356,957      383,457
    Training devices........................................  ...........            0            0       26,500
    (Note: $26,500,000 transferred from AH-64 Attack                                                            
     Helicopter. The conferees agree that of the total                                                          
     amount available $1,000,000 is only for the evaluation                                                     
     of a kit upgrade program to convert T-700-701 engines                                                      
     to T-700-701C engines)                                                                                     
Airborne Avionics...........................................       40,819       60,919       40,819       48,319
    GPS-Blackhawk and Chinook...............................  ...........       15,000            0        7,500
    GPS-passenger carrying aircraft.........................  ...........        5,100            0            0
    (Note: $3,200,000 in additional funds are provided in                                                       
     Passenger Safety Mods)                                                                                     
ASE Mods....................................................        4,801        4,801        4,801       25,801
    Laser detection sets....................................  ...........  ...........            0       11,000
    Advanced threat infrared countermeasures for Longbow                                                        
     Apache.................................................  ...........  ...........            0        5,000
    Integration of radar deception jamming devices..........  ...........  ...........            0        5,000
    (Note: Transferred from Aircraft Survivability                                                              
     Equipment)                                                                                                 
Aircraft Survivability Equipment............................          436       20,436       34,436          436
    Laser detection sets....................................  ...........       20,000       11,000            0
    Advanced threat infrared countermeasures for Longbow                                                        
     Apache.................................................  ...........            0       13,000            0
    integration of radar deception jamming devices..........  ...........            0       10,000            0
    (Note: Transferred to ASE Mods.)                                                                            
Air Traffic Control.........................................        8,401        8,401        8,401        6,401
    (Note: $2,000,000 transferred to Research, Development,                                                     
     Test and Evaluation, Army-Air Traffic Control for                                                          
     ATNAVICS)                                                                                                  
----------------------------------------------------------------------------------------------------------------

                       Missile Procurement, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, ARMY                                                                                       
PATRIOT SYSTEM SUMMARY (MYP)...................        2,862  ...........        2,862  ...........  ...........
AVENGER SYSTEM SUMMARY.........................       12,581       71,981       12,581           93       71,981
JAVELIN (AAWS-M) SYSTEM SUMMARY................      162,104      201,804      196,104        1,020      162,104
JAVELIN (MYP) (AP-CY)..........................  ...........  ...........  ...........  ...........       34,000
MLRS LAUNCHER SYSTEMS..........................       38,039       48,039      105,039  ...........      105,039
ARMY TACTICAL MSL SYS (ATACMS)--SYS SUM........       92,816      161,816       92,816           97       92,816
ARMY TACTICAL MSL SYS (MYP) (AP-CY)............  ...........  ...........  ...........  ...........       69,000
PATRIOT MODS...................................       11,464       21,464       23,464  ...........       23,464
STINGER MODS...................................       16,903       36,903       39,703  ...........       36,903
AVENGER MODS...................................  ...........  ...........       29,000  ...........  ...........
ITAS/TOW MODS..................................           16           16       33,016  ...........           16
DRAGON MODS....................................        3,181        3,181        4,881  ...........        3,181
----------------------------------------------------------------------------------------------------------------

                      javelin advance procurement

       The conferees agree to provide an additional $34,000,000 
     and establish an advance procurement line for economic order 
     quantity purchases associated with multiyear procurement of 
     the Javelin missile. The conferees agree with House direction 
     requiring the Army to negotiate variable quantity options in 
     the third year of the Javelin multiyear contract. Further, 
     the conferees agree with the reporting requirements contained 
     in both the House and Senate reports and further stipulate 
     that the reports be combined and submitted to the 
     congressional defense committees not less than 30 days prior 
     to the contract award.


                         patriot modifications

       The conferees agree to provide $23,464,000 for Patriot 
     modifications. The additional funds are provided for the GEM 
     +/-upgrade and the Integrated Diagnostic Support System and 
     may be distributed between the two programs at the discretion 
     of the Army.

[[Page H11881]]

                         stinger modifications

       The conferees agree to provide $36,903,000 for Stinger 
     Modifications; an increase of $20,000,000. The additional 
     funds are provided to upgrade Stinger missiles to the Block 1 
     configuration, to modify Stinger platforms to use the Block 1 
     missile, and to retrofit the missile with a new warhead. The 
     Army may allocate the additional funds as priorities dictate 
     among these efforts.


        army tactical missile sytem (atacms) advance procurement

       The conferees agree to provide $69,000,000 to establish an 
     advance procurement line for economic order quantity 
     purchases associated with multiyear procurement of ATACMS.

        Procurement of Weapons and Tracked Combat Vehicles, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF W&TCV, ARMY                                                                                      
BRADLEY BASE SUSTAINMENT.......................      134,428      254,428      191,628  ...........      235,000
FIELD ARTILLERY AMMUNITION SUPPORT VEH.........       34,400       64,200       84,400           24       64,200
COMMAND & CONTROL VEHICLE......................       48,985       38,985       48,985            5       48,985
CARRIER, MOD...................................       23,028       52,028       43,028  ...........       43,028
HOWITZER, MED SP FT 155MM M109A6 (MOD).........       75,000      106,200      136,000  ...........      106,200
FAASV PIP TO FLEET.............................        4,727       13,827        4,727  ...........       13,827
IMPROVED RECOVERY VEHICLE (M88 MOD)............       28,641       55,741       78,641  ...........       55,741
M1 ABRAMS TANK (MOD)...........................       50,217       40,217       78,217  ...........       63,217
ARMORED COMBAT EARTHMOVER......................  ...........      100,700  ...........  ...........       51,000
GRENADE LAUNCHER, AUTO, 40MM, MK19-3...........        5,199       18,199       33,199          320       33,199
MACHINE GUN....................................  ...........       20,000  ...........  ...........       20,000
M16 RIFLE MODS.................................        5,531        5,531       20,531  ...........        5,531
----------------------------------------------------------------------------------------------------------------

                        bradley base sustainment

       The conferees agree to provide $235,000,000 for Bradley 
     base sustainment, an increase of $100,572,000 to the budget 
     request only for A0 remanufacturings. The conferees direct 
     that no less than $55,000,000 be made available only for the 
     remanufacturing of 50 A0 to A2 vehicles. The remaining 
     remanufacturing funds shall be available only for A0 to A3 
     remanufacturing. The conferees expect the remaining funds to 
     support approximately 45 A0 to A3 remanufacturings. The 
     conferees direct that the Bradley A0 conversion program 
     continue until such time as the Army declares the remaining 
     A0 vehicles excess and processes them for surplus.

                    Procurement of Ammunition, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, ARMY                                                                                 
CTG, 5.56MM, ALL TYPES.........................       29,752       29,752       30,752           --       30,752
CTG, 7.62MM, ALL TYPES.........................        3,871        5,971        5,871           --        5,971
CTG, 9MM, ALL TYPES............................           --        1,400           --           --        1,000
CTG, .50 CAL, ALL TYPES........................        3,971       10,971        3,971           --        7,000
CTG, 25MM, ALL TYPES...........................       47,176       87,176       87,176           --       80,000
CTG, 30MM, ALL TYPES...........................           --       15,000       15,000           --       10,000
CTG, 40MM, ALL TYPES...........................       34,428       31,828       34,428           --       33,000
SPECIAL PURPOSE AMMUNITION.....................           --        6,000           --           --        4,000
CTG MORTAR 60MM \1/10\ PRAC M766...............        5,019        5,219        5,019            7        5,219
60MM HE M720...................................           --       12,500       10,000           --       10,000
CTG MORTAR 120MM FULL RANGE PRACTICE XM931.....       49,539       51,439       49,539           --       51,000
CTG MORTAR 120MM ILLUM XM930 W/MTSQ FZ.........       19,360       34,360       19,360           --       26,000
CTG MORTAR 120MM SMOKE XM929 W/MO FUZE.........       30,106       39,006       30,106           --       35,000
CTG 120MM APFSDS-T M829A2......................       79,703      103,703       89,703           23      103,703
CTG 120MM HEAT-MP-T M830A1.....................           --       45,000       45,000           --       31,000
PROJ ARTY 155MM HE M795........................           --       55,000       45,000           --       40,000
PROJ ARTY 155MM SADARM M898....................       60,259       78,759       93,759          322       93,759
MINE AT/AP M87 (VOLCANO).......................          ---       35,000           --           --       15,000
WIDE AREA MUNITIONS............................       19,299       19,299           --          261       10,000
BUNKER DEFEATING MUNITION (BDM)................           --       10,000           --           --       10,000
GRENADES, ALL TYPES............................        7,654        4,154        7,654           --        4,154
SIGNALS, ALL TYPES.............................       10,196        1,296       10,196           --        1,296
PROVISION OF INDUSTRIAL FACILITIES.............       38,508       40,008       38,508           --       40,008
ARMAMENT RETOOLING & MANUFACTURING SUPPORT                                                                      
 (ARMS)........................................           --           --       58,000           --       45,000
CONVENTIONAL AMMO DEMILITARIZATION.............       88,603       88,603      100,603           --       95,603
----------------------------------------------------------------------------------------------------------------

                            ctg 120mm M829A2

       The conferees do not agree to the House language directing 
     the Army to procure CTG 120MM M829A2 tank ammunition for the 
     Marine Corps.


                     ctg 105mm arty m913/m927 hera

       The conferees agree that of the funds appropriated in any 
     fiscal year for Procurement of Ammunition, Army, $27,000,000 
     shall be made available only for the procurement of M913/M927 
     HERA ammunition.

                        Other Procurement, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, ARMY                                                                                         
FAMILY OF MEDIUM TACTICAL VEH (MYP)............      233,094      233,094      238,094        1,603      233,094
FAMILY OF HEAVY TACTICAL VEHICLES (MYP)........      163,343      196,343      286,343  ...........      244,000
ARMORED SECURITY VEHICLES (COMBAT SPT) TACTIC..        9,240       18,240       18,540           24       18,240
MEDIUM TRUCK EXTENDED SVC PGM(ESP) (PREV SLEP).  ...........       20,000       47,000  ...........       40,000
FMTV PRODUCIBILITY EVAL TASK (PET).............  ...........  ...........  ...........  ...........        6,000
SMART-T (SPACE)................................       45,427       34,727       45,427  ...........       34,727
SCAMP (SPACE)..................................       23,555       14,455       23,555  ...........       14,455
ARMY DATA DISTRIBUTION SYSTEM (ADDS)...........       47,987       72,987       67,987  ...........       67,987
SINCGARS FAMILY................................      297,496      297,496      340,796  ...........      320,000
EAC COMMUNICATIONS.............................        4,089        4,089       44,089  ...........       44,089
TSEC--INFORMATION SYSTEM SECURITY..............       10,678       30,078       10,678  ...........       20,000
INFORMATION SYSTEMS............................       24,668       24,668       53,668  ...........       48,668
FT CARSON COMMUNICATIONS.......................  ...........          200  ...........  ...........          200
GENERAL DEFENSE INTELL PROG (GDIP).............       12,649       16,649       26,349  ...........       22,849
ITEMS LESS THAN $2.0M (INTEL SPT)--TIARA.......        2,151        9,051        2,151  ...........        9,051
ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).........       12,297       12,297       23,997  ...........       12,297
JTT/CIBS-M (TIARA).............................       14,010       19.010       14,010           58       19,010
TROJAN (TIARA).................................        2,603        4,203        2,603  ...........        4,203
COUNTERINTELLIGENCE/SECURITY COUNTERMEASURES...        1,642        1,642        8,142  ...........        1,642

[[Page H11882]]

                                                                                                                
FAAD GBS.......................................       51,226       68,826       80,426           16       69,000
NIGHT VISION DEVICES...........................      111,872      126,872      200,000  ...........      165,000
SHORTSTOP ELECTRONIC PROTECTION SYSTEM.........  ...........  ...........  ...........  ...........        5,000
INTEGRATED MET SYS SENSORS (IMETS)--TIARA......        3,144        5,144        3,144            6        3,144
FORWARD ENTRY DEVICE (FED).....................        2,134       12,034        2,134  ...........       12,034
LOGTECH........................................        4,395        4,395       10,395  ...........        8,000
STAMIS TACTICAL COMPUTERS (STACOMP)............       27,211       27,211       52,211  ...........       40,000
STANDARD INTEGRATED CMD POST SYSTEM............       26,304       26,304       36,604  ...........       30,000
AUTOMATED DATA PROCESSING EQUIP................      136,386      114,886      136,386  ...........      136,386
INTEGRATED FAMILY OF TEST EQUIP (IFTE).........        1,506       30,506        1,506  ...........       21,506
FORCE PROVIDER.................................       11,661       39,661       11,661            2       25,000
ITEMS LESS THAN $2.0M (CSS-EQ).................        2,688        4,688        2,688  ...........        4,688
INLAND PETROLEUM DISTRIBUTION SYSTEM...........        1,064        3,064        1,064  ...........        3,064
ITEMS LESS THAN $2.0M (POL)....................        5,331        5,331        5,331  ...........        7,331
COMBAT SUPPORT MEDICAL.........................       15,851        6,651       15,851  ...........       15,851
ITEMS LESS THAN $2.0M (CONST EQUIP)............          382          382       52,200  ...........       47,200
PUSHER TUG, SMALL..............................        6,877        6,877        6,877            2        7,377
GENERATORS AND ASSOCIATED EQUIP................       13,187       38,187       38,187  ...........       30,000
TRAINING DEVICES, NONSYSTEM....................       82,724       84,224      100,824  ...........       96,824
----------------------------------------------------------------------------------------------------------------

    family of medium tactical vehicles-producability evaluation task

       The conferees are pleased with the Army's recent decision 
     to begin a Producability Evaluation Task (PET) for the Family 
     of Medium Tactical Vehicles (FMTV) follow-on buy. The PET 
     approach to the FMTV follow-on program will assure that 
     competing contractors demonstrate the ability to manufacture 
     the FMTV while not having to wait for a production validated 
     Level III Technical Data Package from the current contractor. 
     A successful PET will ensure an early contract award and if 
     won by the incumbent will mitigate the effect of a potential 
     production break.
       To demonstrate its strong support and to expedite the PET 
     effort, the conferees agree to provide $6,000,000 for fiscal 
     year 1997.


                 items less than $2,000,000 (Petroleum)

       The conferees agree to provide an additional $2,000,000 for 
     the Supplemntal Fuel Carrying Capability program which 
     provides an external fuel bladder to increase the operational 
     range of the Abrams tank.


                          night vision devices

       The conferees agree to provide $165,000,000 for Night 
     Vision Devices, an increase of $53,128,000 to budget request. 
     The conferees agree that $10,000,000 of the additional funds 
     shall be used only for the procurement of Mini Eyesaft Laser 
     Infrared Observation Sets, to meet active duty and reserve 
     component requirements.


                      training devices, nonsystem

       The conferees agree to provide $96,824,000 for the Army's 
     nonsystem training devices program, an increase of 
     $14,100,000 to the budget request. Of the additional funds 
     provided, $1,500,000 is only for the procurement of the 
     electronic rifle targeting system, used at the Olympics, to 
     upgrade the markmanship training range at Fort Benning, 
     Georgia, and the remaining increase of $12,600,000 is only 
     for the continued procurement and installation of the Joint 
     Readiness Training Center's (JRTC) military operations urban 
     terrain (MOUT) training devices.


             shortstop electronic protection system (seps)

       The conferees strongly support the immediate deployment of 
     the Shortstop countermeasure system to U.S. forces in Korea 
     and therefore have provided $5,000,000 for the procurement of 
     approximately 20 systems in fiscal year 1997.


             items less than $2.0M (construction equipment)

       The conferees recommend providing $47,200,000 for the 
     procurement of construction equipment in fiscal year 1997, an 
     increase of $46,818,000 to the budget request. The conferees 
     provide these additional funds only for the procurement of 
     bituminous material distribution trucks and 20-ton dump 
     trucks.

                       Aircraft Procurement, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, NAVY:                                                                                     
    AV-8B (V/STOL) HARRIER.....................      282,014      350,014      344,757           12      344,757
    F/A-18C/D (FIGHTER) HORNET.................  ...........  ...........      489,000            6      279,000
    F/A-18E/F (FIGHTER) HORNET.................    1,859,856    1,859,856    1,844,756           12    1,844,756
    V-22 (MEDIUM LIFT).........................      500,904      732,904      730,904            5      620,904
    KC-130J....................................  ...........      209,200  ...........            4      210,800
    EA-6 SERIES................................      100,620      221,620      263,620  ...........      228,620
    F-14 SERIES................................      231,974      241,974      231,974  ...........      236,974
    F-18 SERIES................................      156,486      154,486      154,327  ...........      154,327
    AH-1W SERIES...............................       23,950       43,350       23,950  ...........       23,950
    H-53 SERIES................................       44,567       44,567       58,567  ...........       54,567
    H-1 SERIES.................................        9,339        9,339       22,839  ...........       22,839
    EP-3 SERIES................................       35,429       45,429       36,429  ...........       36,429
    P-3 SERIES.................................      128,560      201,960      200,760  ...........      180,760
    S-3 SERIES.................................       36,413       36,413       18,207  ...........       31,413
    E-2 SERIES.................................       23,143       27,943       23,143  ...........       27,943
    COMMON ECM EQUIPMENT.......................       20,069       58,069       68,043  ...........       68,043
    REEF POINT.................................  ...........  ...........       55,000  ...........  ...........
    COMMON AVIONICS CHANGES....................       87,841      111,141       87,841  ...........       87,841
    PASSENGER SAFETY MODIFICAITONS.............  ...........  ...........       14,800  ...........       14,800
    SPARES AND REPAIR PARTS....................      839,987      832,487      844,987  ...........      837,487
    COMMON GROUND EQUIPMENT....................      313,070      303,070      313,070  ...........      308,070
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
F/A-18C/D.......................................                                                                
    [Note: The conferees agree to provide $279.0                                                                
     million for procurement of 6 F/A-18D                                                                       
     aircraft.]                                                                                                 
EA-6B Series....................................         100,620         221,620         263,620         228,620
    Center Wing Sections........................  ..............         +50,000         +50,000         +50,000
    Band 9/10 Transmitters......................  ..............         +40,000         +40,000         +40,000
    USQ-113 Communications Jammer...............  ..............         +11,000         +11,000         +11,000
    Turbine Blade Containment...................  ..............         +20,000         +40,000          +5,000
    Connectivity................................  ..............  ..............         +22,000         +22,000
    [Note: The House funded the connectivity                                                                    
     upgrades in R&D.]                                                                                          
EP-3 Series.....................................          35,429          45,429          36,429          36,429
    Sensor upgrade..............................  ..............         +10,000  ..............  ..............
    LESPA.......................................  ..............  ..............           +1000          +1,000
P-3 Series......................................         128,560         201,960         200,760         180,760
    Additional AIP kits.........................  ..............         +87,000         +87,000         +61,000
    Additional SRP kits.........................  ..............          +4,000  ..............          +4,000
    LESPA.......................................  ..............  ..............          +2,800          +2,800
    Digital USH-42..............................  ..............  ..............  ..............          +2,000
    roll on/off intell..........................  ..............         -17,600         -17,600         -17,600
Common ECM......................................          20,069          58,069          68,043          68,043
    ASPJ........................................  ..............         +50,000         +50,000         +50,000

[[Page H11883]]

                                                                                                                
    ALR-67(V)3 Delay............................  ..............         -12,000         -12,026         -12,026
    APR-39A(V)2.................................  ..............  ..............         +10,000         +10,000
Spares and Repair Parts.........................         839,987         832,487         844,987         837,487
    Contract savings............................  ..............          -7,500  ..............          -7,500
    Magic Lantern...............................  ..............  ..............          +5,000          +5,000
----------------------------------------------------------------------------------------------------------------

                     f/a-18e/f report and analysis

       The conferees direct the Secretary of Defense to submit to 
     the congressional defense committees, not later than April 
     15, 1997, a report on the F/A-18E/F aircraft program which 
     contains the following:
       (1) a review of the F/A-18E/F aircraft program;
       (2) an analysis and estimate of the production costs of the 
     program for the total number of aircraft expected to be 
     procured at each of four annual production rates (18, 24, 36, 
     48 aircraft);
       (3) a comparison of the costs and benefits of the F/A-18E/F 
     aircraft with the costs and benefits of the F/A-18C/D 
     aircraft, and the operational combat effectiveness of the 
     aircraft.


                                kc-130j

       The conferees agree to provide $210,000,000 for the 
     acquisition of four KC-130J aircraft. The conferees also 
     agree that one of those aircraft shall be transferred to the 
     Air National Guard for crew training during the period that a 
     new product EC-130J, found elsewhere in this agreement is 
     being modified for Special/Psychological Operations. The 
     conferees further agree that the KC-130J shall be returned to 
     the Marine Corps upon the completion of the EC-130J 
     modification.


                  common helicopter crashworthy seats

       The conferees believe that there may be significant 
     benefits in terms of time, safety, and cost through 
     development of a crashworthy seat common to the UH-1, H-3, 
     and H-46 helicopters. The conferees direct the Navy to 
     evaluate whether there is a requirement for such a seat and 
     whether these benefits can be achieved. A report on the 
     results of this evaluation must be submitted to the 
     congressional defense committees no later than April 15, 
     1997.

                       Weapons Procurement, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
WEAPONS PROCUREMENT, NAVY                                                                                       
TOMAHAWK.......................................       88.513      120.513       88.513          134      100,000
AMRAAM.........................................       36,091       71,091       36,091          100       58,000
HARPOON........................................  ...........  ...........       40,000  ...........  ...........
JSOW...........................................       64,426      101,426       64,426          150       80,000
STANDARD MISSILE...............................      197,463      197,463      237,463          127      220,000
DRONES AND DECOYS..............................  ...........  ...........       20,000  ...........       17,500
PENGUIN........................................  ...........       15,000  ...........  ...........        7,000
HARPOON MODS...................................       22,893       22,893       22,893  ...........       43,000
ORDNANCE SUPPORT EQUIPMENT.....................       19,126       19,126        4,517  ...........       14,517
VERTICAL LAUNCHED ASROC (VLA)..................  ...........  ...........  ...........  ...........       13,000
GENERAL PURPOSE BOMBS..........................       27,150  ...........       27,150  ...........  ...........
2.75 INCH ROCKETS..............................        9,433  ...........        9,433  ...........  ...........
MACHINE GUN AMMUNITION.........................        5,341  ...........        5,341  ...........  ...........
PRACTICE BOMBS.................................       11,131  ...........       11,131  ...........  ...........
CARTRIDGES & CART ACTUATED DEVICES.............       21,939  ...........       21,939  ...........  ...........
AIRCRAFT ESCAPE ROCKETS........................        8,172  ...........        8,172  ...........  ...........
AIR EXPENDABLE COUNTERMEASURES.................       21,980  ...........       21,980  ...........  ...........
MARINE LOCATION MARKERS........................          580  ...........          580  ...........  ...........
JATOS..........................................        4,166  ...........        4,166  ...........  ...........
5 INCH/54 GUN AMMUNITION.......................       13,495  ...........       13,495  ...........  ...........
76MM GUN AMMUNITION............................        2,738  ...........        2,738  ...........  ...........
OTHER SHIP GUN AMMUNITION......................        4,133  ...........        4,133  ...........  ...........
SMALL ARMS & LANDING PARTY AMMO................        3,126  ...........        3,126  ...........  ...........
PYROTECHNIC AND DEMOLITION.....................       10,131  ...........       10,131  ...........  ...........
MINE NEUTRALIZATION DEVICES....................        5,840  ...........        5,840  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                          harpoon modifications

       The conferees agree to provide $48,000,000 for Harpoon and 
     SLAM modifications, of which $25,107,000 is only to retrofit 
     additional SLAM-ER missiles.

            Procurement of Ammunition, Navy and Marine Corps

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, NAVY & MARINE CORP                                                                   
GENERAL PURPOSE BOMBS..........................  ...........       27,150  ...........  ...........       27,150
2.75 INCH ROCKETS..............................  ...........        9,433  ...........  ...........        9,433
MACHINE GUN AMMUNITION.........................  ...........        5,341  ...........  ...........        5,341
PRACTICE BOMBS.................................  ...........       17,131  ...........  ...........       14,000
CARTRIDGES & CART ACTUATED DEVICES.............  ...........       21,939  ...........  ...........       21,939
AIRCRAFT ESCAPE ROCKETS........................  ...........        8,172  ...........  ...........        8,172
AIR EXPENDABLE COUNTERMEASURES.................  ...........       21,980  ...........  ...........       21,980
MARINE LOCATION MARKERS........................  ...........          580  ...........  ...........          580
JATOS..........................................  ...........        4,166  ...........  ...........        4,166
5 INCH/54 GUN AMMUNITION.......................  ...........       22,945  ...........  ...........       16,000
76MM GUN AMMUNITION............................  ...........        2,738  ...........  ...........        2,738
OTHER SHIP GUN AMMUNITION......................  ...........        4,133  ...........  ...........        4,133
SMALL ARMS & LANDING PARTY AMMO................  ...........        3,126  ...........  ...........        3,126
PYROTECHNIC AND DEMOLITION.....................  ...........       10,131  ...........  ...........       10,131
MINE NEUTRALIZATION DEVICES....................  ...........        5,840  ...........  ...........        5,840
5.56 MM, ALL TYPES.............................  ...........       20,425  ...........  ...........       25,000
7.62 MM, ALL TYPES.............................  ...........        6,493  ...........  ...........       11,000
.50 CALIBER....................................  ...........        6,052  ...........  ...........        6,052
40 MM, ALL TYPES...............................  ...........        3,210  ...........  ...........        3,210
60 MM HE M888..................................  ...........        5,127  ...........  ...........        5,127
81 MM HE.......................................  ...........        1,731  ...........  ...........        1,731
81 MM SMOKE SCREEN.............................  ...........        2,573  ...........  ...........        2,573
120MM TPCSDS-T M865............................  ...........        2,545  ...........  ...........        2,545
120 MM TP-T M831...............................  ...........        1,723  ...........  ...........        1,723
120MM HEAT-MP (M830A1).........................  ...........       10,000  ...........  ...........        7,000
CTG 25 MM, ALL TYPES...........................  ...........        4,807  ...........  ...........        4,807
9 MM ALL TYPES.................................  ...........        2,793  ...........  ...........        2,793
GRENADES, ALL TYPES............................  ...........          686  ...........  ...........          686
LINEAR CHG, ALL TYPES..........................  ...........       45,000  ...........  ...........       30,000
AMMO MODERNIZATION.............................  ...........        9,118  ...........  ...........        9,118
ITEMS LESS THAN $2 MIL.........................  ...........        1,601  ...........  ...........        1,601
M757 CHARGE ASSEMBLY...........................  ...........       53,000  ...........  ...........       20,000
----------------------------------------------------------------------------------------------------------------


[[Page H11884]]

                         small arms ammunition

       The Marine Corps has identified $28,000,000 of fiscal year 
     1996 ammunition funds as excess to their current program 
     requirements. The conferees direct the Marine Corps to 
     procure small caliber ammunition with these excess funds. The 
     sources and increases are as follows:

Sources:
  155MM CHG PROP Red bag...................................-$15,600,000
  FUZE, ET, XM762............................................-9,210,000
  ITEMS LESS THAN $2,000,000...................................-990,000
  (DET, PERC, 175MS)                                                   
  40MM PRACTICE..............................................-2,200,000
Increases:
  5.56 MM, ALL TYPES.......................................+$20,000,000
  7.62 MM, ALL TYPES.........................................+8,000,000

                   Shipbuilding and Conversion, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
SHIPBUILDING & CONVERSION, NAVY                                                                                 
SSN-21.........................................      699,071      599,071      699,071  ...........      649,071
NEW SSN (AP-CY)................................      296,186      700,186      997,186  ...........      797,186
DDG-51.........................................    3,374,693    2,624,593    3,374,693  ...........    3,374,693
DDG-51.........................................        9,379        9,379      534,379  ...........      234,379
SHIP SELF DEFENSE..............................  ...........       54,000  ...........  ...........  ...........
AE(C)..........................................       59,665       59,665       59,665            1       40,000
OCEANOGRAPHIC SHIPS............................  ...........        4,000       54,400            1       54,400
OCEANOGRAPHIC SHIPS--SWATH.....................  ...........  ...........       45,000            1       45,000
LCAC SLEP(AP-CY)...............................  ...........  ...........        3,000  ...........        3,000
OUTFITTING.....................................       91,990       47,990       44,990  ...........       44,990
POST DELIVERY..................................      141,855      131,855      141,855  ...........      131,855
----------------------------------------------------------------------------------------------------------------

                                 ddg-51

       The conferees agree to provide $3,374,693,000 for 
     procurement of 4 ships, $234,379,000 in advance procurement, 
     and authority in Section 8009 to enter into a multiyear 
     contract using fiscal year 1996 and 1997 funds.


                      ammunition ship conversions

       The conferees have received pricing revisions for the 
     conversion of ammunition ships. The fiscal year 1997 budget 
     will no longer fund two ammunition ship conversions. The 
     conferees agree to provide $40,000,000 for one conversion.


                       oceanographic ship--swath

       The conferees agree to the Senate language regarding the 
     SWATH oceanographic ship.


                          ship cost adjustment

       The conferees agree to the ship cost adjustment 
     recommendations in the Senate bill, and have included 
     additional adjustments recently requested by the Navy.

                        Other Procurement, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, NAVY                                                                                         
SUBMARINE PROPELLERS...........................       39,182       37,182       39,182  ...........       37,182
POLLUTION CONTROL EQUIPMENT....................      135,216      130,216      135,216  ...........      130,216
HM&E ITEMS UNDER $2 MILLION....................       35,545       28,845       35,545  ...........       28,845
REACTOR COMPONENTS.............................      185,551      183,051      185,551  ...........      183,051
RADAR SUPPORT..................................  ...........       16,000       16,900  ...........       16,000
AN/SQQ-89 SURF ASW COMBAT SYSTEM...............       24,674       21,618       24,674  ...........       24,674
SSN ACOUSTICS..................................       44,134       37,986       44,134  ...........       44,134
SUBMARINE ACOUSTIC WARFARE SYSTEM..............        7,840        7,840       15,840  ...........        7,840
SSTD...........................................        5,701        5,701       18,201  ...........       11,000
CARRIER ASW MODULE.............................          144          144        9,144  ...........          144
C-3 COUNTERMEASURES............................          556       16,556          556  ...........          556
NAVY TACTICAL DATA SYSTEM......................       18,220       30,220       28,220  ...........       30,220
TACTICAL FLAG COMMAND CENTER...................       23,941       22,741       27,441  ...........       26,220
MINESWEEPING SYSTEM REPLACEMENT................       22,853       22,853       48,698  ...........       40,698
STRATEGIC PLATFORM SUPPORT EQUIP...............        4,054       36,054        4,054  ...........       28,000
ID SYSTEMS.....................................        4,702        4,702        4,702  ...........       18,702
TADIX-B........................................        4,243       15,243        4,243  ...........       15,243
NCCS ASHORE....................................        6,264       56,364        6,264  ...........       51,364
SHIPBOARD TACTICAL COMMUNICATIONS..............        8,779       13,279        8,779  ...........       11,004
SUBMARINE COMMUNICATIONS EQUIPMENT.............       29,430       26,030       29,430  ...........       26,030
SATCOM SHIP TERMINALS (SPACE)..................      115,837      115,837      145,837  ...........      140,837
SATCOM SHORE TERMINALS (SPACE).................       24,653       24,653       29,653  ...........       29,653
AN/SSQ-62 (DICASS).............................       22,704       34,904       29,704  ...........       31,904
SSQ-53E........................................  ...........       31,800       18,000  ...........       16,000
RAM GMLS.......................................       50,765       45,465       50,765  ...........       45,465
SHIP SELF DEFENSE SYSTEM.......................       21,049       19,649       21,049  ...........       19,649
AEGIS SUPPORT EQUIPMENT........................       30,398       33,398       30,398  ...........       33,398
ANTI-SHIP MISSILE DECOY SYSTEM.................       15,109       15,109       24,109  ...........       24,109
PREDATOR UAV (DARP)............................  ...........  ...........       65,791  ...........      115,791
PIONEER UAV (DARP).............................  ...........  ...........  ...........  ...........       25,567
TACTICAL UAV...................................  ...........  ...........       12,588  ...........  ...........
FLEET MINE SUPPORT EQUIPMENT...................        5,430        5,430        7,630  ...........        5,430
AMPHIBIOUS EQUIPMENT...........................        3,183       11,683        8,183  ...........       10,000
COMMAND SUPPORT EQUIPMENT......................  ...........       25,000  ...........  ...........       25,000
----------------------------------------------------------------------------------------------------------------

                               id systems

       The conferees agree to provide $14,000,000 for the 
     Shipboard Advanced Radar Target Identification System 
     (SARTIS) program which assists ships in the identification of 
     unknown aircraft.


                       navy tactical data system

       The conferees agree to provide an increase of $12,000,000 
     to the budget request. These funds shall be used only to 
     procure low-cost emulator systems for land-based sites such 
     as the fleet test and training ranges and the AEGIS training 
     center.


                  strategic platform support equipment

       The conferees have provided $28,000,000 for procurement and 
     installation of off-the-shelf integrated ship control systems 
     for surface combatants. The conferees direct the Department 
     of the Navy to fully compete any procurement.


                   shipboard tactical communications

       The conferees agree to provide $11,004,000 for shipboard 
     tactical communications. The additional funds are for the 
     procurement and installation of communication systems on 
     aircraft carriers. The conferees agree that the procurement 
     of the communication system is to be a full and open 
     competition. Furthermore, the conferees direct the Navy to 
     execute fiscal year 1996 funds appropriated for shipboard 
     tactical communications as specified in the Statement of the 
     Managers for that year.


                predator unmanned aerial vehicle system

       The conferees agree with the House recommendation to 
     provide an additional $50,000,000 only for the procurement of 
     additional Predator UAV systems. The conferees fully support 
     the Joint Chiefs of Staff requirement for sixteen systems. 
     The UAV Joint Program Office has a contract in place that was 
     developed for interim production which will be used as the 
     basis for full production.
       The Predator system concept of operations was developed by 
     the Combatant Commander, CINCUSACOM, using a Forward Control 
     Element (FCE) concept. The conferees have no objection to the 
     Services operating and maintaining the Predator System for 
     joint use as long as the FCE concept is maintained.

                       Procurement, Marine Corps

       The conference agreement is as follows:

[[Page H11885]]


                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty      Conferences
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, MARINE CORPS                                                                                       
5.56 MM, ALL TYPES.............................       20,425  ...........       25,425  ...........  ...........
7.62 MM, ALL TYPES.............................        6,493  ...........       11,493  ...........  ...........
.50 CALIBER....................................        6,052  ...........        6,052  ...........  ...........
40 MM, ALL TYPES...............................        3,210  ...........        3,210  ...........  ...........
60 MM HE M888..................................        5,127  ...........        5,127  ...........  ...........
81 MM HE.......................................        1,731  ...........        1,731  ...........  ...........
81 MM SMOKE SCREEN.............................        2,573  ...........        2,573  ...........  ...........
120MM TPCSDS-T M865............................        2,545  ...........        2,545  ...........  ...........
120 MM TP-T M831...............................        1,723  ...........        1,723  ...........  ...........
155MM CHG. PROP. RED BAG.......................  ...........  ...........       20,000  ...........  ...........
FUZE, ET, XM 762...............................  ...........  ...........       25,000  ...........  ...........
CTG 25MM, ALL TYPES............................        4,807  ...........        4,807  ...........  ...........
9 MM ALL TYPES.................................        2,793  ...........        2,793  ...........  ...........
GRENADES, ALL TYPES............................          686  ...........          686  ...........  ...........
AMMO MODERNIZATION.............................        9,118  ...........        9,118  ...........  ...........
ITEMS LESS THAN $2 MIL.........................        1,601  ...........        1,601  ...........  ...........
AAWS-MEDIUM....................................       28,214       48,214       38,214  ...........       38,214
AN/TPQ-36 FIRE FINDER RADAR UPGRADE............       30,380       34,180       30,380  ...........       34,180
INTELLIGENCE SUPPORT EQUIPMENT.................       26,372       40,572       26,372  ...........       32,172
MOD KITS (INTEL)...............................       11,955       13,080       11,955  ...........       13,080
ITEMS LESS THAN $2M (INTELL)...................  ...........          425  ...........  ...........          425
MANEUVER C2 SYSTEMS............................        7,592        9,292        7,592  ...........        7,592
TELE/COMM INFRASTRUCTURE TECH SUPP.............       53,616       72,416       53,616  ...........       63,616
TRAILERS.......................................        2,426       30,726        2,426  ...........       16,726
TRAINING DEVICES...............................       10,846       59,846       10,846  ...........       47,846
----------------------------------------------------------------------------------------------------------------

                    Aircraft Procurement, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
AIRCRAFT PROCUREMENT, AIR FORCE                                                                                 
B-1B (MYP).....................................       16,597       16,597       13,497  ...........       13,497
B-2A (MYP).....................................      105,089      105,089       91,389  ...........       91,389
F-15A..........................................      185,442      504,842      149,042            6      275,442
F-16 C/D (MYP).................................      105,500      105,500      212,900            6      154,900
F-22 PREPRODUCTION AIRCRAFT....................  ...........  ...........       81,338  ...........       81,338
C-17 (MYP).....................................    1,919,305    2,194,305    1,902,605            8    1,902,605
C-17 (MYP) (AP-CY).............................      223,500      263,500      212,000  ...........      212,000
C/WC-130J......................................       62,890       62,890      267,390            1       62,890
WC-130.........................................  ...........      209,200  ...........            3      165,900
EC-13OJ........................................  ...........      104,900  ...........            1       70,500
JPATS..........................................       67,135       82,235       67,135           12       67,135
C-20A..........................................      113,805       99,305      100,105            2       99,305
E-8B...........................................      417,784      417,784      627,784            2      417,784
E-8B (AP-CY)...................................      111,116      111,116      111,116  ...........      141,116
B-2A...........................................        6,106       59,106        6,106  ...........        6,106
B-1B...........................................       84,408      166,408      156,408  ...........      136,408
B-52...........................................        8,782        8,782        8,782  ...........       20,282
F-15...........................................      179,318      156,318      179,318  ...........      159,018
F-16...........................................      135,906      129,906      140,906  ...........      133,906
C-5............................................       54,921       54,921       53,163  ...........       54,921
C-130..........................................       96,353       97,853       96,353  ...........      105,453
C-135..........................................      137,082      137,082      137,082  ...........      185,082
E-3............................................      287,920  26,,4Sec.        287,920  ...........  266,4Sec.  
OTHER AIRCRAFT.................................       14,871       36,071       35,192  ...........       35,192
GPS/FDR........................................  ...........      139,200  ...........  ...........  ...........
PASSENGER SAFETY MODIFICATIONS.................  ...........  ...........       82,000  ...........       82,000
AIRBORNE RECONNAISSANCE (MANNED)...............  ...........  ...........      268,066  ...........      279,786
DARP...........................................       66,186      409,186  ...........  ...........  ...........
SPARES AND REPAIR PARTS........................      314,745      308,745      329,845  ...........      170,807
COMMON AGE.....................................      176,422      176,422      160,243  ...........      160,243
F-15 POST PRODUCTION SUPPORT...................       11,080        3,980       11,080  ...........        7,500
F-16 POST PRODUCTION SUPPORT...................       81,562       51,562       70,908  ...........       66,652
MISC PRODUCTION CHARGES........................      210,654      210,654      185,948  ...........      194,654
DARP...........................................      150,742      150,742  ...........  ...........  ...........
AIRBORNE RECONNAISSANCE SUPPORT (DARP).........  ...........  ...........      150,742  ...........      150,742
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
F-15A...........................................         185,442         504,842         149,042         275,442
    Additional aircraft.........................  ..............        +319,400  ..............        +120,000
    Excess Lantirn funds........................  ..............  ..............         -36,400         -30,000
EC-130J.........................................  ..............         104,900  ..............          70,500
    Aircraft....................................  ..............  ..............  ..............         +47,400
    Support.....................................  ..............  ..............  ..............          +5,000
    EC modifications............................  ..............  ..............  ..............         +18,100
E-8B (AP-CY)....................................         111,116         111,116         111,116         141,116
    [Note: Conferees have added $30,000,000 for                                                                 
     advance procurement for the JSTARS aircraft                                                                
     to permit the Air Force to buy three such                                                                  
     platforms in fiscal year 1998.]                                                                            
B-1B............................................          84,408         166,408         156,408         136,408
    Bomb modules................................  ..............         +57,000         +57,000         +32,000
    BVUD-GAM/JDAM...............................  ..............         +25,000  ..............         +20,000
    BVUD........................................  ..............  ..............         +15,000  ..............
    [Note: Conferees agree with House direction                                                                 
     and reporting requirements with regard to                                                                  
     BVUD-GAM/JDAM.]                                                                                            
B-52............................................           8,782           8,782           8,782          20,282
    Attrition aircraft mods.....................  ..............  ..............  ..............         +11,500
F-15............................................         179,318         156,318         179,318         159,018
    APG-63/MIDS.................................  ..............         -70,000  ..............  ..............
    Engine upgrade..............................  ..............         +47,000  ..............         +23,500
    APG-63......................................  ..............  ..............  ..............         -18,000
    MIDS........................................  ..............  ..............  ..............         -25,800
F-16............................................         135,906         129,906         140,906         133,906
    Excess prior year funds.....................  ..............          -6,000  ..............          -6,000
    600 gallon fuel tank........................  ..............  ..............          +5,000          +4,000
C-130...........................................          96,353          97,853          96,353         105,453
    TIBS........................................  ..............          +4,100  ..............          +4,100
    PACER COIN spares...........................  ..............          -2,600  ..............  ..............
    National Guard ski-equipped C-130...........  ..............  ..............  ..............          +5,000
    [Note: Funds provided for APN 241 Low Power                                                                 
     Color Radar, Electronic Flight                                                                             
     Instrumentation, and satellite                                                                             
     communications as addressed on page 141 of                                                                 
     House report.]                                                                                             
----------------------------------------------------------------------------------------------------------------


[[Page H11886]]

                                ec-130j

       The conferees agree to provide $70,500,000 for one EC-130J 
     for the Air National Guard to be used for Special/
     Psychological operations.


                           B-52 modifications

       The conferees agree to provide $11,500,000 for 
     modifications to the B-52 bomber attrition reserve aircraft. 
     These funds are made available to enable the Air Force to 
     procure standard modifications and upgrades to permit these 
     aircraft to operate in combat.


                            b-52 reengining

       The conferees understand that the potential exists to save 
     funds and increase the operational effectiveness of the B-52 
     fleet by installing new engines on the aircraft.
       The conferees direct the Office of the Secretary of Defense 
     (OSD) and the Air Force to examine the costs (annual, total, 
     and life-cycle), technical risks, schedule, cost savings, and 
     procurement policy implications of leasing new engines for 
     the B-52 fleet compared with: 1) the current plan to maintain 
     the current engines, and 2) an alternative that would 
     purchase new engines. The detailed results of this 
     examination shall be submitted to the congressional defense 
     committees no later than March 15, 1997.
       The conferees direct the Air Force to consult with the 
     Committees on Appropriations well in advance of selecting an 
     acquisition strategy involving the leasing of engines. Should 
     OSD and the Air Force conclude that the benefits of the 
     leasing strategy are significant, the conferees encourage 
     them to initiate action as soon as possible to accomplish 
     that strategy.


                f-16 advanced identification friend/foe

       The conferees direct the Secretary of the Air Force to 
     submit a report not later than April 15, 1997, which compares 
     the costs, advantages, and disadvantages of acquiring 
     Advanced Identification Friend/Foe (AIFF) capability for 
     aircraft. The report should also contain a procurement 
     strategy for such an acquisition.


                            ef-111a aircraft

       The conferees agree with the Senate's position with respect 
     to maintaining EF-111A electronic warfare aircraft force 
     structure.


                           rc-135 rivet joint

       The conferees recognize the importance of a robust Rivet 
     Joint program and have increased funds to obtain two 
     aircraft, re-engine four aircraft and perform sensor upgrades 
     on the fleet.

                     Missile Procurement, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                               Budget     House    Senate      Qty    Conference
----------------------------------------------------------------------------------------------------------------
MISSILE PROCUREMENT, AIR FORCE                                                                                  
    MISSILE REPLACEMENT EQ-BALLISTIC........................     8,300     8,800     8,300  ........      8,800 
    HAVE NAP................................................  ........    20,000    39,900  ........     34,900 
    AMRAAM..................................................   116,299   116,899   116,299       133    116,299 
    AGM-130 POWERED GBU-15..................................  ........    40,000    40,000  ........     35,000 
    CONVENTIONAL ALCM.......................................  ........    15,000  ........  ........     15,000 
    MM III MODIFICATIONS....................................    72,752    78,052    72,752  ........     78,052 
    GLOBAL POSITIONING (MYP) SPACE..........................   171,135   181,235   171,135         3    171,135 
    SPACE BOOSTERS SPACE....................................   489,606   405,806   388,306  ........    432,606 
    MEDIUM LAUNCH VEHICLE SPACE.............................   135,361   131,361   135,361         3    135,361 
    MEDIUM LAUNCH VEHICLE SPACE (AP-CY).....................    40,238    30,538    40,238  ........     40,238 
    DEFENSE SUPPORT PROGRAM (MYP) SPACE.....................    70,967    45,967    70,967  ........     70,967 
    DEFENSE SATELLITE COMM SYSTEM SPACE.....................    22,729    25,529    22,729  ........     25,529 
    SPECIAL UPDATE PROGRAMS.................................   301,368   301,368   251,535  ........    259,535 
    SPECIAL PROGRAMS........................................   774,800   604,000   803,900  ........    618,500 
    2.75 INCH ROCKET MOTOR..................................    10,126  ........    10,126  ........  ..........
    2.75" ROCKET HEAD SIGNATURE.............................     1,795  ........     1,795  ........  ..........
    ITEMS LESS THAN $2,000,000..............................        50  ........        50  ........  ..........
    5.56 MM.................................................     7,653  ........     7,653  ........  ..........
    20MM TRAINING...........................................     2,404  ........     2,404  ........  ..........
    30 MM TRAINING..........................................     3,160  ........     3,160  ........  ..........
    CARTRIDGE CHAFF RR-188..................................     1,191  ........     1,191  ........  ..........
    ITEMS LESS THAN $2,000,000..............................     4,524  ........     4,524  ........  ..........
    MK-82 INERT/BDU-50......................................     6,430  ........     6,430  ........  ..........
    GBU-28 HARD TARGET PENETRATOR...........................    18,417  ........    18,417  ........  ..........
    BOMB PRACTICE 25 POUND..................................     2,978  ........     2,978  ........  ..........
    MK-84 BOMB-EMPTY........................................     3,594  ........     3,594  ........  ..........
    SENSOR FUZED WEAPON.....................................   131,146  ........   156,146  ........  ..........
    TTU-373A DIGITAL TEST SET...............................     5,050  ........     5,050  ........  ..........
    ITEMS LESS THAN $2,000,000..............................        50  ........        50  ........  ..........
    ITEMS LESS THAN $2,000,000..............................        50  ........        50  ........  ..........
    FLARE, IR MJU-7B........................................    20,018  ........    20,018  ........  ..........
    MJU-10B.................................................    12,730  ........    12,730  ........  ..........
    M-206 CARTRIDGE FLARE...................................    12,791  ........    12,791  ........  ..........
    INITIAL SPARES..........................................        25  ........        25  ........  ..........
    REPLENISHMENT SPARES....................................     2,201  ........     2,201  ........  ..........
    MODIFICATIONS...........................................       650  ........       650  ........  ..........
    ITEMS LESS THAN $2,000,000..............................     3,544  ........     3,544  ........  ..........
    JOINT PROGRAMMABLE FUSE (JPF)...........................     4,125     4,125     4,125  ........  ..........
    HARD TARGET SMART FUZES.................................  ........  ........     2,000  ........  ..........
    M-16 A2 RIFLE...........................................    15,524    15,524    15,524  ........  ..........
    9MM COMPACT PISTOL......................................        73        73        73  ........  ..........
----------------------------------------------------------------------------------------------------------------

                  Procurement of Ammunition, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT OF AMMUNITION, AIR FORCE                                                                            
    2.75 INCH ROCKET MOTOR..........................  ..........      10,126  ..........      25,392      10,126
    2.75'' ROCKET HEAD SIGNATURE....................  ..........       1,795  ..........      25,360       1,795
    ITEMS LESS THAN $2,000,000......................  ..........          50  ..........  ..........          50
    5.56 MM.........................................  ..........       7,653  ..........      18,951       7,653
    20MM TRAINING...................................  ..........       2,404  ..........         435       2,404
    30 MM TRAINING..................................  ..........       3,160  ..........         399       3,160
    CARTRIDGE CHAFF RR-188..........................  ..........       1,191  ..........         507       1,191
    ITEMS LESS THAN $2,000,000......................  ..........       4,524  ..........  ..........       4,524
    MK-82 INERT/BDU-50..............................  ..........       6,430  ..........      12,750       6,430
    GBU-28 HARD TARGET PENETRATOR...................  ..........      18,417  ..........         161      18,417
    BOMB PRACTICE 25 POUND..........................  ..........       2,978  ..........     200,000       2,978
    MK-84 BOMB-EMPTY................................  ..........       3,594  ..........       1,500       3,594
    SENSOR FUZED WEAPON.............................  ..........     152,746  ..........  ..........     152,000
    TTU-373A DIGITAL TEST SET.......................  ..........       5,050  ..........          13       5,050
    ITEMS LESS THAN $2,000,000......................  ..........          50  ..........  ..........          50
    ITEMS LESS THAN $2,000,000......................  ..........          50  ..........  ..........          50
    FLARE, IR MJU-7B................................  ..........      20,018  ..........     878,340      20,018
    MJU-10B.........................................  ..........      12,730  ..........     209,472      12,730
    M-206 CARTRIDGE FLARE...........................  ..........      12,791  ..........  ..........      12,791
    INITIAL SPARES..................................  ..........          25  ..........  ..........          25
    REPLENISHMENT SPARES............................  ..........       2,201  ..........  ..........       2,201
    MODIFICATIONS...................................  ..........         650  ..........  ..........         650
    ITEMS LESS THAN $2,000,000......................  ..........       3,544  ..........  ..........       3,544
    JOINT PROGRAMMABLE FUSE (JFF)...................  ..........  ..........  ..........         324       4,125
    HARD TARGET SMART FUSES.........................  ..........  ..........  ..........  ..........       2,000
    M-16 A2 RIFLE...................................  ..........  ..........  ..........  ..........      15,524
    9MM COMPACT PISTOL..............................  ..........  ..........  ..........         131          73
----------------------------------------------------------------------------------------------------------------


[[Page H11887]]

                      Other Procurement, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                        Budget       House      Senate        Qty     Conference
----------------------------------------------------------------------------------------------------------------
OTHER PROCUREMENT, AIR FORCE                                                                                    
    VEHICLE REPLACEMENT.............................  ..........  ..........      25,000  ..........      10,000
    60K A/C LOADER..................................      40,296      63,396      63,396  ..........  ..........
    INTELLIGENCE DATA HANDLING SYS..................      14,009      14,009      20,309  ..........      14,009
    WEATHER OBSERV/FORCAST..........................      13,944      17,944      13,944  ..........      17,944
    AUTOMATIC DATA PROCESSING EQUIP.................      17,791      17,791      17,791  ..........      28,732
    MOBILITY COMMAND AND CONTROL....................       4,605       4,605       4,605  ..........       5,964
    BASE LEVEL DATA AUTO PROGRAM....................      22,385      38,185      22,385  ..........      22,385
    INFORMATION TRANSMISSION SYSTEMS................  ..........  ..........  ..........  ..........      13,195
    BASE INFORMATION INFRASTRUCTURE.................     125,741     115,741     125,741  ..........     115,741
    USCENTCOM.......................................       2,298       2,298       2,298  ..........       3,482
    SPACE BASED IR SENSOR PROG SPACE................      25,939      25,939  ..........  ..........  ..........
    TACTICAL C-E EQUIPMENT..........................      24,075      24,075      74,075  ..........      64,075
    RADIO EQUIPMENT.................................       9,174       9,174       9,174  ..........      10,779
    BASE PROCURED EQUIPMENT.........................  ..........  ..........  ..........  ..........       5,994
    PALLET AIR CARGO................................       3,562       3,562       8,562       4,000       8,562
    PRODUCTIVITY INVESTMENTS........................  ..........  ..........  ..........  ..........      17,490
    INTELLIGENCE PRODUCTION ACTIVITY................      64,977      76,997      64,377  ..........      64,377
    DARP............................................      77,074      77,074  ..........  ..........  ..........
    AIRBORNE RECONNAISSANCE PROJECTS (DARP).........  ..........  ..........      77,074  ..........      77,074
    COMMON IMAGERY GROUND SURFACE SYSTEM (CIGSS)....  ..........  ..........      90,988  ..........  ..........
    SELECTED ACTIVITIES.............................   4,661,580   4,758,580   4,066,752  ..........   4,573,561
    SPECIAL UPDATE PROGRAM..........................     176,455     113,255     175,402  ..........     175,402
----------------------------------------------------------------------------------------------------------------

                     Investment Threshold Transfer

       At the request of the Air Force, the conferees have 
     transferred $51,768,000 of Operation and Maintenance funds to 
     the Other Procurement lines identified in the following 
     table. The Air Force erroneously requested these funds in 
     Operation and Maintenance because of an incorrect assumption 
     that the $100,000 procurement threshold limitation would not 
     be included in the President's fiscal year 1997 budget 
     request. Since the budget request did include the threshold 
     limitation and Congress still supports the $100,000 
     threshold, the Air Force needs a zero sum transfer between 
     these two accounts.

                         [Dollars in thousands]                         
------------------------------------------------------------------------
               P-1 line                         Title                   
------------------------------------------------------------------------
49...................................  Automatic Data            $10,941
                                        Processing Equipment.           
51...................................  Mobility Command and        1,359
                                        Control.                        
57...................................  Information                13,195
                                        Transmission Systems.           
59...................................  USCENTCOM..............     1,184
74...................................  Radio Equipment (Air          620
                                        Force).                         
74...................................  Radio Equipment (Air          694
                                        National Guard).                
74...................................  Radio Equipment (Civil        291
                                        Air Patrol).                    
96...................................  Base Procured Equipment     5,994
107..................................  Productivity Investment    17,490
                                      ----------------------------------
                                             Total Transfer...    51,768
------------------------------------------------------------------------

                            69k a/c loaders

       The conferees have recently learned of the failure of the 
     60K A/C Loader program to pass Initial Operational Test and 
     Evaluation testing. While remaining very supportive of the 
     program, the conferees have denied the funding request for 
     fiscal year 1997 in light of this test failure. The conferees 
     note that unobligated funds from previous years remain 
     available to execute this program upon successful completion 
     of operational testing.


                         Tactical C-E Equipment

       The conferees agree to provide $64,075,000 for the 
     procurement of tactical communication and electronic 
     equipment, an increase of $40,000,000 above the budget 
     request. The conferees direct that of the additional funds 
     provided, $25,000,000 shall be expended only for the 
     procurement of theater deployable communication packages for 
     Air National Guard units.

                       Procurement, Defense-Wide

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                               Budget     House    Senate      Qty    Conference
----------------------------------------------------------------------------------------------------------------
PROCUREMENT, DEFENSE-WIDE                                                                                       
    MAJOR EQUIPMENT, OSD....................................   136,218   219,718   136,218  ........    186,218 
    HIGH SECURITY LOCKS.....................................  ........  ........    20,000  ........  ..........
    COMMON DISSEM & GROUND STATION SYSTEMS (DARP)...........   168,867   248,867  ........  ........     93,011 
    CORPORATE INFORMATION MANAGEMENT........................  ........  ........     5,000  ........  ..........
    INFORMATION RESOURCES MANAGEMENT........................  ........    35,000  ........  ........     20,000 
    CLASSIFIED EQUIPMENT....................................  ........  ........    23,746  ........  ..........
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.................    13,746    13,746  ........  ........     13,746 
    INFORMATION SYSTEMS SECURITY............................    17,136    43,136    17,136  ........     30,136 
    AUTOMATIC DOCUMENT CONVERSION SYSTEM....................  ........    38,800  ........  ........     10,000 
    C-130 MODIFICATIONS.....................................    86,677   104,777   110,477  ........    104,577 
    PC, CYCLONE CLASS.......................................  ........  ........  ........  ........      6,000 
AMMUNITION PROGRAMS                                                                                             
    SELECTABLE LIGHTWEIGHT ATTACK MUNITION (SLAM)...........  ........     1,500     5,000  ........      3,000 
    TIMES RELAY FIRING DEVICES..............................  ........  ........     8,000  ........      4,000 
OTHER PROCUREMENT PROGRAMS                                                                                      
    MARITIME EQUIPMENT MODIFICATIONS........................    4,,833     4,833     4,833  ........     10,833 
    COMM EQUIPMENT & ELECTRONICS............................    26,617    26,617    39,617  ........     36.017 
    SOF INTELLIGENCE SYSTEMS................................    19,833    19,833    24,333  ........     20,833 
    SPECIAL WARFARE EQUIPMENT...............................     5,030     5,030       579  ........        579 
    MISCELLANEOUS EQUIPMENT.................................     3,030     3,030    15,230  ........     15,230 
    ADVANCED SEAL DELIVERY SYSTEM (ASDS)....................  ........     2,800     4,400  ........      4,400 
CHEMICAL/BIOLOGICAL DEFENSE                                                                                     
    CBDP--INDIVIDUAL PROTECTION.............................    53,785   140,085    53,785  ........     93,785 
    JOINT BIO DEFENSE PROGRAM...............................    60,619    60,619    60,619  ........     53,219 
    CLASSIFIED PROGRAMS.....................................   399,638   434,239   399,638  ........    427,238 
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                             [In thousands]                             
------------------------------------------------------------------------
                                 Budget     House    Senate   Conference
------------------------------------------------------------------------
Major Equipment, OSD..........   136,218   219,718   136,218    186,218 
    Enhanced strategic                                                  
     mobility.................  ........    25,000  ........     10,000 
    Natural gas vehicles......  ........    10,000  ........     10,000 
    Mentor protege program....  ........    10,000  ........     10,000 
    Army high performance                                               
     computing research ctr.                                            
     (AHPCRC).................  ........    38,500  ........     20,000 
Special Operations Command                                              
 Aviation programs                                                      
    C-130 Modifications.......    86,777   104,777   110,477    104,577 
    Modification of 2 EC-130J                                           
     for Air National Guard...  ........    18,100  ........  ..........
    Special operations mode...  ........  ........    23,800     17,900 
Shipbuilding                                                            
    PC Cyclone Class GFE......  ........  ........  ........      6,000 
Ammunition programs                                                     
    Selectable Lightweight                                              
     Attack Munition (SLAM)...  ........     1,500     5,000      3,000 
    Times Relay Firing Devices  ........  ........     8,000      4,000 

[[Page H11888]]

                                                                        
Other Procurement                                                       
    Maritime Equipment Mode        4,833     4,833     4,833     10,833 
        PC-Cyclone self                                                 
         defense weapons                                                
         upgrades [Note: The                                            
         Conferees direct that                                          
         $6,000,000 is                                                  
         available only for PC-                                         
         Cyclone self defense                                           
         weapons upgrades.]...  ........  ........  ........      6,000 
Miscellaneous Equipment.......     3,030     3,030    15,230     15,230 
    Wireless intercom systems.  ........  ........     4,100      4,100 
    Active noise reduction for                                          
     fixed wing assets........  ........  ........     6,600      6,600 
    Body armor................  ........  ........     1,500      1,500 
------------------------------------------------------------------------

                chemical and biological defense programs

                         individual protection

       The conferees reiterate the concerns raised in the House 
     report about long-standing and continuing shortages of 
     chemical and biological defense equipment, including such 
     basic items as protective suits. The conferees note that the 
     GAO has criticized the Assistant Secretary of Defense (Atomic 
     Energy) (Chemical and Biological Matters) for failure to 
     deliver timely work products that prioritize chemical and 
     biological defense research efforts and modernization plans. 
     The conferees urge the Secretary to take appropriate steps to 
     expedite necessary actions. The conference agreement provides 
     an increase of $40,000,000 only for the purchase of improved 
     protective suits to meet identified shortfalls. These funds 
     shall be used to purchase additional Joint Service 
     Lightweight Integrated Suits (JSLIST) beyond the number of 
     units budgeted in fiscal year 1997. The conferees stress that 
     the JSLIST program should not be structured as a static 
     program in which further improvements in fabric or garment 
     technologies cannot be incorporated into near term follow-on 
     procurements. The conferees fully support actions to expedite 
     the evaluation of recently developed fabric and garment 
     technologies and expected that the JSLIST program will be 
     able to swiftly accommodate such improvements.


                defense airborne reconnaissance program

       The conferees agree that airborne reconnaissance programs 
     should be coordinated with the Defense Airborne 
     Reconnaissance Office, but remain concerned that 
     inconsistencies exist in the way procurement funds are 
     aligned between service and defense-wide accounts. Therefore, 
     the conferees concur with the Senate position to transfer the 
     funding for procurement programs to the Service accounts, 
     while maintaining their identities under the DARP. Program 
     management shall remain within the Services; however, 
     consultation with the Defense Airborne Reconnaissance Office 
     is required prior to making significant changes to existing 
     programs.

                  National Guard and Reserve Equipment

       The conferees agree to provide $780,000,000 for National 
     Guard and Reserve Equipment and Aircraft.
       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                               Budget     House    Senate      Qty    Conference
----------------------------------------------------------------------------------------------------------------
NATIONAL GUARD & RESERVE EQUIPMENT                                                                              
RESERVE EQUIPMENT                                                                                               
    ARMY RESERVE                                                                                                
        MISCELLANEOUS EQUIPMENT.............................       ---    10,000   110,000        --    115,000 
        NEW PROCUREMENT 2.5/5 TON TRUCKS....................       ---    15,000       ---        --        --- 
        TACTICAL TRUCK SLEP 2.5 TON.........................       ---    15,000       ---        --        --- 
        HEMTT BRIDGE TRANS..................................       ---     9,000       ---        --        --- 
        DUMP TRUCKS 20 TON..................................       ---    10,000       ---        --        --- 
        WATER PURIFICATION UNITS............................       ---     4,000       ---        --        --- 
        PORTABLE LIGHTING SYS W/TRAILERS....................       ---     4,000       ---        --        --- 
        AUTOMATIC BUILDING MACHINES.........................       ---     3,000       ---        --        --- 
        HMMVW CONTACT MAINT TRUCK...........................       ---     6,000       ---        --        --- 
        ALL-TERRAIN FORKLIFT 10 TON.........................       ---     4,000       ---        --        --- 
        ALL-TERRAIN CRANE 20 TON............................       ---     4,000       ---        --        --- 
        HYDRAULIC EXCAVATOR.................................       ---     3,000       ---        --        --- 
        HEMTT WRECKER.......................................       ---     7,000       ---        --        --- 
        MK-19 40MM GRENADE LAUNCHERS........................       ---     3,000       ---        --        --- 
        STEAM CLEANER.......................................       ---     2,000       ---        --        --- 
        SMALL ARMS SIMULATORS...............................       ---     1,000       ---        --        --- 
        UNIT LEVEL LOGISTICS SYSTEM.........................       ---     2,000       ---        --        --- 
        PALLETIZED TRAILERS.................................       ---     2,000       ---        --        --- 
        HEMTT CARGO CHASSIS.................................       ---     4,000       ---        --        --- 
        ANGRS-231...........................................       ---     2,000       ---        --        --- 
        LASER LEVELING SYSTEMS..............................       ---     3,000       ---        --        --- 
    NAVY RESERVE                                                                                                
        MISCELLANEOUS EQUIPMENT.............................       ---     5,000    30,000        --     10,000 
        C-9 REPLACEMENT AIRCRAFT............................       ---   160,000       ---         3    120,000 
        MAGIC LANTERN SPARES................................       ---     5,000       ---        --        --- 
        P-3 MODERNIZATION...................................       ---    72,000       ---        --     72,000 
    MARINE CORPS RESERVE                                                                                        
        MISCELLANEOUS EQUIPMENT.............................       ---    10,000    40,000        --     40,000 
        LAV IMPROVEMENTS....................................       ---     2,000       ---        --        --- 
        CH-53 HELICOPTERS...................................       ---     4,000       ---         2      4,000 
        AAV7A1 MODIFICATIONS................................       ---     2,000       ---        --        --- 
        NIGHT VISION EQUIPMENT..............................       ---     1,000       ---        --        --- 
        COMMON END USER COMPUTERS...........................       ---     4,000       ---        --        --- 
        FORK LIFTS..........................................       ---     1,000       ---        --        --- 
        M1A1 TANK MOD KITS..................................       ---     5,000       ---        --        --- 
        AN/TPS-59...........................................       ---    11,000       ---        --        --- 
    AIR FORCE RESERVE                                                                                           
        MISCELLANEOUS EQUIPMENT.............................       ---    10,000    50,000        --     40,000 
        F-16 AVIONICS UPGRADES..............................       ---     5,000       ---        --        --- 
        NIGHT VISION DEVICES................................       ---     3,000       ---        --        --- 
        A-10 AVIONICS UPGRADES..............................       ---     7,000       ---        --        --- 
        C-130 AVIONICS UPGRADES.............................       ---     7,000       ---        --        --- 
        HC-130P TANKER CONVERSION...........................       ---     3,000       ---        --        --- 
        C-130 MODULAR AIRBORNE FIREFIGHTING SYS.............       ---     1,000       ---        --        --- 
        F-16 WEAPONS PYLON UPGRADES.........................       ---     1,000       ---        --        --- 
        KC-135R ENGINE KITS.................................       ---    96,000       ---        --        --- 
        KC-135 RADAR REPLACEMENT............................       ---     5,000       ---        --        --- 
        B-52 AVIONICS UPGRADE...............................       ---     1,000       ---        --        --- 
        NON-AIRCREW TRAINING SYSTEMS........................       ---     1,000       ---        --        --- 
        EPLRS/SADL..........................................       ---     8,000       ---        --        --- 
NATIONAL GUARD EQUIPMENT                                                                                        
    ARMY NATIONAL GUARD                                                                                         
        MISCELLANEOUS EQUIPMENT.............................       ---    10,000   125,400        --    100,000 
        NEW PROCUREMENT TACTICAL TRUCK 5 TON................       ---     4,000       ---        --        --- 
        SLEP 2.5 TON........................................       ---    15,000       ---        --        --- 
        SLEP 5 TON..........................................       ---     4,000       ---        --        --- 
        CRASHWORTHY INTERNAL FUEL CELLS.....................       ---     5,000       ---        --        --- 
        AH-1 BORE SIGHTING DEVICE...........................       ---     3,000       ---        --        --- 
        COOLANT PURIFICATION SYSTEM.........................       ---     3,000       ---        --        --- 
        AVENGER I-COFT SIMULATOR............................       ---     4,000       ---        --        --- 
        WATER PURIFICATION UNITS............................       ---     1,000       ---        --        --- 
        NIGHT VISION EQUIPMENT..............................       ---    10,000       ---        --        --- 
        FADEC...............................................       ---    10,000       ---        --        --- 
        DIGITAL SYSTEM TEST AND TRAINING SIMULATOR..........       ---     3,000       ---        --        --- 

[[Page H11889]]

                                                                                                                
        AUTOMATIC BUILDING MACHINES.........................       ---     1,000       ---        --        --- 
        AH-1 C-NITE.........................................       ---     2,000       ---        --        --- 
        DUMP TRUCK 20 TONS..................................       ---     3,000       ---        --        --- 
        HELICOPTER SIMULATORS (ARMS)........................       ---    15,000       ---        --        --- 
        DRAGON MODIFICATIONS................................       ---     2,000       ---        --        --- 
        VIBRATION MANAGEMENT ENHANCEMENT PROGRAM............       ---     3,000       ---        --        --- 
        DISTANCE LEARNING EQUIPMENT.........................       ---    29,000       ---        --        --- 
        LASER LEVELING EQUIPMENT............................       ---     5,000       ---        --        --- 
        AUTOMATIC IDENTIFICATION TECHNOLOGY.................       ---     7,000       ---        --        --- 
    AIR NATIONAL GUARD                                                                                          
        MISCELLANEOUS EQUIPMENT.............................       ---     5,000    40,000        --     10,000 
        C-130J..............................................       ---   105,000       ---         4    209,000 
        AUTOMATIC BUILDING MACHINES.........................       ---     2,000       ---        --        --- 
        F-16 IMPROVED AVIONICS INTERMEDIATE SHOP............       ---    15,000       ---        --        --- 
        F-16 HTS............................................       ---    10,000       ---        --        --- 
        AN/TLQ-32 RADAR DECOYS..............................       ---     3,000       ---        --        --- 
        C-130 UPGRADES......................................       ---     5,000       ---        --        --- 
        EPLRS/SADL..........................................       ---    17,000       ---        --        --- 
        MODULAR MEDICAL TRAUMA UNIT.........................       ---     4,000       ---        --        --- 
DOD                                                                                                             
    MISC EQUIPMENT (GUARD & RESERVE AIRCRAFT)                                                                   
        C-130J..............................................       ---       ---   284,000        --        --- 
        C-9B REPLACEMENT....................................       ---       ---    80,000        --        --- 
----------------------------------------------------------------------------------------------------------------

                        miscellaneous equipment

       The conferees agree that each of the Chiefs of the Reserve 
     and National Guard components should exercise control of 
     funds provided in this account. The conferees further agree 
     that separate submissions of a detailed assessment of its 
     modernization priorities by each of the Guard and Reserve 
     component commanders is required to be submitted to the 
     defense committees. The conferees expect the component 
     commanders to give special consideration to the following 
     items: Pacer Coin modifications, automatic identification 
     technologies (AIT), FFG-7 command and control upgrade, UH-1/
     UH-60 medical evac helicopters rescue hoist, automatic 
     building machines, M-915/916 heavy dump trucks, 5-ton flatbed 
     trailers, M-913/927 extended range 105 mm projectiles. SQQ-T1 
     trainer aircraft, F-16 improved avionics intermediate shop 
     (IAIS); small arms simulators, UH-60Q helicopter upgrades, 
     night vision devices and driver's night viewers, CH-47 FADEC, 
     UH-1 FADEC, AH-1 FADEC, Army National Guard external 
     auxiliary fuel tanks, modular airborne firefighting systems, 
     high mobility multipurpose wheeled vehicles, heavy equipment 
     transport system, M-9 armored combat earthmovers, filed 
     artillery ammunition support vehicles, AH-1F multiplatform 
     boresight equipment for the Army National Guard, AH-64 
     mission simulator for the Army National Guard, SINCGARS, 
     Medium Truck Extended Service Program, M-109A6 Paladin, C-23 
     Sherpa enhancement program for the Army National Guard, F-16 
     air combat maneuver instrumentation global positioning 
     system, untethered training pods for the Air National Guard, 
     C-26 aircraft for the Air National Guard, Air Force Reserve 
     C-20 aircraft, F-16 HARM targeting pods, launchers, test and 
     support equipment, HARM upgrades for the Air National Guard, 
     E-kit engine upgrades for Air National Guard F-15 aircraft, 
     high capacity air ambulance modular systems for Air National 
     Guard C-130 aircraft, F-16 litening night strike targeting 
     pod system, M-109A5 howitzer upgrade, heavy equipment 
     transport system (HETS), M-1A2 tanks, total assets visibility 
     hardware and software, fuzz suppression chip detector system 
     mods, laser leveling systems, crashworthy internal fuel 
     cells, coolant purification systems, digital system test and 
     training simulators, AH-1 C-NITE, Reconfigurable Aviation 
     Simulators, Vibration Management Enhancement Program, 
     Distance Learning equipment, SEAD Mission Upgrades, AN/TLQ-32 
     radar decoys, EPLRS/SADL, Mini Eyesafe Laser Infrared 
     Observation Sets, and Modular Medical Trauma Units.


                  national guard and reserve aircraft

       The conferees agree to provide $465,000,000 for the 
     acquisition and modernization of aircraft to support Reserve 
     and National Guard missions and agree that the following 
     aircraft shall be purchased and modified:

C-130J for the Air National Guard (4)......................$209,000,000
CH-53E for the Marine Corps Reserve (2)......................64,000,000
C-9B replacement for the Navy Reserve (3)...................120,000,000
P-3 modernization for the Navy Reserve.......................72,000,000


                                  C-26

       The conferees direct the Department of Defense to reprogram 
     the $11,000,000 appropriated in fiscal year 1996 for 
     procurement of C-26 aircraft to the procurement of pods for 
     additional C-26 aircraft participating in National Guard 
     counter-drug activities.


             reserve component future years defense program

       The conferees direct the Secretary of Defense to submit 
     directly to the congressional defense committees the future 
     years defense plan for the National Guard and Reserve 
     Components. This submission should be provided at the same 
     time the President submits the annual budget to the Congress. 
     This requirement becomes effective with the fiscal year 1999 
     budget.

                    Information Resources Management

       The conference agreement on items in conference follows:

                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                            House     Senate  Conference
------------------------------------------------------------------------
        OPERATION AND MAINTENANCE                                       
                                                                        
     Operation and Maintenance, Army                                    
                                                                        
Corporate information management........     50,000        0           0
SBIS....................................    -17,500        0           0
acquisition efficiencies/management                                     
 reform.................................          0        0     -50,000
TNET....................................      5,000        0       3,500
                                                                        
     Operation and Maintenance, Navy                                    
                                                                        
Corporate information management........     50,000        0           0
acquisition efficiencies/management                                     
 reform.................................          0        0     -50,000
CNET....................................          0        0       1,000
                                                                        
  Operation and Maintenance, Air Force                                  
                                                                        
Corporate information management........     50,000        0  ..........
REMIS...................................      5,500    8,500       8,500
TICARRS.................................      5,500    5,500       5,500
CAMS....................................          0    1,000       1,000
acquisition efficiencies/management                                     
 reform.................................          0        0     -50,000
                                                                        
 Operation and Maintenance, Defensewide                                 
                                                                        
Corporate information management........     50,000        0           0
Software managers network...............      6,000        0       6,000
Year 2000 (transfer from procurement)...          0        0       5,000
Automated document conversion...........          0        0      10,000
                                                                        
Operation and Maintenance, Army National                                
                  Guard                                                 
                                                                        
Distance learning.......................          0   11,000      11,000
                                                                        
 Operation and Maintenance, Navy Reserve                                
                                                                        
NSIPS...................................     27,000        0      27,000
                                         -------------------------------
  Subtotal, O&M.........................    231,500   26,000     -71,500
                                         ===============================
                                                                        
               PROCUREMENT                                              
                                                                        
         Other Procurement, Army                                        
                                                                        
SBIS....................................    -21,500        0           0
Distance learning.......................          0   29,000      24,000
                                                                        
         Other Procurement, Navy                                        
                                                                        
NSIPS...................................     25,000        0      25,000
                                                                        
      Other Procurement, Air Force                                      
                                                                        
Fuel automated management system........     15,800        0           0
                                                                        
        Procurement, Defensewide                                        
                                                                        
Automated document conversion...........     38,800        0      10,000
JSLC....................................     35,000        0      20,000
Year 2000...............................  .........    5,000           0
                                         -------------------------------
  Subtotal procurement..................     93,100   34,000      79,000
                                         ===============================
  Grand total...........................    324,600   60,000       7,500
------------------------------------------------------------------------

                                overview

       The Department of Defense requested $9,679,113,000 for 
     information resources management. The conferees agree to 
     provide $9,686,613,000, an increase of $7,500,000. The 
     conferees further agree to include a reduction of 
     $150,000,000 in the service appropriations, to offset 
     increases for high paypack information system investments 
     which in large part can meet joint service requirements.


                               year 2000

       The conferees note the potential difficulty facing the 
     Department of Defense in modifying computer hardware and 
     software to accommodate the year 2000 date problem. The 
     conferees believe that the Department needs to develop and/or 
     validate off-the-shelf software tools to facilitate the 
     conversion of affected computer code. The conferees agree to 
     provide, $5,000,000 in budget activity 4 of the Operation and 
     Maintenance, appropriation in the Office of the Secretary of 
     Defense line, only for purposes of validating existing tools 
     and methodologies and making them available to system 
     operators to address the year 2000 problem. The conferees 
     direct that the Assistant Secretary of Defense for Command, 
     Control, Communications and Intelligence provide a report to 
     the congressional defense committees not later than May 1, 
     1997 on the Department's progress in addressing the year 2000 
     problem. The conferees encourage the Department to use this 
     opportunity to discontinue old application systems if they 
     are determined to be too costly to repair, and to replace 
     them with validated compliant code utilizing modular software 
     development techniques.

[[Page H11890]]

                   Sustaining Base Information System

       The conferees agree to provide the budget request for the 
     Army's Sustaining Base Information System (SBIS), instead of 
     the reductions proposed by the House. This agreement is based 
     on assurances from the Army that in spite of the recent 
     decision to cancel further development of the system a number 
     of applications are ready for use by Army field activities 
     and the government would receive at least some benefit from 
     its $209,800,000 SBIS investment to date. The conferees agree 
     to provide these funds with the understanding that the 
     completion of the five applications currently under 
     development, and the fielding of applications, equipment, and 
     all necessary training will be the highest priority for 
     fiscal years 1996 and 1997 appropriated funds. SBIS funds are 
     not available for any other purpose. Not later than May 1, 
     1997, the Department of the Army shall provide the 
     congressional defense committees a report identifying all 
     funding necessary for the sustainment of these applications 
     and equipment, and the identification (by appropriation and 
     line item) of funding in the fiscal year 1998 President's 
     budget request for these requirements.
       A decade ago, the Army had no master plan for automating 
     the administrative functions of its bases even though many of 
     these functions are similar, if not identical. At the time, 
     many audits showed Army commands each used their O&M funds to 
     build unique information systems which were redundant with 
     each other and/or Army-wide systems. No organization in the 
     Army knew the totality of what was being developed, how it 
     interfaced with other systems, not how much was being spent. 
     The Army attempted to rectify this situation through 
     development of a standard system--SBIS--whose cost is 
     estimated to be $1,770,000,000. The Army deserves credit for 
     facing head-on the many challenges inherent in developing a 
     comprehensive national automated information system. 
     Unfortunately, these challenges apparently have overwhelmed 
     the Army and led to the recent decision to cancel the 
     program. The conferees are concerned that in abandoning SBIS, 
     the Army once again has no master plan for base level 
     automation. The conferees note that the Office of the 
     Secretary of Defense shares some blame for this, due to the 
     decision years ago to exempt the services' base level 
     automation programs from the Corporate Information Management 
     initiative. The conferees direct the Secretary of the Army to 
     submit a base level automation master plan to the 
     congressional defense committees by May 1, 1997 and that no 
     operation and maintenance funds may be used by Army commands 
     for base level automation of functions that were included in 
     the SBIS program unless approved in advance in writing by the 
     Vice Chief of Staff of the Army.

                Air Force Automated Maintenance Systems

       The Air Force recently awarded a contract to initiate the 
     Integrated Maintenance Data System (IMDS) which will become 
     its objective maintenance data collection system. The 
     conferees support the language contained in the National 
     Defense Authorization Act for Fiscal Year 1997 to fund CAMS/
     REMIS and TICARRS legacy systems through fiscal year 1997 
     should schedule or technical uncertainties delay IMDS 
     implementation.

                     Automated Document Conversion

       The conferees agree to provide a total of $20,000,000, of 
     which $10,000,000 is in operation and maintenance for 
     outsourcing bulk conversion services and $10,000,000 is in 
     procurement for procurement of document conversion systems.

               Navy Standard Integrated Personnel System

       The conferees generally support the recent Defense Science 
     Board (DSB) task force on military personnel information 
     management and its recommendations to develop and implement a 
     single all service, fully integrated objective personnel and 
     pay system. The conferees support the DSB recommendation that 
     DoD immediately address any funding shortfalls in fiscal year 
     1997 and beyond for developing and implementing the objective 
     system. The objective system development effort will be led 
     by the office of the Under Secretary of Defense for Personnel 
     and Readiness USD(P&R). The DSB recommendations validate the 
     Navy Standard Integrated Personnel System (NSIPS) and its 
     accelerated development and deployment using DoD and service 
     standards and functional requirements. However, the conferees 
     direct that the NSIPS development schedule not be delayed if 
     DoD standards and requirements are not provided in a timely 
     fashion. As DoD and service standards and requirements are 
     provided, NSIPS can be expanded through a phased modular 
     approach to meet service requirements. Since the Navy is 
     currently the executive agent and project manager for the 
     prototype of what is now the objective military personnel and 
     pay system, the conferees direct the Department of Defense to 
     designate the Navy as the executive agent and project manager 
     for the field level and database components of the objective 
     system working in cooperation with the services, USD(P&R), 
     and the Air Force, which will continue to develop the 
     database component. The conferees direct the Department of 
     the Navy to maintain project management and executive agent 
     responsibilities for the field level and database components 
     of the objective system under the operational control and 
     command of the Commander, Naval Reserve Forces. The conferees 
     have provided $52,000,000 only for NSIPS and for the 
     establishment of a prototype commercial off-the-shelf (COTS) 
     software integration office within the Naval Reserve, except 
     that this office shall be a COTS application software 
     integration and requirements repository for activities within 
     DoD. The conferees strongly concur with all of the House 
     direction regarding NSIPS, the source data system, the diary 
     message reporting system, the Naval Computer and 
     Telecommunications Station (NCTS), and specific central 
     design activity (CDA) functions, except that the transfer of 
     program management functions and operational control of all 
     of these functions shall also include the Navy Manpower and 
     Personnel Data Base and that all of these program management 
     and operational control transfers are directed to be 
     accomplished within forty-five days after the enactment of 
     this Act.
       The uniform microcomputer disbursing system (UMIDS) shall 
     remain an interim system within the Defense Finance and 
     Accounting Service (DFAS). The conferees expect that further 
     development and deployment by DoD shall not be conducted 
     beyond deploying UMIDS as an interim system for Navy 
     personnel support detachments. The conferees direct DoD to 
     ensure that personnel and pay functions performed by UMIDS 
     are included in and replaced by NSIPS. The conferees concur 
     with the House direction that the NCTS communications 
     operations and message functions shall not be transferred, 
     but the conferees do not agree to the House proposal to 
     consolidate other regional communications centers and message 
     traffic. The conferees support further expanding the mission 
     of the Naval Reserve to implement and manage the remaining 
     Department of the Navy manpower and central design 
     activities. The conferees direct the Department of the Navy 
     to submit a plan to the Committees on Appropriations by March 
     1, 1997 for consolidating and transferring the operational 
     control of the program management, operations, functions, and 
     automated data processing support, including design, 
     development, procurement, maintenance, and all related 
     support functions of the Navy's remaining manpower and 
     personnel CDAs.

          TITLE IV--RESEARCH, DEVELOPMENT, TEST AND EVALUATION

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
                 RECAPITULATION                                                                                 
                                                                                                                
RDTE, ARMY......................................       4,320,640       4,874,537       5,107,283       5,062,763
RDTE, NAVY......................................       7,334,734       8,399,357       8,067,543       8,208,946
RDTE, AIR FORCE.................................      14,417,456      14,869,573      14,778,540      14,499,606
RDTE, DEFENSE-WIDE..............................       8,398,836       9,068,558       9,190,092       9,362,800
DEVELOPMENTAL TEST AND EVALUATION...............         252,038         272,038         269,038         282,038
OPERATIONAL TEST AND EVALUATION.................          21,968          26,968          21,968          24,968
                                                 ---------------------------------------------------------------
      GRAND TOTAL, RDTE.........................      34,745,672      37,511,031      37,434,464      37,441,121
----------------------------------------------------------------------------------------------------------------

            Research, Development, Test and Evaluation, Army

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL ARMY                                                                           
DEFENSE RESEARCH SCIENCES.......................         141,682         141,682         127,332         122,332
UNIVERSITY AND INDUSTRY RESEARCH CENTERS........          47,288          48,888          44,288          45,888
TRACTOR ROSE....................................           2,131           3,131           2,131           3,131
MATERIALS TECHNOLOGY............................          10,841          14,841          22,841          14,841
SENSORS AND ELECTRONIC SURVIVABILITY............          23,608          24,608          19,792          19,792

[[Page H11891]]

                                                                                                                
TRACTOR HIP.....................................           8,152           9,152           8,152           8,152
AVIATION TECHNOLOGY.............................          24,683          19,683          24,683          22,383
MISSILE TECHNOLOGY..............................          20,295          20,295          32,795          29,795
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY........          34,834          36,934          35,100          35,100
BALLISTICS TECHNOLOGY...........................          31,166          42,266          24,114          40,766
WEAPONS AND MUNITIONS TECHNOLOGY................          25,611          25,611          25,611          22,737
ELECTRONICS AND ELECTRONIC DEVICES..............          20,922          21,922          25,122          24,872
COUNTERMINE SYSTEMS.............................           6,029           9,029           6,029           7,529
HUMAN FACTORS ENGINEERING TECHNOLOGY............          14,072          18,222          18,372          16,322
ENVIRONMENTAL QUALITY TECHNOLOGY................          19,457          29,457          47,857          56,357
MILITARY ENGINEERING TECHNOLOGY.................          37,898          37,898          38,898          38,898
LOGISTICS TECHNOLOGY............................          17,808          17,808          20,808          20,808
MEDICAL TECHNOLOGY..............................          55,490         130,490          55,490         126,990
MEDICAL ADVANCED TECHNOLOGY.....................          11,601         111,601         187,083         205,501
AVIATION ADVANCED TECHNOLOGY....................          41,478          56,978          41,478          56,478
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY.......          19,759          35,359          22,759          29,759
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED                                                                          
 TECHNOLOGY.....................................          31,552          35,052          27,552          29,552
COMMAND, CONTROL, COMMUNICATIONS ADVANCED                                                                       
 TECHNOLOGY.....................................          23,120          23,120          35,620          30,120
NAUTILUS/THEL...................................  ..............  ..............          55,000          45,000
TRACTOR HIKE....................................          17,176          22,176          17,176          17,176
TRACTOR RED.....................................           5,125           8,625           5,125           8,625
TRACTOR ROSE....................................           5,078           6,778           5,078           5,078
MILITARY HIV RESEARCH...........................           2,919          17,919          14,919          17,919
GLOBAL SURVEILLANCE/AIR DEFENSE/PRECISION STRIKE                                                                
 TECHN..........................................          40,258          40,258          25,258          22,658
MISSILE AND ROCKET ADVANCED TECHNOLOGY..........          90,037          90,037         110,037         102,037
LANDMINE WARFARE AND BARRIER ADVANCED TECHNOLOGY          15,196          31,296          19,196          28,296
JOINT SERVICE SMALL ARMS PROGRAM................           5,243           8,243          12,243           9,243
LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION..........          18,173  ..............          18,173          10,000
NIGHT VISION ADVANCED TECHNOLOGY................          32,597          32,597          27,890          30,397
ARMY MISSILE DEFENSE SYSTEMS INTEGRATION (DEM/                                                                  
 VAL)...........................................           2,884           2,884          29,884          22,884
LANDMINE WARFARE AND BARRIER--ADV DEV...........          16,464          16,464          28,564          28,464
ARMAMENT ENHANCEMENT INITIATIVE.................          48,221          64,721          48,221          64,721
ARTILLERY PROPELLANT DEVELOPMENT................          18,450  ..............          18,450           8,500
ARMORED SYSTEM MODERNIZATION--ADV DEV...........  ..............  ..............          12,000           8,000
ADVANCED TANK ARMAMENT SYSTEM (ATAS)............           9,639           9,639          12,639          11,639
TACTICAL ELECTRONIC SUPPORT SYSTEMS--ADV DEV....           2,025           9,825           2,025           4,025
NATO RESEARCH AND DEVELOPMENT...................           9,963  ..............           9,963           9,963
AVIATION--ADV DEV...............................           8,385          15,385           8,385          13,385
WEAPONS AND MUNITIONS--ADV DEV..................  ..............  ..............           1,750  ..............
ARTILLERY SYSTEMS--DEM/VAL......................         258,771         258,771         218,771         243,771
COMANCHE........................................         288,644         288,644         388,644         338,644
EW DEVELOPMENT..................................          69,474          69,474          84,974          75,474
ALL SOURCE ANALYSIS SYSTEM......................          36,200          36,200          38,200          40,200
MEDIUM TACTICAL VEHICLES........................  ..............           6,000  ..............           6,000
JAVELIN.........................................           1,643           9,143           6,143           6,143
LANDMINE WARFARE................................          17,609          17,609          35,609          26,909
FAMILY OF HEAVY TACTICAL VEHICLES...............  ..............           3,000  ..............           2,000
AIR TRAFFIC CONTROL.............................           5,549           5,549           5,549           7,549
ADVANCED COMMAND AND CONTROL VEHICLE (AC2V).....           6,649           6,649           7,899           7,899
ENGINEER MOBILITY EQUIPMENT DEVELOPMENT.........          35,410          47,710          50,710          47,710
NIGHT VISION SYSTEMS--ENG DEV...................          33,637          33,637          35,637          35,637
NON-SYSTEM TRAINING DEVICES--ENG DEV............          42,865          42,865          52,865          49,865
AUTOMATIC TEST EQUIPMENT DEVELOPMENT............           2,793          12,793           7,793           9,793
BRILLIANT ANTI-ARMOR SUBMUNITION (BAT)..........         180,407         189,707         172,907         165,407
WEAPONS AND MUNITIONS--ENG DEV..................          20,468          24,168          22,068          24,168
LANDMINE WARFARE/BARRIER--ENG DEV...............          19,731          19,731           7,731           7,731
LONGBOW--ENG DEV................................           5,872           5,872          10,872          10,872
FIREFINDER......................................             551           2,551             551           2,551
ARMY KWAJALEIN ATOLL............................         136,864         136,864         146,864         146,864
DOD HIGH ENERGY LASER TEST FACILITY.............           2,967          91,700          24,667          30,667
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND                                                                    
 SAFETY.........................................           2,282           3,282           2,282           3,282
ENVIRONMENTAL COMPLIANCE........................          53,911          53,911          55,911          55,411
MINOR CONSTRUCTION (RPM)--RDT&E.................           4,319           4,319           7,319           4,319
MAINTENANCE AND REPAIR (RPM)--RDT&E.............          66,047          66,047          74,047          70.047
BASE OPERATIONS--RDT&E..........................         216,649         216,649         232,649         224,649
MANAGEMENT HEADQUARTERS (RESEARCH AND                                                                           
 DEVELOPMENT)...................................           4,801           4,801          18,801          18,801
MLRS PRODUCT IMPROVEMENT PROGRAM................          64,271          74,271          64,271          64,271
AEROSTAT JOINT PROJECT OFFICE...................          38,940          38,940          31,940          26,940
COMBAT VEHICLE IMPROVEMENT PROGRAMS.............         197,796         215,696         211,146         211,296
AIRCRAFT MODIFICATIONS/PRODUCT IMPROVEMENT                                                                      
 PROGRAMS.......................................             194          22,894          27,864          22,864
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...           2,947           3,947           2,947           3,947
DIGITIZATION....................................         110,180         100,180         131,980          90,180
MISSILE/AIR DEFENSE PRODUCT IMPROVEMENT PROGRAM.          30,959          50,959          85,959          65,959
SPECIAL ARMY PROGRAM............................          10,185          13,485          10,185          11,185
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.....          16,842          27,842          31,842          48,842
FORCE XXI INITIATIVE............................  ..............          50,000         100,000          50,000
LT WT 155.......................................  ..............           4,000  ..............           3,000
CLASSIFIED PROGRAM..............................  ..............  ..............  ..............           2,000
----------------------------------------------------------------------------------------------------------------


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences.......................         141,682        141,682         127,332         122,332 
    Program reduction...........................  ..............              0         -15,000         -20,000 
    Marine derived biocatalysts for defense and                                                                 
     industrial applications....................  ..............              0             650             650 
    (Note: The marine derived biocatalyst                                                                       
     research should be completed by an                                                                         
     organization with a tropical marine                                                                        
     microorganism collection from two major                                                                    
     distinct geographical regions, one of which                                                                
     is the Pacific Ocean.)                                                                                     
University and Industry Research Centers........          47,288         48,888          44,288          45,888 
    Electric Gun................................  ..............          1,600               0           1,600 
    Federated Labs..............................  ..............              0          -5,000          -5,000 
    National Automotive Center..................  ..............              0           2,000           2,000 
Materials Technology............................          10,841         14,841          22,841          14,841 
    Hardened materials..........................  ..............          4,000           4,000           4,000 
    High modulus Pan-based graphite fibers......  ..............              0           8,000               0 
    (Note: Project is funded in End Item                                                                        
     Industrial Preparedness.)                                                                                  
Sensors and Electronic Survivability............          23,608         24,608          19,792          19,792 
    PDCUE.......................................  ..............          1,000           1,000           1,000 
    Nuclear effects survivability technology....  ..............              0          -4,816          -4,816 
Aviation Technology.............................          24,683         19,683          24,683          22,383 
    NRTC........................................  ..............         -5,000               0          -2,300 
Missile Technology..............................          20,295         20,295          32,795          29,795 
    Advance solid state dye lasers..............  ..............              0           7,000           4,000 
    Kinetic energy missile technology...........  ..............              0           5,500           5,500 
Combat vehicle and automotive technology........          34,834         36,934          35,100          35,100 
    Voice Instructional Device..................  ..............          2,100           2,100           2,100 
    Carry forward...............................  ..............              0          -1,834          -1,834 
Ballistics technology...........................          31,166         42,266          24,114          40,766 
    Vulnerability/lethality for TMD.............  ..............              0          -4,178            -500 

[[Page H11892]]

                                                                                                                
    Liquid propellant...........................  ..............          7,500               0           7,500 
    Electric Gun................................  ..............          3,600               0           2,600 
    Future main battle tank ammo cartridge......  ..............              0            -350               0 
    Nonlethal technology........................  ..............              0          -2,524               0 
    (Note: Future main battle tank ammo                                                                         
     cartridge and non-lethal technology funded                                                                 
     in Weapons and Munitions Technology).                                                                      
Weapons and Munitions Technology................          25,611         25,611          25,611          22,737 
    Future main battle tank ammo cartridge......  ..............              0               0            -350 
    Nonlethal technology........................  ..............              0               0          -2,524 
Electronics and Electronic Devices..............          20,922         21,922          25,122          24,872 
    Fuel cell technology development............  ..............          1,000               0             750 
    ``AA'' zinc air battery.....................  ..............              0           1,400           1,100 
    Low cost reusable alkaline battery for                                                                      
     Sincgars...................................  ..............              0           1,000             750 
    No lead added alkaline cell.................  ..............              0             800             600 
    Advanced nonmetallic rechargeable battery                                                                   
     system.....................................  ..............              0           1,000             750 
Human Factors Engineering Technology............          14,072         18,222          18,372          16,322 
    Medical teams...............................  ..............          3,900           4,300           2,000 
    Trauma care.................................  ..............            250               0             250 
Environmental Quality Technology................          19,457         29,457          47,857          56,357 
    Unexploded ordnance remediation--Jefferson                                                                  
     Proving Ground.............................  ..............          5,000               0           4,000 
    Test bed--Bremerton shipyard................  ..............          5,000               0           4,000 
    Environmental compliance projects using                                                                     
     personnel and technologies at the WETO                                                                     
     facility...................................  ..............              0           5,000           5,000 
    Plasma energy pyrolysis system..............  ..............              0          10,000           7,500 
    Hawaii Small Business Development Center....  ..............              0           5,400           5,400 
    Facility environmental management and                                                                       
     monitoring system..........................  ..............              0           4,000           2,000 
    Base facility environmental quality (Project                                                                
     A896)--Agriculture based bioremediation....  ..............              0           4,000           4,000 
    National Defense Center for Environmental                                                                   
     Excellence (Gallo Center)..................  ..............              0   ..............          5,000 
Military Engineering Technology.................          37,898         37,898          38,898          38,898 
    Cold Regions Research and Engineering Lab...  ..............              0           1,000           1,000 
Logistics Technology............................          17,808         17,808          20,808          20,808 
    Cold preservation of food and ration quality                                                                
     enhancement................................  ..............              0           3,000           3,000 
    Real time, automatic cargo tracking and                                                                     
     control system.............................  ..............              0          (4,000)         (3,000)
Medical Technology..............................          55,490        130,490          55,490         126,990 
    Ear, Nose, and Throat Minimally Invasive                                                                    
     Simulation.................................  ..............          2,000               0           1,000 
    Hepatitis A vaccine.........................  ..............         25,000               0          20,000 
    Walter Reed Institute of Research...........  ..............          5,200               0           5,200 
    Technology Road maps........................  ..............          3,500               0           3,500 
    Tissue replacement..........................  ..............          2,000               0           2,000 
    Computer assisted minimally invasive surgery  ..............          5,000               0           2,500 
    Calcium signaling cancer cell proliferation.  ..............          2,300               0           2,300 
    Neurotoxin exposure therapies...............  ..............         25,000               0          25,000 
    Bone disease research program...............  ..............          5,000               0          10,000 
Medical Advanced Technology.....................          11,601        111,601         187,083         205,501 
    Army-managed peer-reviewed breast cancer                                                                    
     research program...........................  ..............        100,000         150,000         100,000 
    Adv Cancer Detection Center for Military....  ..............              0               0           3,500 
    Computer aided diagnostic research..........  ..............              0               0           3,000 
    Computer-based decision support system......  ..............              0               0           6,000 
    Tissue replacement..........................  ..............              0          15,000          12,000 
    Nutrition research..........................  ..............              0           3,482           2,400 
    Prostate cancer research (Walter Reed)......  ..............              0           7,000           7,000 
    Prostate cancer peer reviewed research                                                                      
     program....................................  ..............              0               0          38,000 
    National Medical Testbed....................  ..............              0               0           6,000 
    Ovarian cancer..............................  ..............              0               0           7,500 
    Neurofibromatosis...........................  ..............              0               0           8,000 
    Trichloromelaine testing (Note: Transferred                                                                 
     from Aviation Adv Tech)....................  ..............              0               0             500 
Aviation Advanced Technology....................          41,478         56,978          41,478          56,478 
    Starstreak evaluation.......................  ..............         15,000               0          15,000 
    Trichloromelaine testing....................  ..............            500               0               0 
    (Note: Trichloromelaine testing funded in                                                                   
     Medical Advanced Technology.)                                                                              
Weapons and Munitions Advanced Tech.............          19,759         35,359          22,759          29,759 
    DAMOCLES development........................  ..............          5,000               0           2,000 
    Electro-rheological fluid recoil system.....  ..............          3,000           3,000           3,000 
    DPICM development...........................  ..............          7,600               0           5,000 
Combat Vehicle and Automotive Adv Tech..........          31,552         35,052          27,552          29,552 
    GEISEL engine...............................  ..............          3,500               0           2,000 
    intra-vehicle electronic suite..............  ..............              0          -4,000          -4,000 
Command, Control, Communications Advanced                                                                       
 Technology.....................................          23,120         23,120          35,620          30,120 
    Wavenet technology..........................  ..............  ..............          4,000           2,000 
    Space Applications Technology Program.......  ..............  ..............          3,500               0 
    Field Laser Radar Demo Data Analysis Center.  ..............  ..............          5,000           5,000 
Military HIV Research...........................           2,919         17,919          14,919          17,919 
    HIV research, vaccine development and                                                                       
     clinical studies...........................  ..............         15,000          12,000          15,000 
Global Surveillance/Air Defense/Precision Strike                                                                
 Demonstration..................................          40,258         40,258          25,258          22,658 
    Survivable armed reconnaissance on the                                                                      
     digital battlefield........................  ..............              0         -15,000         -17,600 
Missile and Rocket Advanced Technology..........          90,037         90,037         110,037         102,037 
    MLRS guided rocket..........................  ..............              0          12,000           8,000 
    Future missile technology integration.......  ..............              0           8,000           4,000 
    Competitive Hydra-70 PIP....................  ..............              0          (9,000)         (9,000)
Landmine Warfare and Barrier Adv. Tech..........          15,196         31,296          19,196          28,296 
    Microwave stand-off ground penetrating radar  ..............          4,000           4,000           5,000 
    Vehicular mounted mine detection system.....  ..............         12,100               0           8,100 
Joint Service Small Arms Program................           5,243          8,243          12,243           9,243 
    OICW........................................  ..............          3,000           5,000           3,000 
    Adv. light antiarmor weapons system.........  ..............              0           2,000           1,000 
Night Vision Advanced Technology................          32,597         32,597          27,890          30,397 
    Advanced targeting for SARDB................  ..............              0          -1,297               0 
    Aerial scout sensors integration............  ..............              0          -3,410          -2,200 
Army Missile Defense Systems Integration........           2,884          2,884          29,884          22,884 
    Battlefield Integration Center..............  ..............              0          27,000          20,000 
Landmine Warfare and Barrier--Adv Dev...........          16,464         16,464          28,564          28,464 
    Ground standoff mine detection system.......  ..............              0          12,000               0 
    ASTAMIDS....................................  ..............              0               0          12,000 
    (Note: Transferred from Landmine Warfare/                                                                   
     Barrier-Eng Dev.)                                                                                          
Artillery Propellant Development................          18,450              0          18,450           8,500 
(Note: Funds are provided only for type                                                                         
 classification of MACS.)                                                                                       
Armored Systems Modernization--Adv Dev..........               0              0          12,000           8,000 
    M1A2 next generation tank upgrade...........  ..............              0          12,000           8,000 
    (Note: The conferees have provided                                                                          
     $8,000,000 to pursue planning and advance                                                                  
     development efforts for the Army's next                                                                    
     generation tank. The conferees understand                                                                  
     that the Army's tank modernization strategy                                                                
     is still being defined based on recent                                                                     
     recommendations of the Army Science Board.                                                                 
     The conferees direct that the appropriated                                                                 
     funds shall be competitively awarded.)                                                                     
Tactical Electronic Support Sys-Adv Dev.........           2,025          9,825           2,025           4,025 
    ASIS-IFAD...................................  ..............          7,800               0               0 
    (Note: Transferred to All Source Analysis                                                                   
     Systems.)                                                                                                  
Integrated battlespace intell server............  ..............              0               0           2,000 
    (Note: Transferred from All Source Analysis                                                                 
     Systems)                                                                                                   
EW Development..................................          69,474          9,474          84,974          75,474 
    ATIRCM/ATRJ integration.....................  ..............              0          15,500           6,000 
All Source Analysis System......................          36,200         36,200          38,200          40,200 
    Integrated battlespace intell server........  ..............              0           2,000               0 
    (Note: Transferred to Tactical Electronic                                                                   
     Support Systems-Adv Dev)                                                                                   
    ASAS-IFAD...................................  ..............              0               0           4,000 

[[Page H11893]]

                                                                                                                
    (Note: Transferred from Tactical Electronic                                                                 
     Support System)                                                                                            
Javelin.........................................           1,643          9,143           6,143           6,143 
    Warhead improvements........................  ..............          4,500           4,500           4,500 
    Insensitive munitions enhancements..........  ..............          3,000               0               0 
Landmine Warfare................................          17,609         17,609          35,609          26,909 
    Wide Area Munition..........................  ..............              0          18,000           9,300 
    (Note: The conferees approve a transfer of                                                                  
     $9,300,000 from the WAM low rate initial                                                                   
     procurement program into the WAM product                                                                   
     improvement Program (PIP). The conferees                                                                   
     endorse the revised Army strategy to                                                                       
     accelerate the WAM PIP effort and to                                                                       
     procure the basic WAM design at the minimum                                                                
     production rate.                                                                                           
Air Traffic Control.............................           5,549          5,549           5,549           7,549 
(Note: Transferred $2,000,000 from Aircraft                                                                     
 Procurement, Army-Air Traffic Control for EMD                                                                  
 of the ATNAVICS prototype)                                                                                     
Engineer Mobility Equipment Development.........          35,410         47,710          50,710          47,710 
    Heavy Assault Bridge (HAB)..................  ..............         12,300          12,300           9,300 
    HAB test program sets.......................  ..............              0           1,500           1,500 
    Breacher test program sets..................  ..............              0           1,500           1,500 
Night Vision Systems-Eng Dev....................          33,637         33,637          35,637          35,637 
    Target acquisition system TLOS..............  ..............              0          -3,000          -3,000 
    Apache second generation FLIR...............  ..............              0           5,000           5,000 
Brilliant Anti-armor submunition................         180,407        189,707         172,907         165,407 
    BAT producibility enhancements..............  ..............          9,300               0               0 
    Program cost increases......................  ..............              0          12,500               0 
    BAT P31.....................................  ..............              0         -20,000         -15,000 
Weapons and Munitions-Eng Dev...................          20,468         24,168          22,068          24,168 
    MK-19 modifications.........................  ..............          1,600               0           1,600 
    XM 915/916 development......................  ..............          2,100               0           2,100 
    Program Increase............................  ..............              0           1,600               0 
Landmine Warfare/Barrier-Eng Dev................          19,731         19,731           7,731           7,731 
    ASTAMIDS....................................  ..............              0         -12,000         -12,000 
    (Note: Funded in Landmine Warfare/Barrier-                                                                  
     Adv Dev)                                                                                                   
DoD High Energy Laser Test Facility.............           2,967         91,700          24,667          30,667 
    HELSTF......................................  ..............         21,733          21,700          21,700 
    THEL/NAUTILUS...............................  ..............         55,000               0               0 
    high energy solid state laser development...  ..............         12,000               0           6,000 
Management Headquarters.........................           4,801          4,801          18,801          18,801 
    Akamai......................................  ..............              0          14,000          14,000 
    (Note: The conferees support Akamai efforts                                                                 
     at Tripler Army Medical Center which                                                                       
     include the use of local high performance                                                                  
     computing capabilities to more efficiently                                                                 
     create high resolution, three-dimensional                                                                  
     images for medical diagnostics.                                                                            
     Furthermore, the conferees direct that                                                                     
     $2,700,000 of the increase is available                                                                    
     only to continue development of dual mode                                                                  
     hyperspectral/fluorescence imaging                                                                         
     technologies)                                                                                              
Aerostat Joint Project Office...................          38,940         38,940          31,940          26,940 
    Risk reduction program......................  ..............              0          -3,000          -3,000 
    Management office and support...............  ..............              0          -4,000          -4,000 
    Program reduction...........................  ..............              0               0          -5,000 
Combat Vehicle Improvement Programs.............         197,796        215,696         211,146         211,296 
    M1 flat panel displays......................  ..............         10,000          10,000           7,000 
    combat vehicle laser warning system.........  ..............          4,900               0           4,900 
    M1A2 SEP test program sets..................  ..............              0           1,200           1,200 
    Bradley BFIST ODS test sets.................  ..............              0             900             900 
    Bradley A3 BFIST test sets..................  ..............              0             450               0 
    Bradley A3 test sets........................  ..............              0           3,300           2,000 
    Bradley Stinger test program sets...........  ..............              0             500             500 
    BFIST A3 phase II design engineering........  ..............              0          -3,000          -3,000 
    M1A2 compact autoloader.....................  ..............          3,000               0               0 
    (Note: $2,000,000 appropriated in Advanced                                                                  
     Tank Armament System.)                                                                                     
Aircraft modifications/Product improvement......             194         22,894          27,864          22,864 
    Improved cargo helicopter...................  ..............         22,700          22,720          17,720 
    CH-47 engine upgrades.......................  ..............              0           4,700           4,700 
    UH-60 door gun evaluation...................  ..............              0             250             250 
Digitization....................................         110,180        100,180         131,980          90,180 
    Program reduction...........................  ..............        -10,000               0         -20,000 
    Task Force XXI efforts and common operating                                                                 
     environment migration......................  ..............              0          21,800               0 
Missile/Air Defense Product Improvement.........          30,959         50,959          85,959          65,959 
    Patriot anti-cruise missile upgrade.........  ..............         20,000          40,000          35,000 
    Starstreak evaluation.......................  ..............              0          15,000               0 
End Item Industrial Preparedness................          16,842         27,842          31,842          48,842 
    Program increase............................  ..............         11,000               0               0 
    INFAC.......................................  ..............              0           4,000           4,000 
    Advanced nonmetallic rechargeable battery                                                                   
     system.....................................  ..............              0           1,000               0 
    Total integration munitions engineering.....  ..............              0          10,000          20,000 
    ductile iron................................  ..............         (2,000)              0          (2,000)
    High modulus Pan-based graphite Fibers......  ..............              0               0           8,000 
    (Note: Transferred from Materials                                                                           
     Technology.)                                                                                               
----------------------------------------------------------------------------------------------------------------

                      aviation advanced technology

       The conferees agree to provide $56,478,000 for Aviation 
     Advanced Technology, an increase of $15,000,000 only for 
     continuation of the air-to-air Starstreak evaluation. The 
     conferees agree that side-by-side testing with other missile 
     candidates should not occur until after completion of Phase 
     II testing of Starstreak. None of the funds provided shall be 
     diverted for any other purpose without prior consultation 
     with the Committees on Appropriations.


                    environmental quality technology

       The conferees have provided an additional $5,000,000 for 
     the National Defense Center for Environmental Excellence for 
     support of life-cycle environmental and manufacturing 
     technologies research related to weapon systems and munitions 
     technology assessment and analysis. Research to be conducted 
     includes technology insertion, life-cycle assessments, 
     technology transfer and demonstrations, environmental and 
     manufacturing research and engineering and environmental 
     awareness training.
       Of the additional funds appropriated, the conferees direct 
     that $5,400,000 shall be available only to continue ongoing 
     efforts with an established small business development center 
     to be administered as in previous years. The conferees are 
     supportive of pursuing products which have industrial and 
     medicinal uses under this program.
       The conferees further direct that $4,000,000 shall be 
     available only for the U.S. Army Environmental Center, as 
     program director for overall technical and fiscal management, 
     and the U.S. Army Construction Engineering Research 
     Laboratory (USCERL), as technical advisor for research and 
     development, to demonstrate agriculturally based remediation 
     technologies to restore contaminated military and civilian 
     sites, especially those located in fragile Pacific island 
     ecosystems.


                      medical advanced technology

                           Neurofibromatosis

       The conference agreement includes $8,000,000 only to 
     continue the Army's ongoing successful neurofibromatosis 
     research program. The conferees commend the Army for 
     structuring this program in a highly professional manner. The 
     conferees direct that these funds be made available under the 
     same timeline for solicitation, peer review, and grant award 
     as has been announced for the obligation of fiscal year 1996 
     funds.


                        National Medical Testbed

       The conferees are impressed with the efforts of the Testbed 
     to provide deliverable technologies which display measurable 
     improvements in cost and effectiveness in many areas of 
     healthcare delivery. Therefore, the conferees provide an 
     additional $6,000,000 in the Medical Advanced Technology, 
     Army line only for the National Medical Testbed to develop 
     new health care delivery systems along with the enhancing 
     existing programs.


                        ovarian cancer research

       The conference agreement provides an additional $7,500,000 
     only for a comprehensive preventive program in ovarian cancer 
     that expands into endometrial, cervical and other cancer 
     research and that would include prevention planning, 
     implementation and development planning. The conferees direct 
     that this program shall be implemented under the same 
     guidance for this activity as contained in House Report 103-
     562.


                         military hiv research

                                hiv/aids

       The conferees request that the DoD facilitate and support 
     continued participation of

[[Page H11894]]

     HIV-infected military personnel, retirees, and their 
     dependents in clinical trials, including the AIDS Clinical 
     Trials Group (ACTG) or the Community Programs for Clinical 
     Research on AIDS (CPCRA).
       The conference agreement includes $17,919,000 the 
     military's HIV/AIDS research programs. The conferees intend 
     that the HIV clinical research program be continued at the 
     current level with remaining funds available to design, 
     evaluate, and produce candidate vaccines through 
     collaborations with industry and international partners.


                   joint services small arms program

       The conferees understand that the Department of the Army is 
     monitoring the development of Plastic Cased Ammunition as an 
     economical and weight saving alternative to brass cased 
     ammunition. The conferees recommend that the Department of 
     the Army, within existing resources, conduct a feasibility 
     study on the adoption of Plastic Cased Ammunition and report 
     back to the congressional defense committees by March 15, 
     1997.


                 landmine warfare and barrier--adv dev

       The conferees agree to provide an additional $12,000,000 
     only for the continuation of the Airborne Stand-off Minefield 
     Detection System (ASTAMIDS). The conferees direct that the 
     Secretary of the Army complete a technology evaluation of 
     other systems capable of performing the battlefield mine 
     detection mission. The conferees further direct that this 
     competition be completed as expeditiously as possible. The 
     conferees direct that the ASTAMIDS program not proceed into 
     engineering and manufacturing development prior to the Army 
     completing this competition and informing the congressional 
     defense committees on the results of this evaluation.


                              super dragon

       The conferees direct the Army to study the merits and costs 
     of further upgrades to the Dragon missile. The conferees 
     direct the Secretary of the Army to submit a report to the 
     congressional defense committees detailing the requirement, 
     cost, and schedule for the various Dragon upgrade options no 
     later than April 1, 1997.

            Research, Development, Test and Evaluation, Navy

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL NAVY                                                                           
DEFENSE RESEARCH SCIENCES...................................      371,904      371,904      361,904      351,904
SURFACE/AEROSPACE SURVEILLANCE AND WEAPONS TECHNOLOGY.......       26,312       41,112       35,312       33,312
SURFACE SHIP TECHNOLOGY.....................................       35,591       43,591       56,591       53,591
AIRCRAFT TECHNOLOGY.........................................       20,578       24,778       20,578       24,778
COMMAND, CONTROL, AND COMMUNICATION TECHNOLOGY..............       56,159       58,159       56,159       57,159
READINESS, TRAINING, AND ENVIRONMENTAL QUALITY TECHNOLOGY...       40,828       49,728       40,828       49,728
UNDERSEA SURVEILLANCE WEAPON TECHNOLOGY.....................       49,580       49,580       50,080       50,080
MINE COUNTERMEASURES, MINING AND SPECIAL WARFARE............       40,534       40,534       48,534       46,534
OCEANOGRAPHIC AND ATMOSPHERIC TECHNOLOGY....................       44,559       54,559       66,559       76,559
UNDERSEA WARFARE WEAPONRY TECHNOLOGY........................       33,891       33,891       42,391       38,391
AIR SYSTEMS AND WEAPONS ADVANCED TECHNOLOGY.................       29,315       41,315       29,315       38,315
PRECISION STRIKE AND AIR DEFENSE............................       55,560       60,560       46,311       60,560
SHIP PROPULSION SYSTEM......................................       28,557       36,557       36,557       33,557
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD)........       24,212       66,012       65,712       62,012
MEDICAL DEVELOPMENT.........................................       37,342       57,442       43,842       61,442
ENVIRONMENTAL QUALITY AND LOGISTICS ADVANCED TECHNOLOGY.....       19,970       21,470       44,970       40,970
UNDERSEA WARFARE ADVANCED TECHNOLOGY........................       43,583       43,583       34,583       46,083
SHALLOW WATER MCM DEMOS.....................................       42,753       50,753       42,753       42,753
ADVANCED TECHNOLOGY TRANSITION..............................      104,424       70,000       91,424       72,000
AIR/OCEAN TACTICAL APPLICATIONS.............................       16,519       16,519       19,719       18,519
AVIATION SURVIVABILITY......................................        6,313       15,513        6,313       15,513
ASW SYSTEMS DEVELOPMENT.....................................       19,473       19,473       21,973       21,973
SURFACE AND SHALLOW WATER MINE COUNTERMEASURES..............       86,995       98,995       94,751       88,751
ADVANCED SUBMARINE COMBAT SYSTEMS DEVELOPMENT...............       19,149       58,149       19,149       39,149
CARRIER SYSTEMS DEVELOPMENT.................................       12,745       12,745       35,745       12,745
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT......................        9,948        9,948        9,948       18,748
ADVANCED SUBMARINE SYSTEM DEVELOPMENT.......................       26,400       85,400       46,400       66,400
ARSENAL SHIP-DEM/VAL........................................  ...........  ...........  ...........       25,000
SHIP CONCEPT ADVANCED DESIGN................................       13,807       38,807       13,807       13,807
ADVANCED SURFACE MACHINERY SYSTEMS..........................       59,773       87,673       59,773       68,873
MARINE CORPS MINE/COUNTERMEASURES SYSTEMS--ADV DEV..........          592        2,592          592        1,592
RETRACT MAPLE...............................................       83,809      114,009       83,809       83,809
LINK PLUMERIA...............................................       26,433       28,933       41,433       35,933
RETRACT ELM.................................................       24,993       30,793       30,143       24,993
SHIP SELF DEFENSE...........................................      216,486      290,486      216,486      290,486
NATO RESEARCH AND DEVELOPMENT...............................        9,933  ...........        9,933        9,933
GUN WEAPON SYSTEM TECHNOLOGY................................       42,204       55,204       60,204       52,204
JOINT ADVANCED STRIKE TECHNOLOGY--DEM/VAL...................      246,833      259,833      246,833      256,833
OTHER HELO DEVELOPMENT......................................       40,132       52,132       66,932       65,432
STANDARDS DEVELOPMENT.......................................       24,698       27,098       24,698       26,698
S-3 WEAPON SYSTEM IMPROVEMENT...............................        4,979       19,979        4,979        9,979
P-3 MODERNIZATION PROGRAM...................................        2,074       14,074        2,074        8,074
TACTICAL COMMAND SYSTEM.....................................       26,989       29,989       26,989       29,989
ACOUSTIC SEARCH SENSORS.....................................       12,141       12,141       14,641       14,641
V-22A.......................................................      576,792      613,792      596,792      576,792
AIR CREW SYSTEMS DEVELOPMENT................................       11,089       24,489       16,089       27,489
EW DEVELOPMENT..............................................       78,748      141,248      136,158      127,248
AEGIS COMBAT SYSTEM ENGINEERING.............................       89,279       93,279      103,279       92,279
ARSENAL SHIP................................................       25,000  ...........      100,000  ...........
STANDARD MISSILE IMPROVEMENTS...............................        1,637        9,637        1,637        9,637
AIRBORNE MCM................................................       14,522       20,522       33,522       32,522
SSN-688 AND TRIDENT MODERNIZATION...........................       61,395       72,395       61,395       61,395
ENHANCED MODULAR SIGNAL PROCESSOR...........................        3,718       15,718        3,718       22,718
NEW DESIGN SSN..............................................      394,000      382,300      409,200      389,300
NAVY TACTICAL COMPUTER RESOURCES............................        5,237       30,237        5,237       30,237
UNGUIDED CONVENTIONAL AIR-LAUNCHED WEAPONS..................       22,322       32,322       22,322       32,322
BATTLE GROUP PASSIVE HORIZON EXTENSION SYSTEM...............        3,704        4,704        3,704        4,704
SHIP SELF DEFENSE...........................................      134,677      171,677      134,677      152,677
JSTARS NAVY.................................................  ...........       10,000  ...........  ...........
DISTRIBUTED SURVEILLANCE SYSTEM.............................       35,194       70,194       35,194       38,194
TECHNICAL INFORMATION SERVICES..............................        1,725        1,725        1,725        4,725
TEST AND EVALUATION SUPPORT.................................      242,891      244,891      242,891      243,891
SSBN SECURITY TECHNOLOGY PROGRAM............................       21,340       26,840       21,340       24,340
F/A-18 SQUADRONS............................................      425,333      447,033      425,333      441,133
TOMAHAWK AND TOMAHAWK MISSION PLANNING CENTER (TMPC)........      136,364      124,364      156,364      146,364
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT...................       34,906       37,906       53,406       49,406
HARM IMPROVEMENT............................................        3,348       55,848       13,348       38,348
SURFACE ASW COMBAT SYSTEM INTEGRATION.......................        4,901        8,901        4,901        6,901
AVIATION IMPROVEMENTS.......................................       53,512       55,112       53,512       55,112
NAVY SCIENCE ASSISTANCE PROGRAM.............................        5,067        5,067       23,067       13,067
MARINE CORPS COMMUNICATIONS SYSTEMS.........................       56,687       61,242       56,687       61,242
TACTICAL AIM MISSILES.......................................       58,415       58,415       53,925       54,915
DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)............        1,195        1,195       16,195       13,695
TACTICAL UNMANNED AERIAL VEHICLE............................  ...........  ...........       66,808  ...........
PREDATOR....................................................  ...........  ...........        6,099  ...........
ACQUISITION CENTER OF EXCELLENCE............................  ...........  ...........        8,000          500
JOINT SERVICE NON-LETHAL WEAPONS TECHNOLOGIES PROGRAM.......  ...........  ...........       15,000       10,000
CLASSIFIED PROGRAMS.........................................      501,598      669,598      501,598      575,298
----------------------------------------------------------------------------------------------------------------


[[Page H11895]]


                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                                    
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                              Budget        House        Senate      Conference 
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences................................      371,094      371,094       361,904       351,904 
    General reduction....................................  ...........            0       -10,000       -20,000 
    National Center for Physical Acoustics...............  ...........            0          (900)         (900)
Surface/Aerospace Surveillance/Weapons Technology........       26,312       41,112        35,312        33,312 
    CW superconducting RF free electron laser............  ...........        9,000         9,000         6,000 
    IRPTET...............................................  ...........        3,000             0         1,000 
    NSFS: GPS/INS guidance...............................  ...........        2,800             0             0 
Surface Ship Technology..................................       35,591       43,591        56,591        53,591 
    Power electronic building blocks.....................  ...........        6,000             0         6,000 
    Vision technology....................................  ...........        1,000             0         1,000 
    Natural language processing..........................  ...........        1,000             0         1,000 
    Surface ship composite materials technology..........  ...........            0        10,000         5,000 
    Power node control centers...........................  ...........            0         1,000         1,000 
    Ship technology automated systems monitoring.........  ...........            0         2,000             0 
    Landing ship/quay causeway...........................  ...........            0         8,000         4,000 
Materials, Electronics, and Computer Technology..........       75,886       88,386        88,386        88,386 
    Wide bandwidth semiconductors........................  ...........       10,000             0             0 
    Carbon reinforced, recycled thermoplastic engineered                                                        
     lumber..............................................  ...........        2,500         2,500         2,500 
    New processes for Navy aircraft skins................  ...........  ............        5,000         3,000 
    Virtual company framework for advanced software                                                             
     development.........................................  ...........  ............            0         4,000 
    Advanced Materials Intelligent Processing Center.....  ...........  ............        5,000         3,000 
    Titanium processing technology.......................  ...........  ............       (2,000)       (2,000)
(Note: From within available funds, $2.0 million is available only to support development of the plasma quench  
 process at the Idaho National Engineering Laboratory for use in the production of ultra-fine titanium powder   
 and in the injection molding process. The conferees believe the plasma quench process could offer the defense  
 and aerospace industries a cost-effective and environmentally sound means of meeting our growing titanium      
 requirements while ensuring that domestic sources of titanium metal remain viable into the future.)            
Oceanographic and Atmospheric Technology.................       44,559       54,559        66,559        76,559 
    Sensing systems/UUVs.................................  ...........       10,000             0        10,000 
    National oceanographic partnerships..................  ...........            0        13,000        13,000 
    Polar ozone atmospheric monitor......................  ...........            0         4,000         4,000 
    Ocean climate research...............................  ...........            0         5,000         5,000 
    PM-10................................................  ...........            0          (750)         (750)
    University fleet survey..............................  ...........            0        (4,000)            0 
Undersea Warfare Weaponry Technology.....................       33,891       33,891        42,391        38,391 
    Anti-submarine/torpedo weapon........................  ...........            0         6,000         2,000 
    SUV for intervention missions........................  ...........            0         2,500         2,500 
(Note: Concerning the semiautonomous underwater vehicle for intervention missions, the performing institution   
 should have an existing omni-directional SUV and focus this effort on developing a vehicle with accurate omni- 
 directional, optical sensor-based motion control for station-keeping combined with an integrated manipulator,  
 allowing coordinated motion control for performing intervention missions.)                                     
Air Systems and Weapons Advanced Technology..............       29,315       41,315        29,315        38,315 
    MAST electronics.....................................  ...........       10,000             0         8,000 
    IRPTET...............................................  ...........        2,000             0         1,000 
Ship Propulsion System...................................       28,557       36,557        36,557        33,557 
    Advanced submarine technology........................  ...........        8,000             0             0 
    Active control of machinery rafts....................  ...........            0         8,000         5,000 
(Note: Half of the funds for active control of machinery rafts (Project M) are for submarine applications and   
 half are for surface ship applications.)                                                                       
Marine Corps ATD.........................................       24,212       66,012        65,712        62,012 
    Warfighting lab/SEA DRAGON...........................  ...........       40,000        40,000        35,000 
    SMAW product improvement.............................  ...........        1,800             0         1,800 
    Air defense alerting device..........................  ...........            0         1,500         1,000 
Medical Development......................................       37,342       57,442        43,842        61,442 
    Rural health.........................................  ...........        3,500             0         3,500 
    Bone marrow research.................................  ...........       14,000             0        14,000 
    Casualty stabilization...............................  ...........        2,600             0         2,600 
    Freeze dried blood...................................  ...........       (2,500)        2,500        (2,500)
    Mobile medical monitor...............................  ...........            0         4,000         4,000 
Environmental Quality/Logistics Advanced Technology......       19,970       21,470        44,970        40,970 
    Nickel-zinc battery development......................  ...........        1,500             0         1,000 
    Smart base...........................................  ...........            0        25,000        20,000 
Undersea Warfare Advanced Technology.....................       43,583       43,583        34,583        46,083 
    Shipboard/airborne periscope detection...............  ...........            0       -14,000             0 
    Environmentally compliant torpedo fuel...............  ...........            0         5,000         2,500 
Shallow Water MCM Demos..................................       42,753       50,753        42,753        42,753 
    RAMICS...............................................  ...........        8,000             0             0 
(Note: The conferees direct that $900,000 shall be available only to test the Power Blade mine clearance system,
 hardened against mine detonations, at a planned March, 1997 U.S. Atlantic Command joint countermine warfare    
 exercise.)                                                                                                     
Advanced Technology Transition...........................      104,424       70,000        91,424        72,000 
    General reduction/program growth.....................  ...........      -34,424       -15,000       -34,424 
    SLICE................................................  ...........  ............        2,000         2,000 
Air/Ocean Tactical Applications..........................       16,519       16,519        19,719        18,519 
    Mapping, charting, and geodesy.......................  ...........            0         3,200         2,000 
Surface and Shallow Water Mine Countermeasures...........       86,995       98,995        94,751        88,751 
    Obstacle breaching system............................  ...........            0        -4,244        -4,244 
    Integrated combat weapon system......................  ...........       12,000        12,000         6,000 
Advanced Submarine Combat Systems Development............       19,149       58,149        19,149        39,149 
    Advanced submarine technology........................  ...........       39,000             0        20,000 
(Note: Includes $10.8 million for the fiber optic acoustic sensor.)                                             
Shipboard System Component Development...................        9,948        9,948         9,948        18,748 
    Carbonate fuel cells.................................  ...........            0             0         1,900 
    Standard monitoring and control system...............  ...........            0             0         6,900 
(Note: Funds for the standard monitoring and control system and for carbonate fuel cells, as recommended by the 
 House, that were agreed to in conference were transferred from the Advanced Surface Machinery Systems line.)   
Advanced Submarine System Development....................       26,400       85,400        46,400        66,400 
    Advanced submarine technology........................  ...........       59,000        20,000        40,000 
    Doppler sonar velocity log...........................  ...........            0        (1,000)       (1,000)
Advanced Surface Machinery Systems.......................       59,773       87,673        59,773        68,873 
    Standard monitoring and control system...............  ...........       13,500             0          -900 
    ICR land based test site.............................  ...........       12,500       (12,500)       10,000 
    Carbonate fuel cells.................................  ...........        1,900             0             0 
(Note: Funds for the standard monitoring and control system and for carbonate fuel cells, as recommended by the 
 House, that were agreed to in conference were transferred to the Shipboard System Component Development        
 program.)                                                                                                      
Gun Weapon System Technology.............................       42,204       55,204        60,204        52,204 
    Micro-mechanical systems ERGM........................  ...........        5,000             0         3,000 
    Risk reduction.......................................  ...........       10,000        18,000         7,000 
    Contract savings.....................................  ...........       -2,000             0             0 
Joint Advanced Strike Technology.........................      246,833      259,833       246,833       256,833 
    Engine competition...................................  ...........       13,000             0        10,000 
Other Helo Development...................................       40,132       52,132        66,932        65,432 
    Advanced low frequency sonar.........................  ...........       12,000             0         6.000 
    SH-60R...............................................  ...........            0         6,800         6,800 
    Parametric airborne dipping sonar (PADS).............  ...........            0        10,000         5,000 
    CH-60 vertical replenishment demo....................  ...........            0        10,000         7,500 
Air Crew Systems Development.............................       11,089       24,489        16,089        27,489 
    Modular helmet mounted display.......................  ...........        5,000             0         5,000 
    Five-line visor lens.................................  ...........        1,900             0         1,900 
    Small occupant escape systems........................  ...........        1,500             0         1,500 
    NACES II ejection seats..............................  ...........        5,000             0         5,000 
    Ejection seats, troop seats, helmet develop..........  ...........            0         5,000         3,000 
EW Development...........................................       78,748      141,248       136,158       127,248 
    Anti-jam GPS.........................................  ...........        3,500             0         3,500 
    EA-6B reactive jamming...............................  ...........       32,000        32,000        32,000 
    Jamming techniques optimization......................  ...........        5,000        10,000         5,000 
    EA-6B connectivity upgrade...........................  ...........       22,000   ............            0 
    ALR-67(V)3...........................................  ...........            0        15,410         8,000 
(Note: EA-6B connectivity upgrade funded in the Aircraft Procurement account.)                                  

[[Page H11896]]

                                                                                                                
Aegis Combat System Engineering..........................       89,279       93,279       103,279        92,279 
    Aegis test integration facility......................  ...........        4,000         4,000         3,000 
    Smart ship initiative................................  ...........            0        10,000             0 
Airborne Mine Countermeasures............................       14,522       20,522        33,522        32,522 
    AN/AQS-20............................................  ...........        6,000         6,000         6,000 
    Underwater mine detection technology evaluation......  ...........            0        13,000        12,000 
Enhanced Modular Signal Processor........................        3,718       15,718         3,718        22,718 
    COTS Variant.........................................  ...........       12,000             0        19,000 
(Note: Includes an additional $10.0 million not in the House bill, which is offset by a rescission of fiscal    
 year 1995 Other Procurement, Navy funds appropriated for the EMSP program.)                                    
New Design SSN...........................................      394,000      382,300       409,200       389,300 
    COTS MPP.............................................  ...........            0        15,200         7,000 
    C3I contract savings.................................  ...........       -7,000             0        -7,000 
    Prior year contract savings..........................  ...........       -4,700             0        -4,700 
    Laser articulating robotic system....................  ...........            0             0        (2,000)
    Glass reinforced plastic sonar dome..................  ...........       (2,000)            0        (2,000)
(Note: $2.0 million is only to evaluate application to the New Attack Submarine of glass reinforced plastic     
 technology currently being developed for surface ship sonar domes.)                                            
Ship Self Defense........................................      134,677      171,677       134,677       152,677 
    Enhanced Sea-sparrow.................................  ...........        8,000             0             0 
    Infrared search and track............................  ...........        8,000             0         4,000 
    Quick combat reaction capability.....................  ...........        9,000             0             0 
    SPQ-9B radar development.............................  ...........        8,000             0         4,000 
    NULKA decoy..........................................  ...........        4,000             0         2,000 
    AN/SPS-48E...........................................  ...........            0       (12,000)        8,000 
Technical Information Systems............................        1,725        1,725         1,725         4,725 
    Advanced technical information system................  ...........            0             0         3,000 
F/A-18 Squadrons.........................................      425,333      447,033       425,333       441,133 
    Advanced FLIR........................................  ...........       19,400             0             0 
    BOL chaff for F/A-18C/D..............................  ...........        4,500             0        18,000 
    General reduction....................................  ...........       -2,200             0        -2,200 
Tomahawk and Tomahawk Mission Planning Center............      136,364      124,364       156,364       146,364 
    Joint targeting support center.......................  ...........        8,000             0             0 
    Block IV upgrades....................................  ...........      -20,000             0        10,000 
    General increase.....................................  ...........            0        20,000             0 
Consolidated Training Systems Development................       34,906       37,906        53,406        49,406 
    Surface tactical team trainer........................  ...........        3,000             0         2,000 
    JTCTS................................................  ...........            0         9,000         3,000 
    Optical sensors at PMRF..............................  ...........            0         5,000         5,000 
    PMRF LATR system upgrade.............................  ...........            0         4,500         4,500 
HARM Improvement.........................................        3,348       55,848        13,348        38,348 
    Advanced anti-radiation guided missile...............  ...........       50,000        10,000        35,000 
    HARM block IV upgrade................................  ...........        2,500             0             0 
Navy Science Assistance Program..........................        5,067        5,067        23,067        13,067 
    CINCs technology initiative..........................  ...........            0        10,000             0 
    Littoral Airborne Sensor/Hyperspectral (LASH)........  ...........            0         8,000         8,000 
    System using the Advanced Airborne...................  ...........  ............  ............  ............
        Hyperspectral Imaging System (AAHIS).............  ...........  ............  ............  ............
Industrial Preparedness..................................       35,526       88,000        88,000        88,000 
    General increase.....................................  ...........       52,474        31,474        46,474 
    LAST center..........................................  ...........            0        15,000             0 
    Manufacturing Technology Transfer Center.............  ...........            0         6,000         6,000 
----------------------------------------------------------------------------------------------------------------

                                  v-22

       After the Presidents budget was submitted, the Special 
     Operations Command and the Department of the Navy entered 
     into an agreement concerning the SOF variant of the V-22 
     aircraft. The agreement may require additional funds to 
     maintain the variant aircraft's schedule in fiscal years 1997 
     and beyond. In formulating the fiscal year 1998 budget, the 
     conferees direct the Undersecretary of Defense (Comptroller) 
     to submit a reprogramming request to the congressional 
     defense committees should additional fiscal year 1997 funds 
     become necessary to implement the agreement, in order to keep 
     the SOF variant's projected initial operating capability date 
     on schedule.

         Research, Development, Test and Evaluation, Air Force

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                    Budget       House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL AF                                                                             
    DEFENSE RESEARCH SCIENCES...................................     234,475     234,475     226,475     219,475
    MATERIALS...................................................      72,360      79,360      72,360      80,860
    AEROSPACE FLIGHT DYNAMICS...................................      65,080      72,280      65,080      65,080
    ARMSTRONG LAB EXPLORATORY DEVELOPMENT.......................      87,103      91,103      87,103      89,103
    AEROSPACE PROPULSION........................................      74,906      83,406      74,906      74,906
    AEROSPACE AVIONICS..........................................      71,261      68,061      71,261      68,061
    PHILLIPS LAB EXPLORATORY DEVELOPMENT........................     121,107     148,007     135,607     153,507
    ADVANCED MATERIALS FOR WEAPON SYSTEMS.......................      23,803      26,303      23,803      26,303
    FLIGHT VEHICLE TECHNOLOGY...................................       8,433       9,183       8,433       8,433
    AEROSPACE PROPULSION AND POWER TECHNOLOGY...................      38,264      39,264      38,264      38,264
    CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY............      17,969      24,969      17,969      22,969
    ELECTRONIC COMBAT TECHNOLOGY................................      25,202      30,102      25,202      27,602
    SPACE AND MISSILE ROCKET PROPULSION.........................      15,740      25,740      15,740      23,240
    ADVANCED SPACECRAFT TECHNOLOGY..............................      39,367      70,637      89,637      76,637
    ADVANCED WEAPONS TECHNOLOGY.................................      41,895      66,895      61,895      56,895
    ADVANCED MILSATCOM (SPACE)..................................      31,643      31,643      16,543      31,643
    POLAR ADJUNCT (SPACE).......................................      62,387      22,387      62,387      62,387
    NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL SATE......      34,024      19,024      29,000      29,000
    SPACE BASED INFRARED ARCHITECTURE (SPACE)--DEM/VAL..........     120,151     249,151     254,151     249,151
    NATO RESEARCH AND DEVELOPMENT (H)...........................      10,233  ..........      10,233      10,233
    INTERCONTINENTAL BALLISTIC MISSILE--DEM/VAL.................      30,644      48,344      30,644      48,344
    EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM (SPACE)--DEM......      44,457      44,457      74,457      44,457
    SPACE ARCHITECT OFFICE......................................      15,000      15,000      10,601      11,601
    NUCLEAR WEAPONS SUPPORT.....................................       4,788       4,788       5,788       5,788
    B-1B........................................................     220,932     220,932     229,232     217,732
    SPECIALIZED UNDERGRADUATE PILOT TRAINING....................      84,291      87,691      79,260      79,260
    F-22--EMD...................................................   2,002,959   1,982,459   1,921,621   1,906,021
    B-2 ADVANCED TECHNOLOGY BOMBER..............................     528,454     740,454     528,454     624,454
    EW DEVELOPMENT..............................................     104,423      99,423     104,423     101,923
    COMBAT INTELLIGENCE SYSTEM--EMD.............................       1,943       2,943       1,943       2,943
    SPACE BASE INFRARED ARCHITECTURE (SPACE)--EMD...............     173,290     173,290     199,190     199,190
    LIFE SUPPORT SYSTEMS........................................       4,363       5,863       9,363      10,863
    COMBAT TRAINING RANGES......................................      23,018      23,018      23,018      23,018
    JOINT TACTICAL INFORMATION DISTRIBUTION SYSTEM (JTIDS)......      11,075      30,875      11,075      30,875
    JOINT SURVEILLANCE/TARGET ATTACK RADAR SYSTEM (JSTARS)......     207,284     203,784     207,284     203,784
    JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM)...............     198,632     148,632     198,632     168,632
    CONVENTIONAL AIR LAUNCHED CRUISE MISSILE....................  ..........  ..........  ..........       3,000
    THREAT SIMULATOR DEVELOPMENT................................      43,635      43,635      47,435      55,435
    INITIAL OPERATIONAL TEST & EVALUATION.......................      26,921      26,921      21,921      21,921
    ROCKET SYSTEMS LAUNCH PROGRAM (SPACE).......................       8,152       8,152      33,252      33,252

[[Page H11897]]

                                                                                                                
    F-15E SQUADRONS.............................................     143,095     158,095     143,095     158,095
    TACTICAL AIM MISSILES.......................................      36,382      36,382      31,892      32,882
    ADVANCED MEDIUM RANGE AIR-TO-AIR MISSILE (AMRAAM)...........      25,883      30,883      25,883      25,883
    SPECIAL EVALUATION PROGRAM..................................      53,495      53,495      37,195      37,195
    AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...............      99,050      96,850      99,050      96,850
    AIRBORNE WARNING AND CONTROL SYSTEM (AWACS).................      57,559      57,559      92,459      82,559
    ADVANCED PROGRAM TECHNOLOGY.................................      72,501      72,501      69,501      69,501
    THEATER BATTLE MANAGEMENT (TBM) C4I.........................      30,915      30,915      35,915      34,415
    ADVANCED PROGRAM EVALUATION.................................     198,327     198,327     190,327     190,327
    USAF WARGAMING AND SIMULATION...............................      19,361      26,861      26,361      26,361
    THEATER MISSILE DEFENSES....................................      22,285      22,285      34,285      31,285
    TECHNICAL EVALUATION SYSTEM.................................     114,603     114,603     102,603     114,603
    SPECIAL EVALUATION SYSTEM...................................      41,776      53,476      41,776      41,776
    DEFENSE SATELLITE COMMUNICATIONS SYSTEM (SPACE).............      24,528      28,127      24,527      28,127
    MILSTAR SATELLITE COMMUNICATIONS SYSTEM (SPACE).............      26,962      26,962      20,348      20,348
    SELECTED ACTIVITIES.........................................       3,000  ..........       3,000  ..........
    SATELLITE CONTROL NETWORK (SPACE)...........................      89,960      86,960      89,960      86,960
    AIR TRAFFIC CONTROL, APPROACH, AND LANDING SYSTEM (ATC).....       3,870       3,870       8,870       3,870
    TITAN SPACE LAUNCH VEHICLES (SPACE).........................     105,472     102,472     105,472     102,472
    ARMS CONTROL IMPLEMENTATION.................................      26,786      31,386      26,786      29,086
    DEFENSE METEOROLOGICAL SATELLITE PROGRAM (SPACE)............      17,964      17,964      15.664      15,664
    NAVSTAR GLOBAL POSITIONING SYSTEM (USER EQUIPMENT) (SP).....      32,450      24,950      37,450      31,250
    SPACETRACK (SPACE)..........................................      18,867      18,867      33,867      33,867
    DEFENSE SUPPORT PROGRAM (SPACE).............................      29,397      26,397      29,397      26,397
    C-17 AIRCRAFT...............................................      87,486      87,486      87,486      77,486
    INDUSTRIAL PREPAREDNESS.....................................      49,969      51,969      69,969      52,969
    PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAIN, PRO......      13,564      16,564      18,064      16,564
    SUPPORT SYSTEMS DEVELOPMENT.................................       5,405       5,405       5,405       8,405
    AIRBORNE RECONNAISSANCE GROUND STATION......................  ..........  ..........       2,419  ..........
    DISTRIBUTED COMMON GROUND STATION...........................  ..........  ..........       5,116  ..........
    ADVANCED SENSOR DEVELOPMENT.................................  ..........  ..........      66,367  ..........
    ADVANCED TECHNOLOGY AND SENSORS.............................  ..........  ..........      17,523  ..........
    COMMON DATA LINK............................................  ..........  ..........      22,931  ..........
    U-2.........................................................  ..........  ..........      28,918  ..........
    COMMON IMAGERY GROUND SURFACE SYSTEM........................  ..........  ..........      55,280  ..........
    CLASSIFIED PROGRAMS.........................................   4,844,501   4,862,501   4,702,927   4,576,857
    COBRA BALL (FLD)............................................  ..........  ..........       5,000       5,000
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences....................................     234,475     234,475      226,475      219,475 
    Program Reduction........................................  ..........  ...........      -8,000      -15,000 
    National Solar Observatory...............................  ..........        (650)        (650)        (650)
Materials....................................................      72,360      79,360       72,360       80,860 
    Composite Material Research..............................  ..........       5,000   ...........       7,500 
    Advanced Paint Systems...................................  ..........       2,000   ...........       1,000 
    Reentry Materials Development............................  ..........      (3,500)      (3,500)      (3,500)
[Note: The conferees direct that $1,500,000 of these funds                                                      
 shall be used for the manufacture of carbon/carbon nosetips]                                                   
Aerospace Flight Dynamics....................................      65,080      72,280       65,080       65,080 
    Precision Airdrop Technology.............................  ..........       1,800   ...........  ...........
    Firefighting Equipment...................................  ..........       3,500   ...........  ...........
    Landing Gear Technology..................................  ..........         900   ...........  ...........
    Injection Molding Tehnology..............................  ..........       1,000   ...........  ...........
Armstrong Lab Development....................................      87,103      91,103       87,103       89,103 
    Helmet Mounted Display...................................  ..........       4,000   ...........       2,000 
Aerospace Propulsion.........................................      74,906      83,406       74,906       74,906 
    Fuel Filter Research.....................................  ..........       4,000   ...........  ...........
    High Temperature Lubricants..............................  ..........       1,500   ...........  ...........
    Vacuum Tub Transmit Amplifiers...........................  ..........       3,000   ...........  ...........
    Thermally Stable Coal Derived Jet Fuels..................  ..........  ...........      (3,000)      (3,000)
Phillips Lab Exploratory Development.........................     121,107     148,007      135,607      153,507 
    IHRPT....................................................  ..........       7,000        7,000        5,000 
    RSLP.....................................................  ..........       9,800   ...........       9,800 
    Mightsat.................................................  ..........      10,100   ...........      10,100 
    High Frequency Active Auroral Research Program...........  ..........  ...........       7,500        7,500 
Advanced Materials for Weapons Systems.......................      23,803      26,303       23,803       26,303 
    Metal Fatigue Monitoring Technology......................  ..........       2,500   ...........       2,500 
    Infared Suppression Materials............................  ..........  ...........      (3,000)      (3,000)
Crew Systems and Personnel Protection Technology.............      17,969      24,969       17,969       22,969 
    Ejection Seat Technology.................................  ..........       5,000   ...........       5,000 
    Life Support Technology..................................  ..........       2,000   ...........  ...........
Electronic Combat Technology.................................      25,202      30,102       25,202       27,602 
    Laser IR Countermeasures.................................  ..........       5,000   ...........       2,400 
Space and Missile Rocket Propulsion..........................      15,740      25,740       15,740       23,240 
    IHRPT....................................................  ..........       5,000   ...........       2,500 
    Pentaborane is Disposal..................................  ..........       2,000   ...........       2,000 
    Low Cost EELV............................................  ..........       3,000   ...........       3,000 
Advanced Spacecraft Technology...............................      39,637      70,637       89,637       76,637 
    Reusable Launch Vehicles.................................  ..........      25,000   ...........      10,000 
    MSTI.....................................................  ..........       3,000   ...........       2,000 
Power Storage Technology.....................................  ..........       2,000   ...........  ...........
    Clementine II............................................  ..........  ...........      50,000       25,000 
Advanced Weapons Technology..................................      41,895      66,895       61,895       56,895 
    Space Laser Imaging Technology...........................  ..........      15,000       10,000       10,000 
    Laser Induced Microwave Emissions........................  ..........      10,000       10,000        5,000 
Space Based Infrared Architecture............................     120,151     249,151      254,151      249,151 
    SMTS.....................................................  ..........     134,000      134,000      134,000 
    Program Support..........................................  ..........      -5,000   ...........      -5,000 
Space Architect Office.......................................      15,000      15,000       10,601       11,601 
    O&M Transfer/Studies.....................................  ..........  ...........      -3,399       -2,399 
    Studies..................................................  ..........  ...........      -1,000       -1,000 
B1-B.........................................................     220,932     207,932      229,232      217,732 
    DSUP.....................................................  ..........  ...........      10,000        6,000 
    Data Links...............................................  ..........  ...........      13,000        5,550 
    ECM Source Selection.....................................  ..........      -6,500   ...........  ...........
    Mission Support Costs....................................  ..........      -6,500   ...........  ...........
    Excess Funds.............................................  ..........  ...........     -14,700      -14,700 
Specialized Undergraduate Pilot Training.....................      84.291      87,691       79,260       79,260 
    JPATs Ground Based Training..............................  ..........       3,400   ...........  ...........
    Excess Funds.............................................  ..........  ...........      -9,231       -9,231 
    T-38 Avionics Upgrade....................................   2,002,959   1,982,459    `,921,621    1.906,021 
F-22 EMD.....................................................   2,002,959   1,982,459    1,921,621    1,906,021 
    Award Fee................................................  ..........     -20,500   ...........     -15,600 
    Procurement Transfer.....................................  ..........  ...........     -81,338      -81,338 
    F-22 Two-seat Trainer Study..............................  ..........  ...........      (1,000)      (1,000)
B-2 Advanced Technology Bomber...............................     528,454     740,454      528.454      624,454 
    Post Block-30 Improvements...............................  ..........     232,000   ...........     116,000 
    Curtailment Tooling......................................  ..........     -20,000   ...........     -20,000 

[[Page H11898]]

                                                                                                                
Life Support Systems.........................................       4,363       5,863        9,363       10,863 
    Ejection Seat Demo.......................................  ..........       1,500   ...........       1,500 
    Laser Eye Protection.....................................  ..........  ...........       5,000        5,000 
    Dielectric Technology....................................  ..........      (2,500)      (2,500)             
Threat Simulator Development.................................      46,635      43,635       47,435       55,435 
    Emitter Modifications....................................  ..........  ...........       9,000        5,000 
    Redcap Operations........................................  ..........  ...........       1,600        1,600 
    Redcap Option C..........................................  ..........  ...........       2,200        2,200 
    Redcap Option E..........................................  ..........  ...........        6,00         6,00 
    ECIT.....................................................  ..........  ...........     -15,000   ...........
Theater Battle Management (TBM) C41..........................      30,915      30,915       35,915       34,415 
    TBM Core Systems.........................................  ..........  ...........       5,000        3,500 
USAF Wargaming and Simulation................................      19,361      26,361       26,861       26,361 
    WPAFB Simulation Facility................................  ..........       7,000        7,500        7,000 
Theater Missile Defense......................................      22,285      22,285       34,285       31,285 
    UH-1N Simulator for TACCSF...............................  ..........  ...........       9,000        7,000 
    TACCSF Adv distributed simulation connection.............  ..........  ...........       3,000        2,000 
Arms Control Implementation..................................      26,786      31,386       26,786       29,086 
    Seismic Research.........................................  ..........       4,600   ...........       2,300 
Navstar GPS (User Equipment).................................      32,450      24,950       37,450       31,250 
    Program Reduction........................................  ..........      -7,500   ...........      -3,700 
    GPS Protection...........................................  ..........  ...........       5,000        2,500 
Spce Track...................................................      18,867      18,867       33,867       33,867 
    AEOS.....................................................  ..........  ...........       8,500        8,500 
    AMOS.....................................................  ..........  ...........       6,500        6,500 
[Note: The conferees direct that $1,700,000 of the AEOS                                                         
 increase shall be available to continue development of the                                                     
 AEOS spectrograph]                                                                                             
Industrial Preparedness......................................      49,969      51,969       69,969       52,969 
    General Increase.........................................  ..........       2,000       11,400        3,000 
    SPARES...................................................  ..........  ...........       5,400   ...........
    Hazmat Pats..............................................  ..........  ...........       3,200   ...........
Productivity, Reliability, Availability, Maintain, Program...      13,564      16,564       18,064       16,564 
    Blade Repair Program Modeling............................  ..........       3,000        4,500        3,000 
Support Systems Development..................................       5,405       5,405        5,405        8.405 
    SPARES...................................................  ..........  ...........  ...........       3,000 
[Note: SPARES program transferred from Industrial                                                               
 Preparedness program element]                                                                                  
Cobra Ball...................................................  ..........  ...........      +5,000       +5,000 
    FLD advanced airborne sensor.............................  ..........  ...........      +5,000       +5,000 
----------------------------------------------------------------------------------------------------------------

      intercontinental ballistic missile--demonstration/validation

       The conferees agree to add $17,700,000 to this program 
     element and direct that these funds may be used to develop 
     both Global Positioning System (GPS) range safety 
     modifications and improved accuracy capabilities for 
     conventional ICBM precision strike.


            evolved expendable launch vehicle (EELV) Program

       The conferees do not agree to the Senate provision which 
     directed that the use of the Centaur Processing Facility at 
     Cape Canaveral Air Force Station be included in the baseline 
     specifications and requirements of the EELV family of space 
     boosters.


                    F-22B two-seat trainer aircraft

       The conferees recognize the serious safety, operational, 
     training, cost, budgetary, and technical issues associated 
     with the Air Force's decision to terminate development of the 
     two-seat trainer variant of the F-22 advanced tactical 
     fighter. The conferees agree to include the Senate's 
     statutory provision requiring the Secretary of the Air Force 
     to submit a detailed assessment of these issues not later 
     than February 15, 1997.


                          b-2 bomber upgrades

       The conferees express serious concern with the pace of the 
     Air Force's plans to incorporate precision conventional 
     bombing capability on the B-2 bomber. The B-2 will represent 
     the most modern deep-strike platform the United States will 
     possess for the foreseeable future. The Air Force has 
     identified enhancements which it believes could be 
     accommodated on the B-2. The conferees believe the schedule 
     for the upgrades must be accelerated. Accordingly, the 
     conferees have approved $116,000,000 for this package and 
     direct the Air Force to prioritize enhancements within that 
     amount. The conferees also encourage the Air Force to include 
     funds for B-2 enhancements in its fiscal year 1998 budget 
     submission.


                      threat simulator development

       The conferees agree to provide an increase of $5,000,000 
     only to provide additional electronic combat threat simulator 
     capabilities at the Eglin Air Force Base electronic combat 
     test and training range. The Commander, Air Force Special 
     Operations Command, and the Director, Air Force Test and 
     Evaluation, shall mutually define the requirements for 
     additional electronic combat test and training resources at 
     Eglin and shall use the available funds to acquire the 
     necessary capability. The conferees understand that the 
     requirements may include a need for full Emitter Receiver 
     Processor (ERP) instrumented threat simulators to ensure 
     realistic training.


                                 awacs

       The conferees agree to provide $82,559,000 for AWACS, an 
     increase of $25,000,000 only for an AWACS reengining program. 
     The conferees direct the Air Force to provide a detailed 
     report to the Committee on Appropriations on the schedule, 
     technical risks, annual and total program costs, and 
     acquisition strategy not later than April 1, 1997. The Air 
     Force is further directed to consult with the Committees on 
     Appropriations well in advance of selecting an acquisition 
     strategy involving the leasing of engines.


                      arms control implementation

       The Air Force requested $26,786,000 for arms control 
     implementation. The conferees recommend $29,086,000, an 
     increase of $2,300,000. This increase provides a total of 
     $8,800,000 for CTBT monitoring research. Of this amount 
     $7,100,000 shall be available only for peer-reviewed basic 
     research in the field of explosion seismology, and $1,700,000 
     shall be available for research efforts in complementary 
     disciplines, such as hydroacoustics, infrasound and 
     radionuclide analyses. The conferees direct the Department to 
     maintain its successful collaboration with the external 
     research community and to continue to award these funds 
     through a competitive peer panel review process, which 
     includes non-governmental reviewers from the external 
     research community as panel members.
       The conferees direct that the $8,800,000 for nuclear test 
     monitoring research can be used only to support documented 
     Air Force operational monitoring requirements. Further, the 
     conferees direct the Department to provide sufficient funding 
     in future year budget requests to provide for a stable and 
     robust seismic research program.
       The conferees also commend the nuclear test monitoring work 
     of the Air Force Phillips Laboratory and are concerned that a 
     reorganization of these activities may adversely impact vital 
     nuclear test monitoring efforts. The conferees direct that 
     the Department report to Congress 60 days before implementing 
     any reorganization impacting Phillips Laboratory seismic 
     research activities and personnel.


                      podded reconnaissance system

       The conferees direct the Office of the Secretary of Defense 
     to strongly consider conducting a competitive fly-off of 
     industry provided equipment for the second sensor to be 
     provided under the Tactical Airborne reconnaissance System 
     pre-planned product improvement effort. A report on the 
     results of these considerations as to the advantages and 
     disadvantages of such an acquisition strategy, including the 
     impact of such a strategy on inter-service interoperability 
     and commonality of systems and imagery products and cost 
     effectiveness of current and leading-edge technologies, shall 
     be submitted to the Committees on Appropriations not later 
     than April 15, 1997.

        Research, Development, Test and Evaluation, Defense-Wide

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
RESEARCH DEVELOPMENT TEST & EVAL DEFWIDE                                                                        
    IN-HOUSE LABORATORY INDEPENDENT RESEARCH....           2,154           3,454           2,154           3,154
    DEFENSE RESEARCH SCIENCES...................          74,923          74,923          95,223          89.223

[[Page H11899]]

                                                                                                                
    UNIVERSITY RESEARCH INITIATIVES.............         209,235         229,235         223,235         220.235
    FOCUSED RESEARCH INITIATIVES................          15,580          15,580           2,988             ---
    CEMICAL AND BIOLOGICAL DEFENSE PROGRAM......          28,739          30,939          28,739          29,939
    ASAT PROGRAM................................             ---             ---          75,000          50,000
    SUPPORT TECHNOLOGIES/FOLLOW-ON TECHNOLOGIES                                                                 
     EXPLORATOR.................................          94,023          94,023          104,23          104,23
    MEDICAL FREE ELECTRON LASER.................          23,457          20,457          23,457          20,457
    LINCOLN LABORATORY RESEARCH PROGRAM.........          20,068          10,568          20,068          20,068
    COMPUTING SYSTEMS AND COMMUNICATIONS                                                                        
     TECHNOLOGY.................................         346,957         346,957         338,057         325,057
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          65,273          65,273          73,173          69,273
    TACTICAL TECHNOLOGY.........................         117,944         128,944         112,744         123,244
    INTEGRATED COMMAND AND CONTROL TECHNOLOGY...          45,000          47,000          65,000          61,000
    MATERIALS AND ELECTRONICS TECHNOLOGY........         218,539         225,539         222,339         222,839
    DEFENSE NUCLEAR AGENCY......................         195,131         218,131         195,593         195,593
    EXPLOSIVES DEMILITARIZATION TECHNOLOGY......             ---          15,000          22,000          12,000
    DEMINING....................................           7,746           7,746          18,046          14,746
    COUNTERTERROR TECHNICAL SUPPORT.............          16,521          16,521          22,521          21,521
    COUNTERPROLIFERATION SUPPORT--ADV DEV.......          54,142          54,142          61,610          58,610
    SUPPORT TECHNOLOGIES/FOLLOW-ON TECHNOLOGIES--                                                               
     ADVANCE....................................         132,319         172,319         272,319         262,319
    JOINT DOD-DOE MUNITIONS TECHNOLOGY                                                                          
     DEVELOPMENT................................          16.158          16,158          21,158          18,158
    EXPERIMENTAL EVALUATION OF MAJOR INNOVATIVE                                                                 
     TECHNOLOGIES...............................         635,553         678,953             ---             ---
    ROCKET LAUNCH FACILITY UPGRADES.............             ---             ---          10,000          10,000
    COMMAND, CONTROL AND COMMUNICATION SYSTEMS..             ---             ---         105,679         105.679
    COMMUNICATIONS AND SIMULATION TECHNOLOGY....             ---             ---         133,118         130,118
    SENSORS AND GUIDANCE TECHNOLOGY.............             ---             ---          94,477         110,977
    MARINE TECHNOLOGY...........................             ---             ---          44,726          41,226
    LAND WARFARE TECHNOLOGY.....................             ---             ---          61,966          62,066
    CHEMICAL AND BIOLOGICAL DEFENSE POGRAM--                                                                    
     ADVANCED DEV...............................          41,685          43,485          41,685          43,485
    GENERIC LOGISTICS R&D TECHNOLOGY                                                                            
     DEMONSTRATIONS.............................          18,162          18,162          20,162          21,162
    STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM....          54,880          57,880          59,880          54,880
    JOINT TECHNOLOGY INSERTION PROGRAM..........          14,523             ---           2,523             ---
    COOPERATIVE DOD/VA MEDICAL RESEARCH.........             ---          25,000          25,000          21,500
    ADVANCED ELECTRONICS TECHNOLOGIES...........         332,100         352,100         333,100         368,100
    MARITIME TECHNOLOGY.........................          37,408          37,408          50,000          50,000
    ELECTRIC VEHICLES...........................             ---          15,000          20,000          15,000
    ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS..          98,471          38,609          78,471          58,471
    COMMERCIAL TECHNOLOGY INSERTION PROGRAM.....          48,411             ---          20,000          10,000
    HIGH PERFORMANCE COMPUTING MODERNIZATION                                                                    
     PROGRAM....................................          99,880          61,380         124,880         124,880
    DUAL USE APPLICATIONS PROGRAM...............         250,000             ---         100,000          85,000
    DARPA CLASSIFIED PROGRAMS...................             ---             ---         220,638         180,638
    JOINT ROBOTICS PROGRAM......................          23,744          28,744          31,744          28,744
    ADVANCED SENSOR APPLICATIONS PROGRAM........          24,001          26,501          28,001          25,501
    CALS INITIATIVE.............................           1,936           1,936          15,936          15,936
    NATO RESEARCH AND DEVELOPMENT...............          22,776             ---          22,776          10,000
    ENVIRONMENTAL SECURITY TECHNICAL                                                                            
     CERTIFICATION PROGRAM......................          14,155          14,155          22,155          22,155
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--                                                                 
     TMD--DEM/..................................         269,000         409,000         304,000         344,000
    CORPS SURFACE-TO-AIR MISSILE--TMD--DEM/VAL..          56,232             ---          56,200          30,000
    BOOST PHASE INTERCEPT THEATER MISSILE                                                                       
     DEFENSE ACQUISITION........................             ---             ---          24,300          24,300
    NATIONAL MISSLE DEFENSE--DEM/VAL............         508,437         858,437         808,437         833,437
    OTHER THEATER MISSILE DEFENSE/FOLLOW-ON TMD                                                                 
     ACTIVITIES.................................         520,111         520,111         515,743         525,511
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--DEM/                                                               
     VAL........................................          54,511          54,511          47,511          49,511
    ENDURANCE UNMANNED AERIAL VEHICLES..........             ---             ---         175,247             ---
    GENERAL REDUCTION--BMD......................             ---         -15,000             ---             ---
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD          89,915          97,115          89,915          99,515
    THEATER HIGH-ALTITUDE AREA DEFENSE SYSTEM--                                                                 
     TMD--EMD...................................         212,798         212,798         317,798         277,798
    TECHNICAL STUDIES, SUPPORT ANALYSIS.........          35,101             ---          31,248          31,248
    TECHNICAL ASSISTANCE........................           4,785             ---           4,785             ---
    CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM.....          16,708          22,708          16,708          16,708
    DEFENSE SUPPORT ACTIVITIES..................          13,796          13,796          16,796          16,796
    MANAGEMENT HEADQUARTERS (RESEARCH AND                                                                       
     DEVELOPMENT)...............................          36,369          32,643          36,369          34,469
    DMA MAPPING, CHARTING, AND GEODESY (MC&G)                                                                   
     PRODUCTION.................................         100,997          90,997         100,997          90,997
    DEFENSE AIRBORNE RECONNAISSANCE PROGRAM.....         438,559         562,059             ---         487,059
    DEFENSE RECONNAISSANCE SUPPORT ACTIVITIES                                                                   
     (SPACE)....................................          55,911          55,911          92,511          87,511
    SPECIAL OPERATIONS TECHNOLOGY DEVELOPMENT...           4,083           6,083           4,083           6,083
    SPECIAL OPERATIONS TACTICAL SYSTEMS                                                                         
     DEVELOPMENT................................          83,923          89,323          98,074          97,874
    SPECIAL OPERATIONS INTELLIGENCE SYSTEMS                                                                     
     DEVELOPMENT................................           1,315           2,315           1,315           2,315
    SOF OPERATIONAL ENHANCEMENTS................          23,216          28,716          23,216          30,216
    CLASSIFIED PROGRAMS.........................       1,202,794       1,323,132       1,231,794       1,238,794
    DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION.             ---             ---          12,000             ---
    AGILE FORT DEMO.............................             ---             ---             ---           5,000
    AIRFIELD SURFACE TRAFFIC MONITOR............  ..............  ..............  ..............           2,000
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                                 [In thousands]                                                 
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Defense Research Sciences....................................      74,923      74,923       95,223       89,223 
    Optoelectronic consortia.................................              ...........     +25,000      +15,000 
    Gallium nitride..........................................              ...........      -2,700       -2,700 
    Ultraphotonics...........................................              ...........      -2,300       -2,300 
    Wavelength converting devices applied to WDM lightpath                                                      
     channels [Note: The performing institution should build                                                    
     on existing research, model, design and evaluate                                                           
     wavelength division multiplex (WDM) networks which                                                         
     integrate limited wavelength converting devices to                                                         
     efficiently support lightpaths.]........................              ...........        +300         +300 
    Discovery center of science & technology.................              ...........  ...........       4,000 
    Defense technology transfer pilot program................              ...........      (3,000)      (2,000)
University Research Initiatives..............................     209,235     229,235      223,235      220,235 
    DEPSCOR..................................................                 +20,000      +20,000      +17,000 
    Cold climate energy generating/conserving tech dev.......              ...........      +1,000       +1,000 
    Southern observatory for astronomical research...........              ...........      +3,000       +3,000 
    Senate authorization reduction...........................              ...........     -10,000      -10,000 
Computing Systems and Communications Technology..............     346,957     346,957      338,057      325,057 
    Text, video, speech......................................              ...........      -4,900       -1,900 
    Evolutionary design of complex software..................              ...........      -4,000   ...........
    Multithread architecture experimental computer...........              ...........      (7,000)      (4,000)
    General reduction........................................              ...........  ...........     -20,000 
Chemical and Biological Defense Program......................      65,273      65,273       73,173       69,273 
    Safeguard................................................              ...........      +7,900       +4,000 
Tactical Technology..........................................     117,944     125,944      112,744      123,244 
    Ship system automation...................................                  +5,000   ...........      +2,500 
    Virtual reality and simulation based design..............                  +3,000       +5,000       +3,000 
    Collaborative crisis understanding and mitigation........              ...........      -7,700       -4,700 
    Fast computational algorithms............................              ...........      -5,000       -5,000 
    Small low-cost interceptor device (SLID).................              ...........      +3,000       +1,500 
    Holographic storage technology...........................              ...........      +2,000       +1,000 
    Center of excellence for research in ocean sciences......              ...........      +7,000       +7,000 
    Ship system automation (transfer)........................              ...........      -9,500   ...........
Integrated Command and Control Technology....................      45,000      47,000       65,000       61,000 
    Optoelectronic digital camera............................                  +2,000   ...........      +1,000 
    Flat panel display program increase......................              ...........     +20,000      +15,000 
Materials and electronics technology.........................     218,539     225,539      222,339      222,839 
    Seamless high off-chip connectivity......................                  +7,000       +5,000       (5,000)
    High temperature superconducting/cryogenic electronics...                 +10,000       +8,000       +7,000 

[[Page H11900]]

                                                                                                                
    Thermal management diamond...............................              ...........      +4,000       +3,000 
    Hard carbon-based coatings...............................              ...........      +3,000       +2,000 
    Advanced materials partnerships..........................              ...........      -5,000       -2,500 
    Healthcare information infrastructure....................              ...........      -7,500       -7,500 
    Nonvolatile memory.......................................              ...........      -3,700       -3,700 
    New materials research [Note: The conferees direct that                                                     
     $6,000,000 is available only for new materials                                                             
     research.]..............................................              ...........  ...........      +6,000 
Defense Nuclear Agency.......................................     195,131     218,131      195,593      195,593 
    Bioenvironmental hazards research........................                  +5,000       +5,000       +5,000 
    Counter-terrorist explosive research.....................                  +8,000   ...........      +4,000 
    Thermionics..............................................                 +10,000   ...........      +3,000 
    Deep digger..............................................              ...........      +3,000       +2,000 
    TOPAZ international program..............................              ...........     -15,538      -15,538 
    Johnston Island remediation..............................              ...........      +8,000       +2,000 
[Note: The conferees direct that up to $4,800,000 shall be                                                      
 made available only to terminate the Topaz space nuclear                                                       
 reactor program.]                                                                                              
Explosives Demilitarization Technology.......................                  15,000       22,000       12,000 
    Explosives demilitarization technology [Note: The                                                           
     conferees direct that $6,000,000 is available only for                                                     
     Navy Control Burn and $2,000,000 is available only for                                                     
     Air Force Cryogenic Washout.]...........................                 +15,000   ...........     +12,000 
    Tri-service demilitarization program.....................              ...........     +19,000   ...........
    Energetic material resource recovery and reuse...........              ...........      +3,000       (2,000)
Counterproliferation Support.................................      54,142      54,142       61,610       58,610 
    High frequency active auroral research program...........              ...........      +7,500       +7,500 
    Alternative agent defeat concept.........................              ...........      -3,032       -3,032 
    Surgical strike vehicle..................................              ...........      +3,000   ...........
Support Technologies/Follow-on Technologies..................     132,319     172,319      272,319      262,319 
    RAMOS....................................................              ...........      20,000      +10,000 
    Advanced Interceptor Technology..........................                  40,000       40,000      +40,000 
    Advanced technology development (seekers, interceptors,                                                     
     photon laser spacecraft, scorpius, directed energy etc.)              ...........      80,000      +10,000 
    Space-based laser........................................              ...........  ...........     +70,000 
Command, control, and communications systems.................     115,679  ...........     105,679      105,679 
    Command and control information systems..................              ...........      47,765       47,765 
    Information integration systems..........................              ...........      67,914       67,914 
    Dynamic multi-user information fusion....................              ...........      -5,000       -5,000 
    Joint forward air combat controller......................              ...........      -5,000       -5,000 
Communications and simulation technology.....................     130,118  ...........     133,118      130,118 
    Advanced simulation......................................              ...........      48,419       48,419 
    Global grid communications...............................              ...........      42,024       42,024 
    Defense simulation internet..............................              ...........      39,675       39,675 
    Disaster relief and emergency medical services...........                  +8,000       +8,000       +8,000 
    Operational simulation technology........................              ...........      -5,000       -8,000 
Sensors and guidance technology..............................     101,477  ...........      94,477      110,977 
    Guidance technology program..............................              ...........      10,499       10,499 
    Air defense initiative...................................              ...........      21,777       21,777 
    Sensor and exploitation systems..........................              ...........      69,201       69,201 
    Large millimeter wave telescope..........................              ...........      +3,000       +1,500 
    Semiautomated IMINT processing...........................              ...........     -10,000       -5,000 
    Geosar...................................................                 +10,000   ...........     +13,000 
Marine technology............................................      35,226  ...........      44,726       41,226 
    Advanced ship-sensor systems.............................              ...........      18,844       18,844 
    Fast ship/future ship....................................              ...........      16,382       16,382 
    Ship systems automation (transfer).......................              ...........      +9,500   ...........
    Shallow water anti-submarine warfare.....................                 +10,000   ...........      +6,000 
Land warfare technology......................................      67,666  ...........      61,966       62,066 
    Combat hybrid power systems..............................              ...........      15,000       15,000 
    Small unit operations....................................              ...........      52,666       52,666 
    Joint DARPA/NASA thermophotovoltaics.....................              ...........     +10,000       +5,000 
    2 megawatt carbonate-based fuel cell.....................              ...........      +4,300       +2,400 
    Combat hybrid power systems..............................              ...........      -5,000       -5,000 
    Small unit operations....................................              ...........     -15,000      -10,000 
    Helicopter active structural control.....................                  +3,000   ...........      +2,000 
Generic Logistics R&D Technology.............................      18,162      18,162       20,162       21,162 
    Lead time and cost reduction program increase............              ...........      +2,000       +2,000 
    Military cargo methods...................................              ...........  ...........      +1,000 
Strategic Environmental Research Program.....................      54,880      57,880       59,880       54,880 
    Health & safety demonstration............................                  +3,000   ...........      (3,000)
    Insensitive munitions....................................              ...........      +5,000       (4,000)
Cooperative DoD/VA Medical Research..........................                 +25,000      +25,000      +21,500 
    Collaborative brain research.............................                  +6,500   ...........      +6,500 
    DoD/VA cooperative research..............................                 +18,500      +25,000      +15,000 
Advanced Electronics Technologies............................     332,100     352,100      333,100      368,100 
    Plasma process equipment for microelectromechanical......                  +5,000   ...........      +5,000 
    Electronic commerce resource centers.....................                 +15,000   ...........     +15,000 
    Integrated point source system...........................              ...........     +11,000      +11,000 
    X-ray lithography and mask tech transfer.................              ...........     -12,000   ...........
    Piezoelectric microelectromechanical systems.............              ...........      +2,000       +2,000 
    U.S.-Japan Training......................................              ...........     (10,000)      (7,000)
    Laser plasma x-ray source technology.....................              ...........  ...........       3,000 
    LAST Center..............................................              ...........  ...........     (15,000)
Electric Vehicles............................................                  15,000       20,000       15,000 
    Electric vehicle technology..............................                 +15,000   ...........  ...........
    Electric and hybrid electric vehicle consortia program...              ...........     +20,000      +15,000 
Advanced Concept Technology Demonstrations...................      98,471      38,609       78,471       58,471 
    Program growth...........................................                 -59,862      -20,000      -40,000 
    Near shore tactical reconnaissance ACTD [Note: The                                                          
     conferees direct that from within available funds,                                                         
     $3,000,000 is available only for Near Shore Tactical                                                       
     Reconnaissance.]........................................              ...........  ...........      (3,000)
Commercial Technology Insertion Program......................      48,411  ...........      20,000       10,000 
    HNSC reduction...........................................                 -48,411      -28,411      -38,411 
    Weapons team engagement trainer..........................              ...........      (1,000)      (1,000)
High Performance Computing Modernization Program.............      99,880      61,380      124,880      124,880 
    (Transfer to procurement account)........................                 -38,500   ...........  ...........
    Sustainment and operations (non-military sites)..........              ...........     +25,000      +25,000 
DARPA classified programs....................................     170,638     170,638      220,638      180,638 
    Classified programs......................................              ...........     170,638     +170,638 
    Classified DARPA initiative..............................              ...........      50,000      +10,000 
Joint Robotics Program.......................................      23,744      28,744       31,744       28,744 
    Joint robotics...........................................                  +5,000   ...........      +1,000 
    Mobile detection and assessment response system..........              ...........      +8,000       +4,000 
Advanced Sensor Applications Program.........................      24,001      26,501       28,001       25,501 
    Ocean remote sensing.....................................                  +2,500   ...........       2,500 
    Submarine detection system competition...................              ...........     +10,000        5,000 
    LGA physics..............................................              ...........      -6,000       -6,000 
    Ocean remote sensing.....................................                  (5,000)  ...........      (4,000)
CALS Initiative..............................................       1,936       1,936       15,936       15,936 
    Rapid acquisition of manufactured parts (RAMP)...........              ...........     +10,000      +10,000 
    Integrated weapon systems data base (IWSDB)..............              ...........      +4,000       +4,000 
Other Theater Missile Defense/Follow-on TMD..................     520,111     520,111      515,743      525,511 
    ARROW deployability project..............................      31,300  ...........      +3,700       +3,700 
    TMD existing systems modifications--EAGLE................              ...........     -19,766      -19,766 
    U.S./Israel boost phase intercept........................              ...........      -9,300       -9,300 
    Advanced Research Center.................................              ...........      +7,000       +7,000 
    Cooperative engagement capability integration............              ...........      +5,000       +4,000 
    Airborne sensors for ballistic missile tracking..........              ...........     +19,766      +19,766 
    Kauai test facility at PMRF..............................              ...........      (5,000)      (5,000)
    General program reduction................................              ...........     -10,768   ...........

[[Page H11901]]

                                                                                                                
Endurance Unmanned Aerial Vehicles...........................              ...........     175,247   ...........
    Endurance UAV--common....................................              ...........      71,642   ...........
    Low observable-high altitude UAV.........................              ...........      17,428   ...........
    HAE-conventional UAV.....................................              ...........      71,428   ...........
    Tier III Minus UAV.......................................              ...........      14,749   ...........
General Reduction............................................                 -15,000   ...........  ...........
    HNSC general reduction...................................                 -15,000   ...........  ...........
Chemical and Biological Defense Program--EMD.................      89,915      97,115       89,915       99,515 
    Biological warfare countermeasures.......................                  +7,200   ...........      +4,200 
    Bio medical (transferred from procurement, defense-wide).              ...........  ...........      +5,400 
Defense Airborne Reconnaissance Program......................     438,559     562,059   ...........     487,059 
                                                               ..........    +123,500     -438,559   ...........
    Darkstar.................................................              ...........  ...........     +28,500 
    Global Hawk..............................................              ...........  ...........     -10,000 
    CIGSS....................................................              ...........  ...........      +7,500 
    EO Framing...............................................              ...........  ...........     +10,000 
    VTOL.....................................................              ...........  ...........     +15,000 
    MSAG.....................................................              ...........  ...........      +4,000 
    CDL......................................................              ...........  ...........      -6,500 
Defense Reconnaissance Support Activities (Space)............      55,911      55,911       92,511       87,511 
    Application of DoD satellites to national needs Pacific                                                     
     Disaster Center [Note: The conferees direct that the                                                       
     disaster-related modeling and simulation efforts utilize                                                   
     the existing high performance computing capabilities                                                       
     available in the Pacific, including parallel processing                                                    
     and advanced storage technology, to decrease the time                                                      
     needed to render and display these models.].............              ...........                          
                                                                           ...........     +28,600              
                                                                                            +8,000      +23,600 
                                                                                                         +8,000 
Special Operations Tactical Systems Development..............      83,923      89,323       98,074       97,874 
    Advanced seal delivery system............................                  +4,400   ...........      +2,800 
    Full authority digital control...........................                  +1,000   ...........      +1,000 
    Rigid hull inflatable boat...............................              ...........      +4,451       +4,451 
    Special operations command integration center............              ...........      +4,000   ...........
    Penetration augmented munitions..........................              ...........      +3,800       +3,800 
    Integrated night/day observation/fire control device                                                        
     (INOD)..................................................              ...........      +1,900       +1,900 
SOF Operational Enhancements.................................      23,216      28,716       23,216       30,216 
    Counterproliferation/wmd.................................                  +5,500   ...........      +4,000 
    Advanced special warfare craft [Note: The conferees                                                         
     direct that $3,000,000 is only for the advanced special                                                    
     warfare craft.].........................................              ...........  ...........      +3,000 
Classified Programs..........................................   1,202,794   1,323,132    1,231,794    1,238,794 
    Increases to classified programs.........................                +120,338      +29,000      +36,000 
----------------------------------------------------------------------------------------------------------------

              other theater missile defense/follow-on tmd

       The conferees agree with the Senate direction that the 
     Under Secretary of Defense (Acquisition and Technology) 
     (USD(A&T)) provide a plan for developing an airborne sensor 
     capability for tracking ballistic missiles. The conferees 
     further believe that analyses to develop this plan should 
     consider the opportunity to use the Airborne Laser sensors to 
     perform this mission. The conferees direct that operational 
     user requirements and perspectives and total program cost be 
     given priority consideration in selecting a system to provide 
     this capability. Because of the urgent need to deliver such a 
     system, the conferees direct that the USD(A&T) provide a plan 
     not later than January 19, 1997, for developing this 
     capability and allocating the appropriated funds. The 
     conferees further direct that DoD may obligate up to one-
     third of the appropriated funds prior to the delivery of the 
     plan to the congressional defense committees. The conferees 
     further direct that any funds obligated prior to delivery of 
     the required plan shall be divided fairly between the AWACS 
     EAGLE program and the Rivet Joint Technology Transfer 
     program.


               u.s.-israel boost phase intercept program

       The conferees endorse the joint effort between the United 
     States and Israel to develop a kinetic energy boost phase 
     interception system based on an unmanned aerial vehicle. This 
     technological approach contains great promise for 
     intercepting ballistic missiles over enemy territory and 
     complements other ongoing U.S. and Israeli TMD efforts. It is 
     the expectation of the conferees that, to make greatest use 
     of the investment and technological progress already made by 
     our allies, the U.S.-Israel joint effort will be based upon 
     Israel's boost phase intercept (IBIS) concept.


                        national missile defense

       The conferees direct the Ballistic Missile Defense 
     Organization to provide $23,000,000 for the Air Force 
     National Missile Defense (NMD) initiative. The conferees 
     express their support for development and test activities 
     which allow the Defense Department to fully explore the Air 
     Force concept, to include utilizing the test facilities which 
     provide a realistic and representative test scenario. The 
     conferees direct that the Secretary of Defense shall 
     concurrently inform the congressional defense committees on 
     the report required under section 245 of the National Defense 
     Authorization Act for Fiscal Year 1997.


                    Advanced electronics technology

       The conferees have fully funded the budget request for the 
     advanced lithography program which includes $25,000,000 for 
     proximity x-ray, of which $15,000,000 shall be available only 
     for the Lithographic and Alternative Semiconductor Processing 
     Techniques (LAST) Center. Since the LAST Center complements a 
     wide array of research that is important to military 
     electronics, the conferees direct the Department of Defense 
     to budget for the LAST Center in the Navy Industrial 
     Preparedness program element in the fiscal year 1998 budget 
     submission. The conferees have also provided an increase of 
     $14,000,000 in this program element for additional 
     lithography projects as outlined in the table.


                  electronic commerce resource centers

       The conferees agree to provide an increase of $15,000,000 
     for the Electronic Commerce Resource Centers (ECRC) program 
     only for the establishment and operation of five additional 
     Regional ECRC's. the conferees expect the Department to act 
     expeditiously and urge that final decisions on the 
     establishment of the five additional ECRCs be made within 90 
     days of the enactment of this act. The conferees are pleased 
     with the progress of the ECRC program, which is an integral 
     and fundamental component of the Department's efforts to 
     streamline and reduce DoD acquisition costs. The conferees 
     continue to support managerial oversight of this program by 
     the Deputy Under Secretary of Defense (Logistics) in order to 
     fully capitalize on and expand the use of electronic commerce 
     technologies. In recognition of the program's ability to 
     benefit commercial business activities, the Department is 
     directed to submit a plan to the congressional defense 
     committees no later than March 15, 1997, showing how Regional 
     ECRC's can be increasingly supported by non-governmental 
     activities and be entirely self-sustaining in five years. 
     This plan shall also identify additional areas in the 
     Department of Defense that could benefit from the use of 
     electronic commerce technology and explain how ECRC's can be 
     used to meet these emerging requirements. The conferees 
     expect the Department to submit a fully funded ECRC program 
     in its fiscal year 1998 budget submission.


                           optical correlator

       The conferees are aware that recent advances in optical 
     correlators make them practical for several key military and 
     civilian applications. One is the rapid processing of images 
     and information for real-time automatic target recognition to 
     support precision-guided weapons and target cueing for 
     surveillance systems; another is the rapid and detailed 
     processing of data collected by medical instruments to detect 
     and locate a variety of previously difficult-to-detect 
     objects in the body; and, within the criminal justice system, 
     its ability to rapidly scan and match massive amounts of 
     data, such as fingerprints.
       The conferees are encouraged by the recently increased 
     interest expressed by DoD in optical correlators, 
     particularly for the F/A-18 and several guided missile 
     programs. Therefore the conferees direct the military 
     services and DoD program offices seeking to develop or 
     procure automatic target recognition (ATR) or cueing 
     capabilities to immediately leverage this unique dual use 
     technology and provide additional funds, within current 
     program appropriations, to accelerate the introduction of 
     optical correlators into their weapon inventories. The 
     Secretary of Defense shall provide a report on this effort to 
     the congressional defense committees by January 31, 1997.


                  Advanced sensor applications program

       The conferees have provided $10,000,000 for a technology 
     evaluation of systems performing selected non-acoustic 
     antisubmarine warfare missions. The conferees direct that 
     other concepts be given an opportunity to be evaluated. In 
     particular, the conferees are aware of a system which should 
     be included in this competition which takes advantage of the 
     collection and processing of hyperspectral data. The 
     conferees further direct that a variety of specific test 
     scenarios be utilized under this competition.


                environmental security technology center

       The Environmental Security Technology Certification Program 
     (ESTCP) is authorized to transfer $10,000,000 to the 
     Department of

[[Page H11902]]

     Energy's Pittsburgh Energy Technology Center (PETC) for its 
     electron scrubbing to remove unwanted by-products project. 
     The principal objective of this project will be to 
     demonstrate and validate that this technology meets urgent 
     DoD environmental needs and security requirements. Another 
     objective will be to work jointly with the DOE as a clean-up 
     technology demonstration.


            high performance computing modernization program

       The conferees agree that the High Performance Computing 
     Modernization Program performs a vital defense mission in 
     ensuring that state-of-the-art, production-ready 
     supercomputing capability and capacity are available for 
     Department of Defense science and engineering research in 
     solving complex research problems related to weapons 
     development and other important military applications. Given 
     increasing budgetary pressures, it is important that the 
     Modernization Program focus its resources to maximize the use 
     of commercially available supercomputer technology and to 
     draw on the in-house expertise of the services at the 
     existing major shared resource centers and distributed 
     centers.
       The conferees agree to provide $124,735,000 in procurement 
     Defense-wide for high performance computer procurement, an 
     increase of $20,000,000 only for the Army High Performance 
     Computing Research Center (AHPCRC).
       The conferees believe that the Modernization Program must 
     improve its performance in the timely execution of computer 
     procurements. Significant delays, as evidence in the recently 
     concluded major share resource center procurements, make it 
     difficult to ensure that the most modern equipment is 
     acquired. The conferees direct the Department to take actions 
     necessary to preclude the recurrence of such procurement 
     delays.
       Finally, the conferees note that the Department has not 
     published an updated High Performance Computing Modernization 
     Program Plan or Program Implementation Plan for over two 
     years. The conferees believe that current information about 
     the program is vital to the DoD services, Congress and 
     industry. Therefore, the conferees direct that such plans be 
     published annually no later than March 15.


sustainment and operations for high performance computing modernization

       The conferees agree to the Senate language on the High 
     Performance Computing Modernization Program and direct that 
     the increase of $25,000,000 to this program element shall 
     only be available to establish a new project which will allow 
     DoD to pay the operation and sustainment costs for 
     supercomputers which were purchased with DoD research, 
     development, test and evaluation RDT&E funds and are located 
     at sites other than existing military bases. These 
     supercomputers can play an integral role in helping DoD to 
     meet its supercomputing capability and capacity requirements.


                defense airborne reconnaissance program

       The conferees agree with the House concern that the Defense 
     Airborne Reconnaissance Program (DARP) currently has 
     extraordinary latitude to realign funds with little 
     congressional oversight. Therefore the conferees direct that 
     five DARP program elements for RDT&E projects be created as 
     defined in House Report 104-286 and these program elements be 
     reflected in future budget submissions, beginning with the 
     fiscal year 1998 request. Further, in line with policy 
     direction regarding DARP acquisition program contained in 
     Title III of this report, the conferees direct that when an 
     RDT&E program achieves Milestone III, funding and program 
     responsibility is to be transferred to the appropriate 
     service. The conferees also agree with the House 
     recommendation to cap the fiscal year 1997 budget for DARP 
     Integration and Support and DARO operations at $19,841,000.
       The conferees agree to provide an additional $10,000,000 
     only for the development of the existing CA-260/261 EO 
     framing sensors.


            improved military cargo methods and technologies

       The conferees believe opportunities exist to use modern 
     cargo handling methods and technologies developed in the 
     private sector to improve the efficiency, safety, and 
     security of moving military cargo across the nation and 
     around the world. Of the funds provided for General Logistics 
     R&D Technology Demonstrations, the conferees have designated 
     $1,000,000 only for a not-for-profit trucking research 
     institute engaged exclusively in motor carrier R&D to (1) 
     establish the manner and extent to which private sector land 
     transport experience, equipment, and procedures can be 
     adopted to improve the efficiency, safety, and security of 
     loading and transporting military containerized ammunition to 
     DoD load-out ports and air cargo facilities; and (2) examine, 
     measure, and inventory the expertise and capability of 
     private sector third party logistics providers to provide the 
     Defense Logistics Agency with cheaper and more efficient 
     logistics services in keeping with the requirements of the 
     Government Performance and Results Act of 1993.


                        agile port demonstration

       The conferees direct that $5,000,000 be made available only 
     for the prototyping of agile port facilities operating in 
     combination with high speed sealift and related rapid 
     deployment technologies, and the enhancement of capabilities 
     for cargo and personnel movement tracking and total asset 
     visibility. These funds shall be made available only for the 
     continuation of the current memorandum of agreement between 
     USTRANSCOM and the Center for Commercial Deployment of 
     Transportation Technologies.


                  airfield surface traffic monitoring

       The conferees recommend that $2,000,000 be made available 
     only for an Airfield Surface Traffic Monitoring Initiative. 
     This initiative will increase safety on airfield critical 
     movement areas by instrumenting runways and taxiways with 
     inductive loop sensors that will provide improved situational 
     awareness sin high density or restricted visibility 
     conditions for tower control personnel. The sensors provide 
     classifications and speed information for aircraft and ground 
     vehicles. The system will perform multisensor data fusion, 
     including origin/destination training, to provide tracks of 
     ground contacts for display on monitors.

               Developmental Test and Evaluation, Defense

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DIRECTOR OF TEST & EVAL DEFENSE                                                                                 
    CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT (CT).      116,007      136,007      133,007      146,007
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                                  [in thousands]                                                
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Central Test and Evaluation.................................      116,007      136,007      133,007      146,007
    Airborne separation video system........................                   +20,000  ...........      +20,000
    Magnetic levitation sled test track.....................                                +17,000      +10,000
----------------------------------------------------------------------------------------------------------------

                Opertional Test and Evaluation, Defense

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
DIRECTOR OF OPERATIONAL TEST & EVALUATION                                                                       
    LIVE FIRE TESTING.......................................        9,988       14,988        9,988       12,988
----------------------------------------------------------------------------------------------------------------

                 explanation of project level adjustments

                                                 [In thousands]                                                 
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Live fire testing...........................................        9,988       14,988        9,988       12,988
Alternative uses of simulation and training technologies                                                        
 [Note: The conferees agree that up to $3,000,000 in this                                                       
 account may be available for the operational field                                                             
 assessment program.].......................................                    +5,000  ...........       +3,000
----------------------------------------------------------------------------------------------------------------

                 TITLE V--REVOLVING AND MANGEMENT FUNDS

       The conferees agree to the following amounts for Revolving 
     and Management Funds programs:

[[Page H11903]]


----------------------------------------------------------------------------------------------------------------
                                                   Budget           House            Senate         Conference  
----------------------------------------------------------------------------------------------------------------
Defense Business Operations Fund............      947,900,000      947,900,000      947,900,000      947,900,000
National Defense Sealift Fund...............      963,002,000    1,904,002,000    1,093,002,000    1,428,002,000
                                             -------------------------------------------------------------------
      Total, Revolving and Management Funds.    1,910,902,000    2,851,902,000    2,040,902,000    2,375,902,000
----------------------------------------------------------------------------------------------------------------

                    Defense Business Operations Fund

       The conferees agree to provide $947,900,000 for the Defense 
     Business Operations Fund.

                     National Defense Sealift Fund

       The conferees agree to provide $1,428,002,000 for the 
     National Defense Sealift Fund, an increase of $465,000,000 to 
     the budget request. This includes a decrease of $90,000,000 
     for Army Roll-on/Roll-off ships as recommended by the 
     authorization conference committee and increases of 
     $300,000,000 for a Large Medium Speed Roll-on/Roll-off 
     sealift ship; $250,000,000 for two Maritime Prepositioning 
     Force-Enhancement (MPF-E) ships, which may be acquired either 
     through conversation of existing vessels or new construction 
     at the discretion of the Commandant of the Marine Corps; and 
     $5,000,000 for repair and refurbishment of the U.S.N.S. 
     Tanner.

             TITLE VI--OTHER DEPARTMENT OF DEFENSE PROGRAMS

       The conference agreement is as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Budget             House              Senate           Conference   
--------------------------------------------------------------------------------------------------------------------------------------------------------
Defense Health..............................................................      9,627,758,000      9,667,658,000     10,256,108,000     10,207,308,000
Chemical Agents and Munitions Destruction, Defense..........................        799,847,000        799,847,000        758,447,000        758,447,000
Drug Interdiction and Counter-Drug Activities, Defense......................        642,724,000        774,724,000        139,157,000        807,800,000
Office of the Inspector General.............................................        138,501,000        138,501,000        139,157,000        139,157,000
Anti-Terrorism Activities, Defense..........................................  .................  .................         14,000,000                   
                                                                             ---------------------------------------------------------------------------
    Total, Other Department of Defense Program..............................     11,208,830,000     11,380,730,000     11,956,736,000     11,912,712,000
--------------------------------------------------------------------------------------------------------------------------------------------------------


                        DEFENSE HEALTH PROGRAM: EXPLANATION OF PROJECT LEVEL ADJUSTMENTS                        
                                                 [In thousands]                                                 
----------------------------------------------------------------------------------------------------------------
                          Budget                                  House            Senate          Conference   
----------------------------------------------------------------------------------------------------------------
Medical Programs, O&M.....................................          +39,900          +578,350          +579,550 
    Shortfall.............................................  ................         +475,000          +475,000 
    Breast Cancer.........................................          +25,000   ................          +25,000 
    Head Injury...........................................           +1,500   ................           +1,500 
    Gulf War Syndrom (anti-bacterial treatment)...........           +3,400   ................           +3,400 
    Uncompensated Care....................................           (2,000)  ................           (2,000)
    DoD Emergency Communications..........................  ................          +14,000           +14,000 
    Telemedicine initiatives..............................  ................          +20,000           +15,000 
    Reserve Dental Program................................  ................          +15,000            +7,500 
    Center for Prisoner of War Studies....................  ................           +2,700            +1,000 
    Uniformed Services University of Health Sciences......  ................           +6,900            +6,900 
    Graduate School of Nursing............................  ................           +2,000            +2,000 
    Military Nursing Research.............................  ................           +5,000            +5,000 
    Pacific Island Health Care Program....................  ................           +5,000            +5,000 
    Disaster management training..........................  ................           +2,000            +2,000 
    PACMEDNET.............................................          +10,000           +10,000           +10,000 
    Brown Tree Snakes.....................................  ................           +1,000            +1,000 
    Cancer control program................................  ................           +4,750            +4,750 
    New parents support program...........................  ................          +20,000   ................
    Undistributed ongoing.................................  ................           +5,000   ................
    transfer for ADP......................................  ................          -10,000   ................
Procurement...............................................  ................          +50,000   ................
    Gulf War Syndrome (chemical agent exposure)...........  ................          (10,000)          (10,000)
    Hepatitis vaccine.....................................  ................           40,000   ................
    Transfer for procurement of adp.......................  ................           10,000                   
----------------------------------------------------------------------------------------------------------------

                   military nursing research program

       The conferees agree with the Senate language that 
     $5,000,000 be provided for the military nursing research 
     program and urge the Department to appoint a full-time 
     director for the program.


                        telemedicine initiatives

       The conferees encourage the Department to explore 
     telemedicine initiatives that would provide cost-effective, 
     accessible, and high quality services for DoD beneficiaries, 
     to include pediatric patients.


                                diabetes

       The conferees recognize the negative effect that diabetes 
     has upon the deployment readiness and assignability of 
     service personnel as well as the health of over 16 million 
     Americans. The conferees request information on any medical 
     research efforts the Department of Defense is currently 
     making to enable these personnel to perform combat roles, as 
     well as any recommended research that would promote military 
     readiness of diabetic service personnel. This information 
     should be provided to the congressional defense committees.


             retiree health care: barksdale air force base

       The conferees are aware of reductions in the availability 
     of prescription drug service for retired military families at 
     Barksdale Air Force Base, Louisiana. The inventory of drugs 
     in the Barksdale pharmacy has been reduced some 60 percent. 
     The burden for these reductions is being borne by retirees 
     and their families, and by Medicare-eligible retired families 
     who are no longer eligible for CHAMPUS or TRICARE. The 
     conferees expect the Department to use available funds to 
     resources the Barksdale pharmacy at a level sufficient to 
     support the prescription drug inventory maintained prior to 
     the reduction. The conferees direct the Surgeon General of 
     the Air Force to report back to the Committees on 
     Appropriations 15 days after enactment of this Act on a plan 
     to meet this requirement.


                      Attention deficient disorder

       Attention Deficit Disorder (ADD) and Attention Deficit 
     Hyperactivity Disorder (ADHD) are disorders that interfere 
     with individuals' ability to focus attention. In its severest 
     form, these disorders create a dramatic level of 
     impulsiveness, restlessness and difficulty modulating 
     responses to given situations. These disorders affect 
     children and some adults.
       Unfortunately, it can make successful service in the 
     military an impossibility, especially for those who require 
     the moderating influence of certain prescription 
     pharmaceuticals, the use of which is prohibited by military 
     regulations. Currently, diagnosis of ADD/ADHD is not precise 
     and subsequently, some recruits enter the military with 
     symptomatic ADD/ADHD. The Department of Defense must rely on 
     training instructors and health care professionals at basic 
     training bases to recognize and evaluate these disorders.
       The conferees encourage the Department of Defense to 
     continue this familiarization program, so that military 
     recruiters, training officers, medical personnel, chaplains 
     and family counselors are able to recognize the 
     characteristics and markers of these disorders.


               Independent research on gulf war syndrome

       The conferees agree to provide $10,000,000 of funds 
     available under this heading for the Department to provide 
     scientific research on possible causal relationships on the 
     complex of illnesses and symptoms commonly known as Gulf War 
     syndrome. This research is to be carried out by entities 
     independent of the Federal Government. This research should 
     assess the possible exposures of members of the Armed Forces 
     to chemical warfare agents or other hazardous material during 
     service on active duty as a member of the Armed Forces in the 
     Southwest Asia theater of operations during the Persian Gulf 
     War.


                 Department of defense medical research

       The conferees are pleased that a strong cooperative working 
     relationship has developed between the Department and the 
     National Cancer Institute. Such coordination will ensure the 
     development of a scientifically sound and innovative cancer 
     research agenda that addresses priority areas and avoids 
     unnecessary duplication of effort.

[[Page H11904]]

                     breast cancer research program

       The conferees have provided $112,500,000 to continue the 
     Army's breast cancer research program.
       The conferees urge the Army to consider research proposals 
     which extend scientific advances into new strategies for 
     detection, diagnosis, prevention, and treatment.
       Of the amounts provided, the conferees direct that 
     $3,000,000 is available only for continuing, ongoing, Navy-
     sponsored Computer Aided Diagnostic (CAD) research which 
     utilizes image enhancement and segmentation by adaptive 
     multiresolution/multiorientation wavelet transform methods, 
     which are suitable for more generalized application useful to 
     DoD in digital mammography, digital X-ray imaging and 
     teleradiology applications; and that $3,500,000 is available 
     only for the establishment of an advanced cancer detection 
     center for military personnel, dependents, and retired 
     service members, using a network that is in close geographic 
     proximity and includes the following: a military hospital, a 
     regional TRICARE provider, a Department of Veterans Affairs 
     hospital or hospitals, and a medical facility with a focused 
     cancer center that meets the National Cancer Institute 
     eligibility requirements with respect to research funding. 
     The conferees would expect this center to conduct coordinated 
     screening for cancer detection and treatment, to train 
     military cancer specialists, and to develop improved cancer 
     detection equipment and technology.


                    prostate cancer research support

       The conferees support the need for both basic and clinical 
     research in prostate cancer in order to reduce the incidence 
     of this life-threatening disease and to develop more 
     effective, more specific and less toxic forms of therapy for 
     patients in all stages of the disease. The conferees urge the 
     Department to give the highest priority to funding research 
     that is multi-institutional, multi-disciplinary and 
     regionally focused.


                 national bioethics advisory commission

       The conferees recognized that human subject research is 
     performed in several federal agencies, including the 
     Department of Defense. Congress has a long-standing interest 
     in this matter, and the conferees believe it is important to 
     sustain and strengthen public confidence in human subject 
     research. The National Bioethics Advisory Commission is 
     chartered to direct its attention to consideration of the 
     protection of the rights and welfare of human research 
     subjects, and the conferees expect the Department to 
     contribute the resources necessary for successful 
     implementation of the National Bioethics Advisory Commission 
     standards commensurate with the interest and investment of 
     the Department in human subject research.


        federal employees health benefits program demonstration

       The conference report includes a general provision (Section 
     8129) which directs the Secretary of Defense, in consultation 
     with the Secretary of Health and Human Services and the 
     Director of the Office of Personnel Management, to provide a 
     report to the congressional defense committees by February 1, 
     1997 containing recommendations regarding a demonstration 
     project offering Medicare-eligible retirees who do not have 
     access to TRICARE the option of enrolling in the Federal 
     Employees Health Benefits Program. The conferees believe this 
     report should include an assessment of the benefits which 
     could be derived from such a demonstration program, the 
     anticipated costs to both the government and potential 
     enrollees, the potential impacts on military medical 
     readiness, and recommendations regarding the size and scope 
     of a demonstration program.

           Chemical Agents and Munitions Destruction, Defense

       The conference agreement is as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                    Budget       House        Senate        Qty       Conference
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS DESTRUCTION, DEF                                                                        
CHEM DEMILITARIZATION--O&M.....................      477,947      477,947      478,947  ...........      478,947
CHEM DEMILITARIZATION--PROC....................      273,600      273,600      191,200  ...........      191,200
CHEM DEMILITARIZATION--RDTE....................       48,300       48,300       88,300  ...........       88,300
----------------------------------------------------------------------------------------------------------------

                          alternative methods

       The conferees recommend that the Department of Defense in 
     its alternative technology studies evaluate a non-thermal 
     chemical mixing neutralization process that does not depend 
     on the use or application of an external heat source. The 
     conferees suggest that this process be a batch process which 
     will render chemical weapons harmless in a period of two 
     hours or less and have a resident temperature below that of 
     boiling water at sea level.
       Furthermore, the conferees recommend that the Department of 
     Defense include the use of plasma electric waste convertor 
     technology in its analysis of alternative methods.


                  mobile munitions assessment systems

       The conferees agree that of the funds available for 
     Research, Development, Test and Evaluation, $3,000,000 is 
     only for the development of advanced sensors for the Army's 
     Mobile Munitions Assessment System.

         Drug Interdiction and Counter-Drug Activities, Defense

       The conferees agree to provide $807,800,000, an increase of 
     $165,076,000 to the budget request. The conference agreement 
     is summarized as follows:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Dismantling Cartels.........................................       57,055  ...........  ...........       62,131
    Classified Programs.....................................  ...........       10,000            0        3,076
    Signal Intelligence Equipment...........................  ...........        3,000        2,000        2,000
Source Nation Support.......................................      139,619  ...........  ...........      162,619
    Laser Strike............................................  ...........       11,000        8,000       11,000
    Refurbish and Install TPS Radar.........................  ...........       15,000       15,000       10,000
    Riverine Operations.....................................  ...........        4,900        2,000        2,000
    SOUTHCOM Support........................................  ...........        1,500            0            0
Detection and Monitoring....................................      134,198  ...........  ...........      198,398
    Spare TARS..............................................  ...........        3,800            0            0
    Support for Mexico Mil CD units.........................  ...........            0        8,000        8,000
    P-3 Retrofit for US Customs Service.....................  ...........            0       98,000       56,200
Domestic Law Enforcement Support............................      227,957  ...........  ...........      300,757
    Marijuana Eradication...................................  ...........        3,000            0        3,000
    Non-intrusive Inspection systems........................  ...........        6,000        6,000        6,000
    Southwest Border Support................................  ...........        2,500            0            0
    Enhanced JTF-DLEA support...............................  ...........        5,000            0            0
    Gulf States Counter-drug Initiative.....................  ...........        8,500        4,800        8,500
    Multi-Jurisdictional Task Force.........................  ...........        1,800            0        1,800
    C-26 reconnaissance upgrade.............................  ...........        3,500            0        3,500
    National Guard State Plans..............................  ...........       40,000            0       40,000
    National Interagency CI.................................  ...........        3,000            0        3,000
    Southwest Border Information............................  ...........        7,000            0        7,000
    Civil Air Patrol........................................  ...........        2,500            0            0
    Reconnaissance and interdiction det.....................  ...........            0          500            0
Demand Reduction............................................       83,895  ...........  ...........       83,895
Miscellaneous...............................................  ...........            0        2,000            0
                                                             ---------------------------------------------------
      Total, Drug Interdiction..............................      642,724      774,724      789,024      807,800
----------------------------------------------------------------------------------------------------------------

       The conferees concur with the direction in the House report 
     that none of the funds provided for the National Guard 
     through the Drug Interdiction and Counter-Drug Activities 
     account shall be reduced unless the proper reprogramming 
     procedures are followed.
       The conferees agree to provide $8,500,000 above the budget 
     request for the Gulf States Counter-drug Initiative (GSCI). 
     Of this amount $80,000 is for the Regional Counter-drug 
     Training Academy and not less than $4,700,000 of this 
     additional amount is provided in O&M for sustainment costs 
     for the C4 network of GSCI and improvements to existing 
     processing and analysis centers for the states. Of the 
     remaining funds, $3,000,000 is

[[Page H11905]]

     provided for start-up costs for including the state of 
     Georgia in the network.
       The conferees agree to provide $3,600,000 above the budget 
     request for the Civil Air Patrol, but have provided those 
     funds in the Operation and Maintenance Title. The conferees 
     also concur with the House language which adds 
     ``administrative costs, including, the hiring of CAP 
     employees'' to the activities which may be funded with the 
     understanding that none of the funds provided in this 
     agreement shall be used to exceed the existing civilian 
     personnel levels.
       The conferees agree to provide $1,800,000 above the budget 
     request for use by the Military Police (MP) School to provide 
     for training by the Criminal Justice Institute in support of 
     Multi-Jurisdictional Task Force activities. The Criminal 
     Justice Institute is ideally suited to expand the course 
     offerings provided by the MP school based on its successful 
     training efforts with domestic and international law 
     enforcement personnel.

                    Office of the Inspector General

       The conferees agree to provide $139,157,000 for the Office 
     of the Inspector General. Of this amount, $137,157,000 shall 
     be for operation and maintenance activities and $2,000,000 
     for procurement.


              Sierra Army Depot Groundwater Contamination

       The conferees are concerned about allegations that actions 
     of the Army to precipitously and abruptly change its position 
     on permits and applications to develop water rights in the 
     Honey Valley Groundwater Basin have unfairly and 
     unnecessarily damaged the ability of private investors to 
     realize any benefit from their good faith investments. The 
     Inspector General is directed to investigate this matter and 
     report to the House and Senate Appropriations Committees on 
     the validity of investor allegations and, if deemed 
     appropriate, recommend a process for determining fair 
     compensation for those investors. Such report shall be 
     submitted no later than May 1, 1997.

                      TITLE VII--RELATED AGENCIES

       The conferees agree to the following amounts for Related 
     Agencies:

----------------------------------------------------------------------------------------------------------------
                                                      Budget           House          Senate        Conference  
----------------------------------------------------------------------------------------------------------------
Central Intelligence Agency Retirement and                                                                      
 Disability System Fund.........................     196,400,000     196,400,000     184,200,000     196,400,000
Intelligence Community Management Account.......      91,739,000     149,555,000      94,739,000     129,164,000
National Security Education Trust Fund..........       5,100,000  ..............       5,100,000       5,100,000
Payment to Kaho'olawe Island Conveyance                                                                         
 Remediation and Environmental Restoration Fund.      10,000,000      10,000,000      10,000,000      10,000,000
                                                 ---------------------------------------------------------------
  Total, Related Agencies.......................     303,239,000     355,955,000     294,039,000     340,664,000
----------------------------------------------------------------------------------------------------------------

                     TITLE VIII--GENERAL PROVISIONS

       The conference agreement incorporates general provisions of 
     the House and Senate versions of the bill which were not 
     amended. Those general provisions that were amended in 
     conference follow:
       The conferees included a general provision (Section 8009) 
     which amends House language concerning multiyear contracts 
     for selected weapons systems.
       The conferees included a general provision (Section 8021) 
     which amends House language prohibiting the demilitarization 
     of certain types of surplus firearms.
       The conferees included a general provision (Section 8027) 
     which amends House language limiting the relocation of DoD 
     organization into the National Capital Region.
       The conferees included a general provision (Section 8028) 
     which amends House language which allows members of the 
     Reserves to use their leave to perform duty when providing 
     assistance to civil authorities.
       The conferees included a general provision (Section 8036) 
     which amends House language earmarking funds for the Civil 
     Air Patrol.
       The conferees agree to a general provision (Section 8037) 
     governing the activities of defense federally funded research 
     and development centers (FFRDC's).
       The conferees recognize the preference by the Department of 
     Defense to limit the activities of defense FFRDC's through 
     the use of ceilings on the number of staff years of technical 
     effort (staff years). Therefore, for fiscal year 1997, the 
     conferees agree to statutory ceilings on defense FFRDC staff 
     years (5,975 overall and 1,088 for studies and analysis 
     FFRDC's).
       The conferees, however, are concerned that the allocation 
     of staff years not obscure the budgetary impacts of funding 
     the FFRDC's. The conferees direct that the reports 
     identifying the staff years of technical effort allocated to 
     each defense FFRDC for fiscal years 1997 and 1998 also 
     include the dollar amounts required to fund each FFRDC's 
     staff year allocations for each fiscal year.
       The conferees direct that, during fiscal year 1997, should 
     the institutional arrangements and agreements between any 
     defense FFRDC and the department, or the organization and 
     structure of any defense FFRDC, undergo a significant change, 
     the Secretary of Defense shall provide the Congressional 
     defense committees with a detailed report addressing the 
     effects of such a change on the staff years to be allocated 
     for that defense FFRDC under the statutory ceilings.
       The conferees further direct that this report shall be 
     submitted not later than 60 days before the change is to 
     occur and shall contain information regarding: (1) the 
     department's ability to obtain services which had been 
     provided by that defense FFRDC, including whether the 
     department intends to obtain these services in the future 
     under competitive or non-competitive contracts, agreements, 
     or procedures; (2) the cost, budget, contractual, legal, and 
     policy implications of the change, including the impact of 
     the change on the competitive environment for the acquisition 
     of such services; (3) the disposition of any property--
     including real and personal property, hardware, software, and 
     intellectual property--developed or obtained by the FFRDC 
     through the payment of any fee or other financing mechanism 
     paid by the Federal government, and whether the Federal 
     government shall receive the fair market value for any such 
     property the ownership of which may be transferred as a 
     result of any significant change; (4) whether any officers or 
     employees of a defense FFRDC which is involved in any such 
     significant change shall receive any salary or other 
     compensation increase, or any bonus, as a result of such a 
     change, and the amount of any such increase or bonus for each 
     officer or employee; and (5) whether any such significant 
     change shall result in any liability for the federal 
     government with respect to personnel costs for the defense 
     FFRDC.
       The conferees further agree to statutory language reducing 
     funds for defense FFRDC's and for non-FFRDC consulting 
     services used by the department.
       The conferees included a general provision (Section 8038) 
     which prohibits funds from being used for studies on the 
     removal and transportation of chemical weapons or agents to 
     Johnston Atoll.
       The conferees included a general provision (Section 8041) 
     which amends House language regarding DoD depot maintenance 
     programs.
       The conferees included a general provision (Section 8053) 
     which amends House language earmarking funds for the Army 
     High Performance Computing Research Center.
       The conferees included a general provision (Section 8064) 
     which amends House language authorizing intelligence 
     activities.
       The conferees included a general provision (Section 8065) 
     which amends the Senate language providing $40,000,000 and 
     specific directions for the conduct of an alternative 
     destruction program for the stockpile chemical weapons. The 
     conferees also included language prohibiting the expenditure 
     of any appropriated funds in this or any other Act for the 
     study, assessment, or planning of the removal and 
     transportation of stockpile assembled unitary chemical 
     weapons or neutralized chemical agent to any of the eight 
     chemical weapons storage sites within the continental United 
     States. The conferees agree that this prohibition of funding 
     for studies, assessments or planning does not apply to 
     studies of the transportation of the end-product of an 
     alternative technology treatment process to locations other 
     than the stockpile chemical weapons storage sites.
       The conferees included a general provision (Section 8068) 
     which amends Senate language allowing the Secretary of the 
     Navy to lease real or personal property at Naval Air 
     Facility, Adak, Alaska.
       The conferees included a general provision (Section 8070) 
     which amends Senate language recommending rescissions from 
     Air Force Procurement and Research and Development programs.


                           rescission of funds

       The conferees agree to rescind excess prior year funds, as 
     presented in the following table:

----------------------------------------------------------------------------------------------------------------
                                                               House              Senate           Conference   
----------------------------------------------------------------------------------------------------------------
                    FISCAL YEAR 1995                                                                            
                                                                                                                
PROCUREMENT OF AMMUNITION, ARMY:                                                                                
    Louisiana Army Ammunition Plant/Flexible line                                                               
     manufacturing.....................................                  0                  0         -4,500,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0         -4,500,000
                                                        ========================================================

[[Page H11906]]

                                                                                                                
AIRCRAFT PROCUREMENT, NAVY:                                                                                     
    Common ECM equipment/Bol chaff.....................                  0                  0         -8,000,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0         -8,000,000
                                                        ========================================================
PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS:                                                               
    Air expendable countermeasures.....................                  0                  0         -2,000,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0         -2,000,000
                                                        ========================================================
OTHER PROCUREMENT, NAVY:                                                                                        
    Enhanced modular signal processor..................                  0                  0        -10,000,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0        -10,000,000
                                                        ========================================================
AIRCRAFT PROCUREMENT, AIR FORCE:                                                                                
    Joint primary aircraft training systems (JPATS)....                  0                  0         -3,100,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0         -3,100,000
                                                        ========================================================
MISSILE PROCUREMENT, AIR FORCE                                                                                  
    Defense support program excess funds...............                  0        -31,900,000        -31,900,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0        -31,900,000        -31,900,000
                                                        ========================================================
      Total fiscal year 1995...........................                  0        -31,900,000        -59,500,000
                                                        ========================================================
                                                                                                                
                    FISCAL YEAR 1996                                                                            
                                                                                                                
AIRCRAFT PROCUREMENT, NAVY:                                                                                     
    F/A-18C/D fighter (Hornet)/ALR-67(V) (3)...........                  0                  0         -5,400,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0         -5,400,000
                                                        ========================================================
PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS:                                                               
    81mm high explosive PD fuse........................                  0                  0        -10,000,000
                                                        --------------------------------------------------------
    MM56 detonating cord...............................                  0                  0           -708,000
                                                        --------------------------------------------------------
    Air expendable countermeasures/Bol chaff...........                  0                  0         -2,000,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0        -12,708,000
                                                        ========================================================
AIRCRAFT PROCUREMENT, AIR FORCE:                                                                                
    F-15 modifications/Fighter data link...............                  0                  0         -9,000,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0         -9,000,000
                                                        ========================================================
MISSILE PROCUREMENT, AIR FORCE:                                                                                 
    Space boosters/Titan IV excess funds...............                  0        -20,000,000        -20,000,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0        -20,000,000        -20,000,000
                                                        ========================================================
OTHER PROCUREMENT, AIR FORCE:                                                                                   
    Classified program.................................                  0                  0        -26,000,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0        -26,000,000
                                                        ========================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY:                                                               
    F/A-18 squadrons/Bol chaff.........................                  0                  0         -4,500,000
                                                        --------------------------------------------------------
      Subtotal.........................................                  0                  0         -4,500,000
                                                        ========================================================
RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE:                                                          
    Classified programs................................                  0        -74,000,000                  0
                                                        --------------------------------------------------------
      Subtotal.........................................                  0        -75,000,000                  0
                                                        ========================================================
      Total fiscal year 1996...........................                  0        -95,000,000        -77,608,000
                                                        ========================================================
      Grand total......................................                  0       -126,900,000       -137,108,000
----------------------------------------------------------------------------------------------------------------

       The conferees included a general provision (Section 8077) 
     which amends House language prohibiting the use of funds 
     appropriated in this Act to reduce the civilian and medical 
     support personnel assigned to military treatment facilities 
     and provides authority to the Surgeons General to waive the 
     section.
       The conferees included a general provision (Section 8088) 
     which amends House language reducing the amount of funded 
     carryover at Defense Business Operations Fund activities by a 
     total of $150,000,000. $60,000,000 of this reduction is 
     applicable to the Army, and $90,000,000 is applicable to the 
     Navy. The Navy reduction shall not be applied to the naval 
     shipyards.
       The conferees included a general provision (Section 8096) 
     reducing funds provided for a passthrough to the Air Force 
     business areas of the Defense Business Operations Fund.
       The conferees included a general provision (Section 8099) 
     which allows Reserve forces to provide services and support 
     to organizations and activities outside of the DoD if they 
     are incidental to training.
       The conferees included a general provision (Section 8100) 
     which amends House language allowing the White House 
     Communications Agency to provide services on a non-
     reimbursable basis.
       The conferees included a general provision (Section 8105) 
     which amends Senate language that reallocates funds to cover 
     unanticipated shipbuilding costs increases.
       The conferees included a general provision (Section 8107) 
     which amends House language prohibiting the Air Force from 
     introducing new suppliers for the AN/ALE-47 Countermeasure 
     Dispenser System.
       The conferees included a general provision (Section 8109) 
     which amends House language providing clarification of the 
     Berry Amendment.
       The conferees included a general provision (Section 8110) 
     which amends Senate language concerning procurement of T-3-N 
     aircraft.
       The conferees have included two general provisions limiting 
     the extent to which the Department may provide reimbursement 
     for defense industry restructuring costs. Section 8095 
     prohibits any reimbursement of costs for contractor employee 
     bonus payments associated with business combinations. Section 
     8115 amends House language to prohibit any future 
     restructuring reimbursements unless the Department determines 
     that the auditable net savings to the Department resulting 
     from any such business combination exceed the Department's 
     direct restructuring costs by a factor of at least two-to-one 
     (except in cases where a critical capability might be lost). 
     Section 8115 also includes Senate language requiring the 
     General Accounting Office to submit to the Congress a 
     detailed analysis of the effectiveness of this program by 
     April 1, 1997. The conferees strongly support the policy of 
     prohibiting the payment of any costs for merger-related 
     executive bonuses, legal fees, finders fees, goodwill, and 
     asset write-ups.
       The conferees do not agree to a general provision included 
     by the House concerning aircraft landing gear.
       The conferees are concerned that U.S. manufacturers and 
     assemblers of aircraft landing gear and landing gear 
     components may be disadvantaged by unfair foreign competition 
     in bidding on Department of Defense contracts relative to 
     their foreign competitors, as a result of direct or indirect 
     financial or other support to those competitors from their 
     governments. Therefore the conferees direct the Secretary of 
     Defense to submit a report to the Congressional defense 
     committees by February 1, 1997 which contains the following 
     information:

[[Page H11907]]

       (1) A summary of landing gear and landing gear component 
     production and assembly acquisitions for fiscal years 1992-
     1996, acquired directly by the Department of Defense and 
     individual armed services as well as indirectly by prime 
     contractors. The study shall include information on the 
     aircraft for which the gear was acquired, the countries of 
     origin of such equipment, and whether any foreign companies 
     that have received landing gear and landing gear component 
     production or assembly contracts are privately held or 
     partially or wholly-government owned.
       (2) In the case of landing gear and landing gear components 
     produced or assembled by foreign sources, a description of 
     any foreign government programs which provide assistance of 
     any kind that can be used by companies in that country for 
     the design, development, production and assembly of defense 
     products as well as specifically for landing gear and landing 
     gear components. Information shall be provided as to the 
     terms under which such assistance is provided, and whether 
     such assistance must be reimbursed to the government by the 
     foreign company.
       The conferees included a general provision (Section 8118) 
     which amends House language denying funds to contractors who 
     have failed to submit an annual report to the Secretary of 
     Labor regarding employment of certain veterans, pursuant to 
     section 4212(d) of title 38, United States Code.
       The conferees are dismayed over the reported failure of a 
     large number of Federal contractors to file, as required by 
     law, annual reports with the Department of Labor regarding 
     employment and hiring of Vietnam-era and special disabled 
     veterans. The conferees believe continued non-compliance with 
     statutory reporting requirements regarding veterans's 
     employment is unacceptable and that both the Departments of 
     Labor and Defense must do everything possible to ensure 
     defense contract recipients are both fully aware of and 
     responsive to legal requirements in this regard. Section 8118 
     requires the Secretaries of Labor and Defense to take such 
     steps as are needed to fulfill these objectives and also 
     requires submission of a report within 180 days of enactment 
     of this Act which details the measures taken to achieve this 
     goal, as well as any additional actions (including potential 
     legislative changes) that may be needed to address this 
     problem. The conferees are determined to support veterans' 
     preference and hiring programs and express their intent to 
     revisit this issue in the absence of determined action by the 
     Executive Branch.
       The conferees included a general provision (Section 8119) 
     which amends a Senate provision providing for various funding 
     adjustments and earmarks, and retains language allowing for 
     obligation of supervision and administration costs.
       The conferees included a general provision (Section 8120) 
     capping the level of advance billing that the Navy may 
     execute in the Defense Business Operations Fund. This 
     provision directs the Navy to increase customer rates charged 
     by the Defense Business Operations Fund, and funds the DBOF 
     customer accounts commensurate with the rate increases 
     through a general reduction to the Navy budget in the 
     procurement and research and development accounts.
       The conferees included a general provision (Section 8121) 
     allowing the waiver of reimbursements to the Asia-Pacific 
     Center for Security Studies.
       The conferees included a general provision (Section 8122) 
     making Air Force funds available to the Children's 
     Association for Maximum Potential.
       The conferees included a general provision (Section 8125) 
     requiring DoD and the Office of Personnel Management (OPM) to 
     report on assistance available to persons who are injured or 
     killed while traveling on US Government aircraft.
       The conferees included a general provision (Section 8128) 
     which amends Senate language providing funds for defense 
     against weapons of mass destruction. The conferees agree to 
     provide $100,000,000 for defense against weapons of mass 
     destruction, including domestic preparedness, interdiction of 
     weapons of mass destruction and related materials, control 
     and disposition of weapons of mass destruction and related 
     materials threatening the United States, coordination of 
     policy and countermeasures against proliferation of weapons 
     of mass destruction, and miscellaneous related programs, 
     projects, and activities. The funds are available for 
     transfer to, and merger with, funds appropriated elsewhere in 
     this Act.
       Domestic preparedness against terrorist threats, especially 
     chemical or biological attacks against U.S. civilian targets, 
     is of paramount importance to the nation. Terrorist 
     organizations have shown the willingness and capability to 
     operate within the continental United States, and a terrorist 
     chemical attack in the Tokyo subway system has already 
     occurred.
       While the armed services have developed capabilities to 
     evaluate chemical/biological threats, respond to such 
     threats, and protect and treat affected personnel, these 
     capabilities have been developed primarily to protect 
     military personnel in operational situations. The conferees 
     believe much can and should be done to transfer existing 
     military chemical/biological warfare expertise and technology 
     to our civilian ``first responders'' in charge of protecting 
     the civilian population.
       The conferees applaud the first small step in this 
     direction with the establishment of the ``Chemical-Biological 
     Incident Response Force'' in the Marine Corps which has rapid 
     deployment capability. Coupled with its unique civilian 
     advisory group, the CBIRF will become the nation's first 
     completely self-contained chemical and biological response 
     force. The bill includes $10,000,000 to upgrade the equipment 
     of this unit, including funds for prepositioned equipment at 
     key domestic locations. However, there is no doubt that much 
     more needs to be done to properly train and equip ``first 
     responders'' around the country.
       The conferees direct the Secretary, in conjunction with the 
     Director of the Central Intelligence Agency, the Attorney 
     General, the Secretary of Energy, the Administrator of the 
     Federal Emergency Management Agency, and other pertinent 
     federal, state and local officials, to submit a report to 
     Congress (in both classified and unclassified forms) that:
       (1) assesses the types and characteristics of chemical and 
     biological threats against U.S. citizens and Government 
     assets in the U.S. and the capability of civilian agencies to 
     respond to these threats;
       (2) identifies the unmet training, equipment, and other 
     requirements of civilian first responders necessary to 
     provide a basic capability to respond to a domestic chemical 
     or biological attack;
       (3) identifies DoD chemical/biological warfare information, 
     expertise, and equipment that could be adapted to civilian 
     application to help meet identified requirements; and
       (4) presents a detailed plan for DoD assistance in 
     equipping, training and providing other necessary assistance 
     for first responders to such incidents. The conferees believe 
     that the best approach for implementing this effort may be a 
     regional pilot program to demonstrate and test the best 
     methods to upgrade the training and equipment of first 
     responders.
       The conferees also believe the National Guard is well 
     suited for having a leading role in implementing a plan to 
     provide training, technology and other DoD capabilities to 
     local first responders. The conferees endorse the directive 
     in the House Report (H. Rpt. 104-617, pp. 138-9) to review 
     the Department's ability to provide assistance in this regard 
     and direct that the report outlined by the House be 
     incorporated into this comprehensive review effort. The 
     Secretary shall submit this report to the congressional 
     defense committees by not later than May 1, 1997.
       The conferees included a new general provision (Section 
     8129) which requires the Secretary of Defense to submit a 
     report on the establishment of a Federal Employee Health 
     Benefit Program demonstration project.
       The conferees included a new general provision (Section 
     8130) that repeals section 203(a), section 203(c), and 
     section 203(e) of the National Defense Authorization Act for 
     Fiscal Year 1997.
       The conferees included a new general provision (Section 
     8131) that amends section 722(c) of the National Defense 
     Authorization Act for Fiscal Year 1997.
       The conferees included a new general provision (Section 
     8132) that requires the Secretary of Defense to submit a 
     report on the establishment of the National Missile Defense 
     Joint Program Office.
       The conferees included a new general provision (Section 
     8133) allowing the National Guard Bureau to make distance 
     learning equipment and facilities available to any person or 
     entity on a reimbursable basis.
       The conferees included a general provision (Section 8134) 
     that allows the Secretary of the Air Force to enter into 
     agreements for heating facility modernization.
       The conferees included a general provision (Section 8135) 
     which makes a technical correction to the National Defense 
     Authorization Act for Fiscal Year 1997 regarding the ``Mike 
     O'Callaghan Military Hospital''.
       The conferees included a general provision (Section 8136) 
     which makes a general reduction to Research, Development, 
     Test and Evaluation appropriations accounts with the 
     exception of funds appropriated for Ballistic Missile 
     Defense.
       The conferees have included two general provisions 
     (Sections 8137 and 3138), as well as a new title (Title IX), 
     in order to provide full funding of the President's request 
     of September 12, 1996, for additional Department of Defense 
     programs and initiatives relating to anti-terrorism, counter-
     terrorism, and security enhancements.
       This request totalled $353,280,000. In Section 8137, the 
     conferees agree to provide $230,680,000 in fiscal year 1997 
     funds for programs requested by the President. This 
     additional funding is offset in Section 8138. In Title IX, 
     the conference agreement includes an additional $122,600,000 
     in fiscal year 1996 supplemental appropriations, as requested 
     by the President to reimburse the Department for costs 
     incurred by ongoing force protection actions in Saudi Arabia, 
     ordered in the wake of the Khobar Towers bombing. The funding 
     in Title IX is also totally offset, through rescissions from 
     prior year Department of Defense Appropriations Acts.

                             Section 101(c)

      Foreign Operations, Export Financing, and Related Programs 
                        Appropriations Act, 1997

       The conferees on H.R. 3610 agree with the matter inserted 
     in this subsection of this conference agreement and the 
     following description of this matter. This matter was 
     developed through negotiations on the differences in the 
     House and Senate versions of

[[Page H11908]]

     H.R. 3540, the Foreign Operations, Export Financing, and 
     Related Programs Appropriations Act, 1997, by members of the 
     appropriations subcommittee on both the House and Senate with 
     jurisdiction over H.R. 3540.

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE

     Export-Import Bank of the United States Subsidy Appropriation

       The conference agreement appropriates $726,000,000 for the 
     subsidy appropriation of the Export-Import Bank as proposed 
     by the House instead of $730,000,000 as proposed by the 
     Senate.

    Export-Import Bank of the United States Administrative Expenses

       The conference agreement appropriates $46,614,000 for 
     administrative expenses of the Export-Import Bank as proposed 
     by the House instead of $40,000,000 as proposed by the 
     Senate.
       The agreement also modifies the Senate provision that no 
     funds made available by this or any other Act may be used to 
     pay the salary and other expenses of the incumbent Chairman 
     and President of the Export-Import Bank unless and until he 
     has been confirmed by the Senate.
       The conferees have agreed to modify Senate bill language 
     which restricts funding for the salary and expenses of the 
     incumbent Chairman of the Export-Import Bank. The Senate 
     provisions prohibited funding for the incumbent Chairman and 
     President of the Export-Import Bank unless and until he has 
     been confirmed by the United States Senate. The conference 
     agreement prohibits any funding for the incumbent after July 
     21, 1997.
       The conferees note a GAO finding that in more than 200 
     cases, representing half of the employees of the Export-
     Import Bank, the Chairman and President illegally authorized 
     that retention allowances be used as bonuses to these 
     employees.
       While the Chairman and President of the Bank originally 
     indicated that he used this authority on the advice of 
     others, Bank documents indicate otherwise, including a 
     November, 1994 document in his own handwriting which refers 
     to the ``shamelss'' use of retention allowances.
       The conferees find that this individual has lost the 
     confidence of the committees with oversight responsibility 
     for the Export-Import Bank. The conferees agree that this 
     individual should not continue in this position and urge, in 
     the strongest terms, the President to replace him as soon as 
     is possible, and preferably by January 20, 1997, when his 
     term expires. Under no circumstances, once this individual's 
     recess appointment expires, do the conferees believe that the 
     Administration should resubmit his name for renomination.

       Overseas Private Investment Corporation Noncredit Account

       The conference agreement appropriates $32,000,000 for 
     administrative expenses of OPIC as proposed by the Senate 
     instead of $30,000,000 as proposed by the House.

        Overseas Private Investment Corporation Program Account

       The conference agreement deletes Senate language ``to be 
     derived by transfer from the Overseas Private Investment 
     Corporation Noncredit account''. It also extends the 
     authorization for OPIC for one year and allows the agency to 
     combine its existing statutory ceilings on financing and 
     insurance. Both measures allow the agency to continue 
     operations until the 105th Congress considers free-standing 
     authorization legislation reported from the committees of 
     jurisdiction. The managers direct OPIC to utilize no more of 
     the authority made available by this Act than is needed to 
     continue operations at the current pace.

                      Trade and Development Agency

       The conference agreement appropriates $40,000,000 for the 
     Trade and Development Agency as proposed by the Senate 
     instead of $38,000,000 as proposed by the House.
       In addition to the amounts provided under this heading, TDA 
     expects to receive no less than $2,000,000 from the 
     Assistance for Eastern Europe and the Baltic States (SEED) 
     account and additional resources from the New Independent 
     States account.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE

    Agency for International Development Child Survival and Disease 
                             Programs Fund

       The conference agreement appropriates $600,000,000 as 
     proposed by the House. The Senate bill contained no provision 
     on this matter. The managers agree with the House report 
     language regarding the use of the funds appropriated under 
     this heading, including $100,000,00 for a grant to UNICEF and 
     $25,000,000 for polio eradication. The grant for UNICEF does 
     not preclude AID from providing additional funding for 
     specific UNICEF projects as may be applicable.
       The managers also concur with House report language on AIDS 
     prevention and control, with the intent that not less than 
     $117,500,000 be obligated for both bilateral and multilateral 
     HIV/AIDS prevention programs. They recommend that funding 
     through nongovernmental organizations and private voluntary 
     organizations operating at the community level be maximized. 
     The conferees expect that the United States will continue to 
     build upon its leadership role in combating this pandemic.

                         Development Assistance

       The conference agreement appropriates $1,181,500,000 for 
     ``Development Assistance'' instead of $1,150,000,000 as 
     proposed by the House and $1,262,000,000 as proposed by the 
     Senate.
       The conference agreement includes language providing that 
     funds made available for Latin America and the Caribbean and 
     for sub-Saharan Africa should be made available on a 
     proportional basis, commensurate with the budget request for 
     said regions. The Senate amendment removed the reference to 
     Latin America and the Caribbean and contained an earmark for 
     the Development Fund for Africa.
       The conference agreement also includes Senate language to 
     allow not to exceed $25,000 for oversight of assistance 
     programs for displaced and orphaned children and victims of 
     war.
       The managers agree to include the Senate amendment which 
     inserted authority to obligate funds pursuant to title V of 
     the International Security and Development Cooperation Act of 
     1980 (African Development Foundation); and section 401 of the 
     Foreign Assistance Act of 1969 (Inter-American Foundation) 
     under this heading. The conference agreement provides 
     authority at the levels proposed by the House, apportioning 
     directly up to $20,000,000 for the Inter-American Foundation 
     and up to $11,500,000 for the African Development Foundation 
     (the Senate provided allocations for these two foundations at 
     levels of $18,000,000 and $10,500,000, respectively).
       The conference agreement also includes Senate language 
     requiring that not less than 65 percent of the funds made 
     available for family planning assistance shall be made 
     available directly to the agency's central Office of 
     Population.
       The conference agreement also includes language authorizing 
     funding to assist Vietnam to reform its commercial and 
     investment legal code. Prior to obligating funds for this 
     program, the managers direct the Administrator of USAID, in 
     consultation with the Secretary of State, to consider whether 
     the Government of the Socialist Republic of Vietnam has (1) 
     cooperated with requests by the United States to obtain full 
     and free access to persons of humanitarian interest to the 
     United States for interviews under the Orderly Departure 
     (ODP) and Resettlement Opportunity for Vietnamese Refugees 
     (ROVR) programs; (2) provided exit visas to persons of 
     humanitarian interest to the United States; and (3) released 
     all religious prisoners, including Catholic, Buddhist, and 
     Protestant clergy. The managers direct the Secretary to 
     provide a report to the Committees on Appropriations 
     outlining the government of Vietnam's actions on these three 
     issues prior to obligating funds for this program.
       The conference agreement also includes language allowing up 
     to $17,500,000 to be transferred to ``International 
     Organizations and Programs'' for a contribution to the 
     International Fund for Agricultural Development (IFAD). The 
     Senate amendment contained language mandating such a 
     transfer.
       The conference agreement also includes language stating 
     that not less than $500,000 shall be made available only for 
     support of the United States Telecommunications Training 
     Institute.
       The conference agreement does not contain Senate language 
     requiring that not less than $15,000,000 shall be available 
     only for the American Schools and Hospitals Abroad program. 
     However, the managers direct that the Agency for 
     International Development not take steps to terminate this 
     program, and that at least the same level of funds be made 
     available in fiscal year 1997 that were made available in 
     fiscal year 1996 for the American Schools and Hospitals 
     Abroad program.
       The managers direct USAID to make available $2,000,000 in 
     development and disaster assistance funds through 
     nongovernmental organizations for reconstruction and capacity 
     building in Afghanistan, in areas of the country that are 
     stable and where economic development has begun. The managers 
     are aware of the enormous need for this assistance in 
     Afghanistan and believe that the United States should begin 
     to move beyond funding only short term activities related to 
     refugee repatriation and into longer term activities related 
     to rehabilitation and reconstruction. The managers are 
     encouraged that a number of nongovernmental organizations are 
     already working in that country.
       The managers agree with the House report language 
     encouraging AID to utilize funds made available for 
     nongovernmental organizations in southern Sudan outside 
     government control to include capacity building activities in 
     addition to traditional disaster relief programs.
       The managers agree with the House report language on 
     microenterprise regarding poverty lending programs, and agree 
     that a significant portion should be channeled through 
     central mechanisms such as nongovernmental organizations.
       The managers are aware that a significant cost associated 
     with United States food and relief efforts overseas is grain 
     spoilage and loss at ports of entry. To make better use of 
     scarce foreign aid funds, the managers support efforts to 
     improve grain storage. The managers urge the Office of 
     Foreign Disaster Assistance to continue with demonstration 
     projects at overseas locations to reduce grain loss by 
     improving weatherproof/hermetically sealed storage.
       The managers strongly support the fertilizer-related 
     research and development being conducted by the International 
     Fertilizer Development Center (IFDC) and direct

[[Page H11909]]

     the Administrator of AID to make at least $2,000,000 
     available for the core grant to IFDC.
       The conference agreement recommends $12,000,000 for AID's 
     Office of Women in Development, and the managers encourage 
     AID to undertake the institutional changes needed to support 
     women in development. Investing in women is crucial to 
     reducing hunger and poverty worldwide, strengthening 
     families, and achieving equitable economic growth.
       The level of funding for the International Disaster 
     Assistance account assumes funds for the continuation of 
     Operation Provide Comfort.
       Notwithstanding recent developments, the Administration is 
     directed to take all appropriate steps to reestablish 
     security for the humanitarian assistance to the Kurdish 
     people of Northern Iraq.
       Using funds available under the Peacekeeping Operations 
     account, the administration is directed to use all available 
     means to support efforts at reconciliation between the 
     Kurdish factions in Northern Iraq, thereby reestablishing our 
     influence and credibility in this highly unstable area.

                   Population, Development Assistance

       The conference agreement deletes Senate language proposing 
     a separate appropriation account of $410,000,000 for 
     population activities. The funding for such activities is 
     provided in ``Development Assistance'' in the conference 
     agreement. This matter is also addressed in section 518A of 
     the conference agreement.

                                 Cyprus

       The conference agreement includes Senate language 
     earmarking not less than $15,000,000 of the funds 
     appropriated under ``Development Assistance'' and ``Economic 
     Support Fund'' for Cyprus, to be used only for scholarships, 
     administrative support, bicommunal projects, and measures 
     aimed at reunification of the island. The House bill 
     contained no provision on this matter.

                                 Burma

       The conferees have earmarked $2,500,000 to support 
     democracy and humanitarian programs in Burma. These resources 
     may be made available both inside and outside Burma and 
     should be targeted to support organizations, individuals and 
     activities which promote the implementation of the 1990 
     elections.
       The conferees are disappointed that the Administration 
     continues to oppose expending any funds to support the 
     restoration of democracy. In submissions to the conference, 
     the Administration indicated opposition to an earmark because 
     ``an interagency committee has had a difficult time finding 
     suitable recipients'' for fiscal year 1996 funds. In fact, 
     the requests for funding submitted to the State Department 
     substantially exceeded available resources. Proposals 
     submitted by experienced and effective organizations such as 
     the National Endowment for Democracy received only partial 
     support due to funding shortfalls.
       Once again, the conferees expect to be consulted on a plan 
     for expending and expanding U.S. support for democracy in 
     Burma.

                           Debt Restructuring

       The conference agreement appropriates $27,000,000 as 
     proposed by the Senate instead of $10,000,000 as proposed by 
     the House. The agreement includes Senate language to allow 
     modification of concessional loans made to Jordan under title 
     I of the Agricultural Trade Development and Assistance Act of 
     1954. The managers agree with the Senate report language 
     indicating that debt relief for Jordan should be provided 
     over two years.

                    Housing Guaranty Program Account

       The conference agreement appropriates $3,500,000 for the 
     subsidy appropriation for the housing guaranty program 
     instead of $500,000 as proposed by the House and $4,000,000 
     as proposed by the Senate. The conference agreement also 
     contains language proposed by the Senate that waives section 
     223(j) of the Foreign Assistance Act with regard to programs 
     for Eastern Europe, and deletes House language that would 
     have limited funds only for activities in South Africa.

     Operating Expenses of the Agency for International Development

       The conference agreement appropriates $470,750,000 instead 
     of $465,750,000 as proposed by the House and $495,000,000 as 
     proposed by the Senate.
       In addition, the conference agreement deletes language that 
     was contained in the Senate amendment prohibiting the 
     relocation of the Agency for International Development to the 
     new building at the Federal Triangle. The House bill did not 
     address this matter.

 Operating Expenses of the Agency for International Development Office 
                        of the Inspector General

       The conference agreement appropriates $30,000,000 as 
     proposed by the House instead of $28,000,000 as proposed by 
     the Senate. The conference agreement includes $600,000 for 
     new anti-terrorism activities as requested by the President. 
     The managers endorse the House report language regarding the 
     New Management System of AID, and request regular reports 
     from the Inspector General on this matter.

                         Economic Support Fund

       The conference agreement appropriates $2,343,000,000 
     instead of $2,340,000,000 as proposed by the Senate and 
     $2,336,000,000 as proposed by the House.
       The conference agreement inserts language proposed by the 
     Senate which earmarks $1,200,000,000 for Israel and 
     $815,000,000 for Egypt, of which not less than $200,000,000 
     shall be provided as Commodity Import Program assistance, and 
     links aid to Egypt and Israel in great measure upon their 
     continued participation in the Camp David Accords. The 
     conference agreement also provides that aid to Egypt is 
     provided with the understanding that Egypt will undertake 
     significant economic reforms and that in providing aid to 
     Egypt and Israel the President shall ensure the level of aid 
     does not cause an adverse impact on the total level of non-
     military exports from the United States to each country.
       The conference agreement strikes language inserted by the 
     Senate earmarking $3,000,000 to establish an independent 
     radio broadcasting service to Iran.
       The conference agreement strikes language inserted by the 
     Senate providing for the transfer of $36,000,000 of 
     unobligated and unearmarked prior year funds to 
     ``International Organizations and Programs''.
       The managers acknowledge steps taken in the past several 
     months by the Government of Egypt to continue reform in its 
     telecommunication sector. The incorporation of the National 
     Telecommunications Policy into legislation passed by the 
     People's Assembly in July and the appointment of 
     commissioners and staff for a regulatory council are key 
     parts of AID's telecommunications policy reform agenda. The 
     conferees strongly support and encourage such reforms.
       The conferees remain concerned about the serious human 
     health and environmental problems associated with the misuse 
     and overuse of chemical fertilizers, pesticides, and 
     herbicides. The conferees recommend that AID give greater 
     attention to nonchemical, organic, scientifically-based soil 
     enhancers, pest control technologies, and poultry feeding 
     additives. The conferees strongly recommend that AID funds 
     allocated for economic development in Egypt be available for 
     a program to test organic, non-chemical agricultural products 
     and that AID undertake this activity as soon as possible.
       The managers express their strong support for the 
     initiation of a Middle East and Mediterranean desert 
     development program to significantly increase efforts to 
     expand regional cooperation in combating growing 
     desertification in the Middle East and southern Mediterranean 
     region. The managers believe that such a program would be 
     environmentally viable and mutually beneficial to nations in 
     this region and therefore the managers recommend that up to 
     $5,000,000 should be made available to support this 
     worthwhile undertaking.
       The managers express strong support for the Middle East 
     Multilateral Working Groups which support the Middle East 
     peace process. In particular, the conferees strongly support 
     full funding for the activities of the Arms Control and 
     Regional Security Working Group which is working to develop a 
     stable and durable security structure for the Middle East. 
     The managers do not consider the arms control activities of 
     the working group as ``military or paramilitary'' activities 
     prohibited by section 531(e) of the Foreign Assistance Act of 
     1961 but rather they constitute activities essential in 
     supporting ``political stability'' in the Middle East as 
     specifically provided for in section 531(a) of that same Act.
       The managers request that the Department of State report to 
     the Congress on or before January 15, 1997 with a detailed 
     summary of United States policies designed to reduce and 
     eliminate today's mounting persecution of Christians 
     throughout the world. The managers also request USAID to 
     consider the meritorious proposals of the R'fa-aye-nu Society 
     regarding its efforts to preserve and copy the rich treasure 
     of Judaic/Christian materials which have been stored in 
     archives in Central and Eastern Europe.

                     International Fund for Ireland

       The conference agreement appropriates $19,600,000 as 
     proposed by the House. The Senate amendment did not contain a 
     provision on this matter.

          Assistance for Eastern Europe and the Baltic States

       The conference agreement inserts House language struck by 
     the Senate that prohibits funds from being used for new 
     housing construction or repair or reconstruction of existing 
     housing in Bosnia and Herzegovina unless directly related to 
     efforts of United States troops to promote peace in said 
     country. The agreement also inserts Senate language that 
     withholds 50 percent of the funds made available for economic 
     revitalization for Bosnia and Herzegovina unless the 
     President determines and certifies to the Committees on 
     Appropriations that the Federation of Bosnia and Herzegovina 
     has complied with the Dayton agreement regarding the removal 
     of foreign forces, and that intelligence cooperation on 
     training, investigations, and related activities between 
     Iranian and Bosnian officials has been terminated.
       The managers are concerned that the U.S. Agency for 
     International Development has not effectively utilized the 
     unique resources of ethnic American organizations. The 
     22,000,000 Americans who trace their heritage to Central and 
     Eastern Europe have a long-term commitment to that part of 
     the world and include professionals who have an intimate 
     understanding of the culture, politics, and language of the 
     region. Many of their organizations use their own resources 
     to engage in projects to strengthen democracy and market 
     reforms in the region, and are exceptionally qualified to 
     participate in

[[Page H11910]]

     USAID activities. The conferees, therefore, direct USAID to 
     involve Central and East European ethnic organizations in the 
     design and implementation of programs under this heading and 
     the following heading, consistent with subparagraphs (i) and 
     (j) of the second heading.

                                 Bosnia

       The conferees have once again included language withholding 
     half the reconstruction funds for Bosnia and Herzegovina 
     until the President certifies that the Federation is in 
     compliance with the Dayton Accord requirements to remove all 
     foreign forces and terminate intelligence cooperation, 
     training and related activities with Iranian officials. 
     Although the Administration certified in June 1996 that the 
     Federation was in compliance with these terms, the conferees 
     take note of subsequent reports from credible sources that 
     foreign forces continue to operate in Bosnia posing a direct 
     threat to American and NATO troops. The conferees expect the 
     Administration to take all steps necessary to assure the 
     removal of these forces before disbursing additional economic 
     funds as provided in the conference agreement.
       The funding levels for Bosnia and Herzegovina in the 
     conference agreement are tied to the presence of a free, 
     independent, private broadcasting network with nationwide 
     access as an alternative to state-operated television 
     stations. This is essential to the development of democratic 
     institutions and the rule of law throughout Bosnia and 
     Herzegovina that is envisioned in the Dayton Agreement and 
     called for by the recently conducted nation-wide elections. 
     The managers strongly encourage robust support by the United 
     States for the independent Open Broadcast Network or a 
     similar private national station capable of delivering 
     unbiased and unrestricted news and information to all of the 
     people of Bosnia and Herzegovina. They further direct that no 
     funds provided in this Act may be used to support the state-
     controlled stations if the Open Broadcast Network or a 
     similar private station is not granted the appropriate 
     license or national broadcasting access, or is otherwise 
     restricted by the Government of Bosnia and Herzegovina.

  Assistance for the New Independent States of the Former Soviet Union

       The conference agreement appropriates $625,000,000 instead 
     of $590,000,000 as proposed by the House and $640,000,000 as 
     proposed by the Senate. The agreement also inserts House 
     language applying the waiver authority of Sec. 498B(j) of the 
     Foreign Assistance Act to funds appropriated under this 
     heading, but the managers share the Senate concern that such 
     waivers of existing law should be utilized infrequently.

                                Mongolia

       The conference agreement reduces the Senate earmark for 
     Mongolia from $11,000,000 to $10,000,000, of which not less 
     than $6,000,000 shall be available only for the Mongolian 
     energy sector.
       The managers note that AID funding for Mongolia has not 
     utilized the long-standing authority to use NIS funds, but 
     allow the earmark to be administered by the Asia-Near East or 
     Global bureau from other funds in title II. The Administrator 
     is requested to designate the bureau which will implement 
     this provision and to report to the Committees within 30 days 
     of enactment the offices/missions and individuals responsible 
     for the Mongolia program. The Coordinator and the 
     Administrator are urged to cooperate to restore a robust 
     program of assistance to Mongolia, consistent with its 
     progress toward democracy and a market economy. The Secretary 
     of the Treasury is urged to encourage the multilateral 
     development banks funded in Title IV to increase assistance 
     for Mongolia, especially in its energy sector.

                              Russia-Iran

       Obligation of funds for Russia is made contingent on a 
     determination by the President that the Government of Russia 
     has terminated implementation of arrangements to provide Iran 
     with certain goods and services related to nuclear programs 
     in Iran. The managers also include a provision allowing the 
     President to waive the provisions of the paragraph on 
     national security grounds. The Senate had no similar waiver 
     provision.

                                Ukraine

       The conference agreement earmarks $225,000,000 for Ukraine. 
     Within this earmark, the managers have included a number of 
     sub-earmarks designed to support critical socio-economic and 
     political needs. Programs to improve nuclear safety, small 
     business development, agricultural productivity and legal 
     reforms continue to be high priorities. Support for 
     initiatives in these areas strengthen prospects for Ukraine's 
     economic prosperity and political independence, which in 
     turn, contribute to regional stability, a key concern to the 
     United States.
       The conference has included Senate language terminating 
     assistance to the Government of Ukraine if the President 
     determines and reports to the Committees that the Government 
     of Ukraine is engaged in military cooperation with the 
     Government of Libya. There was no similar House provision. 
     The managers have also included a Presidential waiver based 
     on national security findings.

                                Belarus

       Little space remains for political dissent in Belarus, and 
     the failing economy is rapidly moving toward complete state 
     control. Under these circumstances, which have led to 
     Belarusian leaders of the opposition seeking asylum in the 
     United States, the managers do not expect that any funds made 
     available under this heading will be used to support the 
     current Government of Belarus.

                               Chornobyl

       The conferees urge AID to supplement the generosity of tens 
     of thousands of Americans, many of Ukrainian descent, 
     directed to the victims of the Chornobyl nuclear tragedy by 
     generously supporting programs to screen and treat childhood 
     mental and physical illness related to Chornobyl radiation. 
     This priority should supersede any non-conforming ``strategic 
     objectives'' of USAID.
       The fear of birth defects in the regions affected by the 
     Chornobyl accident has resulted in a sharply lower birth 
     rate. The managers encourage USAID to support programs to 
     reduce birth defects and register birth defects among 
     children in affected regions of Ukraine, Belarus, and Russia.

                      Health, Crime and Morbidity

       The alarming increase in morbidity in the former Soviet 
     Union is accompanied by other health problems that could 
     benefit from American experience and expertise, but health 
     and environmental health have not been top priorities for 
     USAID and the Coordinator. They should be. In addition to 
     environmental health programs related to Chornobyl, the 
     managers urge AID to expand cooperation in the health sector. 
     The activities citied in the fiscal year 1996 Act and 
     repeated in the 1997 Senate bill are still worthy of expanded 
     support: hospital partnership programs, medical assistance to 
     directly reduce the incidence of infectious diseases, and a 
     program to treat contaminated drinking water in the former 
     Soviet Union.
       Other health and environmental health programs should be 
     actively explored and undertaken by USAID where feasible. 
     Unfortunately, in Russia and neighboring states, abortion 
     became a major method of family planning during the Soviet 
     period. USAID is directed to expand its support for family 
     planning programs which provide an alternative to abortion, 
     consistent with the Senate report language.
       The conference managers are alarmed by the incidence of 
     violence against women in the region, especially in Russia, 
     where in a single year an estimated 15,000 women die and 
     50,000 are hospitalized as a result of domestic violence. 
     Cooperative programs in both the health and law enforcement 
     sectors should include efforts to reduce violence against 
     women. The conferees direct that of the funds made available 
     for both programs in Russia, $1,000,000 be made available to 
     support training and exchanges to help address this urgent 
     matter.
       The conference concurs with the Senate report language that 
     crime and corruption are some of the biggest impediments to 
     private investment and economic growth in the former Soviet 
     Union. Not less than the current level of funding should be 
     made available for law enforcement training and exchanges in 
     Central Europe and the NIS.

                            Caucasus Region

       In establishing the Trans-Caucasus Enterprise Fund, as 
     directed in P.L. 104-107, the President is encouraged to use 
     funds made available in this Act, as well as the amount 
     provided previously. After consultation with the relevant 
     Congressional committees, the President may use any 
     combination of traditional enterprise fund, Overseas Private 
     Investment Corporation funds, European Bank for 
     Reconstruction and Development funds, small or micro loans 
     through non-governmental organizations, or other suitable 
     mechanism to achieve the purposes described in P.L. 104-107.
       The conferees direct that assistance to Azerbaijan, 
     including the region of Nagorno-Karabakh, by nongovernmental 
     and international organizations shall not be precluded by 
     this language from using and repairing Government facilities 
     or services such as housing, warehouses, clinics, hospitals, 
     and vehicles to effectively deliver humanitarian services and 
     supplies to needy civilians. The conferees expect these 
     organizations to maintain effective monitoring procedures to 
     assure appropriate supervision over supplies and recipients.
       The conferees intend that Government personnel be allowed 
     to distribute humanitarian commodities such as doctors giving 
     out medicine to needy civilians and that these supplies may 
     be transferred to Government personnel for the purpose of 
     distribution. The conferees also intend that needy civilians, 
     especially refugees and displaced persons, be permitted to 
     receive assistance in growing food for their own sustenance, 
     and are not precluded from selling excess in the private 
     sector to begin the transition to personal economic self-
     sufficiency.


                   caspian region energy development

       The managers request the Secretary of State, in 
     consultation with the Secretaries of Energy and the Treasury, 
     and the Agency for International Development, the Export-
     Import Bank, Overseas Private Investment Corporation, and the 
     Trade and Development Agency, to submit a report by March 1, 
     1997, to the Committees on Appropriations, Foreign Relations, 
     and International Relations, containing a plan of action for 
     the United States Government to assist and accelerate the 
     earliest possible development and shipment of oil from the 
     Caspian Sea region to the United States and other Western 
     markets. The report should include (1) an explanation of the 
     financial, diplomatic, geographic, political, environmental 
     and other

[[Page H11911]]

     considerations that must be addressed to accomplish the 
     exploration, development, and shipment of the region's oil, 
     consistent with international commercial practices; (2) steps 
     the Administration intends to take to pursue these 
     initiatives; and (3) recommendations for legislative action.


                                armenia

       Because of concern about the impact of the continuing 
     blockade and conflict in the region surrounding Armenia, the 
     conferees direct that the Agency for International 
     Development and other United States Government agencies 
     provide no less than $95,000,000 for technical and 
     humanitarian assistance requested by the Government of 
     Armenia and qualified non-governmental organizations in 
     Armenia. Consistent with paragraphs (i) and (j) under this 
     heading, such agencies are encouraged to take advantage of 
     the expertise and experience of Armenian-American private 
     voluntary organizations and individuals.


                                georgia

       Although the managers did not earmark resources for 
     Georgia, the Administration is expected to sustain a level of 
     support at least comparable to that provided in fiscal year 
     1996. Georgia continues to lag behind its neighbors in 
     economic and political reforms. Nonetheless, the managers 
     recognize the Georgian leadership's commitment to 
     accelerating the pace and scope of needed change and believe 
     U.S. support is essential to assuring these efforts are 
     successful.


                                chechnya

       The managers are deeply concerned about the conflict in 
     Chechnya, particularly, the Russian assaults on Chechen 
     villages that commenced days after the re-election of 
     President Yeltsin. They request that President Clinton 
     instruct the Department of State to take a more forceful and 
     active role in seeking a permanent end to the conflict. The 
     committee of conference calls on the Government of the 
     Russian Federation to permanently halt offensive military 
     actions in Chechnya and neighboring regions. It further 
     requests that President Boris Yeltsin take immediate steps to 
     fully implement peace agreements reached by his national 
     security advisor, Alexander Lebed. A report on Chechnya is 
     also required under Section 573 of this Act.


                         eastern russia/siberia

       The conferees commend AID for its efforts to move beyond 
     Moscow and to promote the development of the eastern areas of 
     the Russian Federation that are closest to the western United 
     States. The conference concurs with Senate report language 
     regarding the American-Russian Center and its training 
     facilities in major cities of the region, and directs AID to 
     make available all necessary funding during the Center's 
     transition to full financial self-sufficiency by 1998.
       The managers support the expansion of funding of programs 
     to promote sustainable agricultural practices through 
     replicating the U.S. extension model at Russian agricultural 
     colleges.

                           Independent Agency


                              peace corps

       Appropriates $208,000,000 for the Peace Corps instead of 
     $212,000,000 as proposed by the House and $205,000,000 as 
     proposed by the Senate.
       The managers anticipate that not less than $12,000,000 will 
     be made available to the Peace Corps from NIS funds, in 
     addition to the funds provided in this account.

                          Department of State


                    international narcotics control

       The conference agreement appropriates $213,000,000 for 
     International Narcotics Control. The House bill proposed 
     $150,000,000 for this account, while the Senate amendment 
     contained an appropriation of $213,000,000. In addition, the 
     conference agreement includes language prohibiting the 
     obligation of funds to the units of foreign security forces 
     that the Secretary of State has credible evidence have been 
     involved in gross violations of human rights, unless steps 
     have been taken to bring such individuals to justice.
       The managers expect that a significant portion of these 
     funds will be used to expand programs in alternative 
     development, to enable farmers in Latin America to shift from 
     growing coca to legitimate agricultural crops.
       The conference agreement deletes Senate language earmarking 
     $2,000,000 for demining operations in Afghanistan. This issue 
     is addressed in the Nonproliferation, Anti-terrorism and 
     Demining account.
       The managers direct that the Department of State consult 
     closely with the Committees on Appropriations regarding the 
     spending plans for this account. The managers further expect 
     quarterly reports from the Department of State to the 
     Committees on Appropriations on the implementation of 
     programs, projects, and activities regarding international 
     narcotics control.


                    migration and refugee assistance

       The conference agreement deletes House language which would 
     require a notification for the obligation of funds to the 
     United Nations High Commissioner for Refugees for support of 
     refugees from Rwanda. The conference agreement also inserts 
     Senate language that earmarks not less than $80,000,000 for 
     refugees from the former Soviet Union and Eastern Europe and 
     other refugees resettling in Israel.


                                 rwanda

       Although the conference agreement does not contain House 
     language requiring a notification for support of refugees 
     from Rwanda, the managers direct the Department of State to 
     consult fully with the Committees on Appropriations prior to 
     any obligation of funds to the United Nations High 
     Commissioner for Refugees for this purpose. Due to the high 
     priority that should be assigned to efforts to resolve the 
     conflicts in the region, the managers believe the Special 
     Representative for Rwanda and Burundi should report directly 
     to the Secretary, rather than through intermediaries, on all 
     matters regarding this area of Africa. The managers further 
     request regular reports from the Administration to the 
     Committees on Appropriations on progress in resolving the 
     situation in Rwanda and Burundi.


                    refugee resettlement assistance

       The conference agreement appropriates $5,000,000 for 
     ``Refugee Resettlement Assistance'' as proposed by the House. 
     The Senate amendment contained no provision on this matter.


    nonproliferation, anti-terrorism, demining and related programs

       The conference agreement appropriates $151,000,000 for 
     ``Nonproliferation, Anti-terrorism, Demining and Related 
     Programs'' instead of $140,000,000 as proposed by the Senate 
     and $135,000,000 as proposed by the House.


            korean peninsula energy development organization

       The conference agreement also inserts language which 
     provides that not to exceed $25,000,000 may be made available 
     to the Korean Peninsula Energy Development Organization 
     (KEDO) only for administrative expenses and heavy fuel oil 
     costs associated with the Agreed Framework. The conference 
     agreement further provides that before obligating funds to 
     KEDO the President must certify to the Congress that: the 
     U.S. is taking steps to assure progress is being made on the 
     implementation of the denuclearization agreement and the 
     North-South Dialogue; North Korea is complying with the other 
     provisions of the Agreed Framework; North Korea is 
     cooperating fully in the canning and storage of spent fuel; 
     and North Korea has not significantly diverted assistance. 
     These certification requirements may be waived by the 
     President if he deems it vital to the national security 
     interests of the United States and no funds may be obligated 
     until 30 days after submission of the waiver. The agreement 
     further provides that before obligating any funds for KEDO 
     the President shall submit a report to Congress on: North 
     Korean cooperation with United States on the return of the 
     remains of Korean War MIAs; violations of the Armistice 
     agreement; actions which the US is taking to assure that 
     North Korea is implementing the denuclearization agreement 
     and engaging in the North-South dialogue; and, all instances 
     of non-compliance with the Agreed Framework, including 
     diversion of heavy fuel oil. The conference agreement 
     provides that the obligation of such funds shall be subject 
     to the regular notification procedures of the Committees on 
     Appropriations. The conference agreement inserts language 
     which requires the Secretary of State to submit to the 
     appropriate congressional committees an annual report (to be 
     submitted with the annual presentation for appropriations) 
     detailing the expected operating budget of the Korean 
     Peninsula Energy Development Organization, to include 
     proposed annual costs associated with heavy fuel oil 
     purchases and other related activities, and the amount of 
     funds raised from other donor nations to support KEDO 
     activities on a per country basis. The managers agree that 
     none of the funds in this bill that are made available for 
     KEDO in fiscal year 1997 may be used to contribute to the 
     light-water nuclear reactors being provided to North Korea 
     under the terms of the Agreed Framework.


                          demining activities

       The managers recognize the need to enhance the 
     effectiveness of landmine clearance efforts in Afghanistan 
     which is littered with an estimated 10,000,000 to 14,000,000 
     landmines, and recommended that $2,000,000 be made available 
     for this purpose. The conferees stress the priority of 
     clearing mines from agricultural lands to increase food 
     production and support anti-narcotics efforts. In addition, 
     the managers urge the administration to make at least 
     $1,500,000 available for demining activities in Cambodia.

                     TITLE III--MILITARY ASSISTANCE

             International Military Education and Training

       The conference agreement appropriates $43,475,000 as 
     proposed by the House instead of $40,000,000 as proposed by 
     the Senate.
       The conference agreement deletes two Senate provisions 
     which limit grant IMET for ``High Income'' countries and 
     provide authority for IMET training for members of national 
     legislatures and individuals who are not members of the 
     government. Similar provisions are included in Public Law 
     104-164, signed on July 20, 1996.
       The managers express their strong support for the newly 
     elected government in Mongolia and urge the administration to 
     utilize IMET training, particularly expanded IMET, for the 
     new members of the State Great Hural, particularly those 
     sitting on the security committee, as well as civilian and 
     military personnel at the Ministry of Defense. The managers 
     recommend $350,000 to carry out these activities and urge the 
     administration to accelerate the provision of this training 
     to the maximum extent practical.

[[Page H11912]]

           Foreign Military Financing Program (grant program)

       The conference agreement appropriates $3,164,000,000 
     instead of $3,224,000,000 as proposed by the Senate and 
     $3,222,250,000 as proposed by the House.
       The conference agreement also inserts earmarks for Israel 
     and Egypt which provide that not less than $1,800,000,000 
     shall be available for grants only for Israel, and not less 
     than $1,300,000,000 shall be available for grants only for 
     Egypt.
       The conference agreement deletes Senate language which 
     provides that Poland, Hungary, and the Czech Republic shall 
     be designated as eligible to participate under the NATO 
     Participation Act of 1994. Similar language is included in 
     Title VI.
       The conference agreement provides that not less than 
     $30,000,000 shall be made available for Poland, Hungary, and 
     the Czech Republic to carry out title II of Public Law 103-
     477 (The NATO Participation Act) and section 585 (The NATO 
     Participation Act Amendments of 1995) of Public Law 104-107.
       The conference agreement amends Senate language which 
     provides that up to $20,000,000 may be transferred from 
     ``Assistance for Eastern Europe and the Baltic States'' and 
     ``Assistance for the New Independent States of the Former 
     Soviet Union'' to this account to provide support for NATO 
     expansion and the Warsaw Initiative, notwithstanding any 
     other provision of law. The conference agreement retains the 
     Senate language and provides that up to $7,000,000 may be 
     transferred under this authority.
       The managers note the success of the Partnership for Peace 
     (PFP) and the Warsaw Initiative which receive funds from this 
     account. PFP is doing an excellent job preparing nations for 
     possible membership in NATO as well as providing a framework 
     for other nations to develop a closer security relationship 
     with NATO. The managers instruct the Secretary of State, in 
     consultation with the Secretary of Defense, to provide to the 
     Committees on Appropriations, no later than March 15, 1997, a 
     report detailing the activities of PFP, the types and extent 
     of PFP programs, the nations participating in PFP, the 
     resources being contributed by current NATO members 
     participating in PFP, and a detailed description of the PFP 
     budget. In addition, the report should contain an estimate of 
     the possible costs to the United States associated with 
     membership in NATO of Poland, Hungary, the Czech Republic or 
     Slovenia. The report should also include a separate section 
     on the feasibility of an enhanced PFP which would place 
     greater emphasis on Combined Joint Task Forces as well as 
     recommendations on how to enhance the consultation process, 
     especially the crisis management mechanism, between NATO and 
     PFP members. The report may include a classified annex if 
     deemed necessary by the Secretary of State.
       The conference agreement also appropriates $60,000,000 as 
     proposed by the Senate for the subsidy cost of direct loans 
     instead of $35,000,000 as proposed by the House. The 
     conference agreement provides that these funds are available 
     to support $540,000,000 in direct loans as proposed by the 
     Senate instead of $323,815,000 as provided by the House.
       The conference agreement earmarks $20,000,000 for Poland, 
     Hungary, and the Czech Republic.
       The conference agreement retains the Senate proposed levels 
     of $122,500,000 and $175,000,000 as ceilings on FMF loans to 
     Greece and Turkey respectively instead of $103,471,000 and 
     $147,816,000 as proposed by the House.
       The conference agreement adopts House language which 
     deletes ``Peru'' from the list of countries prohibited from 
     receiving funds. The Senate had proposed prohibiting funds to 
     Peru. The managers note that the administration did not 
     request Foreign Military Financing assistance for Peru in 
     fiscal year 1997 and therefore the managers believe that this 
     prohibition is not necessary at the present time. However, 
     while the managers believe that Peru has made progress in 
     recent years, there are still significant human rights issues 
     which remain of concern, particularly those relating to the 
     Peruvian military. As a result, the conferees would not 
     support the provision of Foreign Military Financing 
     assistance to Peru.
       The conference agreement deletes language proposed by the 
     Senate that no funds may be made available for Colombia or 
     Bolivia until the Secretary of State certifies that such 
     funds will be used ``primarily'' for counternarcotics 
     activities. The managers note that no FMF funds were 
     requested by the administration for fiscal year 1997 for 
     Colombia or Bolivia, therefore this provision is not 
     necessary at the present time.
       The conference agreement deletes similar House (Section 575 
     of the House passed bill) and Senate language which requires 
     that the Department of Defense at the request of Defense 
     Security Assistance Agency conduct nonreimbursable audits of 
     private firms with FMF financed contracts. A similar 
     provision is included in Public Law 104-164, signed on July 
     20, 1996.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

                  International Financial Institutions

     Contribution to the International Bank for Reconstruction and 
                Development Global Environment Facility

       The conference agreement appropriates $35,000,000 as 
     proposed by the Senate instead of $30,000,000 as proposed by 
     the House.

       Contribution to the International Development Association

       The conference agreement appropriates $700,000,000 as 
     proposed by the Senate instead of $525,000,000 as proposed by 
     the House.
       The conference agreement also changes the heading to 
     ``International Development Association'', as provided in the 
     House bill, instead of ``Contribution to the Interim Trust 
     Fund at the International Development Association'', as 
     proposed by the Senate. The conferees delete House language 
     requiring a report from the Secretary of the Treasury 
     detailing United States efforts to oppose the formation of 
     the Interim Trust Fund and the adverse consequences of using 
     the Interim Trust Fund to deny procurement opportunities to 
     American companies.
       The conference agreement provides $700,000,000 for payment 
     to the International Development Association (IDA), the same 
     amount as in fiscal year 1996. Although this leaves a U.S. 
     unfunded commitment balance of $234,000,000, it demonstrates 
     the conferees' intention to support IDA during a period of 
     declining budgets.
       The managers note that the United States, which was 
     instrumental in creating IDA and has provided contributions 
     ranging from 42 to 20 percent of IDA's budget over nearly 
     three decades, provides the dominant share of economic and 
     military resources to support global development and 
     security. These resources significantly benefit IDA-11 donors 
     in such unstable regions as Bosnia, the Korean Peninsula, and 
     the Middle East.
       While the managers understand that the Interim Trust Fund 
     (ITF) was created to maintain IDA funding levels while the 
     U.S. fulfills its commitments to both IDA and a balanced 
     domestic budget, they strongly oppose the restrictions on 
     procurement financed by the ITF. The conferees suggest that 
     it is unwise for an international financial institution to 
     preclude its traditional donors from completing for contracts 
     funded by the institution. These restrictions threaten future 
     U.S. participation in IDA, and IDA's future as the primary 
     source of lending to the world's poor.
       Therefore, the conference agreement withholds obligations 
     of the $700,000,000 until after the February 1997 IDA-11 
     donors review meeting, and anticipates that the Secretary of 
     the Treasury will secure agreement of IDA-11 donors to 
     suspend or cancel the procurement restrictions. The Secretary 
     is to report to the Committees on Appropriations on the level 
     of discussions, the reactions of other donors, and the result 
     of his efforts. Failure to lift the procurement restrictions 
     could jeopardize U.S. support for IDA-11.

                    North American Development Bank

       The conference agreement appropriates $56,000,000 for paid-
     in capital of the North American Development Bank instead of 
     $50,625,000 as proposed by the House and $56,250,000 as 
     proposed by the Senate.

                International Organizations and Programs

       The conference agreement appropriates $169,950,000 instead 
     of $136,000,000 as proposed by the House and $270,000,000 as 
     proposed by the Senate. The conference agreement does not 
     include funding of UNICEF in this account, as proposed by the 
     Senate. Funding of $100,000,000 for UNICEF is contained in 
     ``Child Survival and Disease Programs Fund'' under title II.
       The conference agreement contains a funding ceiling of 
     $25,000,000 for the United Nations Population Fund (UNFPA) as 
     proposed by the House instead of $35,000,000 as proposed by 
     the Senate.
       The conference agreement also inserts Senate language on 
     UNFPA that limits funding to UNFPA to one-half of the funding 
     ceiling prior to March 1, 1997, and requires that no later 
     than February 15, 1997, the Secretary of State shall submit a 
     report to the Committees on Appropriations indicating the 
     amount UNFPA is budgeting for the People's Republic of China 
     in 1997. In addition, the language requires that any amount 
     UNFPA plans to spend in the People's Republic of China in 
     1997 will be deducted from the amount of funds provided to 
     UNFPA after March 1, 1997. Finally, with respect to any funds 
     made available to UNFPA, the language requires UNFPA to 
     maintain such funds in a separate account and not to 
     commingle them with any other funds. The House language would 
     have prohibited funds appropriated under this heading from 
     being made available to the UNFPA unless the Secretary of 
     State determined and reported to the Congress that UNFPA 
     programs in the People's Republic of China have ended and the 
     United States received assurances that the UNFPA would not 
     resume such programs during fiscal year 1997.
       The conference agreement inserts House language which 
     prohibits funds under this heading from being made available 
     to the Korean Peninsula Energy Development Organization 
     (KEDO), and Senate proposed language which prohibits funds 
     under this heading from being made available for the 
     International Atomic Energy Agency (IAEA). The United States 
     voluntary contributions to both organizations are now funded 
     in ``Nonproliferation, Antiterrorism, Demining, and Related 
     Programs''.
       The conference agreement does not contain Senate language 
     earmarking $3,000,000 for the World Food Program. The 
     managers support funding for the World Food Program and 
     expect the Administration to provide funding at this level.
       Within the funds provided in the conference agreement, the 
     conferees expect that

[[Page H11913]]

     $78,700,000 will be made available for a grant to the United 
     Nations Development Program (UNDP).
       The Framework Convention on Climate Change (FCCC) 
     negotiations and funding in support of global climate change 
     activities are matters of interest to the Committees on 
     Appropriations. The managers expect the Department of State 
     to keep the Committees fully informed of actions taken and 
     funds made available in the Act that are obligated in support 
     of the FCCC. Any decision to adhere to binding targets and 
     timetables for greenhouse gas emission reductions is a 
     substantial change in 1992 FCCC commitments which requires 
     congressional advice and consent. Any such decision will have 
     a significant impact on trade, competitiveness and American 
     jobs. Therefore, the managers direct that a comprehensive 
     economic impact analysis be prepared to evaluate any proposed 
     FCCC agreement at least six months prior to a vote on final 
     negotiating text of an agreement. The managers suggest formal 
     consultations with nongovernmental organizations, U.S. labor 
     and business organizations, and Congress to help ensure that 
     the U.S. negotiating position accurately reflects United 
     States national interests.
       The managers recognize the importance of international 
     organizations and programs in protecting the environment. 
     Support for these activities, such as the RAMSAR 
     international wetlands treaty and the Convention on 
     International Trade in Endangered Species of Wild Fauna and 
     Flora, represent a good investment in preserving wildlife and 
     its habitat. The managers expect that the full amount of 
     funds pledged by the Administration will be provided for 
     these activities.

                      TITLE V--GENERAL PROVISIONS

   Sec. 507--Prohibition Against Direct Funding for Certain Countries

       The conference agreement deletes ``Serbia'' from the list 
     of countries prohibited from receiving assistance under the 
     terms of this provision as proposed by the House. The 
     managers address special concerns about Serbia in sec. 520.

                  Sec. 509--Transfers Between Accounts

       The conference agreement deletes Senate language providing 
     that the exercise of the authority under this section shall 
     be subject to the regular notification procedures of the 
     Committees on Appropriations, except for transfer 
     specifically referred to in this Act. The conference 
     agreement requires consultations with the Committees on 
     Appropriations, as provided in the House bill.

                    Sec. 511--Availability of Funds

       The conference agreement inserts Senate language with 
     regard to the availability of funds for cash disbursements; 
     this is a technical provision.

                      Sec. 513--Commerce and Trade

       The conference agreement restores House language at the end 
     of subsection (a) that provides authority to the Board of the 
     Export-Import Bank to waive the prohibition on the use of 
     funds to establish or expand production of commodities that 
     could adversely affect United States producers.

                  Sec. 515--Notification Requirements

       The conference agreement makes ``Child Survival and Disease 
     Programs Fund'' and ``Debt restructuring'', as proposed by 
     the House, subject to the notification requirements of this 
     section.

    Sec. 516--Limitation on Availability of Funds for International 
                       Organizations and Programs

       The conference agreement inserts House language to provide 
     that September 30, 1998 shall be the expiration date for the 
     obligation of funds that are withheld pursuant to the 
     provisions of this section.

          Sec. 518A--Population Assistance Funding Limitations

       The conference agreement includes language limiting funds 
     for bilateral international population assistance to 
     $385,000,000, and apportioning such funds at a monthly rate 
     of not to exceed 8 percent. Such funds would become available 
     for obligation on July 1, 1997. However, the President would 
     be required to submit a finding by February 1, 1997, 
     regarding the affect of the obligation delay on the program. 
     Under expedited procedures, both Houses of Congress would be 
     required to consider a joint resolution to approve a negative 
     finding before the end of February. If such resolution were 
     adopted and signed into law, funds would become available for 
     obligation on March 1, 1997. However, the monthly 
     apportionment of not to exceed 8 percent would remain in 
     effect.

                     Sec. 520--Special Notification

       The conference agreement deletes ``Russia'' and ``South 
     Africa'' from the list of countries subject to the special 
     notification requirements of this section, as proposed by the 
     Senate, but does not delete ``Serbia'', ``Dominican 
     Republic'', or ``Peru''. The conference agreement also 
     includes ``Guatemala'' as proposed by the Senate; however, 
     special notification requirements would not be required for 
     development assistance.

 Sec. 5527--Prohibition on Bilateral Assistance to Terrorist Countries

       The conference agreement inserts ``Notwithstanding any 
     other provision of law'' at the beginning of this section as 
     proposed by the Senate; otherwise the language is identical 
     to the House bill.

                      Sec. 531--Separate Accounts

       The conference agreement inserts House language to require 
     AID to take all necessary steps to ensure that local currency 
     funds are used pursuant to purposes identified in this 
     section, while the Senate amendment would require only that 
     appropriate steps be taken.
       The conference agreement also retains subsection (a)(6) of 
     the House bill, which was deleted by the Senate, which 
     requires reporting by the Administrator of AID on the use of 
     local currencies for administrative purposes.

      Sec. 533A--Competitive Pricing for Sales of Defense Articles

       The conference agreement inserts language proposed by the 
     Senate which provides that the direct costs associated with a 
     foreign buyer's unique or additional requirements are 
     allowable for contracts under section 22(d) of the Arms 
     Export Control Act, and loadings shall be permitted at the 
     same rates paid by DOD for like items purchased for its own 
     use. The House bill did not address this matter.

          Sec. 539--Authority to Assist Bosnia and Herzegovina

       The conference agreement inserts language proposed by the 
     Senate which limits Department of Defense drawdowns for 
     Bosnia and Herzegovina to not more than an aggregate of 
     $100,000,000 in fiscal year 1996 and fiscal year 1997. The 
     House bill contained a similar limitation.

                     Sec. 541--Special Authorities

       The conference agreement inserts language similar to that 
     proposed by the Senate regarding this section. The conference 
     agreement provides that none of the funds appropriated by 
     this Act may be available to a country or organization that 
     the Secretary of State determines is cooperating tactically 
     or strategically with the Khmer Rouge in their military 
     operations, or to the military of any country that the 
     Secretary of State determines is not acting vigorously to 
     prevent its members from facilitating the export of timber 
     from Cambodia by the Khmer Rouge; the amendment replaces 
     House language which terminated assistance if the President 
     determined that the military was not taking steps to prevent 
     a pattern or practice of commercial relations between its 
     members and the Khmer Rouge.
       The conference agreement also requires the Secretary of 
     State to submit a report on February 1, 1997, to the 
     Committees on Appropriations whether such assistance is being 
     prohibited, the basis for such conclusions, and, if 
     appropriate, the steps behind taken to terminate assistance.
       The conference agreement includes language which allows the 
     President to waive the prohibition on funds to militaries 
     facilitating the export of timber if the President determines 
     that it is important to the national security interest of the 
     United States; the waiver does not apply to the prohibition 
     on funds to a country or organization cooperating tactically 
     or strategically with the Khmer Rouge in their military 
     operations.
       The conference agreement also deletes House language 
     allowing for the use of up to $50,000,000 under the authority 
     (relating to unanticipated contingencies) of section 451 of 
     the Foreign Assistance Act, and inserts the sum $40,000,000 
     as proposed by the Senate.

                  Sec. 543--Anti-narcotics Activities

       The conference agreement retains House language authorizing 
     the use of the ``Economic Support Fund'' for administration 
     of justice programs pursuant to section 534(b) of the Foreign 
     Assistance Act in Latin America and the Caribbean ``and in 
     other regions''. The Senate amendment would have allowed for 
     the use of funds in accordance with the provisions of section 
     534 for Latin America and the Caribbean but did not include 
     the term ``and in other regions''. The conference agreement 
     also includes House language that is technical in nature.

                        Excess Defense Articles

       The conference agreement deletes Senate proposed language 
     providing authority in fiscal year 1997 for the provision of 
     lethal and nonlethal defense articles. Similar language was 
     included in Public Law 104-164, signed by the President on 
     July 20, 1996.
       The Senate language included a report on certain human 
     rights concerns in Tunisia which was not included in P.L. 
     104-164. Therefore the managers request that the Secretary of 
     State submit a report to the Committees on Appropriations, 
     not later than April 1, 1997 describing recent actions by the 
     Government of Tunisia to improve respect for civil liberties 
     and promote the independence of the judiciary.

                     Sec. 555--War Crime Tribunals

       The conference agreement sets a limitation of $25,000,000 
     on the drawdown of commodities and services under the 
     authority of section 552(c) of the Foreign Assistance Act for 
     the purpose of supporting war crimes tribunals as proposed by 
     the Senate instead of $50,000,000 as proposed by the House.

                          Sec. 556--Landmines

       The conference agreement inserts language which provides 
     that demining equipment available to the Agency for 
     International Development and the Department of State may be 
     provided to foreign countries for the clearing of landmines 
     and unexploded ordnance on a grant basis. The conference 
     agreement also inserts Senate proposed language which extends 
     the United States ban on the export of landmines by amending 
     the National Defense Authorization Act for Fiscal Year 1993 
     and inserting ``During the

[[Page H11914]]

     eight-year period beginning on October 23, 1992.''.

                    Sec. 559--Humanitarian Corridors

       The conference agreement inserts Senate language (amending 
     Sec. 620H of the Foreign Assistance Act) which is similar to 
     House proposed language regarding countries which block the 
     provision of humanitarian assistance. The House provision did 
     not amend the Foreign Assistance Act of 1961 and excluded 
     ``Economic Support Funds'' from the Presidential waiver 
     authority. The managers note that when the waiver included in 
     Section 562 of P.L. 104-306 was exercised by the President, 
     it was done without prior notification to the Congress. The 
     conference agreement adds a provision which requires the 
     President to notify the Congress prior to exercising the 
     waiver authority.

 Withholding of Assistance to Countries Supporting Nuclear Power Plant 
                                in Cuba

       The conference agreement deletes House language withholding 
     assistance from countries that are supporting the completion 
     of the Cuban nuclear facility at Juragua, near Cienfuegos, 
     Cuba, as proposed by the Senate. This matter was addressed by 
     Public Law 104-114, the ``Cuban Liberty and Democratic 
     Solidarity (LIBERTAD) Act of 1996''.

                Sec. 560--Equitable Allocation of Funds

       The conference agreement inserts House language providing 
     that not more than 20 percent of the funds appropriated to 
     carry out the provisions of sections 103 through 106 and 
     chapter 4 of part II of the Foreign Assistance Act that are 
     made available for Latin America and the Caribbean region may 
     be made available, through bilateral and regional programs, 
     to provide assistance to any one country in such region. The 
     Senate deleted this provision.

            Sec. 563--International Development Association

       The conference agreement includes language authorizing 
     appropriations of $700,000,000 for the International 
     Development Association. The House bill would have authorized 
     $525,000,000. The Senate amendment did not contain a 
     provision on this matter.

        Sec. 565--Authority to Engage in Debt Buybacks or Sales

       The conference agreement inserts the word ``should'' 
     instead of ``shall'' as proposed by the House in subsection 
     (d); the effect of the language is not to require 
     consultations with eligible countries prior to the sale or 
     reduction of loans pursuant to this section.

                           Sec. 566--Liberia

       The conference agreement inserts House language allowing 
     for the obligation of funds for assistance to Liberia 
     notwithstanding section 620(q) of the Foreign Assistance Act 
     and section 512 of this Act (Limitation on Assistance to 
     Countries in Default). The Senate amendment deleted this 
     provision.

                          Sec. 567--Guatemala

       The conference agreement retains language similar to that 
     proposed by the House. The conference agreement provides 
     authority to the President to waive restrictions on funding 
     for Guatemalan military forces under ``Foreign Military 
     Financing Program'' and ``International Military Education 
     and Training'' only if the President determines and certifies 
     to the Congress that the Guatemalan military is cooperating 
     fully with efforts to resolve human rights abuses which 
     elements of the Guatemalan military forces are alleged to 
     have committed, ordered or attempted to thwart the 
     investigation of and with efforts to negotiate a peace 
     process. The funding prohibition would not apply to funds 
     made available to implement a cease-fire or peace agreement.

     Sec. 568--Sanctions Against Countries Harboring War Criminals

       The conference agreement inserts House language on this 
     matter. Under subsection (a), the language authorizes the 
     President to withhold funds for countries described in this 
     section. Under subsection (b), the language states the 
     President ``should'' instruct the United States executive 
     directors of the international financial institutions to work 
     in opposition to, and vote against, assistance to countries 
     described in this section.

              Sec. 569--Limitation on Assistance to Haiti

       The conference agreement inserts a provision limiting 
     assistance to the Government of Haiti unless certain 
     conditions are met, or unless the President waives the 
     requirements of the section. The conference substitute is 
     similar to the House provision, but requires that any 
     Presidential waiver be exercised semi-annually, rather than 
     quarterly, as proposed by House, and it does not include the 
     names of three victims of non-judicial killings of particular 
     concern: Mireille Bertin, Jacques Florival, and Jean Hubert 
     Feuille.

                     Sec. 570--Policy Toward Burma

       The conference agreement inserts Senate language 
     establishing conditional prohibitions on certain assistance 
     to Burma, sanctions on new investments in Burma, and 
     restrictions on visas issued to officials of Burma. However, 
     the restriction on visas for government officials is not 
     mandatory in the conference agreement.
       U.S. foreign assistance is restricted with the exception of 
     support for humanitarian, counter-narcotics, and democracy 
     programs. The U.S. Directors at international financial 
     institutions are expected to oppose lending to Burma. The 
     Senate had also imposed a ban on issuing visas to officials 
     of the State law and Order Restoration Council (SLORC). the 
     managers have modified this restriction in view of the 
     Administration's declared intention to issue a Presidential 
     Proclamation delegating authority to the Secretary of State 
     to ban visas to both SLORC officials and individuals who 
     impede the restoration of democracy.
       In addition to mandatory sanctions the conferees support 
     the imposition of a ban on new investment in the event that 
     specified acts are taken against Aung San Suu Kyi, the 
     legitimately elected leader of Burma, or there is large scale 
     violence or repression of the democratic opposition. The 
     conferees note that since June more than sixty members and 
     supporters of the National League for Democracy have been 
     arrested and more than half have been sentenced to long 
     prison terms. Aung San Suu Kyi has expressed the view that 
     these arrests are a ``war of the attrition'' designed to 
     undermine the democracy movement. While it is of ``large 
     scale repression'' the conferees are deeply concerned by the 
     pattern of abuses and arrests over the past several months. 
     The conferees have required a semiannual report on conditions 
     in Burma. The conferees expect the report to address whether 
     the recent pattern of arrests constitutes large scale 
     repression.

                  Sec. 571--Report Regarding Hong Kong

       The conference agreement deletes House language requiring 
     an additional report on March 31, 1997, under section 301 of 
     the United States-Hong Kong Policy Act of 1992. However, it 
     does require that the report already mandated in current law 
     shall address certain issues as specified in the House bill. 
     The Senate bill did not include a similar position.

 Section 572--Use of Funds for Purchase of Products Not Made in America

       The conference agreement requires a report on the 
     implications of a limitation on use of funds for the 
     government of a foreign country if the funds are to be used 
     to purchase certain equipment or products made in a country 
     other than such foreign country or the United States. The 
     House bill included a provision which would have mandated 
     such a limitation. The Senate bill did not address this 
     matter.

                     Sec. 573--Conflict in Chechnya

       The conference agreement deletes Senate language expressing 
     the sense of the Senate regarding Russia's actions in 
     Chechnya. The conference agreement inserts language requiring 
     the Secretary of State to submit a report to the Committees 
     on Appropriations within 30 days from the date of enactment 
     of this Act on actions undertaken by the United States 
     Government to resolve the conflict in Chechnya. The House 
     bill did not address this matter.

  Limitation on Funds to the Territory of the Bosniac-Croat Federation

       The conference agreement deletes language limiting United 
     States assistance to Bosnia and Herzegovina (other than 
     refugee and disaster assistance, and assistance for 
     restoration of certain infrastructure) to the territory of 
     the Bosniac-Croat Federation, as proposed by the Senate. The 
     House bill did not address this matter.

                 United States Government Publications

       The conference agreement deletes Senate proposed language 
     requiring that, beginning in fiscal year 1997, all United 
     States Government publications shall refer to the capital of 
     Israel as Jerusalem. The House bill did not address this 
     matter. The conferees however agree that all relevant United 
     States Government publications should refer to the capital of 
     Israel as Jerusalem.

                Limitation on Foreign Military Financing

       The conference agreement deletes House language which 
     prohibits the use of FMF funds by any country which has not 
     agreed to the Department of Defense conducting, at the 
     request of the Defense Security Assistance Agency, 
     nonreimbursable audits of private firms having FMF financed 
     contracts with these governments. The Senate amendment 
     included similar language in Title III. Public Law 104-164, 
     signed by the President on July 20, 1996, includes in 
     permanent law a similar provision.

         Sec. 575--Extension of Certain Adjudication Provisions

       The conference agreement includes Senate language that 
     extends for an additional year (until October 1, 1997) the 
     provisions of section 599D and 599E of Public Law 101-167; 
     these provisions establish categories of aliens for purposes 
     of refugee determinations, and provide for the adjustment of 
     immigrant status for certain Soviet and Indochinese aliens.

                   Sec. 576--Transparency of Budgets

       The conference agreement includes language similar to the 
     Senate amendment requiring United States executive directors 
     at each international financial institution to actively 
     oppose loans or other assistance to any nation that has not 
     allowed civilian officials to audit the financial records of 
     its military and security forces. The House bill did not 
     address this matter.

                Limitation Under Arms Export Control Act

       The conference agreement deletes House language limiting to 
     $100,000,000 the amount of FMF funds which can be made 
     available to finance the procurement of defense articles and 
     services that are sold to countries other than Israel and 
     Egypt by the United States Government under the Arms Export 
     Control Act. Public Law 104-164, signed by the President on 
     July 20, 1996, includes in permanent law a similar provision.

[[Page H11915]]

                          Sec. 577--Guarantees

       The conference agreement inserts Senate language with 
     regard to the fiscal year 1997 impact of the agreement by the 
     United States to guarantee certain loans incurred by Israel, 
     as proposed by the Senate. The House bill did not address 
     this matter.

Sec. 578--Information on Cooperation with United States Anti-terrorism 
             Efforts in Annual Country Reports on Terrorism

       The conference agreement inserts language proposed by the 
     Senate which amends the Foreign Relations Authorization Act, 
     Fiscal Years 1988 and 1989, to expand the existing annual 
     report on other nations' efforts to curtail drug trafficking 
     to include similar language with regard to cooperation with 
     the United States in investigating and prosecuting acts of 
     international terrorism, as proposed by the Senate. The House 
     bill did not address this matter.

                       Promotion of Human Rights

       The conference agreement deletes Senate language that 
     requires the Secretary of State to deny visas to any current 
     or former senior official of a government that receives funds 
     appropriated by this Act, if the Secretary has ``credible 
     evidence'' that such official has committed, ordered or 
     attempted to thwart the investigation of a gross violation of 
     an internationally recognized human right, as proposed by the 
     Senate. The House bill did not address this matter.

                  Sec. 579--Female Genital Mutilation

       The conference agreement includes language requiring United 
     States executive directors at international financial 
     institutions, beginning one year after enactment of this Act, 
     to actively oppose loans, other than to address basic human 
     needs, to certain countries. Each country affected would be 
     named by the Secretary of the Treasury once he determines it 
     has a known history of the practice of female genital 
     mutilation. The conference agreement does not contain the 
     Senate language which would also have required such countries 
     to institute a legal ban on such practices to avoid the 
     restrictions of this section. The House bill did not address 
     this matter.

   Sec. 580--Requirement for Disclosure of Foreign Aid in Report of 
                           Secretary of State

       The conference agreement inserts Senate language requiring 
     that the annual report on the voting record of foreign 
     countries at the United Nations include a side-by-side 
     comparison showing the amount of U.S. assistance provided to 
     each country in fiscal year 1996, as proposed by the Senate. 
     The House bill did not address this matter.

  Sec. 581--Restrictions on Voluntary Contributions to United Nations 
                                Agencies

       The conference agreement inserts language prohibiting 
     payment of any voluntary contribution to the United Nations 
     (including the United Nations Development Program) if the UN 
     implements any taxation on any United States national or 
     corporation. The Senate amendment included this language as 
     well as a prohibition for contributions to United Nations 
     specialized agencies, and would have prohibited the payment 
     of contributions if the United Nations attempted to obtain 
     loans from international financial institutions. The House 
     bill did not address this matter.

                            Sec. 582--Haiti

       The conference agreement allows the Government of Haiti to 
     purchase defense articles and services for the civilian-led 
     Haitian National Police and Coast Guard as proposed by the 
     Senate. The House bill did not address this matter.

     Sense of Congress Regarding the U.S.-Japan Insurance Agreement

       The conference agreement deletes Senate language expressing 
     the sense of the Congress that Japan's Ministry of Finance 
     should without further delay fully comply with all provisions 
     of the United States-Japan Insurance Agreement of October 
     1994. The House bill did not address this matter.

                Limitation of Foreign Sovereign Immunity

       The conference agreement deletes Senate language amending 
     section 1605(a)(7) of the United States Code which limits the 
     immunity, under certain circumstances, of foreign states 
     officially designated as a state sponsor of terrorism against 
     claimants who were United States nationals when victimized, 
     as proposed by the Senate. The House bill did not address 
     this matter.

   Sec. 584--Refugee Status for Adult Children of Former Vietnamese 
   Reeducation Camp Internees Resettled under the Orderly Departure 
                                Program

       The conference agreement inserts Senate language that 
     supersedes the Immigration and Nationality Act to expand the 
     category `refugee of special humanitarian concern' to include 
     certain adult children of former Vietnamese reeducation camp 
     internees resettled in the United States. However, language 
     has been included to require that the provisions of this 
     section expire at the end of fiscal year 1997. The House bill 
     did not address this matter.

                         Sec. 585--North Korea

       The conference agreement inserts language proposed by the 
     Senate which requires the Secretary of State, in consultation 
     with the Secretary of Defense, to submit semiannual reports 
     to the Committees on Appropriations on the following 
     information: estimate of fuel used by the North Korean 
     military; scope and cost of training and deployment of those 
     forces; steps taken to reduce their size; and cooperation 
     between North Korea and other nations in support of 
     development or deployment of a ballistic missile capability. 
     The House bill did not contain a similar provision.

Report on Domestic Federal Agencies Furnishing United States Assistance

       The conference agreement deletes Senate language requiring 
     the General Accounting Office to study and report to 
     Congress, no later than June 1, 1997, on all assistance to 
     foreign nations and international organizations undertaken by 
     domestic Federal agencies. The House bill did not address 
     this matter.

              Sec. 587--Limitation on Assistance to Mexico

       The conference agreement combines parts of Senate section 
     597 with a House limitation on the obligation of funds in 
     this Act for the Government of Mexico unless 1) Mexico is 
     taking actions to reduce the amount of illegal drugs entering 
     the United States from Mexico; 2) Mexico is taking vigorous 
     law enforcement actions to deal with illegal drug kingpins, 
     and other individuals involved in illegal drug activities; 3) 
     Mexico is pursuing international anti-drug trafficking and 
     narcotics interdiction initiatives and is reducing the 
     incidence of money-laundering.

              Sec. 588--Limitation on Assistance to Turkey

       The conference agreement inserts language which limits 
     ``Economic Support Funds'' to Turkey to $22,000,000.

            Trade Relations with Central and Eastern Europe

       The conference agreement deletes language expressing the 
     sense of Congress that the President should take steps to 
     promote more open, fair, and free trade between the United 
     States and the countries of Central Europe, and enumerates 
     seven steps to promote that objective, as proposed by the 
     Senate. The House bill did not address this matter.

    Sec. 589--Civil Liability for Acts of State Sponsored Terrorism

       The conference agreement inserts language expanding the 
     scope of monetary damage awards available to American victims 
     of international terrorism.
       The conferees intend that this section shall apply to cases 
     pending upon enactment of this Act.

                  Sense of Congress Regarding Croatia

       The conference agreement deletes sense of the Congress 
     language proposed by the Senate regarding Croatia and 
     possible NATO membership. The issue of future NATO membership 
     is addressed in Title VI, the NATO Enlargement and 
     Facilitation Act of 1996. The managers note that Croatia is 
     in the process of joining the Partnership for Peace program. 
     Accordingly, the managers recommend that the United States 
     support the active participation of Croatia in activities 
     appropriate for qualifying for NATO membership, provided that 
     Croatia adheres fully to the Dayton Peace Accords and makes 
     progress toward establishing democratic institutions, a free 
     market and the rule of law.

               Romania's Progress Toward NATO Membership

       The conference agreement deletes sense of the Congress 
     language proposed by the Senate regarding Romania and 
     possible NATO membership. The issue of future NATO membership 
     is addressed in Title VI, the NATO Enlargement and 
     Facilitation Act of 1996. The managers note that Romania 
     emerged from decades of brutal communist dictatorship in 1989 
     and that multi-party democratic elections have been held at 
     the local, parliamentary, and presidential levels. Romania 
     was the first former Eastern Bloc country to join NATO's 
     Partnership for Peace program, is the second largest country 
     in Eastern Europe in terms of territory and population and is 
     therefore strategically significant. The managers recognize 
     that Romania has contributed forces to the NATO 
     Implementation Force in Bosnia. Accordingly, the managers 
     believe Romania should be evaluated for membership in the 
     NATO Participation Act's transition assistance program and 
     that the United States should work closely with Romania and 
     other countries working toward NATO membership to ensure that 
     every opportunity is provided to advance their entry into 
     NATO.

  Sense of Congress Regarding Expansion of Eligibility for Holocaust 
           Survivor Compensation by the Government of Germany

       The conference agreement deletes language appealing to the 
     Government of Germany to negotiate in good faith with the 
     Conference on Jewish Material Claims Against Germany to 
     broaden the categories of those eligible for compensation, as 
     proposed by the Senate. The House bill did not address this 
     matter.
       The managers agree that it shall be the policy of the 
     United States to (1) assist survivors of the German Nazi 
     horror to achieve full restitution for property and assets 
     seized by the former Nazi regime; (2) convey to the 
     Government of Germany the deep concern of the Government of 
     the United States regarding the onerous eligibility 
     requirements imposed by Germany on the payment of 
     compensation for Holocaust survivors living in the United 
     States; (3) strongly encourage the Government of Germany to 
     take all actions necessary to ensure that fair and full 
     compensation will be expeditiously paid to all Holocaust 
     survivors living in the United

[[Page H11916]]

     States; and (4) strongly encourage the Government of Germany 
     to broaden the definition of a concentration camp, and the 
     duration of imprisonment currently required for compensation 
     under Article 2 of the German Unification Agreement and 
     continue negotiations with the Conference on Jewish Material 
     Claims Against Germany to make categories of those eligible 
     for compensation more inclusive.

      Delivery by China of Cruise Missiles and Missile Technology

       The conference agreement deletes sections 593 and 594 which 
     express the sense of the Senate regarding missile transfers 
     by China to Iran and Syria. The managers are deeply concerned 
     about continued reports that the People's Republic of China 
     has delivered cruise missiles to Iran and ballistic missile 
     technology to Syria. Both recipient nations are known 
     sponsors of international terrorism which directly threatens 
     U.S. citizens and interests in regional peace and stability.
       The managers urge the Administration to take steps to 
     assure the People's Republic of China honors its obligations 
     under the Missile Technology Control Regime and join 
     international efforts to restrict access by terrorist states 
     to weapons and technology of mass destruction. The managers 
     note that under the Iran-Iraq Non-Proliferation Act of 1992, 
     the President is required to impose sanctions against any 
     foreign government delivering missiles to Iran. The managers 
     expect the Administration to use all available legal and 
     diplomatic means to assure no transactions occur which 
     enhance the military capabilities of terrorist states.

        Prosecution of Major Drug Traffickers Residing in Mexico

       The conference agreement deletes the language of the Senate 
     amendment prohibiting ``International Military Education and 
     Training'' for Mexico unless the President of the United 
     States certifies to Congress that the Government of Mexico 
     has extradited to the United States or apprehended and begun 
     prosecution of 10 listed individuals. Language similar to 
     that in the Senate amendment withholding funds from the 
     Government of Mexico is included in section 587.

      Deobligation of Certain Unexpended Economic Assistance Funds

       The conference agreement deletes Senate language requiring 
     that the President deobligate and return to the Treasury 
     certain funds that have been obligated for more than 4 years 
     but not expended. The House bill did not address this matter.

                                Burundi

       The conference agreement deletes language in the Senate 
     amendment expressing the Senate's condemnation of any violent 
     action intended to overthrow the government of Burundi; 
     calling upon all parties to the conflict in Burundi to 
     exercise restraint; and urging the Administration to continue 
     diplomatic efforts at the highest level to find a peaceful 
     resolution to the crisis in Burundi.

                    Environmental Impact Assessments

       The conference agreement deletes language expressing the 
     sense of the Senate that the United States Government should 
     encourage governments of other nations to engage in 
     additional regional treaties, including requirements for 
     Environmental Impact Assessments where appropriate, covering 
     specific transboundary activities that have adverse impacts 
     on the global environment.

                    International Criminal Tribunal

       The conference agreement deletes Senate language expressing 
     the sense of the Senate that the President of the United 
     States should reimpose full economic sanctions on Serbia, 
     Montenegro and the Republic Srpska until these entities fully 
     cooperate with the International Criminal Tribunal. It also 
     urged IFOR to make an urgent priority the detention of 
     persons indicted by the Tribunal, and called for the 
     continued banning of the named entities from international 
     organizations until each fully cooperates with the Tribunal.

          Title VI--NATO Enlargement Facilitation Act of 1996

       The conference agreement includes language proposed by the 
     Senate which is similar to HR 3564, the ``NATO Enlargement 
     Facilitation Act of 1996,'' which was passed by the House of 
     Representatives on July 23 by a vote of 353-65. The 
     conference agreement expresses Congress' support for the 
     admission of qualified new members to NATO and the European 
     Union at an early date. The conference agreement designates 
     Poland, Hungary, the Czech Republic and Slovenia as countries 
     eligible to receive assistance under the NATO Participation 
     Act of 1994. Slovenia's designation is effective 90 days 
     after the date of enactment of this Act. The conference 
     agreement also authorizes $60,000,000 for fiscal year 1997 
     for the transition program established by the NATO 
     Facilitation Act of 1994, of which $20,000,000 is earmarked 
     for FMF loans and $30,000,000 for FMF grants, and of which 
     ``not more than'' $10,000,000 is made available for IMET.
       Funds described in section 608(b) are authorized to be made 
     available to the extent provided in advance in appropriations 
     acts to support implementation of the Regional Airspace 
     Initiative (RAI) and the Partnership for Peace Information 
     Management System. The conferees believe Foreign Military 
     Financing funds may be made available to support RAI and PIMS 
     since Title III of this legislation makes funds available for 
     these purposes and serves as the necessary advance provision 
     in an appropriation act.

                Title VII--Middle East Development Bank

       The conference agreement includes Senate language that 
     authorizes $1,050,007,800 for the proposed Bank for Economic 
     Cooperation and Development in the Middle East. The House 
     bill did not address this matter.
       Due to the limited budget allocation available for foreign 
     assistance, the managers were reluctant to authorize United 
     States membership in yet another multilateral development 
     bank. At a time when the Congress and the President are 
     unable to meet prior commitments to existing multilateral 
     institutions, only the critical situation in the Middle East, 
     where the very peace process may be at stake, resulted in the 
     inclusion of authority for the United States to join the 
     bank, contingent on the explicit condition that all 
     commitments are subject to the availability of 
     appropriations. No funds are provided in this Act for the 
     proposed Bank for Economic Cooperation and Development in the 
     Middle East.
       Authority to join a new multilateral development bank is 
     under the jurisdiction of the Committee on Banking and 
     Financial Services in the House and the Committee on Foreign 
     Relations in the Senate. The managers direct the Secretary of 
     the Treasury to consult fully with them as well as the 
     Committees on Appropriations prior to joining the proposed 
     bank. The managers expect that Egypt, Jordan, Germany, and 
     France will have agreed to participate in the bank before the 
     United States accepts membership.

                             SECTION 101(d)

  Department of the Interior and Related Agencies Appropriations Act, 
                                  1997

       The conferees on H.R. 3610 agree with the matter inserted 
     in this subsection of this conference agreement and the 
     following description of this matter. This matter was 
     developed through negotiations on the differences in the 
     House and Senate versions of H.R. 3662, the Department of the 
     Interior and Related Agencies Appropriations Act, 1997, by 
     members of the appropriations subcommittee of both the House 
     and Senate with jurisdiction over H.R. 3662.
       The conference agreement with respect to fiscal year 1997 
     appropriations for the Department of the Interior and Related 
     Agencies incorporates some of the provisions of both the 
     House and the Senate reports accompanying H.R. 3662. Report 
     language and allocations set forth in either House Report 
     104-625 or Senate Report 104-319 which are not changed by the 
     conference agreement are approved. The agreement described 
     herein, while repeating some report language for emphasis, 
     does not negate the language referenced above unless 
     expressly provided. Administrative provisions and general 
     provisions which are identical in the House passed and Senate 
     Appropriations Committee reported versions of H.R. 3662 are 
     unchanged by the conference agreement and are approved unless 
     provided to the contrary herein.

                  TITLE I--DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                   Management of Lands and Resources

       The conference agreement provides $572,164,000 for 
     management of lands and resources instead of $566,514,000 as 
     proposed by the House and $578,692,000 as proposed by the 
     Senate.
       Changes to the House recommended level include increases of 
     $1,000,000 for abandoned mineland and stormwater management, 
     $100,000 for the Longview Fibre/Mt. Hood exchange, $6,000,000 
     for resource management planning, and decreases of $500,000 
     for wildlife, $500,000 for fisheries, and a general reduction 
     of $450,000 for land resources.
       The restoration of $6,000,000 is provided for resource 
     management planning to ensure that BLM has the necessary 
     resources to meet its planning activities as required under 
     the Federal Land Policy and Management Act, the National 
     Environmental Policy Act, and other resource specified laws. 
     BLM is currently looking at ways to streamline its planning 
     procedures to make the planning process more efficient and 
     more responsive. BLM is urged to move forward as quickly as 
     possible in developing these new procedures.
       Based on current reports provided by the Department of the 
     Interior on the implementation of the fee demonstration 
     program, BLM is not required to submit a separate report.
       The Bureau's proposed reorganization of its Washington 
     headquarters office is approved. While the current team 
     approach seems to be paying dividends at the field level, it 
     has proven to be ineffective at the Washington office. This 
     new reorganization should result in increased accountability, 
     a more efficient allocation of resources, and provide for a 
     better interface with the public and with the Bureau's 
     partners.
       The Administration recently created the Grand Staircase/
     Canyons of the Escalante National Monument in Utah as one of 
     the largest national monuments in the continental United 
     States without consultation with the Congress and without 
     public comment. The Secretary should comply fully with the 
     provisions outlined in the proclamation dated September 18, 
     1996. Pursuant to the proclamation, the Secretary of the 
     Interior will manage the monument through the Bureau of Land 
     Management.
       Of particular concern is the lack of details on the 
     monument beyond the information contained in the 
     proclamation, including estimated costs to manage the 
     monument and

[[Page H11917]]

     provide for a potential increase in visitors to the area. The 
     Secretary should submit a report by February 1, 1997 that 
     details the costs associated with the monument, the process 
     for developing a management plan, and a description of how 
     affected parties will be involved in the process for 
     developing the management plan. The Secretary should also 
     submit by April 1, 1997 a plan for implementing an exchange 
     of school trust lands located within the monument.
       The conference agreement earmarks $2,010,000 for mineral 
     assessment in Alaska as proposed by the Senate instead of 
     $2,000,000 as proposed by the House.
       Within the funds provided for oil and gas activities 
     $250,000 is for an Environmental Impact Statement for the 
     leasing program in the National Petroleum Reserve in Alaska.
       The Bureau currently spends about $95,000 annually from 
     various Bureau programs in support of Iditarod National 
     Historic Trail activities in Alaska. Within this amount, the 
     Bureau is encouraged to begin commemoration of the trail. 
     Markers and other forms of identification would enable 
     visitors to identify and enjoy the trail.


                        wildland fire management

       The conference agreement provides $252,042,000 for wildland 
     fire management instead of $247,924,000 as proposed by the 
     House and $264,609,000 as proposed by the Senate.
       This funding level provides for a maximum efficient level 
     (MEL) of approximately 85 percent for presuppression 
     activities and approximately 88 percent of the 10-year 
     average actual cost for suppression activities.
       Within the funds provided, the Bureau is strongly urged to 
     continue a partnership project involving the Northern Arizona 
     University School of Forestry and the Department of the 
     Interior. This partnership involves forest ecosystem health 
     restoration efforts.


                    central hazardous materials fund

       The conference agreement provides $12,000,000 for the 
     central hazardous materials fund.


                              construction

       The conference agreement provides $4,333,000 for 
     construction as proposed by the Senate instead of $3,103,000 
     as proposed by the House. Increases above the House 
     recommended level include $900,000 for completion of the 
     Baker City Flagstaff Hill interpretive center and $330,000 
     for the Maiden Rock bridge.


                       payments in lieu of taxes

       The conference agreement provides $113,500,000 for payments 
     in lieu of taxes as proposed by the House instead of 
     $115,000,000 as proposed by the Senate.


                            land acquisition

       The conference agreement provides $10,410,000 for land 
     acquisition instead of $10,000,000 as proposed by the House 
     and $14,060,000 as proposed by the Senate.
       Funds should be distributed as follows:


        Projects                                                 Amount
Lake Fork of the Gunnison SMA, CO..............................$800,000
San Pedro NCA, CA...............................................500,000
Santa Rosa Mountains NRA, CA..................................1,000,000
Upper Huerfano River, CO........................................610,000
Washington County Desert Tortoise HCP, UT.....................2,000,000
West Eugene Wetlands, OR......................................1,000,000
West Riverside County HCP, CA.................................1,000,000
Acquisition Management........................................2,500,000
Emergencies and Inholdings....................................1,000,000
                                                       ________________
                                                       
    Total....................................................10,410,000


                   oregon and california grant lands

       The conference agreement provides $100,515,000 for Oregon 
     and California grant lands instead of $98,365,000 as proposed 
     by the House and $102,656,000 as proposed by the Senate.
       Increases above the House include $400,000 for western 
     Oregon resource management, $1,250,000 for western Oregon 
     facilities maintenance, and $500,000 for jobs in the woods.


                           range improvements

       The conference agreement provides an indefinite 
     appropriation for range improvements of not less than 
     $9,113,000 to be derived from public lands receipts and 
     Bankhead-Jones Farm Tenant Act lands grazing receipts.


               service charges, deposits, and forfeitures

       The conference agreement provides an indefinite 
     appropriation of $8,993,000 for service charges, deposits, 
     and forfeitures.


                       miscellaneous trust funds

       The conference agreement provides an indefinite 
     appropriation of $7,605,000 for miscellaneous trust funds.


                       administrative provisions

       The conference agreement provides for the naming of the 
     visitor center in Rand, Oregon as the William B. Smullin 
     Visitor Center. The dedication provides commemorative 
     recognition to William B. Smullin, founder of California 
     Oregon Broadcasting incorporated, which brought broadcasting 
     to northern California and southern Oregon.

                United States Fish and Wildlife Service


                          resource management

       The conference agreement provides $523,947,000 for resource 
     management instead of $520,519,000 as proposed by the House 
     and $529,527,000 as proposed by the Senate.
       The net increase above the House consists of increases of 
     $1,250,000 for endangered species recovery activities, 
     $500,000 for Upper Klamath Basin habitat restoration, 
     $100,000 for the Vermont partners program, $64,000 for 
     Missouri chutes/sandhills, $100,000 for Platte River studies, 
     $400,000 to restore base funding, $200,000 for the Hood Canal 
     Salmon Enhancement Group and ``Long Live the Kings'', $3,000 
     for migratory bird management, $500,000 for whirling disease 
     research, $250,000 for the marine mammals program, $1,000,000 
     for the National Education and Training Center, and $43,000 
     for Service-wide administrative support, and decreases of 
     $100,000 for the Chicago wetlands office, $500,000 for the 
     Reno Biodiversity initiative, $321,000 for refuge operations 
     and maintenance, and a general reduction of $61,000 in fish 
     and wildlife management.
       No specific earmarks are included in the increase in the 
     candidate conservation program.
       Within the increase for recovery activities, $750,000 is 
     for the Virgin River Integrated Management Recovery Program 
     and $500,000 over the budget request of $1,500,000 is for the 
     Natural Communities Conservation Planning program.
       The Chicago Wetlands Office is funded at $1,631,000.
       An increase of $533,000 above the fiscal year 1996 level is 
     assumed for Everglades restoration.
       While there is no specific prohibition on the use of steel 
     jaw leghold traps, the Service should establish a task force 
     to study the use of animal traps in the National Wildlife 
     Refuge system. The task force should consider the humaneness 
     of various trapping methods, as well as the cost, the impact 
     on the protection of endangered species, the impact on Fish 
     and Wildlife Service facilities, and other relevant issues. 
     The task force should include interested outside parties and 
     report its findings to the House and Senate Committees on 
     Appropriations by March 1, 1997.
       Within the amount provided for fish and wildlife management 
     assistance, an increase of $500,000 above the House level has 
     been provided for fish disease research, for a total increase 
     of $1,500,000 above prior levels. Of this amount, a portion 
     of the $1,000,000 included in the budget request is to be 
     used to augment the capabilities of the Service's fish health 
     centers and fish technology centers. The $500,000 increase 
     above the House is for whirling disease research by the 
     National Partnership on Management of Wild and Native Cold 
     Water Fisheries.
       The increase of $250,000 for the marine mammals program is 
     to initiate cooperative activities with the Alaska Polar Bear 
     Commission, the Eskimo Walrus Commission, the Alaska Sea 
     Otter Commission, and the Rural Alaska Community Action 
     program.
       With respect to the national boat access needs assessment 
     discussed in Senate Report 104-319, the Fish and Wildlife 
     Service should give consideration to such an assessment 
     within the regular competitive review process for proposals 
     within the funds available for the administration of the 
     Sport Fish Restoration program.
       Bill language is included which modifies the earmark and 
     the manner in which funds are distributed for the Natural 
     Communities Conservation Planning (NCCP) program. The 
     conference agreement provides $2,000,000 to local governments 
     in southern California for this program.
       The conference agreement includes language regarding the 
     charging of reasonable fees for training costs at the 
     National Education and Training Center and makes this 
     authority permanent. The House had a similar provision.


                              construction

       The conference agreement provides $43,365,000 for 
     construction instead of $38,298,000 as proposed by the House 
     and $45,306,000 as proposed by the Senate.
       Funds should be distributed as follows:


        Project                                                  Amount
A.C.E. Basin NWR, SC, Grove Plantation (rehabilitation)........$360,000
Alamosa/Monte Vista NWR, CO, Chicago Ditch Dam................1,450,000
Audubon Center, LA, research facilities.......................2,000,000
Bear River NWR, UT, dike (repair)...............................611,000
Blackwater NWR, MD, administrative building.....................500,000
Bridge safety, inspection/structural analysis...................495,000
Crab Orchard NWR, IL, Little Wolf Creek Bridge..................550,000
Craig Brook NFH, ME, (station rehabilitation).................4,810,000
Creston NFH, MT, Jessup Mill Pond Dam...........................850,000
Dam safety, inspection of dams..................................495,000
Elkins field office, WV, planning and design...................-503,000
Ennis NFH, MT, spring watercover................................300,000
Mason Neck NWR, VA, Woodbridge research facility................100,000
McDowell NFH, WV, hatchery feasibility study...................-730,000
Missisquoi NWR, VT, storage building, signage, access............50,000
Mississippi refuges, road construction, storage, fencing, office370,000

[[Page H11918]]

Mossehorn NWR, ME, (Loring AFB) office/maintenance facility.....400,000
National Education and Training Center, WV...................10,028,000
Ouray endangered fish facility, UT, ponds/water reuse.........1,725,000
Parker River NWR, MA:
  administrative/education center (non-add; use of surplus cleanup 
    savings)................................................(1,150,000)
  cleanup savings............................................-1,150,000
Patuxent NWR, MD, Cash Lake Dam.................................485,000
Quivera NWR, KS, engineering study, water supply................600,000
Region 4, FL/LA/NC, bridge replacement..........................800,000
Sacramento NWR, CA, water delivery system.......................500,000
Southeast Louisiana refuges, health and safety..................500,000
Southwest Fisheries Technology Center, NM:
  Dexter hatchery rehabilitation................................961,000
  Mora hatchery construction..................................2,705,000
Squaw Creek NWR, MO Davis Creek bridge..........................550,000
Stillwater NWR, NV:
  water gauging station.........................................300,000
  water rights purchase.......................................1,500,000
Tulana Farms Ranch, OR, habitat restoration...................3,000,000
White River NWR, AR, Big Island chute bridge....................300,000
Wichita Mountains NWR, OK:
  Grama Lake and Camanche dams..................................700,000
  road rehabilitation.........................................2,048,000
Project Total................................................37,660,000
Construction Management.......................................4,633,000
Contract claims.................................................800,000
Emergency projects..............................................272,000
                                                       ________________
                                                       
    Total FWS Construction..................................$43,365,000

       The Service should use $1,150,000 of the surplus funding 
     remaining from the Parker River NWR, MA cleanup for 
     construction of an administration building at the refuge with 
     the understanding that these funds will be matched from non-
     Federal sources.
       Funds for the Tulana Farms project should be transferred to 
     a nonprofit entity with expertise in fish and wildlife 
     management as soon as practicable.
       The conference agreement provides $2,000,000 for the 
     Audubon Institute for the Audubon Center for Research of 
     Endangered Species. These funds should be used to continue 
     the research partnership between the Fish and Wildlife 
     Service and the Institute, under terms similar to the 
     agreements used in 1992 and 1995. The Fish and Wildlife 
     Service should work with the Audubon Institute to ensure that 
     appropriate public recognition of the Federal funds used in 
     constructing the complex is achieved.


                Natural Resource Damage Assessment Fund

       The conference agreement provides $4,000,000 for the 
     natural resource damage assessment fund.


                            Land Acquisition

       The conference agreement provides $44,479,000 for land 
     acquisition instead of $30,000,000 as proposed by the House 
     and $50,802,000 as proposed by the Senate.
       Funds should be distributed as follows:


        Project                                                  Amount
Back Bay NWR, VA.............................................$1,000,000
Block Island NWR, RI..........................................2,000,000
Bon Secour NWR, AL..............................................750,000
Boyer Chute NWR (Back to the River), NE.......................2,000,000
Canaan Valley NWR, WV.........................................2,000,000
Clarks River NWR, KY..........................................3,000,000
Cypress Creek NWR, IL.........................................1,000,000
Emiquon NWR, IL...............................................1,000,000
Hakalau NWR (Kona Forest), HI.................................2,700,000
Lake Wales NWR, FL..............................................500,000
Lake Woodruff (Wekiva-Ocala NF connector), FL...................500,000
Lower Rio Grande NWR, TX......................................2,000,000
Mashpee NWR, MA.................................................832,000
Minnesota Valley NWR,MN.......................................1,000,000
Ohio River Islands NWR, WV....................................1,000,000
Oregon Coastal Refuges
  Nestucca Bay, OR..............................................500,000
  Siletz Bay, OR................................................500,000
Patoka River NWR, IN............................................500,000
Petit Manan NWR, ME.............................................850,000
Rappahanock NWR, VA...........................................1,000,000
San Diego NWR, CA.............................................2,700,000
San Joaquin NWR, CA.............................................500,000
Southeast Louisiana Refuges...................................1,500,000
Stewart McKinney NWR (Great Meadows), CT......................1,700,000
Tualatin Refuge NWR,OR........................................1,000,000
Western Montana Projects........................................947,000
Acquisition management........................................8,500,000
Emergency and hardships.......................................1,000,000
Exchanges.....................................................1,000,000
Inholdings....................................................1,000,000
                                                             __________
                                                             
  Total......................................................44,479,000
       The conference agreement includes funding to establish the 
     Clarks River National Wildlife Refuge, the only wildlife 
     refuge solely in Kentucky. The funds provided may be used 
     only to acquire land through purchases from willing sellers, 
     donations, or exchanges. The Secretary is authorized to 
     include hunting and fishing in the development of outdoor 
     activities. The Committees expect the Secretary to ensure 
     that no activity carried out in the refuge will result in the 
     obstruction of the flow of water in a manner that would 
     affect any private land adjacent to the refuge, and that the 
     operations of the refuge will not restrict agriculture and 
     silviculture on private lands.
       Included in the conference agreement is $832,000 to enable 
     the Fish and Wildlife Service to acquire a 250 acre tract in 
     the Bufflehead Bay Area within the Mashpee National Wildlife 
     Refuge. The Committees are aware that funds are available 
     from prior year appropriations for the Mashpee National 
     Wildlife Refuge and a reprogramming from the Sippewisset 
     Marsh project to complete the acquisition.


            Cooperative Endangered Species Conservation Fund

       The conference agreement provides $14,085,000 for the 
     cooperative endangered species conservation fund. There is no 
     restriction on funding land acquisition in this account for 
     projects also funded through the land and water conservation 
     fund. However, the Service should be sensitive to maintaining 
     a balance in funding the many competing land acquisition 
     needs.


                     National Wildlife Refuge Fund

       The conference agreement provides $10,779,000 for the 
     National wildlife refuge fund.


                         Rewards and Operations

       The conference agreement provides $1,000,000 for rewards 
     and operations for African elephant conservation as proposed 
     by the House instead of $600,000 as proposed by the Senate.


               North American Wetlands Conservation Fund

       The conference agreement provides $9,750,000 for the North 
     American wetlands conservation fund instead of $7,750,000 as 
     proposed by the House and $10,750,000 as proposed by the 
     Senate.


                 Rhinoceros and Tiger Conservation Fund

       The conference agreement provides $400,000 for the 
     rhinoceros and tiger conservation fund as proposed by the 
     House instead of $200,000 as proposed by the Senate.


              wildlife conservation and appreciation fund

       The conference agreement provides $800,000 for the wildlife 
     conservation and appreciation fund.


                       administrative provisions

       The conference agreement modifies language proposed by the 
     Senate to provide that, for recreational fee demonstration 
     sites, the Service shall retain permit and entrance fees 
     collected at fee demonstration units to offset the cost of 
     collection and to support refuge operations and maintenance. 
     The House had no similar provision.

                         National Park Service


                 operation of the national park system

       The conference agreement provides $1,152,311,000 for 
     operation of the National Park System instead of 
     $1,135,139,000 as proposed by the House and $1,156,784,000 as 
     proposed by the Senate.
       The conference agreement provides $69,772,000 in increased 
     funding for many of the initiatives contained in the fiscal 
     year 1997 National Park Service budget. In allocating these 
     funds, the Committees have placed a high priority on National 
     Park Service operations and base programs which reflects the 
     Park Service's highest priority initiatives.
       The conference agreement provides increases for the 
     National Park Service, particularly in operations, greater 
     than any agency funded in the bill.
       The following paragraphs describe the increases above the 
     base funds for each budget category.
       A total increase of $21,251,000 is provided for resource 
     stewardship. Included in this amount is $6,674,000 for 
     across-the-board increases, $2,077,000 for park operations, 
     $2,000,000 for inventory and monitoring, $8,000,000 for South 
     Florida Ecosystem Research, and $2,500,000 for cultural 
     resources preservation.
       The visitor services increase is $18,622,000. Included in 
     this amount is $13,093,000 for across-the-board increases, 
     $4,693,000 for park operations, $600,000 for the Presidential 
     Inaugural and $236,000 for the William O. Douglas Center.
       An increase of $19,618,000 is provided for maintenance. 
     This amount includes $10,878,000 for across-the-board 
     increases, $5,340,000 for park operations, $400,000 for the 
     Presidential Inaugural, $1,000,000 for cultural cyclic 
     maintenance, and $2,000,000 for regular cyclic maintenance. 
     The conference agreement restores the $1,000,000 reduction 
     proposed in the President's budget to transfer the two 
     Washington area parkways to Maryland, Virginia and the 
     District of Columbia.
       The park support increase is $7,292,000. Within that amount 
     is $5,219,000 for across-the-board increases, $890,000 for 
     park operations, and the following specific park increases: 
     $133,000 for James Garfield, $100,000 for the German-American 
     Cultural Center, $200,000 for the Belle Haven Marina, 
     $400,000 for the National Park of American Samoa, and 
     $350,000 for Kalaupapa.
       The conference agreement specifically did not provide the 
     $3,500,000 increase for professional training programs. The 
     National Park Service should follow the language in the House 
     report which encourages the agency to submit a reprogramming 
     request up to

[[Page H11919]]

     $2,000,000 as long as it is redirected from travel, savings 
     from buyout and downsizing initiatives or new reductions from 
     headquarters management and administrative overhead. The 
     National Park Service should submit a priority list of 
     professional training programs prior to forwarding any 
     reprogramming request.
       The increase for external administrative costs is 
     $3,047,000. This includes $212,000 for workers compensation, 
     $825,000 for unemployment compensation, $475,000 for park 
     police pensions, $738,000 for external ADP charges and 
     $797,000 for GSA space rental.
       The conference agreement provides direction to the National 
     Park Service to ensure that at least 22 productions be held 
     at Carter Baron Amphitheater and directs the Service to work 
     with the Friends of Carter Baron Foundation in order to 
     obtain private support for the performances.


                  National recreation and preservation

       The conference agreement provides $37,976,000 for National 
     recreation and preservation instead of $36,476,000 as 
     proposed by the House and $39,476,000 as proposed by the 
     Senate.
       The increase above the House level includes $750,000 for 
     the Alaska Native Cultural Center and $750,000 for the Native 
     Hawaiian Culture and Arts program. With respect to the 
     mulitpurpose pathway system in Aiken, South Carolina, the 
     Park Service involvement is to be limited to technical 
     assistance only.


                       historic preservation fund

       The conference agreement provides $36,612,000 for the 
     historic preservation funds as proposed by the Senate instead 
     of $36,212,000 as proposed by the House.
       The conference agreement provides $400,000 for historic 
     preservation activities in Fort Smith, AR to address damages 
     in the commercial historic district. These funds should be 
     transferred from the National Trust for Historic Preservation 
     to the Arkansas Historic Preservation program and this office 
     will then have oversight as to how the city uses these funds 
     for historic preservation purposes.


                              construction

       The conference agreement provides $163,444,000 for 
     construction instead of $119,745,000 as proposed by the House 
     and $165,418,000 as proposed by the Senate.
       Line item construction funds should be distributed as 
     follows:

------------------------------------------------------------------------
                          Project                              Amount   
------------------------------------------------------------------------
Acadia NP, ME (rehabilitate carriage roads)...............      $600,000
Amistad NRA, TX (sewage treatment)........................       650,000
Blackstone River Valley National Historic Comm., MA/RI....       460,000
Blue Ridge Parkway, NC (headquarters).....................     4,400,000
Cane River NHP, LA (preservation and stabilization).......     3,320,000
Carlsbad Caverns NP, NM (replace elevators)...............     1,400,000
Chamizal NM, TX (rehabilitation...........................       200,000
Chickasaw NRA, OK (campground rehabilitation).............     1,300,000
Cuyahoga NRA, OH (site & structure rehabilitation)........     2,900,000
Delaware Water Gap NRA, PA (trails rehabilitation)........     1,200,000
Denali NP&P, AK (electric/rehabilitate powerhouse)........     2,000,000
Edison NHS, NJ (concrete repairs).........................       375,000
Everglades NP, FL:                                                      
  Fort Jefferson rehabilitation...........................       250,000
  water delivery..........................................     2,800,000
Florissant Fossil Beds NM, CO (shelters)..................        37,000
Fort McHenry NM, MD (rehabilitation)......................       800,000
Fort Necessity NB, PA (design)............................       400,000
Fort Raleigh NHS, NC (rehabilitation).....................     1,000,000
Fort Scott NHS, KS (water delivery........................     1,115,000
Fort Smith NHS, AR (rehabilitation).......................     2,000,000
Fort Sumter NM, SC (site development).....................     3,600,000
General Grant NM, NY (restore memorial and grounds).......       975,000
George Washington Memorial Parkway, MD (utilities)........     2,100,000
Grand Canyon National Park, AZ (transportation vehicles)..     2,000,000
Great Basin NP, NV (Lehman Caves trail rehabilitation)....       350,000
Gulf Island NS, MS (erosion control)......................     1,000,000
Hot Springs National Park, AR (stabilization, lead paint).       500,000
Independence National Historical Park, PA (rehabilitate                 
 utilities)...............................................    13,300,000
Indiana Dunes NL, IN (demolition).........................       500,000
Kings Canyon National Park, CA (Cedar Park waste water)...     2,900,000
Lackawanna Valley, PA (technical assistance)..............       600,000
Lake Chelan NRA, WA (road repair).........................       308,000
Lake Mead NRA, NV (rehabilitate waste water and water                   
 systems).................................................       500,000
Little River Canyon NP, AL (health & safety)..............       500,000
Mount Rainier NP, WA (repair roof)........................     1,286,000
Natchez Trace Parkway, MS.................................     4,600,000
National Capital Parks:                                                 
  Jefferson Memorial, DC (rehabilitation).................     1,300,000
  Washington Monument, DC (rehabilitation)................     1,900,000
New Orleans Jazz NHP, LA (development)....................     3,000,000
New River Gorge NR, WV (access, trails stabilization).....     1,725,000
Olympic NP, WA (Elwha fish restoration)...................       270,000
Oregon Caves NM, OR (trail construction & Rewiring).......       750,000
President's Park, DC:                                                   
  electrical system.......................................     5,300,000
  replace HVAC............................................     5,000,000
Rock Creek Park, DC (Meridian Hill, rehabilitation).......       100,000
Roosevelt/Vanderbilt, NY (rehabilitate FDR Hyde Park).....     1,700,000
Saint Gaudens NHS, NH (maintenance facility)..............       900,000
Saratoga NHP, NY (rehabilitation).........................     1,000,000
Saugus Iron Works NHS, MA (rehabilitation)................       200,000
Sequoia National Park, CA:                                              
  install underground utilities...........................     3,000,000
  replace giant sequoia facilities........................     3,000,000
Southwestern PA Commission, PA (various projects).........     2,000,000
Stones River NB, TN:                                                    
  Redoubt Brannan.........................................       190,000
  trail reconstruction....................................       300,000
Thomas Stone NHS, MD (rehabilitation).....................       250,000
Ulysses Grant NHS, MO (rehabilitation)....................       670,000
Vicksburg NMP, MS (rehabilitation)........................     2,000,000
William Howard Taft NHS, OH...............................     2,300,000
Zion NP, UT (buses).......................................     5,100,000
                                                           -------------
    Subtotal Projects.....................................   108,681,000
                                                           =============
Emergency, unscheduled, housing...........................    14,673,000
Planning..................................................    18,000,000
Equipment replacement.....................................    14,365,000
G.M.P.....................................................     6,600,000
Special Resource Studies..................................       825,000
Strategic Planning Office.................................       300,000
                                                           -------------
    Subtotal Non-projects.................................    54,763,000
                                                           =============
    Total Construction....................................   163,444,000
------------------------------------------------------------------------

       The conference agreement provides authority to allow the 
     National Park service to reimburse the State of Washington 
     for fish restoration activities.
       The conference agreement provides $3,320,000 for the Cane 
     River Creole National Historical Park, to fund fully the 
     completion of ongoing work at the Magnolia Plantation 
     complex. It is expected that this funding will be obligated 
     as quickly as possible. Of this funding, up to $300,000 shall 
     be used for cooperative agreements between the Park Service 
     and local owners of historically relevant properties.
       The conference agreement does not include funding for road 
     relocation at the Chickamauga and Chattanooga National 
     Military Park. The State of Georgia has applied for public 
     lands highway discretionary funds, and if that effort is not 
     successful, the National Park Service will provide the 
     Federal share of the paving project from Federal Lands 
     Highway funds through the park road program. The current 
     estimate for that work is $3,500,000, and the Federal share 
     (75 percent) is estimated to be $2,625,000.
       The conference agreement provides $2,800,000 for Everglades 
     NP which meets the Administration's request to continue the 
     engineering and design of the water delivery system and levee 
     acquisitions.
       The $170,000 shortfall for Mt. Rainier should be funded 
     from emergency flood monies provided in 1996.
       The conference agreement provides $4,600,000 for the 
     Natchez Trace Parkway, MS which will complete the highest 
     priority phase which is project number 3-P11.
       The conference agreement provides $1,000,000 for structural 
     and utility repairs to the open-air waterside theater at Ft. 
     Raleigh. The remainder of the costs will be financed by the 
     State.
       The conference agreement provides $3,000,000 for the New 
     Orleans Jazz Park, as authorized in Public Law 103-433. The 
     funding for the park is provided to the National Park Service 
     to be expended in a manner consistent with a budget plan to 
     be developed by the partners, including the National Park 
     Service, the New Orleans Jazz Commission, and the City of New 
     Orleans. the funds provided should be used in relation to the 
     authorized purposes of the park, with an emphasis on sites 
     that are associated with the history of jazz. The National 
     Park Service will oversee this process to ensure compliance 
     with all applicable law. However, to the extent the partners 
     are capable of accomplishing some of the elements of the 
     budget plan once it is developed, the National Park Service 
     should participate with the partners, and use cooperative 
     agreements, where appropriate, in particular at Perseverance 
     Hall.
       The National Park Service is in the process of developing a 
     general management plan at the New Orleans Jazz NHP, but 
     there may be activities that could be undertaken prior to 
     completion of this effort, including cooperative agreements, 
     that will accommodate the visiting public. Thus, there is a 
     need to develop a plan for the expenditure of the funds 
     recommended in this bill on a concurrent path with the 
     general management plan. The funds may be used, in whole or 
     in part, prior to the completion of the G.M.P.
       The conference agreement provides $250,000 for Thomas Stone 
     NHS to complete the facilities outlined in the original 
     General Management Plan which are necessary for circulation, 
     visitation, and protection of the natural and cultural 
     resources.
       The conference agreement provides $2,300,000 for the 
     William Howard Taft National Historic Site for the 
     construction of an administrative/educational facility. The 
     total cost of this project is estimated to be $3,000,000. 
     Planning and design of the facility has been completed with 
     private funds and the State of Ohio has committed to 
     providing $200,000 to the construction. The remaining 
     $500,000 should be raised from private sources.
       The conference agreement recognizes the increased public 
     demand and lack of adequate public facilities and encourages 
     the National Park Service to consider retaining access to 
     existing community docks, deemed appropriate for public use, 
     within current environmental guidelines, as it develops the 
     Lake Roosevelt National Recreation Area general management 
     plan. In addition, the National Park Service is encouraged to 
     consider other alternatives for providing greater public 
     access to Lake Roosevelt in development of the management 
     plan. Local participation is critical to the development of 
     successful management plans, and the National Park Service is 
     directed to consult thoroughly with affected local government 
     representatives and other interested parties in the 
     development of the management plan.
       The conference agreement provides $18,000,000 for 
     construction planning. Within this amount, the National Park 
     Service is directed to provide $500,000 to continue the 
     planning of the dock facilities at Fort Sumter National 
     Monument.
       The conference agreement redirects funds from a feasibility 
     study at Hot Springs, AR to the rehabilitation of the Hot 
     Springs Creek Arch, as proposed by the Senate. The House had 
     no similar provision.
       The conference agreement deletes House bill language which 
     prohibits funds from being expended for the redesign of 
     Pennsylvania Avenue in front of the White House as proposed 
     by the Senate. Last year the National Park Service spent 
     $500,000 and the Secret Service $600,000 to complete Phase I 
     which provides for the immediate security needs of the White 
     House.
       The Committees have no objection to completing the interim 
     improvements to address security concerns on Pennsylvania 
     Avenue and to commence design associated with long-term 
     security improvements along Pennsylvania Avenue in front of 
     the White House. However, the Committees are concerned about 
     the costs associated with the

[[Page H11920]]

     options which might be considered as part of the long term 
     improvement plan. Thus, the Committees support the decision 
     of the National Capital Planning Commission to table 
     consideration of a final design for Pennsylvania Avenue until 
     such time as an Environmental Impact Statement that addresses 
     traffic, economic and historic preservation issues is 
     prepared by the U.S. Department of the Treasury and forwarded 
     by the National Park Service to the Commission for its 
     consideration.


                    land and water conservation fund

                              (rescission)

       The conference agreement rescinds the contract authority 
     provided for fiscal year 1997 by 16 U.S.C. 4601-10a.


                 Land Acquisition and State Assistance

       The conference agreement provides $53,915,000 for land 
     acquisition and State assistance instead of $30,000,000 as 
     proposed by the House and $48,415,000 as proposed by the 
     Senate.
       Funds should be distributed as follows:

------------------------------------------------------------------------
                          Project                               Amount  
------------------------------------------------------------------------
Appalachian Trail..........................................   $4,000,000
Aztec Ruins National Monument, NM..........................      500,000
Blue Ridge Parkway, NC.....................................      750,000
Chattahoochee River NRA, GA................................    2,000,000
Colonial NHP (Colonial Parkway), VA........................      915,000
Cuyahoga NRA, OH...........................................    1,500,000
Denali National Park & Preserve, AK........................      800,000
Everglades Ecosystem (Big Cypress NP/Everglades NP), FL....   12,000,000
Olympic NP (Elwha Dam), WA.................................    4,000,000
Pecos NHP, NM..............................................      500,000
Petroglyphs National Monument, NM..........................      750,000
Piscataway Park/Mt. Vernon, MD.............................      500,000
Saguaro NP, AZ.............................................    2,000,000
Sterling Forest, NJ/NY.....................................    9,000,000
Stones River NB, TN........................................      500,000
Acquisition Management.....................................    7,200,000
Emergency and Hardships....................................    3,000,000
Inholdings.................................................    2,500,000
State Grant Administration.................................    1,500,000
                                                            ------------
    Total..................................................   53,915,000
------------------------------------------------------------------------

       The conference agreement includes $750,000 to acquire 
     easements along the Blue Ridge Parkway in North Carolina. The 
     Park Service should work with the State of North Carolina and 
     the North Carolina Year of the Mountains Commission in 
     acquiring the easements to protect the Parkway's scenic 
     beauty.


                       administrative provisions

       The conference agreement deletes language proposed by the 
     House and stricken out by the Senate, limiting the use of 
     funds for the Office of the Director, Public Affairs and 
     Congressional Affairs.
       Bill language is included allowing the National Park 
     Foundation to expend remaining balances and accrued interest 
     from funds granted to it by the National Park Service in 
     fiscal years 1984 and 1985 pursuant to the National Park 
     System Visitor Facilities Fund Act of 1983 (P.L. 97-433, 96 
     Stat. 2277). These funds are to be used to improve the 
     quality of visitor facilities in the park system nationwide.

                    United States Geological Survey


                 Surveys, Investigations, and Research

       The conference agreement provides $738,913,000 for surveys, 
     investigations and research instead of $730,163,000 as 
     proposed by the House and $737,040,000 as proposed by the 
     Senate.
       Increases above the House include $2,000,000 for national 
     map and digital data production, $1,000,000 for a new 
     national atlas, $5,000,000 for the MEDEA project, $250,000 
     for volcano investigations, and $500,000 for the cooperative 
     research units within the biological research division.
       The conference agreement earmarks $16,000,000 as proposed 
     by the Senate for inquiries into the economic conditions 
     affecting mining and minerals processing industries.
       The Survey should work with the other agencies who will 
     benefit from the MEDEA project to obtain reimbursable 
     agreements for the necessary funding.
       The biological research division is provided with a funding 
     level that is sufficient to maintain all field stations at 
     their current level. If reallocations are contemplated, the 
     Survey should submit a reprogramming request.
       The additional funds provided to the cooperative research 
     units are to fill vacancies at existing units and not to 
     create new units.
       The Congress provided specific direction on the operation 
     of the water resources research institutes in fiscal year 
     1996 and expects that direction to continue to be followed in 
     fiscal year 1997.
       The conference agreement provides $64,559,000 for 
     cooperation with States or municipalities for water resources 
     investigations rather than $62,130,000 as proposed by the 
     House and $65,809,000 as proposed by the Senate.

                      Minerals Management Service


                Royalty and Offshore Minerals Management

       The conference agreement provides $156,955,000 for royalty 
     and offshore minerals management instead of $182,555,000 as 
     proposed by the House and $159,555,000 as proposed by the 
     Senate. Changes to the amount proposed by the House include 
     an increase of $4,000,000 in the Outer Continental Shelf 
     (OCS) lands account and decreases of $4,000,000 in the 
     royalty management/compliance account and $25,600,000 in the 
     OCS lands account. The decrease to OCS lands is offset by the 
     authority to use additional receipts as discussed below.
       The Service should consider conducting additional pilot 
     projects for taking oil and/or gas in-kind. The Service 
     should coordinate with the legislative committees of 
     jurisdiction in doing so.
       The conference agreement earmarks $70,063,000 for royalty 
     management as proposed by the Senate instead of $74,063,000 
     as proposed by the House.
       The conference agreement permits the use of $41,000,000 in 
     increased receipts to offset appropriations requirements as 
     proposed by the Senate instead of $15,400,000 as proposed by 
     the House. The conference agreement permits the use of such 
     receipts for activities of the OCS lands activity as proposed 
     by the Senate instead of limiting the use of those receipts 
     to activities related to the technical information management 
     system as proposed by the House.


                           Oil Spill Research

       The conference agreement provides $6,440,000 for oil spill 
     research.

                            BUREAU OF MINES


                           Mines and Minerals

       The conference agreement provides no funds for mines and 
     minerals as proposed by the House instead of $2,000,000 as 
     proposed by the Senate. Funds to cover the costs of workers 
     compensation and unemployment benefits for former employees 
     of the Bureau are provided in the Departmental Management 
     account.

          Office of Surface Mining Reclamation and Enforcement


                       Regulation and Technology

       The conference agreement provides $94,672,000 for 
     regulation and technology as proposed by the Senate instead 
     of $94,772,000 as proposed by the House. Administrative 
     support is reduced $100,000 below the House proposed level.


                    Abandoned Mine Reclamation Fund

       The conference agreement provides $177,085,000 for the 
     abandoned mine reclamation fund instead of $175,887,000 as 
     proposed by the House and $179,085,000 as proposed by the 
     Senate. Changes from the amount proposed by the House include 
     increases of $145,000 for reclamation program operations, 
     $1,500,000 for the small operator assistance program, and 
     $1,000 for general services. Decreases from the House level 
     include $438,000 for fee compliance and $10,000 for executive 
     direction. Bill language is included so that the Office of 
     Surface Mining may use up to $4,000,000 for the Appalachian 
     Clean Streams Initiative from the funds provided for State 
     reclamation program grants.
       The conference agreement includes language allowing the 
     State of Maryland to set aside the greater of $1,000,000 or 
     10 percent of its AML grants for use in undertaking acid mine 
     drainage abatement and treatment projects, provided the use 
     of funds in this manner does not interfere with the 
     completion of priority one projects.

                        BUREAU OF INDIAN AFFAIRS


                      Operation of Indian Programs

       The conference agreement provides $1,436,902,000 for the 
     operation of Indian programs instead of $1,381,623,000 as 
     proposed by the House and $1,413,606,000 as proposed by the 
     Senate.
       The net increase above the House includes increases of 
     $4,000,000 for small and needy tribes, a $9,491,000 general 
     increase to tribal priority allocations, $14,000,000 for ISEP 
     formula funds, $5,815,000 for student transportation, 
     $300,000 for institutionalized disabled, $5,356,000 for 
     facilities O&M, $5,600,000 for administrative cost grants, 
     $700,000 for school statistics, $500,000 for irrigation O&M, 
     $1,000,000 for water rights negotiations, $401,000 for 
     Haskell, $250,000 for SIPI, $950,000 for the arts and crafts 
     board, $250,000 for land records improvement; and decreases 
     of $2,357,000 for new tribes and $427,000 for Gila River 
     Farms. Within central office operations there is a general 
     reduction of $1,552,000, and within area office operations, 
     there is a general reduction of $671,000. All internal 
     transfers as proposed by the Senate for the operation of 
     Indian programs are agreed to.
       The conference agreement earmarks $90,829,000 for contract 
     support as proposed by the House instead of $91,379,000 as 
     proposed by the Senate.
       The conference agreement earmarks $365,124,000 for school 
     operations instead of $339,709,000 as proposed by the House 
     and $344,711,000 as proposed by the Senate.
       The conference agreement earmarks $53,805,000 for higher 
     education scholarships, adult vocational training, and 
     assistance to public schools as proposed by the Senate 
     instead of $55,838,000 as proposed by the House.
       Within the funds provided for special higher education 
     scholarships, $100,000 is earmarked for the summer law 
     program.
       The conference agreement earmarks $54,973,000 for the 
     housing improvement program, road maintenance, attorney fees, 
     litigation support, self-governance grants, the Indian self-
     determination fund, and the Navajo-Hopi settlement program as 
     proposed by the Senate instead of $55,603,000 as proposed by 
     the House.
       The conference agreement includes Senate language extending 
     the prohibition on grade expansion to dormitories, and 
     modifies the moratorium to include not only schools in the 
     Bureau system as of October 1, 1995 but also schools and 
     dormitories approved by the Secretary as of the same date.
       The estimates for tribal enrollment used to determine 
     funding levels for newly recognized tribes have been revised. 
     The Bureau should use the most recent and accurate enrollment 
     estimates for purposes of distributing funds. Should the 
     funds required for

[[Page H11921]]

     newly recognized tribes exceed $5,033,000, the additional 
     funding should be derived from the general increase provided 
     for Tribal Priority Allocations. If less funding is required, 
     the excess funds should be realigned following the 
     established reprogramming guidelines.
       The conference agreement provides no funding for those 
     tribes whose Federal recognition is pending, consistent with 
     practices for other programs. The Committees expect that in 
     the future the Bureau will request funding only for those 
     tribes where formal recognition has occurred.
       The conference agreement includes $700,000 for a school 
     statistics ADP package. This package is a necessary tool for 
     the BIA to implement reforms in the process for allocating 
     resources based on enrollment levels. The Committees are 
     aware of collaborative efforts between the BIA schools and 
     private corporations to provide computer resources for use in 
     BIA-funded schools. Such efforts should be coordinated with 
     the schools statistics ADP activities to avoid duplication 
     and ensure that limited resources are used effectively.
       Funding is included as requested in the budget for the 
     Haskell Indian Nations University and the Southwestern Indian 
     Polytechnic Institute (SIPI). Funding constraints over the 
     past few years have not allowed the Committees to provide the 
     resources beyond those necessary to maintain current 
     activities. To determine whether additional funds can be 
     raised for these institutions through tuition fees, the 
     Bureau should provide a report to the Committees by May 1, 
     1997 on the feasibility of charging tuition for both Haskell 
     and SIPI. The report should explore options for reducing the 
     impact of these fees, such as phasing the introduction of 
     tuition fees and phasing the level of fees based on financial 
     ability to pay. The report also should identify the number of 
     students who would be able to pay tuition at each of these 
     institutions. No action should be taken to implement any 
     tuition fees until Congress has reviewed the feasibility of 
     such fees.
       The conference agreement earmarks $86,520,000 for welfare 
     assistance payments as proposed by the Senate. The purpose of 
     the cap is to preclude the Bureau from reprogramming from 
     other programs or projects to pay welfare requirements. 
     However, the cap is not intended to limit the flexibility of 
     the tribes to reprogram funds within tribal priority 
     allocations in order to provide welfare assistance payments 
     as needed.
       The Bureau of Indian Affairs has undergone significant 
     downsizing during the past two years due to the Vice 
     President's National Performance Review efforts and to 
     reductions in personnel and funding. The Bureau is directed 
     to proceed with reorganization and/or consolidation of 
     central, area, and agency offices in consultation with the 
     affected tribes and where opportunities for consolidation 
     and/or closure exist due to significant progress made by 
     Indian tribes to compact or contract Bureau operations. Any 
     savings in resources made by these efforts should be made 
     available for transfer to tribes and/or tribal priority 
     allocations subject to reprogramming. The Bureau is further 
     directed to report on its reorganization efforts within 120 
     days of enactment of this Act and submit a reprogramming 
     prior to implementing reorganization and/or consolidation of 
     these offices.


                              construction

       The conference agreement provides $94,531,000 for 
     construction instead of $85,831,000 as proposed by the House 
     and $93,933,000 as proposed by the Senate.
       Increases above the House include $3,100,000 for education 
     construction, facilities improvement and repair, of which 
     $2,100,000 is to replace the unsafe Lac Courte Oreilles 
     elementary school portable buildings with a permanent 
     structure; $5,000,000 is for the Wapato irrigation project; 
     and $600,000 is for construction program management.
       The BIA should schedule planning and design of new or 
     replacement school construction projects to keep pace with 
     the BIA's ability to fund and construct these projects.


 Indian Land and Water Claim Settlements and Miscellaneous Payments to 
                                Indians

       The conference agreement provides $69,241,000 for Indian 
     land and water claim settlements and miscellaneous payments 
     to Indians as proposed by the Senate instead of $65,241,000 
     as proposed by the House.


                 Indian Guaranteed Loan Program Account

       The conference agreement provides $5,000,000 for the Indian 
     guaranteed loan program account.


                       Administrative Provisions

       The conference agreement provides language limiting the 
     distribution of tribal shares for central office and pooled 
     overhead administrative functions. The Bureau has been 
     operating with reduced funding levels for central office, 
     area office, and pooled overhead activities, and the entire 
     administrative budget of the Bureau constitutes less than ten 
     percent of its operating budget. Therefore, the Bureau is 
     directed not to proceed with further distribution of shares 
     of central office and pooled overhead funding to tribes as 
     required under the Indian Self-Determination Act and Tribal 
     Self-Governance Act. The Committees are concerned that 
     implementation of the formula in an era of declining budgets 
     will have a negative impact on non-compacting/contracting 
     tribes. The Bureau is directed to continue to refine its 
     analysis of the legal authority and the costs associated with 
     performing inherently Federal functions as well as the costs 
     associated with the various additional programmatic functions 
     to be contracted by the tribes.

                          DEPARTMENTAL OFFICES

                            Insular Affairs


                       Assistance to Territories

       The conference agreement provides $65,188,000 for 
     assistance to territories instead of $65,088,000 as proposed 
     by the House and $65,388,000 as proposed by the Senate. A 
     $100,000 increase over the House level is provided for 
     technical assistance.
       The conference agreement includes $3,000,000 to fund the 
     land grant status of the CNMI College, as authorized in 
     section 305 of Public Law 102-247. The Committees concur that 
     the use of these funds for an endowment is authorized under 
     the terms of section 118 of the fiscal year 1996 Interior and 
     Related Agencies Appropriations Act (P.L. 104-134), and that 
     creation of the endowment is consistent with the legislation 
     from which section 118 was derived (as expressed in Senate 
     Report 104-101). The conference agreement also includes 
     Senate bill language allowing covenant grant recipients to 
     use covenant grant funds to meet local matching requirements 
     for other Federal grants.
       The Senate report included language making the release of a 
     portion of infrastructure funds conditional upon the 
     implementation of certain improvements in fiscal management 
     practices by the government of American Samoa. The Committees 
     agree that implementation of such improvements is solely the 
     responsibility of the Samoan government, and applaud the 
     government's commitment to making such improvements. However, 
     there is an obligation to ensure that the scarce Federal 
     funds appropriated in this bill are spent wisely. The 
     conference agreement therefore reflects the Senate position 
     with regard to the release of a portion of infrastructure 
     funds. It is noted that substantial prior year and current 
     year infrastructure funds for American Samoa remain 
     unencumbered. The Department is encouraged to recognize the 
     flexibility granted in the Senate language, both in assessing 
     substantial implementation of the immediate term recovery 
     plan and in evaluating reasons why portions of the plan may 
     not be implemented.


                      Compact of Free Association

       The conference agreement provides $23,538,000 for the 
     Compact of Free Association instead of $23,638,000 as 
     proposed by the House and $23,438,000 as proposed by the 
     Senate. The agreement includes a reduction of $100,000 from 
     the House funding level for Enewetak support.

                        Departmental Management


                         salaries and expenses

       The conference agreement provides $58,286,000 for salaries 
     and expenses for departmental management instead of 
     $53,691,000 as proposed by the House and $58,991,000 as 
     proposed by the Senate. Funds are distributed as follows: 
     $10,306,000 for departmental direction; $20,432,000 for 
     management and coordination; $7,039,000 for hearings and 
     appeals; $18,509,000 for central services; and up to 
     $2,000,000 for compensation for former Bureau of Mines 
     employees. Within the amount provided for central services is 
     a one-time increase of $95,000 for aircraft services in 
     Alaska for the costs associated with the transfer of an 
     historic aircraft to the Alaska Aviation Heritage Museum. The 
     conference agreement also provides that any funds not needed 
     for BOM payments may be used for central services. If a 
     redistribution of funds among the budget activities is 
     desired beyond the reprogramming.

                        Office of the Solicitor


                         salaries and expenses

       The conference agreement provides $35,443,000 for salaries 
     and expenses for the Office of the Solicitor as proposed by 
     the Senate instead of $35,208,000 as proposed by the House. 
     The $235,000 increase above the House level is for the 
     Solicitor's Honors Program.

                      Office of Inspector General


                         salaries and expenses

       The conference agreement provides $24,439,000 for salaries 
     and expenses of the Office of Inspector General.

                   National Indian Gaming Commission


                         salaries and expenses

       The conference agreement provides $1,000,000 for salaries 
     and expenses of the National Indian Gaming Commission.

             Office of Special Trustee for American Indians


                         federal trust programs

       The conference agreement provides $32,126,000 for Federal 
     trust programs in the Office of Special Trustee for American 
     Indians instead of $19,126,000 as proposed by the House and 
     $36,338,000 as proposed by the Senate.
       Within the funds provided for the Office of Special 
     Trustee, $1,626,000 is for executive direction, including 
     $1,176,000 for staffing, $200,000 for the advisory board, and 
     $250,000 for the Intertribal Monitoring Association. The 
     fiscal year 1998 budget request should clearly identify the 
     requested level for each of these activities.
       Within the $16,612,000 for operations, $8,828,000 is 
     provided for the Office of Trust Funds Management, $2,312,000 
     is for administrative support, and $5,471,000 is for area and

[[Page H11922]]

     field operations. For improvement initiatives, $13,461,000 is 
     provided. For past reconciliation efforts, $427,000 is 
     provided.

             GENERAL PROVISIONS, DEPARTMENT OF THE INTERIOR

       Section 107 includes language proposed by the Senate which 
     changes the termination date for the limitation on 
     obligations for the Presidio from September 30, 1997 to 
     December 31, 1996.
       Section 108 provides for limiting final rules or 
     regulations on RS 2477 rights-of-way as proposed by the 
     Senate. The House bill included a similar provision.
       Section 114 modifies language proposed by the Senate 
     relating to the acquisition and removal of Elwha and Glines 
     dams. The House had no similar provision. This provision 
     amends the Elwha River Ecosystem and Fisheries Restoration 
     Act to allow the State of Washington to purchase the projects 
     from the Federal Government and provide for their removal. 
     Should the State elect to exercise this option, the State 
     shall provide for the protection of water quality and 
     availability, for the full restoration of the Elwha River 
     ecosystem and native anadromous fisheries, and for the 
     fulfillment of the other obligations that would otherwise be 
     the responsibility of the Secretary of the Interior pursuant 
     to the Elwha Act.
       Section 115 provides for extending the Blackstone River 
     Valley Heritage Commission for one year as proposed by the 
     Senate. The House had no similar provision.
       Section 116 provides for the transfer of a former Bureau of 
     Mines facility in Salt Lake City to the University of Utah as 
     proposed by the Senate. The House had no similar provision.
       Section 117 deletes language proposed by the Senate on 
     funding distribution formula and retains authority for the 
     Secretary of the Interior to approve up to 50 new self-
     governance compacts with Indian tribes. The House had no 
     similar provision.
       Section 118 provides for the collection of fees by the 
     Indian Arts and Crafts Board as proposed by the Senate. The 
     House had no similar provision.
       Section 119 provides for the transfer of BLM buildings in 
     Battle Mountain to Lander County, Nevada, and for the 
     transfer of another BLM building in Winnemucca to the State 
     of Nevada as proposed by the Senate. The House had no similar 
     provision.
       Section 120 provides for the transfer of an aircraft to the 
     Alaska Aviation Heritage Museum in Anchorage as proposed by 
     the Senate. The House had no similar provision.
       Section 121 provides authority for the city of Mesquite, 
     Nevada to purchase BLM tracts surrounding the city as 
     proposed by the Senate. The House had no similar provision.
       Section 122 provides for the transfer of BLM buildings and 
     land to the St. Vincent DePaul Parish in Silver City, New 
     Mexico as proposed by the Senate. The House had no similar 
     provision.
       Section 123 amends a provision in the fiscal year 1996 
     Interior and Related Agencies Appropriations Act to make 
     permanent the authority of the Secretary of the Interior to 
     transfer facilities of the former Bureau of Mines.
       Section 124 provides for cooperative agreements between BLM 
     and private land owners for the restoration and enhancement 
     of biotic resources.
       Section 125 provides for naming the visitor center at 
     Channel Islands National Park, CA as the ``Robert J. 
     Lagomarsino Visitor Center''.

                       TITLE II--RELATED AGENCIES

                       Department of Agriculture

                             Forest Service


                     forest and rangeland research

       The conference agreement provides $179,786,000 for forest 
     and rangeland research instead of $179,000,000 as proposed by 
     the House and $180,200,000 as proposed by the Senate. The 
     funding increase above the 1996 allocation is not limited to 
     insect, disease and noxious plant programs. Within the 
     allocation, $900,000 above the request is provided for 
     hardwoods research at Princeton, WV. The agreement also 
     provides $300,000 for the forest health partnership project 
     involving the Northern Arizona University School of Forestry 
     and the Department of the Interior, $200,000 for the Olympic 
     Natural Resources Center, $300,000 for the University of 
     Washington landscape management project, and $500,000 for the 
     Evanston Research Office, Lincoln Park restoration project. 
     The agreement accepts the House instructions and funding 
     level for the ``CROP'' project on the Colville National 
     Forest.
       The conference agreement provides that funds in the forest 
     and rangeland research account remain available until 
     expended as proposed by the Senate. The House proposed two-
     year funding availability.
       The Forest Service may make changes to the work unit 
     allocations that were proposed with the budget justification, 
     however it is important that the Forest Service work closely 
     with Congress to provide an understanding of what changes are 
     proposed. The Forest Service should follow normal 
     reprogramming procedures if it determines that changes are 
     warranted in the research station organization. The Forest 
     Service should name a Director to the North Central Forest 
     Experiment Station as expeditiously as possible. The Forest 
     Service has failed to fill this position in recent years 
     while contemplating a possible reorganization. The affected 
     laboratories should not be without leadership in the interim. 
     If a reorganization is to be pursued affecting this station, 
     the Forest Service should submit a reprogramming request in a 
     timely manner.


                       state and private forestry

       The conference agreement provides $155,461,000 for state 
     and private forestry instead of $148,884,000 as proposed by 
     the House and $156,811,000 as proposed by the Senate.
       Forest health management is provided $66,166,000, a 
     decrease of $2,335,000 from the level proposed by the House. 
     Cooperative lands forest health management is provided 
     $15,000,000, a $1,335,000 decrease from the House level. 
     Cooperative lands fire management is allocated $18,001,000, 
     which is $1,000,000 below the House level.
       Cooperative forestry is provided $89,295,000 instead of 
     $80,383,000 as proposed by the House and $90,645,000 as 
     proposed by the Senate. The forest legacy program is 
     allocated $2,000,000; it was not funded by the House. The 
     Pacific Northwest assistance programs are provided 
     $16,762,000, a $2,762,000 increase from the House level.
       Bill language is included to provide $750,000 for a grant 
     to the World Forestry Center for research on land exchange 
     efforts in the Umpqua River Basin in Oregon. These funds are 
     included in the Pacific Northwest assistance activity.
       Economic action programs are provided $17,150,000, an 
     increase of $4,150,000 above the House level. Economic action 
     program funds should be distributed as follows:

Rural development............................................$5,500,000
Wood in transportation........................................1,200,000
Economic recovery.............................................5,000,000
Forest products conservation and recycling....................1,200,000
Columbia River Gorge, economic development grants.............3,000,000
Columbia River Gorge, payments to counties......................250,000
Columbia River Gorge, Doetsch Ranch...........................1,000,000

       The forest products conservation and recycling allocation 
     includes $200,000 to assist the hardwoods training center in 
     Princeton, WV. The rural development program includes 
     $500,000 for the Hawaii tropical forest task force and 
     $3,000,000 for the Northeast and Midwest. The Lake Tahoe 
     Basin erosion control program is allocated a total of 
     $500,000, all of which is included in the forest stewardship 
     allocation. The Northeastern Pennsylvania community forestry 
     program is allocated $1,650,000, of which $500,000 is 
     included in the forest stewardship activity and $1,150,000 is 
     included in the urban and community forestry activity.


                         international forestry

       The conference agreement allows the Forest Service to use 
     up to $3,000,000 from benefiting functions to support 
     international forestry activities. If additional funds are 
     needed, the Forest Service should submit a reprogramming 
     request following normal procedures.


                         national forest system

       The conference agreement provides $1,274,781,000 for the 
     National Forest System instead of $1,258,057,000 as proposed 
     by the House and $1,285,881,000 as proposed by the Senate. 
     The conference agreement provides that funds in the national 
     forest system account remain available until expended as 
     proposed by the Senate. The House proposed two-year funding 
     availability.
       The conference agreement provides $130,088,000 for land 
     management planning, inventory and monitoring as proposed by 
     the Senate, which is $53,000,000 above the level proposed by 
     the House for the land management planning activity. Forest 
     planning is provided $35,662,000, Pacific Northwest forest 
     plan watershed analysis and related activities are provided 
     $19,338,000, inventory and monitoring activities are provided 
     $69,000,000, and headquarters functions are provided the 
     remainder.
       The Committees are very concerned about the cost of forest 
     planning activities; funds provided are only $1,000,000 below 
     the level in the budget request so there should be no reason 
     for delays in the forest planning revision process. There is 
     concern that funds which were moved from program areas in 
     fiscal year 1995 to support vital inventory and monitoring 
     needs are not being used for those purposes. It is important 
     that these funds support professional activities of 
     appropriate specialists in the field so the Forest Service 
     can provide quality, scientifically sound information and 
     regular environmental monitoring, thereby reducing the 
     litigation and appeals gridlock that has characterized recent 
     times. Inventory and monitoring funds should support 
     integrated land management and those programmatic inventory 
     and monitoring activities above the project level which were 
     supported by programmatic funds before the 1995 budget 
     reform. A general Accounting Office review will be requested 
     to report on the manner in which funds for the former 
     ecosystem management activity were allocated and used in the 
     field as well as the impacts of implementing the 1995 budget 
     reform on the agency mission and various program goals.
       The conference agreement provides $164,314,000 for 
     recreation management, $33,267,000 for wilderness management, 
     $13,570,000 for heritage resources, $28,263,000 for wildlife 
     habitat management, $14,756,000 for inland fish habitat 
     management, $21,029,000 for anadromous fish habitat 
     management, $21,763,000 for threatened, endangered and 
     sensitive species habit management, $22,506,000 for grazing 
     management, $15,506,000 for rangeland vegetation management, 
     $196,000,000 for timber sales management, $55,768,000 for 
     forestland vegetation management, $22,111,000 for soil, water 
     and

[[Page H11923]]

     air operations, $20,003,000 for watershed improvements, 
     $35,767,000 for minerals and geology management, $43,047,000 
     for real estate management, $14,006,000 for landline 
     location, $81,019,000 for road maintenance, $23,008,000 for 
     facility maintenance, $59,637,000 for law enforcement 
     operations, and $259,353,000 for general administration.
       Instructions regarding national forest system activities in 
     the House and Senate reports should be followed except that 
     $250,000 should be used for the Seeking Common Ground 
     partnership program within the rangeland vegetation 
     management activity and $250,000 is included in the inland 
     fish habitat management activity for dredging at Lake 
     McClellan, TX. The conference agreement includes $100,000 in 
     the soil, water and air operations activity for jammer, or 
     long abandoned logging roads, inventory in Idaho. These funds 
     are to be used to begin a watershed improvement needs 
     inventory within the Clearwater National Forest, ID. The 
     purpose of this inventory is to develop plans for correcting 
     watershed and stream drainage and sedimentation problems 
     which may stem from such roads. The agreement accepts the 
     House instructions and funding level for the ``CROP'' project 
     on the Colville National Forest.
       The instructions in the Senate report regarding timber 
     sales management should be followed. The Forest Service 
     should make every effort to accomplish the timber sales 
     program as outlined in the budget request and achieve the 
     pipeline volume goals discussed in the Senate report. The 
     Forest Service should strive to offer sawtimber sales but the 
     Committees recognize that the ratio of sawtimber to non-
     sawtimber may differ from existing forest plan goals. The 
     forestland vegetation management activity includes a 
     $2,000,000 increase to the base regional allocation to region 
     5 for this activity; these funds were moved from the wildland 
     fire management account. This additional funding should be 
     used to support an integrated, natural fuels management 
     approach to wildfire fuel reduction and forest health 
     enhancement.
       In the minerals and geology activity, $750,000 has been 
     provided for the costs associated with the handling, 
     transportation and off-site management of materials at the 
     Amalgamated Mill site in the Williamett National Forest, 
     money to remain available until expended. This amount is to 
     supplement, not replace, amounts contributed by non-federal 
     parties. The funds provided herein are not a remedial action 
     cost under the Comprehensive Environmental Response 
     Compensation and Liability Act, 42 U.S.C. 9601 et seq.
       The conference agreement modifies Senate report language 
     restricting the use of Interior and Related Agencies 
     Appropriation funds to supplement the USDA Central Hazardous 
     Waste account. The Committees understand that the USDA 
     central account is funded inadequately for all priority 
     hazardous waste work on National Forest System lands. The 
     Department is expected to continue to fund activities out of 
     the appropriations accounts for which they have been 
     established. The Appropriations Committees will entertain 
     project requests in accordance with reprogramming procedures 
     to provide funds for hazardous materials cleanup.
       The Committees concur with the Senate's concern that the 
     Department of Agriculture may be assessing the Forest Service 
     to fund Departmental initiatives without the approvals 
     required in section 306 of this Act. The Forest Service and 
     the Department of Agriculture are expected to display 
     assessments in the Agency budget justifications and to 
     request reprogramming authority for those assessments that 
     are not included in the justifications. For purposes of 
     section 306, assessments include any charge imposed by the 
     Department on Forest Service funds that cannot be directly 
     linked to the actual benefits or services provided.


                        wildland fire management

       The conference agreement provides $530,016,000 for wildland 
     fire management instead of $411,485,000 proposed by the House 
     and $661,485,000 proposed by the Senate. Changes from the 
     House proposals include a reduction of $2,000,000 from 
     preparedness and fire use and an increase of $118,531,000 for 
     wildfire suppression operations. The $2,000,000 reduction is 
     the result of moving funds into the National Forest System 
     account for forestland vegetation management in region 5. The 
     Committees understand that the wildfire suppression level is 
     still well below the ten-year fire suppression average. In 
     order to compensate for this potential problem, and to pay 
     back the Knutsen-Vandenberg fund for the record wildfire 
     operations of 1996 as well as previous wildfire emergency 
     operations as suggested by the Senate, $550,000,000 has been 
     included in Title IV as an emergency appropriation. The 
     Committees expect that the Administration's future budget 
     requests will more closely reflect the actual funding needs 
     of the wildfire suppression activity.
       The Forest Service needs to embark on an increased program 
     for natural fuels treatments, including a balanced mixture of 
     biomass removal, prescribed burning, and forest stand 
     treatments which reduce wildfire risk but are environmentally 
     sound. The conference agreement provides $6,300,000 of the 
     presuppression activity funds for natural fuels treatments 
     and forest health related activities in region 5 and Nevada. 
     In addition, a $2,000,000 increase is provided in the 
     National Forest System account for related forest vegetation 
     management activities in region 5 as described above. The 
     Committees understand that the region 5 fire program may 
     still not be fully funded but it is funded well above the 
     budget request. The Forest Service should provide expert 
     advice and assistance as appropriate for the Mescalero Apache 
     tribe with their forest debris and reforestation problems 
     near the Lincoln National Forest in New Mexico.


                    reconstruction and construction

       The conference agreement provides $174,974,000 for 
     reconstruction and construction instead of $164,100,000 as 
     proposed by the House and $172,167,000 as proposed by the 
     Senate.
       The Fire, Administrative, and Other (FAO) facilities 
     reconstruction and construction activity is provided 
     $9,974,000. These funds are distributed as follows:

Ashland RD office, MT..........................................$475,000
Boulder WC, CO..................................................485,000
Chalender RS, AZ................................................476,000
McCall RD office, ID............................................200,000
LTBMU SO phase II, CA...........................................470,000
Interagency Office, Burns, OR...................................225,000
Oconee RD Office, GA............................................393,000
Pisgah office expansion, NC......................................19,000
Wayne SO, OH..................................................2,200,000
Midewin Prairie Administration, IL..............................800,000
Grey Towers reconstruction, PA................................1,000,000
Planning and Design...........................................1,500,000
Program Supervision.............................................240,000
Misc. Construction............................................1,491,000
                                                             __________
                                                             
  Subtotal FAO................................................9,974,000

       The recreation facilities reconstruction and construction 
     activity is provided $48,000,000 instead of $36,000,000 as 
     proposed by the House and $49,442,000 proposed by the Senate. 
     The agreement includes the following earmarks within 
     recreation reconstruction and construction:

Sitting Bull Falls, NM.........................................$851,000
Sabino Canyon VIC, AZ...........................................232,000
Kyl & Lee Canyon Water Projects, AZ.............................225,000
2002 Olympics, UT.............................................1,183,000
Applewhite Picnic II, CA........................................452,000
Deschutes NF, OR................................................367,000
Badin Lake Project, NC..........................................400,000
Davidson River, NC..............................................260,000
Cradle of Forestry, NC..........................................300,000
Gum Springs, modernize swimming area, Ph. IV, LA................900,000
Winding Stair Mountain, OK......................................650,000
Willow Bay--phase III, PA.......................................251,000
Hearts Content campground rehabilitation, PA....................100,000
Rimrock Recreation, PA..........................................150,000
Midewin Tallgrass Prairie, IL...................................800,000
Seneca Rocks NRA visitor center, WV.............................800,000

       The agreement includes bill language permitting the Forest 
     Service to make a grant to the Ohio State Highway Patrol for 
     the construction of a facility for the Wayne National Forest 
     supervisor's office if the Forest Service is provided space 
     without charge for the life of the building.
       Research construction is provided $2,000,000, a decrease of 
     $29,000 from the level proposed by the House.
       The agreement includes $93,000,000 for direct road 
     construction to be allocated as follows: $59,000,000 for 
     timber roads, $24,500,000 for recreation roads, and 
     $9,500,000 for general purpose roads. The agreement includes 
     $22,000,000 for trails construction and reconstruction, an 
     increase of $1,991,000 above the House level. The agreement 
     includes the following earmarks within the roads and trails 
     construction and reconstruction allocations:

Taft Tunnel Bicycle Trail, ID..................................$450,000
Palmetto Trail, SC..............................................125,000
Winding Stair Mountain, OK......................................338,000
2002 Olympics--roads & trails, UT...............................248,000
Maroon Lake and Maroon Valley, CO...............................875,000


                            land acquisition

       The conference agreement provides $40,575,000 for land 
     acquisition instead of $30,000,000 proposed by the House and 
     $39,660,000 proposed by the Senate.
       Funds should be distributed as follows:

------------------------------------------------------------------------
                           Project                              Amount  
------------------------------------------------------------------------
Allegheny NF, PA............................................    $250,000
Appalachian Trail, various States...........................   2,000,000
Chattooga Wild and Scenic River, NC.........................   1,000,000
Cibola National Forest (Tres Pistoles), NM..................     200,000
Columbia River Gorge NSA OR/WA..............................   6,000,000
Francis Marion NF (Tibwin Plantation), SC...................     750,000
Green Mountain NF, VT.......................................   2,000,000
Hoosier NF, IN..............................................     500,000
Lake Tahoe Basin, NV........................................   1,000,000
Los Padres NF (Big Sur), CA.................................   1,500,000
Mark Twain NF, (Ozark Mt Streams), MO.......................     500,000
Ouachita NF (inholdings), AR................................     500,000
Ozark NF (Mulberry WS River), AR............................     700,000
Pacific Northwest Streams, OR/WA............................   2,500,000
Running Creek Ranch, ID.....................................     750,000
San Bernardino NF (Garner Ranch & Deep Creek), CA...........   1,500,000
Sawtooth NRA, ID............................................     800,000
Sumter NF (Jocassee Gorge tracts), SC.......................   1,000,000
Talladega NF (Pinhoti Trail), AL............................   1,500,000
Trinity Alps, CA............................................     600,000
White Mt. NF (Bretton Woods and Lake Tarleton), VT..........   2,000,000
White River NF (Warren Lakes), CO...........................   1,000,000
Wisconsin Wild Waterways, WI................................     300,000
Acquisition Management......................................   7,500,000
Cash Equalization...........................................   1,725,000
Emergency Acquisition.......................................   2,000,000
Wilderness Protection.......................................     500,000
------------------------------------------------------------------------

       To protect the significant Federal investment made to 
     restore the Hood River-to-Mosier segment of the Historic 
     Columbia River Highway, as authorized in Sections 12 and 
     16(b)(3) of Public Law 99-663, the conference agreement 
     anticipates the Forest Service will acquire, by exchange or 
     with available funds, the properties within the Hood River-
     to-Mosier corridor on which preexisting mining or associated 
     uses would adversely affect scenic, cultural or recreational 
     values.

[[Page H11924]]

       The Committees understand that a cooperative agreement will 
     be developed between the Forest Service, the Oregon 
     Department of Transportation and the Oregon Parks and 
     Recreation Department (OPRD). This cooperative agreement will 
     acknowledge the Forest Service's temporary ownership/
     management of the properties and the immediate need for OPRD 
     to construct permanent improvements on these properties 
     pending ultimate agreement. The ultimate agreement by the 
     three partners would provide for the long-term disposition 
     and management of said properties. The Committees understand 
     that the long-term disposition will involve a land exchange 
     between the Forest Service and the State of Oregon at fair 
     market values. The Committees further recognize that this 
     temporary acquisition by the Forest Service is unique as it 
     relates to the completion of the authorized Hood River-to-
     Mosier corridor restoration project.


         acquisition of lands for national forests special acts

       The conference agreement provides $1,069,000 for 
     acquisition of lands for National forests special acts.


            acquisition of lands to complete land exchanges

       The conference agreement provides for the use of receipts 
     estimate at $210,000 for acquisition of lands to complete 
     land exchanges.


                         range betterment fund

       The conference agreement provides an indefinite 
     appropriation of $3,995,000 to be derived from grazing 
     receipts from the National forests for the range betterment 
     fund.


    gifts, donations and bequests for forest and rangeland research

       The conference agreement provides $92,000 for gifts, 
     donations and bequests for forest and rangeland research.


               administrative provisions, forest service

       The conference agreement modifies House provisions as 
     proposed by the Senate limiting funds without the consent of 
     the Appropriations Committee for changing boundaries of 
     regions, moving regional offices or implementing various 
     reinvention reorganizations except for the relocation of the 
     region 5 regional office to Mare Island.
       The conference agreement includes a provision as proposed 
     by the Senate that funds may be used, with the approval of 
     the Appropriations committees, for retrofitting the Mare 
     Island facilities for the relocation, if the funds would have 
     otherwise been available to region 5. The House had no such 
     provision.
       The conference agreement modifies House and Senate 
     provisions that up to $1,000,000 for matching funds shall be 
     available to the National Forest Foundation to match private 
     contributions on a one-for-one basis for projects benefitting 
     national forest system lands or related to Forest Service 
     programs.
       The conference agreement modifies a Senate provision that, 
     pursuant to section 2(b)(2) of Public Law 98-244, up to 
     $1,000,000 of the funds available to the Forest Service shall 
     be available for matching funds as authorized by 16 USC 3701-
     3709, on a one-for-one basis to match private contributions 
     for projects benefitting national forest system lands or 
     related to Forest Service programs. The House had no similar 
     provision.
       The conference deletes Senate language limiting 
     implementation of the Tongass Land Management Plan revision.
       The conference agreement requires a report by March 31, 
     1997 to the Committee on Appropriations on the status and 
     disposition of all salvage timber sales started under the 
     authority of Section 2001 of P.L. 104-19 and subsequently 
     altered as a consequence of a July 2, 1996 directive by the 
     Secretary of Agriculture.
       The conference agreement renames the Bend Silviculture 
     laboratory in honor of Robert W. Chandler. The dedication 
     provides commemorative recognition to the editor of the Bend 
     Bulletin newspaper, a longtime community servant and advocate 
     for sound silvicultural practices in Central and Eastern 
     Oregon.
       The conference agreement makes a technical correction in 
     P.L. 104-134 which provides for direct payments from the 
     Southeast Alaska Economic Disaster Fund except that these 
     direct grants may not be used for lobbying activities.
       The conference agreement provides that Forest Service 
     employees who serve details of more than 30 days with other 
     Department of Agriculture agencies or offices must have their 
     salaries and expenses reimbursed by the receiving agency or 
     office. This provision is identical to one included in the 
     fiscal year 1997 appropriations act for Agriculture, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies covering other USDA employees. This ensures that 
     there will be uniformity throughout the Department regarding 
     this matter.

                          Department of Energy


                          clean coal technolgy

                              (rescission)

       The conference agreement rescinds $123,000,000 in clean 
     coal technology instead of $150,000,000 as proposed by the 
     Senate. The House proposed no rescission.
       This rescission is not specific to any particular round of 
     clean coal projects. The rescission should not affect ongoing 
     projects due to savings achieved from the recent termination 
     of projects prior to completion.


                 fossil energy research and development

       The conference agreement provides $364,704,000 for fossil 
     energy research and development instead of $354,754,000 as 
     proposed by the House and $367,504,000 as proposed by the 
     Senate. Changes to the House level include decreases of 
     $1,850,000 for coal research and $1,900,000 for natural gas 
     research, and increases of $3,500,000 for oil technology 
     research, $1,100,000 for cooperative research and development 
     and $9,100,000 for energy technology center program 
     direction.
       Changes to the amount proposed by the House for coal 
     research include an increase of $1,000,000 for the Consortium 
     for Fossil Fuel Liquefaction Science, and decreases of 
     $1,000,000 for low emission boiler systems, $1,000,000 for 
     indirect fired cycle, $150,000 for high-efficiency 
     pressurized fluidized bed, $200,000 for coal technology 
     export, $200,000 for materials and components, $100,000 for 
     technical and economic analysis, and $200,000 for 
     international program support. No funding is included for the 
     atmospheric fluidized bed hospital waste project at the 
     Veterans Administration hospital in Lebanon, PA. Any 
     additional costs for this project should be borne by the VA.
       Changes to the amount proposed by the House for oil 
     technology research include increases of $1,000,000 for 
     reservoir characterization, $2,000,000 for industry/national 
     laboratory partnerships, and $500,000 to complete the 
     domestic kerogen enhancement project. Funding for the gypsy 
     field project and the northern mid-continental digital atlas 
     is to be maintained at the fiscal year 1996 level.
       Changes to the amount proposed by the House for natural gas 
     research include decreases of $900,000 for methyl chloride 
     production and $1,000,000 for tubular solid oxide fuel cells.
       Other changes to the House position include increases of 
     $1,100,000 for cooperative research and development and 
     $9,100,000 for energy technology center program direction. 
     Funds provided for cooperative research and development 
     include $40,000 for program management support and $2,530,000 
     each for the Western Research Institute and the University of 
     North Dakota Energy and Environmental Research Center.


                      alternative fuels production

              (including transfer and rescission of funds)

       The conference agreement provides for the deposit of 
     investment income earned as of October 1, 1996 on principal 
     amounts in a trust fund established as part of the sale of 
     the Great Plains Gasification Plant in Beulah, ND, and 
     immediate transfer of the funds to the General Fund of the 
     Treasury. The agreement also rescinds, $2,500,000 in 
     unobligated balances.


                 naval petroleum and oil shale reserves

       The conference agreement provides $143,786,000 for the 
     naval petroleum and oil shale reserves instead of 
     $132,022,000 as proposed by the House and $133,000,000 as 
     proposed by the Senate. The increase above the amount 
     proposed by the House reflects the elimination of a general 
     reduction of $11,764,000. The Department should take 
     necessary actions to ensure that the value of the reserves is 
     maintained.


                          energy conservation

       The conference agreement provides $569,762,000 for energy 
     conservation research instead of $523,444,000 as proposed by 
     the House and $570,452,000 as proposed by the Senate. Changes 
     to the amount proposed by the House include increases of 
     $19,741,000 for building technology, $2,000,000 for the 
     Federal energy management program, $8,027,000 for industry 
     programs, $15,750,000 for transportation research, and 
     $800,000 for policy and management.
       Changes to the amount proposed by the House for building 
     research include increases of $1,000,000 for residential 
     buildings/Building America, $500,000 for industrialized 
     housing, $2,000,000 for commercial buildings/Rebuild America, 
     $1,000,000 each for commercial/affordable homes and 
     commercial multifamily research, $500,000 for hi-cool heat 
     pumps, $300,000 for large commercial chillers, $500,000 for 
     advanced desiccants, $500,000 for oil heat research and 
     development, $5,000,000 for high priority lighting and 
     applicable research and development, $700,000 for urban heat 
     islands, $250,000 for superwindow collaboratives, $9,081,000 
     for weatherization assistance, and $4,000,000 for the State 
     energy conservation program. Decreases from the House level 
     include $1,000,000 for design for best practices/energy 
     tools, $5,000,000 in building equipment and materials 
     programs (which reflects the deletion of the generic increase 
     in House floor action as funds were distributed to the 
     program increases discussed above), $1,000,000 for updating 
     State codes, $1,000,000 as a general reduction to the codes 
     and standards programs, $25,000 for modeling and tools, and 
     $100,000 for analytical studies and planning studies.
       For the Federal energy management program, an increase of 
     $2,000,000 over the House amount is provided for the highest 
     priority FEMP activities.
       Changes to the amount provided by the House for industry 
     programs, include increases of $140,000 for forest and paper 
     products, $2,587,000 for aluminum, $500,000 for metal 
     casting, $1,000,000 for petroleum refining, $2,000,000 for 
     cogeneration/advanced turbine systems, $500,000 for 
     technology transfer/outreach programs and $1,300,000 for the 
     inventions and innovations program.
       Changes to the amount provided by the House for 
     transportation programs include

[[Page H11925]]

     increases of $500,000 for systems optimization for natural 
     gas vehicles, $850,000 for student vehicle competitions, 
     $1,000,000 for NOx emissions control for natural gas 
     vehicles, $1,000,000 for electric vehicle research/
     exploratory technology, $4,200,000 for hybrid vehicle 
     research and development, $2,000,000 for fuel cell research, 
     $300,000 for propulsion system materials/heavy vehicles, 
     $3,000,000 for lightweight vehicle materials, $400,000 for 
     heavy vehicle materials technology, and $1,500,000 for light 
     duty engine research and development.
       Changes to the amount provided by the House for policy and 
     management include $400,000 for salaries and expenses at the 
     Golden field office and $400,000 for contract services at the 
     Golden field office.
       The conference agreement does not extend the moratorium on 
     the issuance of lighting and appliance standards. With regard 
     to the development of new or revised standards, the 
     conference agreement assumes that the Department will seek to 
     achieve consensus with stakeholders consistent with the 
     understanding expressed in the colloquy on this subject 
     during House floor action on H.R. 3662.
       The conference agreement supports funding to provide grants 
     to those states that adopt model energy codes for residential 
     construction in order to assist in their efforts to implement 
     these codes through training and technical assistance for 
     builders and building officials. However, concerns have been 
     raised about the manner in which DOE, as well as 
     organizations supported by DOE funding, have used these 
     monies. Specifically, funding should neither be used to 
     coerce the states into adopting model energy codes nor to 
     penalize States that attempt to repeal such costs--activities 
     not authorized by the Energy Policy Act.
       Within the amount provided for the chemicals program, the 
     Committees urge the Department to complete alternative 
     feedstocks projects currently underway within the funds 
     provided, particularly those AFP projects that are nearing 
     completion and are consistent with the chemical industry 
     vision statement.
       The natural gas vehicle plan requested in Senate Report 
     104-319 should be developed in consultation with interested 
     outside parties, including industry, government, and 
     universities. To the extent a resource such as the National 
     Research Center for Coal and Energy offers skills and 
     expertise that would help facilitate the interaction of 
     interested parties, the Department of Energy is encouraged to 
     consider involving the Center in the development of the 
     requested plan. In the event the interested parties pursue a 
     consortium approach for this program, funding for the 
     consortium's operation should be provided by non-Federal 
     participants.
       The Department should continue to honor its funding 
     commitment to the ceramics research program. The ceramics 
     program is essential to the success of many major energy 
     efficiency programs including the turbine engine program.
       The Committees encourage the Department to use a portion of 
     the funds provided for transportation programs to initiate 
     new and innovative projects that support program objectives.
       The conference agreement earmarks $149,845,000 for energy 
     conservation grant programs instead of $136,764,000 as 
     proposed by the House and $158,900,000 as proposed by the 
     Senate. The earmark for the weatherization assistance program 
     is $120,845,000 and the earmark for State energy conservation 
     grants is $29,000,000.


                          economic regulation

       The conference agreement provides $2,725,000 for economic 
     regulation.


                      strategic petroleum reserve

                     (including transfer of funds)

       The conference agreement provides for the sale of 
     $220,000,000 of Strategic Petroleum Reserve oil and for the 
     use of those funds for operation of the SPR in fiscal year 
     1997 as proposed by the Senate.


                         spr petroleum account

       The conference agreement provides an outlay limitation of 
     $5,000,000 for the SPR petroleum account.


                   energy information administration

       The conference agreement provides $66,120,000 for the 
     Energy Information Administration as proposed by the House 
     instead of $64,120,000 as proposed by the Senate.
       Funding reductions below the fiscal year 1996 level should 
     be achieved through a combination of reducing contract 
     support and by normal Federal staff attrition without 
     incurring separation costs required for a reduction-in-force 
     or new employee buyout authority. This approach appropriately 
     will place greater reliance on Federal staffing rather than 
     on support service contractors for gathering, compiling and 
     analyzing the Nation's energy statistics.

                Department of Health and Human Services

                         Indian Health Service


                         indian health services

       The conference agreement provides $1,806,269,000 for Indian 
     health services instead of $1,779,561,000 as proposed by the 
     House and $1,800,836,000 as proposed by the Senate.
       Increases above the House include $2,000,000 for hospitals 
     and clinics, $3,200,000 for contract care for new and 
     expanded tribes, $1,000,000 for public health nursing, 
     $500,000 for community health aides in Alaska, $1,000,000 for 
     urban health, $2,000,000 for Indian health professions, 
     $7,500,000 for the Indian self-determination fund, and 
     $9,508,000 fixed cost restoration for both services and 
     facilities. Within the funds provided, the Indians into 
     psychology program should be funded at $200,000.
       The conference agreement earmarks a total of $368,325,000 
     for contract health services instead of $365,125,000 as 
     proposed by the House and $365,128,000 as proposed by the 
     Senate.
       The conference agreement earmarks $11,706,000 for the loan 
     repayment program as proposed by the Senate instead of 
     $11,306,000 as proposed by the House.
       The conference agreement earmarks $7,500,000 for the Indian 
     self-determination fund. The agreement also deletes Senate 
     language limiting the use of the Indian self-determination 
     fund to nonrecurring transitional costs of initial or 
     expanded tribal contracts, compacts, grants, or cooperative 
     agreements.


                        Indian Health Facilities

       The conference agreement provides $247,731,000 for Indian 
     health facilities instead of $227,701,000 as proposed by the 
     House and $251,957,000 as proposed by the Senate.
       Increases above the House include $1,000,000 for modular 
     dental units, $3,000,000 for sanitation facilities, 
     $1,000,000 for maintenance and improvement, $13,500,000 for 
     the replacement facility at Lame Deer, Montana, and 
     $1,530,000 for equipment at the Anchorage native primary care 
     center. The conference agreement also assumes that the 
     facilities account will receive an appropriate portion of the 
     increase for fixed cost restoration provided in the services 
     account.
       IHS may use up to $3,000,000 of the funds provided for 
     sanitation facilities for projects to assess open dumps on 
     Indian lands. However, before proceeding, IHS should report 
     to the Committee on the level of resources it intends to 
     allocate to this activity.
       Senate floor-action adopted language authorizing the 
     Choctaw Nation of Oklahoma to use certain non-facilities 
     funds to construct a facility to replace the Talahina Indian 
     Hospital. While the IHS and tribes are encouraged to explore 
     alternative means of facility financing, the Senate language 
     would set a significant precedent. As such, the language has 
     been removed to provide IHS and the relevant committees an 
     opportunity to study its potential impact on the priority 
     list system, future facility financing and the quality of 
     health care service in Indian country.


            Administrative Provisions, Indian Health Service

       As proposed by the Senate, the conference agreement deletes 
     language preventing ISH from billing Indians who have the 
     economic means to pay for services.

                        Department of Education


              Office of Elementary and Secondary Education

                            Indian Education

       The conference agreement provides $61,000,000 for Indian 
     education instead of $52,500,000 as proposed by the House and 
     Senate. The increase is for grants to local educational 
     agencies.

                         Other Related Agencies


              Office of Navajo and Hopi Indian Relocation

                         Salaries and Expenses

       The conference agreement provides $19,345,000 for the 
     Office of Navajo and Hopi Indian Relocation as proposed by 
     the Senate instead of $20,345,000 as proposed by the House.


    Institute of American Indian and Alaska Native Culture and Arts 
                              Development

                        Payment to the Institute

       The conference agreement provides $5,500,000 for the 
     Institute of American Indian and Alaska Native Culture and 
     Arts Development.

                        Smithsonian Institution


                         Salaries and Expenses

       The conference agreement provides $317,557,000 for salaries 
     and expenses instead of $317,188,000 as proposed by the House 
     and $317,582,000 as proposed by the Senate. Within this 
     allowance, funds are included for two of the Institution's 
     priority program enhancements: $720,000 for the Smithsonian 
     Astrophysical Observatory to fund initial operations of the 
     Hilo, HI field station submillimeter array, and $649,000 for 
     procurement of the voice system and a portion of the data 
     system of the National Museum of Natural History's East Court 
     Building. Level funding of $1,447,000 is recommended for the 
     Center for Folklife Programs and Cultural Studies and 
     includes an amount of $200,000 above the budget request for 
     the Mississippi Delta program at the 1997 Festival of 
     American Folklife. The State of Mississippi intends to 
     contribute $250,000 to this effort. In order to address 
     uncontrollable costs, the Institution is provided with an 
     increase of $5,025,000 for mandated pay raises. Further, of 
     the $3,000,000 appropriated for one-time buyout expenses in 
     fiscal year 1996, $2,975,000 has been retained in the base to 
     be applied toward additional expenses associated with 
     postage, communications and utilities ($2,000,000) and rental 
     space ($975,000). Savings derived from recent buyout 
     activities are expected to be used by the Smithsonian 
     Institution to assist in meeting any other increases in 
     uncontrollable expenses that were identified in the fiscal 
     year 1997 budget estimate.

[[Page H11926]]

        Construction and Improvements, National Zoological Park

       The conference agreement provides $3,850,000 for zoo 
     construction instead of $3,250,000 as proposed by the House 
     and $4,000,000 as proposed by the Senate. Of this total, 
     $3,250,000 is designated for repair, renovation and 
     improvement projects at both the Rock Creek and Front Royal 
     facilities. In addition, $600,000 is included for the 
     Grasslands exhibit, thereby enabling the Zoo to complete 
     Phase I, the American Prairie. Once completed, no additional 
     operating costs are expected to be incurred in staffing this 
     exhibit. Given the restrictions of the current budget 
     climate, it is unlikely that additional funds will be 
     available in the near future to address Phases II and III.

                  Repair and Restoration of Buildings

       The conference agreement provides $39,000,000 for repair 
     and restoration of buildings instead of $39,954,000 as 
     proposed by the House and $38,000,000 as proposed by the 
     Senate.

                              Construction

       The conference agreement provides $10,000,000 for 
     construction instead of $7,000,000 as proposed by the House 
     and $12,000,000 as proposed by the Senate. Within this total, 
     $4,000,000 is provided to the National Museum of the American 
     Indian to complete planning and design of the Mall Museum, 
     $3,000,000 for continued planning and design of the National 
     Air and Space Museum extension, and $3,000,000 for minor 
     construction, alterations and modifications.
       The conference agreement includes $4,000,000 to complete 
     the design of the National Museum of the American Indian as 
     recommended by the Senate. This represents a logical stopping 
     point on this project. This funding is provided so that the 
     $5,300,000 in the Federal funds and the $3,400,000 in donated 
     funds already spent on design will not be wasted. By funding 
     this final phase of the design, the managers are not 
     committing to appropriations for construction funds in fiscal 
     year 1998. Last year Congress directed the Smithsonian to 
     consider possible downsizing of the building or additional 
     private fundraising efforts to reduce the $110,000,000 
     Federal share of the construction. The Smithsonian has not 
     responded to these directives and given the current budget 
     constraints and the Smithsonian's other priority needs, 
     further Federal funding for the Indian Museum is likely to be 
     delayed.

                        NATIONAL GALLERY OF ART


                         salaries and expenses

       The conference agreement provides $53,899,000 for salaries 
     and expenses of the National Gallery of Art.


            repair, restoration and renovation of buildings

       The conference agreement provides $5,942,000 for repair, 
     restoration and renovation of buildings.

             John F. Kennedy Center for the Performing Arts


                       operations and maintenance

       The conference agreement provides $10,875,000 for 
     operations and maintenance of the John F. Kennedy Center for 
     the Performing Arts.


                              construction

       The conference agreement provides $9,000,000 for 
     construction.

            Woodrow Wilson International Center for Scholars


                         salaries and expenses

       The conference agreement provides $5,840,000 for salaries 
     and expenses of the Woodrow Wilson International Center for 
     Scholars.

           NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES

                    National Endowment for the Arts


                       grants and administration

       The conference agreement provides $82,734,000 for grants 
     and administration of the National Endowment for the Arts.


                            matching grants

       The conference agreement provides $16,760,000 for matching 
     grants.

                 National Endowment for the Humanities


                       grants and administration

       The conference agreement provides $96,100,000 for grants 
     and administration of the National Endowment for the 
     Humanities instead of $92,994,000 as proposed by the House 
     and $87,994,000 as proposed by the Senate.


                            matching grants

       The conference agreement provides $13,900,000 for matching 
     grants instead of $11,500,000 as proposed by the House and 
     Senate.

                      Institute of Museum Services


                       grants and administration

       The conference agreement provides $22,000,000 for grants 
     and administration of the Institute of Museum Services 
     instead of $21,000,000 as proposed by the House and Senate.

                        Commission of Fine Arts


                         salaries and expenses

       The conference agreement provides $867,000 for salaries and 
     expenses of the Commission of Fine Arts.

               National Capital Arts and Cultural Affairs

       The conference agreement provides $6,000,000 for National 
     capital arts and cultural affairs grants.

               Advisory Council on Historic Preservation


                         Salaries and expenses

       The conference agreement provides $2,500,000 for salaries 
     and expenses of the Advisory Council on Historic 
     Preservation. Federal agencies and other entities that 
     benefit from the Council's expert assistance and advice on 
     meeting their particular preservation obligations should 
     reimburse the Council for the cost of providing these 
     services, rather than relying on the Council's appropriation. 
     The Council, with full cooperation from other Federal 
     agencies, should cultivate such reimbursable arrangements as 
     an important component of supporting its mission. Such 
     agreements will further the Council's mission but not 
     increase the Council's dependency on the Interior bill.

                  National Capital Planning Commission


                         salaries and expenses

       The conference agreement provides $5,390,000 for salaries 
     and expenses of the National Capital Planning Commission.

             Franklin Delano Roosevelt Memorial Commission


                         Salaries and expenses

       The conference agreement provides $500,000 for salaries and 
     expenses of the Franklin Delano Roosevelt Memorial Commission 
     as proposed by the Senate instead of the $125,000 as proposed 
     by the House. Funds are made available until expended as 
     proposed by the Senate. The House had proposed one-year 
     funding availability.

                United States Holocaust Memorial Council


                       Holocaust Memorial Council

       The conference agreement provides $30,707,000 for the 
     Holocaust Memorial Council as proposed by the Senate instead 
     of $29,707,000 as proposed by the House.

                     TITLE III--GENERAL PROVISIONS

       Section 312 continues language carried in the fiscal year 
     1996 appropriations act regarding AmeriCorps activities of 
     the Department of the Interior and the Forest Service in the 
     Department of Agriculture subject to established 
     reprogramming guidelines. Timely consideration will be given 
     to any request that is submitted. If AmeriCorps members can 
     be used in a manner that on-the-ground land managers 
     determine will be cost-effective and beneficial to the 
     agency, those types of efforts should be considered via a 
     reprogramming request.
       Section 315 expands the Wayne NF land acquisition 
     moratorium to include Gallia County, Ohio as adopted by 
     Senate floor action. The House did not include Gallia County 
     in the moratorium.
       Section 316 clarifies House language regarding grants by 
     the National Endowment for the Arts to local arts agencies 
     and regional groups, as proposed by the Senate.
       The conference agreement deletes House and Senate language 
     regarding construction of a telescope on Mount Grahm. Section 
     317 modifies House and Senate language limiting funding for 
     issuing a final rulemaking on jurisdiction over subsistence 
     fishing in Alaska.
       The committees intend that the prohibition in this section 
     shall not prevent the Secretaries of Agriculture and the 
     Interior from continuing to receive public comment on the 
     advanced notice of proposed rulemaking on subsistence, or 
     from preparing or issuing any further notice of proposed 
     rulemaking with respect to subsistence in Alaska. The 
     committees intend that neither Secretary will issue such 
     notice of proposed rulemaking, and the section prohibits the 
     implementation or enforcement of any interim or final rule or 
     regulation.
       Section 319 extends the recreation fee demonstration 
     program and expands it to include 100 units per participating 
     agency as proposed by the Senate. The House had a similar 
     provision which did not increase the number of participating 
     units.
       Conference agreement deletes House language placing a 
     limitation on the transfer of land into trust for Indian 
     tribes, as proposed by the Senate.
       Section 321 transfers the Bend Silviculture Laboratory to 
     the Central Oregon Community College as proposed by the 
     Senate. The House had no similar provision.
       Section 322 modifies a Senate provision such that the 
     activities of the Office of Forestry and Economic Assistance 
     or any successor office are terminated after December 31, 
     1996. The House had no similar provision.
       Section 323 authorizes a land exchange between the 
     Corrections Corporation of America and National Park Service 
     of land in Oxon Cove Park in Prince Georges County, Maryland 
     as proposed by the Senate. The House had no similar 
     provision.
       Section 324 authorizes a land exchange between the Forest 
     Service and the Chelan County Public Utility District in 
     Washington as proposed by the Senate. The House had no 
     similar provision.
       Section 325 mandates the modification of the boundaries of 
     the Snoqualmie National Forest to facilitate a land exchange 
     between the Forest Service and the Weyerhaeuser Co. as 
     proposed by the Senate. The House had no similar provision.
       Section 326 provides for a land exchange between the Forest 
     Service (Green Mountain National Forest) and Sugarbush Resort 
     Holdings, Inc. as proposed by the Senate. The House had no 
     similar provision.
       Section 327 removes 100 acres from the Snowbird Wilderness 
     Study Area as proposed

[[Page H11927]]

     by the Senate. The House had no similar provision.
       Section 328 renames the Columbia Wilderness in the Mt. Hood 
     NF, OR as the ``Mark O. Hatfield Wilderness'' as proposed by 
     the Senate. The House had no similar provision.
       Section 329 authorizes limited competition for ``Jobs in 
     the Woods'' contracts in Washington, Oregon and California as 
     proposed by the Senate. The House had no similar provision.
       Section 330 amends the Rhode Island Indian Claims 
     Settlement Act pertaining to Indian gaming in the State of 
     Rhode Island. The inclusion of this provision is not intended 
     to set a precedent, but is intended exclusively to be a 
     fulfillment of the agreement concerning Indian gaming in the 
     State of Rhode Island reached when the underlying 
     legislation, the Indian Gaming Regulatory Act (IGRA), was 
     passed. The agreement is set forth in the colloquy that 
     accompanied the passage of IGRA. A restatement of this 
     colloquy follows:

       Mr. Pell. Mr. President, I would like to thank the managers 
     of S. 555, the Indian Gaming Regulatory Act, and particularly 
     the chairman of the Select Committee on Indian Affairs [Mr. 
     Inouye], for their hard work and patience in acheving a 
     consensus on this important measure.
       In the interests of clarity, I have asked that language 
     specifically citing the protections of the Rhode Island 
     Indian Claims Settlement Act (Public Law 95-395) be stricken 
     from S. 555. I understand that these protections clearly will 
     remain in effect.
       Mr. Inouye. I thank my colleague, the senior Senator from 
     Rhode Island [Mr. Pell], and assure him that the protections 
     of the Rhode Island Indian Claims Settlement Act (P.L. 95-
     395), will remain in effect and that the Narragansett Indian 
     Tribe clearly will remain subject to the civil, criminal, and 
     regulatory laws of the State of Rhode Island.
       Mr. Chafee. Mr. President, I too would like to thank the 
     chairman [Mr. Inouye] and members of the Select Committee on 
     Indian Affairs for their cooperation and assistance. The 
     chairman's statement makes it clear that any high stakes 
     gaming, including bingo, in Rhode Island will remain subject 
     to the civil, criminal, and regulatory laws of our State. 
     (Congressional Record, September 15, 1988, p. S. 12650)

       The Fish and Wildlife Service, the National Park Service 
     and the Forest Service should promulgate rules which ensure 
     that the public has the opportunity to participate fully and 
     comment on the issuing of permits, rights-of-way or easements 
     for any telecommunications facility placed in any unit of the 
     National Refuge System, the National Park System or the 
     National Forest System.
       Conference agreement does not include language proposed by 
     the Senate restricting employee relocation costs. However, an 
     area of concern with respect to agencies funded by the 
     Interior bill is the large number of employees affected by, 
     and millions of dollars spent each year on, relocations and 
     transfers of station. Reductions in this area can result in 
     significant savings that can be applied to agency operating 
     programs. All land management agencies are encouraged to 
     reduce both the number of employees relocated and the total 
     cost of relocating employees by 10 percent in fiscal year 
     1997 and to plan to reduce the number by an additional 10 
     percent in fiscal year 1998, using the average of fiscal 
     years 1994 and 1995 as a base. All agencies should include in 
     the fiscal year 1998 budget request to Congress a report on 
     the progress and plans for achieving reductions in relocation 
     costs and employee relocations.

                   TITLE IV--EMERGENCY APPROPRIATIONS

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                   management of lands and resources

       An additional $3,500,000 in emergency appropriations is 
     provided for management of lands and resources to restore 
     public lands damaged by fire. This amount is contingent upon 
     receipt of a budget request that includes a Presidential 
     designation of such amount as an emergency requirement as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.


                        wildland fire management

       An additional $100,000,000 in emergency appropriations is 
     provided for wildland fire management. This amount is 
     contingent upon receipt of a budget request that includes a 
     President designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.


                   oregon and california grant lands

       An additional $2,500,000 in emergency appropriations is 
     provided for Oregon and California grant lands to restore 
     public lands damaged by fire. This amount is contingent upon 
     receipt of a budget request that includes a Presidential 
     designation of such amount as an emergency requirement as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.

                United States Fish and Wildlife Service


                          resource management

       An additional $2,100,000 in emergency appropriations is 
     provided for resource management of which $600,000 is to 
     restore public lands damaged by fire and $1,500,000 is to 
     address anti-terrorism requirements. This amount is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.


                              construction

       An additional $15,891,000 in emergency appropriations is 
     provided for construction to address damages from hurricanes 
     Bertha, Fran and Hortense and from floods in the Midwest and 
     droughts and floods in the Southwest. This amount is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                         National Park Service


                 operation of the national park system

       An additional $2,300,000 in emergency appropriations is 
     provided for the operation of the National park system to 
     address anti-terrorism requirements. This amount is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.


                              construction

       An additional $9,300,000 in emergency appropriations is 
     provided for construction, of which $3,000,000 is to address 
     damages caused by hurricanes Bertha, Fran and Hortense and 
     $6,300,000 is to address anti-terrorism requirements. This 
     amount is contingent upon receipt of a budget request that 
     includes a Presidential designation of such amount as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

                    United States Geological Survey


                 surveys, investigations, and research

       An additional $1,138,000 in emergency appropriations is 
     provided for surveys, investigations, and research to address 
     data collection and documentation costs associated with 
     hurricane and flood damage. This amount is contingent upon 
     receipt of a budget request that includes a Presidential 
     designation of such amount as an emergency requirement as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.

                        Bureau of Indian Affairs


                      operation of indian programs

       An additional $6,600,000 in emergency appropriations is 
     provided for operation of Indian programs to address damages 
     on the Mescalaro Apache reservation caused by floods in the 
     Southwest and to restore Indian lands damaged by fire. This 
     amount is contingent upon receipt of a budget request that 
     includes a Presidential designation of such amount as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.


                              construction

       An additional $6,000,000 in emergency appropriations is 
     provided for construction to address damages on the Mescalaro 
     Apache reservation caused by floods in the Southwest. This 
     amount is contingent upon receipt of a budget request that 
     includes a Presidential designation of such amount as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                         national forest system

       An additional $3,395,000 in emergency appropriations is 
     provided for the National Forest System to address damages 
     caused by hurricanes Fran and Hortense. This amount is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.


                        wildland fire management

       An additional $550,000,000 in emergency appropriations is 
     provided for wildland fire management including repayment of 
     advances from other appropriations accounts. This amount is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.


                    reconstruction and construction

       An additional $5,210,000 in emergency appropriations is 
     provided for reconstruction and construction to address 
     damages caused by hurricanes Fran and Hortense. This amount 
     is contingent upon receipt of a budget request that includes 
     a Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                         OTHER RELATED AGENCIES

                        Smithsonian Institution


                         salaries and expenses

       An additional $935,000 in emergency appropriations is 
     provided for salaries and expenses of the Smithsonian 
     Institution to address anti-terrorism requirements. This 
     amount is contingent upon receipt of a budget request that 
     includes a Presidential designation of such amount as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

[[Page H11928]]

             John F. Kennedy Center for the Performing Arts


                       operations and maintenance

       An additional $1,600,000 in emergency appropriations is 
     provided for operation and maintenance of the John F. Kennedy 
     Center for the Performing Arts to address anti-terrorism 
     requirements. This amount is contingent upon receipt of a 
     budget request that includes a Presidential designation of 
     such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.


                              construction

       An additional $3,400,000 in emergency appropriations is 
     provided for construction to address anti-terrorism 
     requirements. This amount is contingent upon receipt of a 
     budget request that includes a Presidential designation of 
     such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

                        National Gallery of Art


                         salaries and expenses

       An additional $382,000 in emergency appropriations is 
     provided for salaries and expenses of the National Gallery of 
     Art to address anti-terrorism requirements. This amount is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                United States Holocaust Memorial Council


                       holocaust memorial council

       An additional $1,000,000 in emergency appropriations is 
     provided for the Holocaust Memorial Council to address anti-
     terrorism requirements. This amount is contingent upon 
     receipt of a budget request that includes a Presidential 
     designation of such amount as an emergency requirement as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.

                             SECTION 101(e)

  Departments of Labor, Health and Human Services, and Education, and 
               Related Agencies Appropriations Act, 1997

       The conferees on H.R. 3610 agree with the matter inserted 
     in this subsection of this conference agreement and the 
     following description of this matter. This matter was 
     developed through negotiations on the differences in the 
     House and Senate versions of H.R. 3755, the Departments of 
     Labor, Health and Human Services, and Education, and Related 
     Agencies Appropriations Act, 1997, by members of the 
     appropriations subcommittee of both the House and Senate with 
     jurisdiction over H.R. 3755.
       Section 101(e) of H.R. 3610 provides appropriations for 
     programs, projects and activities provided for in the 
     Departments of Labor, Health and Human Services and Education 
     and Related Agencies Appropriations Act, 1997. In 
     implementing this agreement, the Departments and agencies 
     should comply with the language and instructions set forth in 
     House Report 104-659 and Senate Report 104-368. In those 
     cases where the language and instructions specifically 
     address the allocation of funds, the Departments and agencies 
     are to follow the funding levels specified in the 
     Congressional budget justifications accompanying the fiscal 
     year 1997 budget or the underlying authorizing statute and 
     should give careful consideration to the recommendations in 
     the reports accompanying the House and Senate bills. With 
     respect to the provisions in the above House and Senate 
     Reports that specifically allocate funds that are not 
     allocated by formula in the underlying statute or identified 
     in the budget justifications, the conferees have reviewed 
     each and have included those in which they concur in this 
     joint statement.
       The Departments of Labor, Health and Human Services and 
     Education and Related Agencies Appropriations Act, FY 1997, 
     put in place by this bill, incorporates the following 
     agreements of the managers:

                      TITLE I--DEPARTMENT OF LABOR

                 Employment and Training Administration


                    training and employment services

       The conference agreement includes $4,719,703,000, instead 
     of $4,166,482,000 as proposed by the House in H.R. 3755 and 
     $4,202,739,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The agreement includes $895,000,000 
     for adult job training, $871,000,000 for summer youth 
     employment, $1,293,000,000 for the dislocated workers program 
     and $200,000,000 for the school-to-work program.
       The agreement includes the FY 1996 amount for the American 
     Samoan program under pilots and demonstrations.
       The conferees are agreed that a portion of the job training 
     funds available to States should be used to support community 
     based programs with demonstrated effectiveness, working in 
     cooperation with businesses and the private sector, such as 
     Opportunities Industrialization Centers of America, which 
     provides community based training and development of job 
     skills in economically disadvantaged areas.
       In addition, the agreement permits the transfer of up to 20 
     percent of funds between title II-A and title III of the Act, 
     with the approval of the Governor, instead of 50 percent as 
     proposed by the Senate and 100 percent as proposed by the 
     House.
       The agreement includes a legislative provision proposed by 
     the Senate modified to allow the Secretary of Labor to waive 
     certain statutory and regulatory requirements of the Job 
     Training Partnership Act and the Wagner-Peyser Act to 
     encourage and facilitate cooperation among Federal, State, 
     and local entities to redesign and test an outcomes oriented 
     approach to intergovernmental service delivery. The House 
     bill had no similar provision.
       The agreement also includes a legislative provision as 
     proposed by the Senate to require the Secretary of Labor to 
     establish a workforce flexibility (work-flex) partnership 
     demonstration program under which the Secretary would 
     authorize not more than six States to waive certain statutory 
     and regulatory requirements of the Job Training Partnership 
     Act and the Wagner-Peyser Act. The waivers could be granted 
     for a period of up to 5 years. Preference would be given to 
     those States which have been designated ``Ed-Flex Partnership 
     States'' under the Goals 2000 Act. The House bill had no 
     similar provision.


            community service employment for older americans

       The conference agreement includes $463,000,000, instead of 
     $373,000,000 as proposed by both the House and the Senate in 
     H.R. 3755. The agreement earmarks 22 percent of the funds for 
     the States and 78 percent for national sponsors, instead of 
     35 percent for the States and 65 percent for the national 
     sponsors as proposed by the House in H.R. 3755 and 25 percent 
     for the States and 75 percent for the national sponsors as 
     proposed by the Senate in H.R. 3755 as reported from 
     Committee.
       The additional $90,000,000 over the House and Senate bills 
     is for the cost of the recent increase in the minimum wage, 
     of which $28,000,000 if for program year 1996 and $62,000,000 
     is for program year 1997.
       State Unemployment Insurance and Employment Service 
     Operations
       The conference agreement includes $3,320,278,000, instead 
     of $3,222,191,000 as proposed by the House in H.R. 3755 and 
     $3,232,015,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. This includes $173,452,000 in 
     Federal funds, instead of $132,279,000 as proposed by both 
     the House and Senate, and $3,146,826,000 from the 
     Unemployment Trust Fund, instead of $3,089,912,000 as 
     proposed by the House and $3,099,736,000 as proposed by the 
     Senate. The agreement includes $150,000,000 for one-stop 
     career centers.
       Within the amount for Employment Service national 
     activities, $20,000,000 is set aside specifically for State 
     administration of the new Work Opportunity Tax Credit.
       The agreement includes several legal citations that were 
     included in the Senate bill but not in the House bill.

              Pension and Welfare Benefits Administration


                         Salaries and Expenses

       The conference agreement includes $77,083,000, instead of 
     $71,783,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee and $66,083,000 as proposed by the 
     House in H.R. 3755, deletes a House earmark of $300,000 for 
     genetic non-discrimination enforcement activities and 
     provides that $6,000,000 shall remain available through 
     September 30, 1998 for revising the processing of employee 
     benefit plan returns.


                  pension benefit guaranty corporation

       The conference agreement includes a limitation on 
     administrative expenses of the Corporation of $10,345,000 and 
     inserts language classifying certain other expenses of the 
     Corporation as non-administrative as proposed by the Senate 
     in H.R. 3755 as reported from Committee. The House in H.R. 
     3755 included a limitation on administrative expenses of 
     $135,720,000 and did not classify any other expenses as non-
     administrative.
       To ensure an appropriate degree of congressional oversight, 
     the Labor Department and the PBGC shall notify the 
     Appropriations Committees prior to application to the Office 
     of Management and Budget for any additional funding beyond 
     what is contemplated by this conference agreement. Such 
     notification will provide, in writing, the amount, reason for 
     any necessity for the PBGC request.
       The conferees are concerned that a large portion of the 
     PBGC's administrative costs are non-limitation funds not 
     subject to the regular appropriations process. The conferees 
     expect the Corporation to review its budget structure and be 
     prepared to discuss at next year's appropriations hearings 
     possible alternative structures that maintain the flexibility 
     needed to protect the interests of pension plan participants 
     while assuring appropriate congressional oversight.

                  Employment Standards Administration


                         Salaries and Expenses

       The conference agreement includes $291,405,000, instead of 
     $264,405,000 as proposed by the House in H.R. 3755 and 
     $263,155,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The conferees understand that the 
     Department of Labor is nearing completion of its evaluation 
     to develop viable options to realize needed improvements in 
     the Davis-Bacon wage determination system. The amount of 
     $3,750,000 will be used to test and implement process 
     improvements either through the use of alternative wage data 
     sources or, if not feasible or cost-effective, by improving 
     the capacity of the existing wage survey system to promote 
     participation and data reliability, primarily through 
     investment in technology.

[[Page H11929]]

     The conferees expect the General Accounting Office to review 
     the Department's implementation activities to determine 
     whether these efforts will achieve the goal of improving the 
     timeliness, accuracy and reliability of Davis-Bacon wage 
     determinations. The General Accounting Office shall report 
     its findings to the Appropriations Committees after it has 
     made its review.
       The conferees agree with the directive in the Senate Report 
     with respect to black lung field offices.

              Occupatonal Safety and Health Administration


                         Salaries and Expenses

       The conference agreement includes $325,734,000, instead of 
     $297,734,000 as proposed by the House in H.R. 3755 and 
     $299,134,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The agreement includes language as 
     proposed by the Senate that authorizes OSHA to collect and 
     retain fees for services provided to nationally recognized 
     testing laboratories and to use such sums to administer 
     laboratory recognition programs that ensure the safety of 
     equipment and products used in the workplace. The House bill 
     had no similar provision.
       The conferees are concerned about the enforcement of State 
     occupational safety and health standards by States operating 
     OSHA-approved State plans, particularly where such standards 
     differ significantly from Federal standards and may impose an 
     undue burden on interstate commerce. The conferees believe 
     that California's enforcement of its hazard communication 
     standard, which incorporates portions of proposition 65, may 
     impose such a burden. OSHA is directed to expedite its review 
     and approval, or rejection, of California's hazard 
     communication/proposition 65 standard, and to provide a 
     report to the Appropriations Committees on this matter, by no 
     later than January 1, 1997.

                 Mine Safety and Health Administration


                         salaries and expenses

       The conference agreement includes $197,810,000, instead of 
     $191,810,000 as proposed by the House in H.R. 3755 and 
     $195,724,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee.

                       Bureau of Labor Statistics


                         salaries and expenses

       The conference agreement includes $361,700,000, instead of 
     $354,700,000 as proposed by the House in H.R. 3755 and 
     $351,330,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. This includes $309,647,000 in 
     Federal funds, instead of $302,647,000 as proposed by the 
     House and $299,665,000 as proposed by the Senate, and 
     $52,053,000 from the Unemployment Trust Fund as proposed by 
     the House instead of $51,665,000 as proposed by the Senate.

                        Departmental Management


                         salaries and expenses

       The conference agreement includes $144,508,000, instead of 
     $142,508,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee and $137,801,000 as proposed by the 
     House in H.R. 3755. The conferees agree with the allocation 
     of funds in the Senate Report with respect to international 
     child labor issues.
       The agreement includes language as proposed by the Senate 
     to require that any decision under the Longshore and Harbor 
     Workers' Compensation Act that has been pending before the 
     Benefits Review Board for more than 12 months shall be 
     considered affirmed by the Board and shall be considered the 
     final order of the Board. The House bill had no similar 
     provision. With respect to the Inspector General of the 
     Department, the conferees endorse the language in the House 
     Report concerning quarterly reporting on actual savings 
     resulting from his efforts and on ``funds put to better 
     use''.

        Assistant Secretary for Veterans Employment and Training

       The conference agreement includes $181,949,000 as proposed 
     by the House in H.R. 3755 instead of $174,225,000 as proposed 
     by the Senate in H.R. 3755 as reported from Committee.

                           GENERAL PROVISIONS

       The conference agreement includes a general provision 
     proposed by the House in H.R. 3755 modified to provide that 
     effective January 1, 1997 no Department of Labor funds shall 
     be disbursed without the approval of the Department's Chief 
     Financial Officer or his delegatee. The Senate bill had no 
     similar provision.
       The conference agreement does not include House language in 
     H.R. 3755 that would have permitted employees who are 16 and 
     17 years of age to load materials into a cardboard baler or a 
     compactor that is in compliance with the current safety 
     standard promulgated by the American National Standards 
     Institute. This matter has now been resolved in Public Law 
     104-174 which was signed by the President on August 6, 1996. 
     The Senate bill had no similar provision.
       The conference agreement does not include House language in 
     H.R. 3755 that would have prohibited the enforcement of 
     Hazardous Occupation Order No. 2 with respect to incidental 
     and occasional driving by minors on the job, unless the 
     Secretary finds that the operation of a motor vehicle is the 
     primary duty of the minor's employment. The Senate bill had 
     no similar provision.
       The conference agreement does not include a general 
     provision proposed by the Senate in H.R. 3755 as reported 
     from Committee to exempt certain work performed by prison 
     inmates from minimum wage and overtime requirements of the 
     Fair Labor Standards Act under certain circumstances. This 
     would have been a permanent change in the law. The House bill 
     had no similar provision. The conferees believe that the 
     provision is not necessary. The courts have uniformly held 
     that a prisoner who is required to perform labor which serves 
     the prison institution is not an employee of the prison or of 
     the State and is not entitled to the minimum wage.
       The conference agreement includes a general provision to 
     allow the Secretary of Labor to waive various sections of the 
     Job Training Partnership Act to improve intergovernmental 
     service delivery systems. This would involve a State that has 
     executed a memorandum of understanding with several Federal 
     agencies, including the Department of Labor. The waivers of 
     JTPA provisions would involve such things as definitions, 
     planning and procurement requirements, cost categories and 
     cost limitations, and program design requirements. This 
     provision was not included in either the House or the Senate 
     version of H.R. 3755 but is the same as a proviso in the 
     fiscal year 1996 appropriations act.

           TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration


                     Health Resources and Services

       The conference agreement includes $3,405,019,000 instead of 
     $3,082,190,000 as proposed by the House in H.R. 3755 and 
     $3,213,096,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee.
       The conference agreement does not include the legal 
     citation for the Pacific Basin program as proposed by the 
     Senate. The House bill did not include the citation. The 
     conferees have agreed to terminate the Pacific Basin program 
     but encourage consideration of the region's needs in other 
     Health Resources and Services Administration (HRSA) programs, 
     as appropriate.
       The conference agreement includes the legal citation for 
     the Native Hawaiian Health Care program as proposed by the 
     Senate. The House bill did not include the citation. The 
     conferees have increased funding for the consolidated health 
     centers line in part so that health care activities funding 
     under the Native Hawaiian Health Care program can be 
     supported under the broader health centers line if the agency 
     feels it is appropriate.
       The conference agreement includes $828,000 for facilities 
     renovations at the Gillis W. Long Hansen's Disease Center as 
     proposed by the Senate rather than $2,828,000 as proposed by 
     the House.
       The conference agreement includes $198,452,000 for the 
     family planning program as proposed by the Senate rather than 
     $192,592,000 as proposed by the House.
       The conference agreement earmarks $167,000,000 for the Ryan 
     White Title II State AIDS drug assistance programs rather 
     than $117,000,000 as proposed by the Senate and $75,000,000 
     as proposed by the House. Total funding for the Ryan White 
     programs has been increased by $238,850,000 from the fiscal 
     year 1996 level to a total of $996,252,000. Funding increases 
     are included for all Ryan White titles in recognition of the 
     costs of drug purchases, particularly the new protease 
     inhibitors, viral load testing, caseload increases and AZT 
     therapy for pregnant women.
       The conferees are aware that the new HIV drug combination 
     therapies have not yet been approved for pregnant women and 
     children, and that adolescents are experiencing problems in 
     accessing these therapies. The conferees encourage the 
     Secretary and the pharmaceutical industry to expedite 
     clinical trials for pregnant women and children with HIV/
     AIDS, and to report to the Committees on these efforts by 
     December 31, 1996, including providing access to the new 
     drugs for adolescents.
       The conferees expect that all States receiving AIDS drug 
     assistance funding will employ cost-saving strategies to 
     maximize assistance to HIV patients. HRSA should assure that 
     each State seeks the best possible price for AIDS drug 
     purchases. Such strategies might include one or more of the 
     following: the Veterans' Health Care Act Office of Drug 
     Pricing Program, manufacturers' voluntary rebates and 
     discounts to States, and pharmacy discounts.
       The conference agreement includes language proposed by the 
     Senate permitting the use of funds provided to continue 
     operating the Council on Graduate Medical Education. The 
     House bill had no similar provision.
       The conference agreement includes language proposed by the 
     Senate allocating up to $8,000,000 of the funds provided for 
     consolidated health centers for loan guarantees for the 
     construction and renovation of community and migrant health 
     centers and, if authorized, for loans made for the costs of 
     developing managed care networks. The House bill had no 
     similar provision.
       The conference agreement includes language designating 
     $103,609,000 of the funds provided for the Maternal and Child 
     Health block grant for special projects of regional and 
     national significance (SPRANS). This designation will provide 
     $2,857,000 more for SPRANS activities than would otherwise be 
     the case under the statutory formula. The conferees intend 
     that this amount be used for the traumatic brain injury State 
     demonstration projects recently authorized under title XII of 
     the Public Health Service Act. This provision was not 
     included in either House or Senate bill. The Senate bill

[[Page H11930]]

     had provided separate funding of $3,000,000 for the 
     demonstrations.
       The conferees intend that the agency may use up to 
     $3,000,000 of the funding provided for the National Health 
     Service Corps for State offices of rural health.
       The conferees encourage HRSA to sustain its commitment to 
     historically minority health professions institutions in the 
     centers of excellence and health careers opportunity 
     programs.
       The conferees are aware of a pending proposal to alter 
     current methods of allocating human livers for 
     transplantation by the United Network for Organ Sharing 
     (UNOS), a private non-profit organization under contract with 
     HRSA to manage the organ procurement and transplantation 
     network. The conferees understand that establishing equitable 
     policies in the area of organ allocation is very complex. The 
     conferees expect UNOS to give consideration to a number of 
     factors. These include but are not necessarily limited to the 
     following: regional success in increasing organ donation; the 
     severity of illness of the patients; the impact on access to 
     transplants for low-income patients because of transportation 
     costs; and increasing the total number of life-years of 
     recipients. The conferees expect UNOS to provide extensive 
     opportunities for public comment before its board considers 
     this issue and not to take action until Congress can be 
     assured that any change in policy addresses the priorities 
     described above.
       The conferees are aware of a rural telemedicine network 
     being developed within the New England and Mid-Atlantic 
     regions by a health informatics initiative and believe that 
     it warrants full consideration for rural health outreach 
     support.
       The conferees with the language in the Senate report 
     stating that the Alzheimer's demonstrations should remain in 
     HRSA rather than be transferred to the Administration on 
     Aging.
       The conference agreement includes $13,000,000 for health 
     care facilities grants described in the Senate report, of 
     which $4,000,000 is designated for the second phase of the 
     women's outreach project, $4,000,000 is designated for the 
     elder care center, $4,000,000 is designated for the regional 
     pediatric care, research and teaching center in Portland, 
     Oregon, and $1,000,000 is designated for new construction and 
     rehabilitation of rural community health centers in the 
     Midwest.

               Centers for Disease Control and Prevention


                disease control, research, and training

       The conference agreement includes $2,262,698,000 instead of 
     $2,153,376,000 as proposed by the House in H.R. 3755 and 
     $2,168,948,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee.
       The conference agreement includes $30,553,000 for Centers 
     for Disease Control and Prevention (CDC) buildings and 
     facilities instead of $7,553,000 as proposed by the Senate 
     and $8,353,000 as proposed by the House. This total includes 
     $23,000,000 requested by the Administration as part of its 
     anti-terrorism budget amendment to enhance security at CDC's 
     headquarters and to better protect laboratories containing 
     dangerous infectious agents against possible attacks. 
     Consistent with the Administration request, the $23,000,000 
     for anti-terrorism activities has been designated in the bill 
     as an emergency expenditure.
       The conference agreement includes legal citations for mine 
     safety and health activities and the refugee medical 
     screening program as proposed by the Senate. The House bill 
     did not contain these citations.
       The conference agreement modifies language proposed by the 
     Senate to earmark $32,000,000 for mine safety and health 
     activities and make those funds available until September 30, 
     1998. Senate language had made the funds available until 
     expended; the House bill had no similar provision.
       The conference agreement designates $48,400,000 to be 
     available to the National Center for Health Statistics under 
     the Public Health Service one percent evaluation setaside as 
     proposed by the House instead of $53,063,000 as proposed by 
     the Senate.
       The conference agreement includes language proposed by the 
     Senate which provides authority to transfer funds available 
     from the sale of surplus vaccine from the vaccine stockpile 
     to other activities within the jurisdiction of CDC. The House 
     bill had no similar provision.
       The conference agreement includes language proposed by the 
     Senate which transfers authority for the mine safety and 
     health functions previously funded in the Department of the 
     Interior appropriations bill to the Secretary of Health and 
     Human Services. The House bill had no similar provision.
       The conference agreement includes an additional $41,000,000 
     for violence against women programs financed from the Violent 
     Crime Reduction Trust Fund as proposed by the Senate instead 
     of $33,642,000 as proposed by the House.
       The conference agreement includes sufficient funds to 
     support the chronic and environmental disease prevention 
     program priorities identified for increased funding in both 
     the House and Senate reports. The conferees intend that 
     combined urban and rural projects in the mild mental 
     retardation program be supported.
       The conferees are pleased with the recent initiative by CDC 
     to convene a panel of experts on chronic fatigue and immune 
     dysfunction syndrome (CFIDS) for the purpose of examining 
     CDC's current CFIDS program and directions for future 
     research. The conferees urge CDC to consider implementing the 
     review panel's recommendations, particularly in the areas of 
     brain tissue repositories and etiology studies.
       The conferees concur in the recommendation of the Senate 
     report that CDC initiate a trans-department public education 
     campaign to foster more effective communication between 
     consumers and physicians on H. pylori and its link to ulcer 
     disease. The conferees expect this effort to include a 
     collaboration between the public and private sectors, 
     including the pharmaceutical industry. The conferees request 
     a report within 120 days regarding CDC's plans to conduct 
     such an effort and the appropriate design of the campaign.
       The conference agreement includes $43,198,000 for injury 
     control activities, which is $2,600,000 above the amount 
     provided by both the House and Senate. The conferees intend 
     that the $2,600,000 be used to initiate traumatic brain 
     injury education and prevention research activities recently 
     authorized under title III of the Public Health Service Act. 
     The Senate bill had provided separate funding of $3,000,000 
     for these activities.
       The conferees have included $5,000,000 for the National 
     Institute for Occupational Safety and Health to implement a 
     national plan for childhood agricultural injury prevention 
     initiatives, including research, public education, 
     professional training, community and family services, and 
     policy enforcement.
       The conference agreement includes $2,400,000 within the 
     epidemic services program to directly support the costs of 
     the refugee medical screening program rather than as a 
     reimbursement from the Office of Refugee Resettlement.
       The conferees concur with the House report language 
     regarding risk assessment within the epidemic services 
     program.

                     National Institutes of Health


                       national cancer institute

       The conference agreement includes $2,382,532,000 instead of 
     $2,385,741,000 as proposed by the House in H.R. 3755 and 
     $2,102,949,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.
       The conferees concur in the Senate report language 
     identifying funding for the National Action Plan on Breast 
     Cancer at the fiscal year 1996 level, which the conferees 
     understand is $14,750,000. The conferees understand that 
     these funds will be coordinated by the Office of Women's 
     Health within the Office of the Secretary.


                national heart, lung and blood institute

       The conference agreement includes $1,433,001,000 instead of 
     $1,438,265,000 as proposed by the House in H.R. 3755 and 
     $1,344,742,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


                 national institute of dental research

       The conference agreement includes $195,997,000 instead of 
     $195,596,000 as proposed by the House in H.R. 3755 and 
     $177,701,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


    national institute of diabetes and digestive and kidney diseases

       The conference agreement includes $815,982,000 instead of 
     $819,224,000 as proposed by the House in H.R. 3755 and 
     $787,473,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


        national institute of neurological disorders and stroke

       The conference agreement includes $726,746,000 instead of 
     $725,478,000 as proposed by the House in H.R. 3755 and 
     $683,721,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a potion of which would be 
     transferred to this account.
       It has been brought to the conferees' attention that the 
     promise of gamma knife stereotactic radiosurgery warrants 
     further research. The conferees urge the Institute to enhance 
     its support of investigations to evaluate the radiobiological 
     response and clinical outcomes associated with gamma knife 
     therapy, and to identify techniques or agents that enhance 
     outcomes or reduce risks. Associated research efforts may 
     investigate drugs or agents that provide target sensitization 
     of the surrounding tissue, tumor radiobiology, and animal 
     model development.


         national institute of allergy and infectious diseases

       The conference agreement includes $1,257,234,000 instead of 
     $1,256,149,000 as proposed by the House in H.R. 3755 and 
     $595,016,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


             national institute of general medical sciences

       The conference agreement includes $998,470,000 instead of 
     $1,003,722,000 as proposed by the House in H.R. 3755 and

[[Page H11931]]

     $953,214,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


        national institute of child health and human development

       The conference agreement includes $631,703,000 instead of 
     $631,989,000 as proposed by the House in H.R. 3755 and 
     $554,251,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.
       The conferees encourage the Institute to conduct research 
     in the area of nutrition and children's developmental health, 
     including such areas as nutrition's impact on children's 
     organ systems, brain function, and immunology.


                         national eye institute

       The conference agreement includes $332,735,000 instead of 
     $333,131,000 as proposed by the House in H.R. 3755 and 
     $315,948,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


          national institute of environmental health sciences

       The conference agreement includes $308,819,000 instead of 
     $308,258,000 as proposed by the House in H.R. 3755 and 
     $294,745,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


                      national institute on aging

       The conference agreement includes $486,047,000 instead of 
     $484,375,000 as proposed by the House in H.R. 3755 and 
     $470,256,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.
       The conferees concur with the Senate report language 
     regarding additional Alzheimer's disease research centers.


 national institute of arthritis and musculoskeletal and skin diseases

       The conference agreement includes $257,111,000 instead of 
     $257,637,000 as proposed by the House in H.R. 3755 and 
     $247,731,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


    national institute on deafness and other communication disorders

       The conference agreement includes $188,422,000 instead of 
     $189,243,000 as proposed by the House in H.R. 3755 and 
     $182,693,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


                 national institute of nursing research

       The conference agreement includes $59,743,000 instead of 
     $59,715,000 as proposed by the House in H.R. 3755 and 
     $52,936,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


           national institute of alcohol abuse and alcoholism

       The conference agreement includes $212,004,000 instead of 
     $212,079,000 as proposed by the House in H.R. 3755 and 
     $195,891,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


                    national institute on drug abuse

       The conference agreement includes $489,373,000 instead of 
     $487,341,000 as proposed by the House in H.R. 3755 and 
     $317,936,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.
       The conferees concur with Senate report language regarding 
     the promise magnetic imaging may hold for understanding and 
     treating drug abuse and mental illness and are supportive of 
     extramural clinical research in this area.


                  national institute of mental health

       The conference agreement includes $701,585,000 instead of 
     $701,247,000 as proposed by the House in H.R. 3755 and 
     $589,187,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


                 national center for research resources

       The conference agreement includes $415,145,000 instead of 
     $416,523,000 as proposed by the House in H.R. 3755 and 
     $324,844,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provides a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.
       The agreement also designates $20,000,000 for the 
     construction and renovation of extramural facilities instead 
     of $37,000,000 as proposed by the House and $10,000,000 as 
     proposed by the Senate. These funds are to be competitively 
     awarded. Of the $20,000,000 provided for extramural facility 
     construction, the conferees intend that $2,500,000 be 
     reserved for construction and renovation projects as 
     qualified regional primate centers. The conferees also concur 
     with Senate report language highlighting the importance of 
     facilities needs in the area of genetic research.
       The conferees concur with the Senate report language 
     regarding funding for the IDeA program and general clinical 
     research centers, as well as with the language in both House 
     and Senate reports regarding support of the National High 
     Magnetic Field Laboratory.
       The conferees encourage the National Center for Research 
     Resources and the other NIH Institutes and centers to assist 
     in enhancing and strengthening the Research Infrastructure in 
     Minority Institutions (RIMI), to help make the program 
     available to qualified institutions.


               national center for human genome research

       The conference agreement includes $189,657,000 instead of 
     $189,267,000 as proposed by the House in H.R. 3755 and 
     $180,807,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


                  john e. fogarty international center

       The conference agreement includes $26,586,000 instead of 
     $26,707,000 as proposed by the House in H.R. 3755 and 
     $16,838,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.


                      national library of medicine

       The conference agreement includes $151,103,000 instead of 
     $150,093,000 as proposed by the House in H.R. 3755 and 
     $142,070,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.
       The conferees are aware of efforts to improve the quality 
     of health care training and delivery in Haiti. Through a 
     successful collaboration with a regionally based medical 
     school, Haiti's efforts to improve its health care delivery 
     system are being realized. The conferees encourage the 
     National Library of Medicine to give consideration to 
     supporting this collaborative effort.


                         office of the director

                     (including transfer of funds)

       The conference agreement includes $287,206,000 instead of 
     $275,423,000 as proposed by the House in H.R. 3755 and 
     $243,319,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The Senate bill provided a separate 
     appropriation for AIDS research, a portion of which would be 
     transferred to this account.
       The conference agreement includes an earmark of $35,589,000 
     of the total provided for the operations of the Office of 
     AIDS Research. This designation was not included in either 
     House or Senate bill.
       The conference agreement includes language proposed by the 
     Senate identifying up to $200,000 for the National Foundation 
     for Biomedical Research as authorized by section 499 of the 
     Public Health Service Act. The House bill had no similar 
     provision.
       The conferees concur with Senate report language regarding 
     funding levels for a pediatric and a neurodegenerative 
     diseases research initiative, the Office of Rare Disease 
     Research, and an Institute of Medicine review of the status 
     of research into cancer among minorities and the medically 
     underserved. The conferees intend that the Office of 
     Alternative Medicine be funded at a level fifty percent 
     higher than that described in the Senate report.
       The conferees concur with House report language regarding 
     the definition of administrative costs and the restriction of 
     fiscal year 1997 administrative costs to the fiscal year 1996 
     level.
       The conferees encourage the Office of Research on Women's 
     Health to support research in the fields of cardiovascular 
     and metabolic disease affecting minority women and the 
     relationship of immune function and sex hormones in women 
     throughout the life cycle.
       The conferees urge the Office of Research on Minority 
     Health to establish a standing advisory committee to guide 
     and advise the Office in its continuing efforts to improve 
     the health of minorities and to address disparities through 
     supporting research and increasing the diversity of the 
     research workforce. The conferees expect a report to the 
     Committees on progress in this area by March 31, 1997.
       The conferees note the importance of publicizing new and 
     developing health advances researched by NIH, and encourage 
     NIH to contribute to the production of a national television 
     program focusing on biomedical research and public health 
     issues.


                        buildings and facilities

       The conference agreement includes $200,000,000 as proposed 
     by the House in H.R. 3755 instead of $180,000,000 as proposed 
     by the Senate in H.R. 3755 as reported from Committee. The 
     agreement also designates $90,000,000 for construction of the 
     NIH clinical center as proposed by the House instead of 
     $70,000,000 as proposed by the Senate.

[[Page H11932]]

                        office of aids research

                     (including transfer of funds)

       The conference agreement does not include a separate 
     appropriation of $1,460,312,000 for the Office of AIDS 
     Research (OAR) as proposed by the Senate. Instead, funding 
     for AIDS research is included within the appropriation for 
     each Institute, center and division as proposed by the House. 
     The conference agreement also includes a general provision 
     not included in either the House or Senate bill which directs 
     that the funding for AIDS research as determined by the 
     Directors of the National Institutes of Health (NIH) and OAR 
     be allocated directly to the OAR for distribution to the 
     Institutes consistent with the AIDS research plan.
       The Directors of NIH and the OAR have indicated that within 
     the total provided in the conference agreement for NIH, they 
     expect to allocate $1,501,720,000 for AIDS research. The 
     conferees understand that this total may be modified 
     depending on changing scientific opportunities and the 
     recommendations of various advisory bodies. The conference 
     agreement includes a general provision permitting the 
     Directors of NIH and the OAR to shift up to three percent of 
     AIDS research funding between Institutes and centers 
     throughout the year if needs change or unanticipated 
     opportunities arise.
       The conference agreement provides an earmark of $35,589,000 
     for the operations of the OAR within the Office of the 
     Director appropriation.

       Substance Abuse and Mental Health Services Administration


               Substance Abuse and Mental Health Services

       The conference agreement provides $2,134,743,000 for the 
     Substance Abuse and Mental Health Services Administration 
     (SAMHSA) instead of $1,849,235,000 as proposed by the House 
     in H.R. 3755 and $1,873,943,000 as proposed by the Senate in 
     H.R. 3755 as reported from Committee. Within this total, the 
     conference agreement makes available $58,032,000 for the 
     mental health knowledge development and application (KDA) 
     program, $69,927,000 for the children's mental health 
     program, $1,310,107,000 for the substance abuse performance 
     partnership, $156,000,000 for the substance abuse treatment 
     KDA program, and $168,800,000 for the substance abuse 
     prevention KDA program.
       The agreement includes a provision proposed by the Senate 
     in H.R. 3755 as reported from Committee to require that of 
     the amount provided for SAMHSA, at least $5,000,000 be 
     expended for projects serving rural and Native American 
     populations. No similar provision was included in H.R. 3755 
     as passed by the House.
       The conferees agree that SAMHSA should comply with the 
     directives in the House and Senate reports accompanying H.R. 
     3755. The conferees have provided $1,500,000 for child care 
     wrap around services for a continuing grantee under the 
     Pregnant and Postpartum Women and Children program. The 
     conferees expect these funds to be awarded as a competitive 
     supplement.
       The conferees have included sufficient funds for 
     university-based evaluations of public and private 
     collaborations which provide year-round, school-based, early 
     prevention and transition programs, which include middle 
     school transition programs.
       The conferees have provided sufficient funds to continue 
     existing programs serving rural communities in Hawaii.
       The conference agreement includes a provision not included 
     in H.R. 3755 as passed by the House or H.R. 3755 as reported 
     from the Senate Committee to provide $12,800,000 within the 
     substance abuse KDA to continue community schools grants 
     initiated in fiscal year 1995 and to initiate projects 
     referenced in the Senate report accompanying H.R. 3755.

               AGENCY FOR HEALTH CARE POLICY AND RESEARCH


                    health care policy and research

       The conference agreement includes $96,175,000 instead of 
     $90,469,000 as proposed by the House in H.R. 3755 and 
     $83,463,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee.
       The conference agreement designates $47,412,000 to be 
     available to the Agency for Health Care Policy Research 
     (AHCPR) under the Public Health Service one percent 
     evaluation set-aside instead of $34,700,000 as proposed by 
     the House and $60,124,000 as proposed by the Senate.
       The conferees are aware of a proposal being developed to 
     introduce and expand state-of-the-art medical information 
     services among community health centers in the mid-Atlantic 
     region, and urge its full consideration.
       The conferees encourage AHCPR to examine the impact of 
     changing referral patterns among primary care and specialist 
     physicians on clinical outcomes and costs. In particular, the 
     agency is urged to conduct research on potential cost-savings 
     derived from direct access by patients to specialists such as 
     cardiologists.

                  HEALTH CARE FINANCING ADMINISTRATION


                           program management

       The conference agreement makes available $1,735,125,000 
     instead of $1,733,125,000 as proposed by the House in H.R. 
     3755 and $1,729,584,000 as proposed by the Senate in H.R. 
     3755 as reported from Committee. An additional appropriation 
     of $440,000,000 was provided for this activity in the Health 
     Insurance Portability and Accountability Act of 1996.
       The conferees strongly encourage the Health Care Financing 
     Administration (HCFA) to follow the guidance in the Senate 
     report pertaining to a demonstration to train retirees as 
     educators in the detection of Medicare fraud; a comprehensive 
     health care information managed care system; a project to 
     explore new approaches to meeting the needs of vulnerable 
     populations in an urban low-income setting; health advisory 
     services programs; and the use of commercially available 
     software to detect Medicare billing abuse.
       While supportive of allocating resources to the development 
     of the Medicare Transaction System, the conferees expect HCFA 
     to provide adequate funding for the current claims processing 
     functions of the Medicare contracts.
       The conferees understand that because of delays in 
     completing Part B enrollment and Medicare payment status 
     changes from secondary to primary payer that filing limits 
     cannot be met for some Medicare claims. The conferees 
     encourage HCFA to authorize Medicare contractors to grant 
     extensions of current timely filing limits in those 
     situations where enrollment and payment status changes have 
     not been completed.
       The conferees understand that there are currently two forms 
     of calcitriol available for the management of hypocalcemia 
     and the resultant metabolic bone disease in patients 
     undergoing chronic renal dialysis. The conferees encourage 
     HCFA to conduct a demonstration project to evaluate the cost-
     effectiveness of reimbursing the oral form of calcitriol 
     versus the intravenous formulation for which HCFA currently 
     reimburses.
       The conferees encourage HCFA to conduct a demonstration 
     program that will evaluate the best approaches for a 
     community health center to provide services through a health 
     care network. The conferees understand that such networks 
     have been established in Missouri.

                Administration for Children and Families


                   family support payments to states

       The conference agreement provides such sums as may be 
     necessary for welfare payments, instead of $13,301,000,000 
     for family support payments to States as proposed by the 
     House in H.R. 3755 and the Senate in H.R. 3755 as reported 
     from Committee. In addition, the conference agreement 
     provides $2,158,000,000 to remain available until expended 
     and $607,000,000 for the first quarter of fiscal year 1998 
     for child support enforcement and related activities, instead 
     of $4,700,000,000 for the first quarter of fiscal year 1998 
     as proposed by the House in H.R. 3755.
       The conference agreement includes a provision making 
     available such sums as may be necessary for welfare payments 
     only for activities authorized prior to the effective date of 
     P.L. 104-193 in each State.


                   low income home energy assistance

       The conference agreement provides $1,000,000,000 for fiscal 
     year 1997 as proposed by the Senate in H.R. 3755 as reported 
     from Committee, instead of $900,000,000 as proposed by the 
     House in H.R. 3755. In addition, the conference agreement 
     provides $1,000,000,000 for fiscal year 1998 as proposed by 
     the Senate in H.R. 3755 as reported from Committee. H.R. 3755 
     as passed by the House did not provide funding for fiscal 
     year 1998.
       The conferees intend that up to $25,000,000 of the amounts 
     appropriated for LIHEAP for fiscal year 1997 be used for the 
     leveraging incentive fund, which will provide a percentage 
     match to States for private or non-Federal public resources 
     allocated to low-income energy benefits. Of the fiscal year 
     1998 advance appropriation, up to $25,000,000 is also for the 
     leveraging fund.


                     refugee and entrant assistance

       The conference agreement provides $412,076,000 as proposed 
     by the House in H.R. 3755, instead of $385,609,000 as 
     proposed by the Senate in H.R. 3755 as reported from 
     Committee.
       The conferees agree that within the amount provided for 
     social services, $19,000,000 is available for assistance to 
     serve communities affected by the Cuban and Haitian entrants 
     and refugees whose arrivals in recent years have increased. 
     The conferees have set aside $11,079,000 for increased 
     support to communities with large concentrations of refugees 
     whose cultural differences make assimilation especially 
     difficult justifying a more intense level and longer duration 
     of Federal assistance.


                 child care and development block grant

       The conference agreement includes $956,120,000 as proposed 
     by the Senate in H.R. 3755 as reported from Committee instead 
     of $950,000,000 as proposed by the House in H.R. 3755. The 
     agreement provides that $937,000,000 of the total is an 
     advance appropriation for FY 1998 as proposed by the Senate 
     instead of a current year appropriation that would be 
     obligated late in the fiscal year as proposed by the House. 
     In addition, $19,120,000 of the total will become available 
     on October 1, 1996 for child care resource and referral and 
     school-age child care activities, of which $6,120,000 will be 
     derived by transfer from funds appropriated in the Welfare 
     Reform Bill, as proposed by the Senate, instead of 
     $13,000,000 to become available on October 1, 1996 as 
     proposed by the House.


                      social services block grant

       The conference agreement provides $2,500,000,000, instead 
     of $2,480,000,000 as proposed by the House in H.R. 3755 and

[[Page H11933]]

     $2,240,000,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The agreement supersedes P.L. 104-
     193, the Welfare and Medicaid Reform Act, which provides 
     $2,380,000,000 for the social services block grant in fiscal 
     year 1997.


                children and families services programs

                        (including rescissions)

       The conference agreement includes $5,383,569,000, instead 
     of $4,883,793,000 as proposed by the House in H.R. 3755 and 
     $4,888,434,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. In addition, the agreement includes 
     rescissions of prior appropriations of $27,000,000 as 
     proposed by the Senate. The House bill included no 
     rescissions. The agreement includes $3,981,000,000 for the 
     Head Start program and $489,600,000 for the Community 
     Services Block Grant.
       Within the social services and income maintenance research 
     activity, the conferees are in agreement with the Senate 
     Report concerning the use of funds for the completion of 
     current family support center grants. The conference 
     agreement also includes sufficient funding within this 
     activity to carry out activities authorized by section 
     413(h)(3) of the Social Security Act involving demonstrations 
     of innovative strategies which would include funding for 
     successful programs that move people from welfare to work. 
     The Secretary is urged to provide funding that is fully 
     adequate to carry out this section.
       The conferees expect the Department to contribute, from 
     resources provided for social services research, to the 
     Residential Energy Consumption Survey and the Census Bureau 
     March current population survey to assure that the low-income 
     household component is included in the survey.
       The conferees concur in the Senate Report language 
     concerning the job creation demonstration authorized under 
     section 505 of the Family Support Act of 1988 and the 
     language concerning the Alaska Federation of Natives.
       The agreement includes language as proposed by the Senate 
     requiring the Secretary to use up to one percent of CSBG 
     funds in FY 1997 to correct allocation errors that occurred 
     in FY 1995 and FY 1996 to ensure that the minimum allotment 
     to each State for each of those years would be $2,222,460. 
     The House bill had no similar provision.
       The agreement includes language as proposed by the Senate 
     requiring that no more than one-half of one percent of CSBG 
     funds shall be used to carry out section 674(a) of the 
     Community Services Block Grant Act. This section deals with 
     training and technical assistance, evaluation and data 
     collection. The House bill had no similar provision.
       The agreement inserts several legal citations proposed by 
     the Senate modified to cite the Social Security Act instead 
     of the Welfare Reform Act, deletes a citation for the 
     community schools program under the Crime Trust Fund proposed 
     by the Senate and deletes the earmarking for individual 
     programs within the Crime Trust Fund proposed by the Senate.

                        Administration on Aging


                        aging services programs

       The conference agreement includes $830,168,000 as proposed 
     by the Senate in H.R. 3755 as reported from Committee instead 
     of $810,545,000 as proposed by the House in H.R. 3755.
       The agreement includes a legislative provision as proposed 
     by the Senate that would prevent any State from having its 
     administrative costs under title III of the Older Americans 
     Act reduced by more than five percent below the FY 1995 
     level. The House had no similar provision.
       The agreement includes a legislative provision as proposed 
     by the Senate that requires the Assistant Secretary for Aging 
     when considering grant applications for nutrition services 
     for elder Indian recipients to provide maximum flexibility to 
     applicants who seek to take into account certain factors that 
     are appropriate to the unique cultural, regional and 
     geographic needs of the American Indian, Alaskan and Hawaiian 
     native communities to be served. The House had no similar 
     provision.

                        Office of the Secretary


                    general departmental management

       The conference agreement includes $174,523,000, instead of 
     $148,999,000 as proposed by the House in H.R. 3755 and 
     $153,837,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The agreement includes language 
     proposed by the House and stricken by the Senate that 
     earmarks $11,500,000 under title XVII of the Public Health 
     Service Act for extramural construction. In addition, the 
     agreement includes language proposed by the Senate to earmark 
     funds for prevention services demonstrations and abstinence 
     education grants under the adolescent family life program 
     modified to change the dollar amounts. The House bill had no 
     similar provision. The agreement designates $5,775,000 of the 
     total amount as an emergency requirement pursuant to the 
     Balanced Budget and Emergency Deficit Control Act. These 
     funds are provided for anti-terrorism purposes.
       The conference agreement includes $11,500,000 for 
     extramural construction grants in the Office of Minority 
     Health as proposed by the House, including $7,500,000 for the 
     Morehouse School of Medicine, $2,500,000 for Spelman College 
     and $1,500,000 for the University of Arkansas at Pine Bluff, 
     an historically black institution, for the purpose of 
     upgrading health-related facilities and equipment.
       The conferees concur with the Senate Report language 
     identifying $500,000 for an asthma attack avoidance program.
       Sufficient funds have been included by the conferees for 
     the continuation of the existing human services 
     transportation technical assistance program at the fiscal 
     year 1996 funding level.
       Within the amount recommended for the Office of Minority 
     Health, the conferees have included funds for a community-
     based program to increase the number of disadvantaged, inner-
     city individuals in the health and allied health sciences.
       The conferees agree that $14,750,000 shall be used to fund 
     the National Action plan on Breast Cancer. Sufficient funds 
     have been provided within the NCI for this expenditure. The 
     conferees further agree that this plan shall be coordinated 
     by the PHS Office on Women's Health and shall be used for 
     implementation of the plan's activities and other cross-
     cutting Federal and private sector initiatives on breast 
     cancer.
       The conferees concur with the Senate report directing that 
     the Adolescent Family Life program be transferred from the 
     Office of Population Affairs to the Office of the 
     Administrator of the Health Resources and Services 
     Administration.

                      Office of Inspector General

       The conference agreement includes $32,999,000, instead of 
     $29,399,000 as proposed by the House in H.R. 3755 and 
     $29,399,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee.
       The conferees endorse the language in the House Report 
     concerning quarterly reporting on actual savings resulting 
     from the Inspector General's efforts and on ``funds put to 
     better use''.
       The conferees direct the HHS Inspector General to perform 
     all of the necessary audit and investigative work with 
     respect to the Medicare contract of the Railroad Retirement 
     Board. In the past, this work has been done by the Board's 
     Inspector General. This conference agreement prohibits the 
     Board's IG from doing the work in fiscal year 1997. The 
     conferees believe that it makes sense for the HHS IG to 
     perform this Medicare work, particularly in light of the 
     significant funding increase that it received for Medicare 
     work in the Health Insurance Portability and Accountability 
     Act of 1996.

                        Office for Civil Rights

       The conference agreement includes $19,530,000, instead of 
     $19,380,000 as proposed by the House in H.R. 3755 and 
     $19,680,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee.

                            Policy Research

       The conference agreement includes $18,500,000 instead of 
     $9,000,000 as proposed by both the House in H.R. 3755 and by 
     the Senate in H.R. 3755 as reported from Committee. The 
     conference agreement includes $9,500,000 to be available for 
     a period of two years for the General Accounting Office to 
     contract for a study of the effects of medical savings 
     accounts in the small group market on selection, health 
     costs, use of preventive care and other variables. This study 
     was mandated in the Health Insurance Portability and 
     Accountability Act of 1996. Depending upon the progress of 
     the study, the conferees will consider additional funding 
     requirements in fiscal year 1998.

                           GENERAL PROVISIONS

       The conference agreement includes a provision in the House 
     bill that was deleted in the Senate bill providing authority 
     to the Directors of the National Institutes of Health and the 
     Office of AIDS Research to transfer up to three percent of 
     funds they designate for AIDS research between Institutes and 
     centers. This transfer authority can be used throughout the 
     fiscal year.
       The conference agreement deletes a provision included in 
     the House bill but deleted in the Senate bill that would 
     permit NIH funding of Small Business Innovation Research 
     (SBIR) grants only to the extent that the median priority 
     score for the pool of SBIR grants was equal to or better than 
     the median score for regular research (RO-1) grants.
       The conferees understand that the Director of NIH has taken 
     a series of specific program management steps to improve the 
     quality of research applications supported by the SBIR 
     program. These efforts will ensure that Institutes and 
     centers across the NIH will have a broader range of high 
     quality SBIR applications available to fund, generally those 
     in the upper half of the priority score range, and will 
     result in a leveling out of inconsistencies in the quality of 
     SBIR grants which have occurred in the past. In addition, the 
     conferees understand that NIH is expanding a streamlined 
     application process for the SBIR program which NIH hopes will 
     attract a wider talent pool of applications. Because the 
     conferees support the SBIR program and its contributions, 
     they encourage NIH to convene a conference to discuss further 
     improvements that could be made to address the quality 
     concerns raised by some in the biomedical community. This 
     conference should include a broad range of representatives, 
     including the biotechnology and small business communities 
     and the research societies as well as other Federal agencies 
     which support SBIR grants.
       The conference agreement includes a general provision not 
     included in either the

[[Page H11934]]

     House or Senate bill which directs that the funding for AIDS 
     research as determined by the Directors of the National 
     Institutes of Health and the Office of AIDS Research (OAR) be 
     allocated directly to the OAR for distribution to the 
     Institutes consistent with the AIDS research plan.
       The conference agreement deletes a provision in the House 
     bill that was deleted in the Senate bill extending until 
     December 31, 2000 an expired moratorium on the designation of 
     a particular provider in the State of Michigan as an 
     institution for mental disease for the purpose of Medicaid 
     payments.
       The conference agreement deletes a provision included in 
     the House bill but deleted in the Senate bill transferring 
     the Gillis W. Long Hansen's disease facility in Carville, 
     Louisiana to the State of Louisiana. The conferees remain 
     interested in pursuing a transfer of the facility, but were 
     unable to resolve several issues in time to include an 
     agreement in the fiscal year 1997 bill.
       The conference agreement deletes a provision that was 
     included in the House bill but deleted in the Senate bill 
     codifying current regulatory requirements pertaining to 
     income guidelines for clients receiving family planning 
     services.
       The conference agreement deletes a general provision 
     proposed by the House in H.R. 3755 that would reduce funds 
     available in the Department of Health and Human Services for 
     congressional and legislative affairs, public affairs and 
     intergovernmental affairs activities by $2,000,000. The 
     Senate bill had no similar provision. The agreement includes 
     a reduction of $2,000,000 for all agencies in the bill for 
     these activities in title V of the bill.
       The conference agreement includes a provision in the Senate 
     bill directing the Secretary of the Department of Health and 
     Human Services to submit a report describing a method and 
     schedule for restoring Medicare coverage of lung volume 
     reduction surgery. The House bill had no similar provision.
       The conference agreement includes a general provision as 
     proposed by the Senate in H.R. 3755 as reported from 
     Committee that would amend the Family Violence Prevention and 
     Services Act by raising the small State minimum allotment 
     from $200,000 to $400,000. The House bill had no similar 
     provision.
       The conference agreement modifies a provision in the Senate 
     bill which would name the new National Institutes of Health 
     clinical research and patient care center for Senator Mark O. 
     Hatfield. The agreement deletes the reference in the name to 
     patient care. The House bill had no similar provision.
       The conference agreement includes a general provision that 
     amends the welfare reform act to make a technical correction 
     in section 345 of that act with respect to the Federal Parent 
     Locator System. This provision was not included in either the 
     House or the Senate bills.

                   TITLE III--DEPARTMENT OF EDUCATION


                            education reform

       The conference agreement includes $691,000,000 for 
     Education Reform, instead of the $175,000,000 included in the 
     House in H.R. 3755 and $535,000,000 as proposed by the Senate 
     in H.R. 3755 as reported from the Committee. Included in this 
     amount is $491,000,000 for the Goals 2000: Educate America 
     Act and $200,000,000 for School-to-Work programs. Total 
     funding for School-to-Work including portions funded in the 
     Departments of Labor and Education is $400,000,000.


                    education for the disadvantaged

       The conference agreement includes $7,698,469,000 for 
     Education for the Disadvantaged, instead of the 
     $7,225,130,000 included in the House in H.R. 3755 and 
     $7,225,249,000 as proposed by the Senate in H.R. 3755 as 
     reported from the Committee. Of the funds made available, 
     $1,298,386,000 becomes available on October 1, 1997 for the 
     academic year 1997-98. It is the intent of the conferees to 
     work toward providing all funding for title I for the 1998-99 
     school year through the appropriation for fiscal year 1998. 
     The conferees intend that the Committee work to adjust the 
     fiscal year 1998 602(b) allocation such that title I can be 
     returned to a normal appropriation and obligation pattern.
       The agreement includes $7,194,099,000 for Grants to State 
     and Local Education Agencies. Included in this account is 
     $6,191,350,000 for basic State grants and $999,249,000 for 
     concentration grants.
       The conference agreement also includes $41,119,000 for 
     Capital Expenses for Private School Children, the same level 
     as reported by the Senate and $21,119,000 above the level 
     provided in the House version of H.R. 3755.


                               impact aid

       The conference agreement provides $730,000,000, instead of 
     $728,000,000 as proposed by the House in H.R. 3755 and 
     $703,000,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. Within the total amount, the 
     conference agreement provides $615,500,000 for basic support 
     payments, $52,000,000 for payments to heavily impacted 
     districts, $40,000,000 for payments on behalf of children 
     with disabilities, $5,000,000 for construction, and 
     $17,500,000 for payments for Federal property (formerly 
     section 2).


                      school improvement programs

       The conference agreement includes $1,425,631,000 for School 
     Improvement Programs, instead of the $1,237,383,000 included 
     in the House in H.R. 3755 and $1,318,631,000 as proposed by 
     the Senate in H.R. 3755 as reported from the Committee. 
     Included within this level are:
       $310,000,000 for the Eisenhower Professional Development 
     program, $35,000,000 above the amount provided in the Senate 
     reported bill. The House provided no funding for this 
     program;
       $310,000,000 for Innovative Education Program Strategies, 
     $296,517,000 below the amounts provided in the House bill and 
     $35,000,000 above the amounts provided in the Senate reported 
     bill.
       $555,978,000 for Safe and Drug Free Schools and 
     Communities, $115,000,000 above the amounts provided in the 
     House bill. The amount provided by the conferees is the same 
     amount provided in the Senate reported bill. The conferees 
     have provided an additional $25,000,000 for the state grant 
     portion of this account and have provided no funds for 
     national programs. This decision was based on the view that 
     the best use of federal substance abuse prevention funds is 
     in the classroom. There are a broad range of other sources of 
     funding for national programs, research, demonstration, 
     dissemination and technical assistance programs that the 
     Secretary can use to fund these activities. If, however, the 
     Secretary feels that these activities are of sufficient 
     importance, the Committees will consider a reprogramming 
     request. The conferees urge the Department to limit any such 
     reprogramming request to the minimum amount needed, 
     consistent with the conferees' desire to assure maximum 
     resources go directly to the classroom.
       In the House bill, funding increases for Innovative 
     Educational Program Strategies were achieved by consolidating 
     the Eisenhower Professional Development, Foreign Language 
     Assistance and Star Schools. The House bill contained a 
     provision guaranteeing that states would receive the same 
     proportion of funding under the consolidated program as they 
     received under the individual programs. The conference 
     agreement deletes this provision.


                   bilingual and immigrant education

       The conference agreement includes $261,700,000 for 
     Bilingual and Immigrant Education, instead of the 
     $167,190,000 included in the House in H.R. 3755 and 
     $185,000,000 as proposed by the Senate in H.R. 3755 as 
     reported from the Committee. The conferees provided no 
     funding for support services and professional development 
     activities. If the Secretary feels that these activities are 
     of sufficient importance the Committees will consider a 
     reprogramming request. The conferees urge the Department to 
     limit any such reprogramming request to the minimum amount 
     needed, consistent with the conferees desire to assure 
     maximum resources go directly to the students.


                           special education

       The conference agreement includes $4,036,000,000 for 
     Special Education, instead of the $3,246,315,000 included in 
     the House in H.R. 3755 and $3,262,315,000 as proposed by the 
     Senate in H.R. 3755 as reported from the Committee. Included 
     in these funds is $3,107,522,000 for Grants to the States, 
     $783,685,000 above the amounts provided in the House bill and 
     $773,685,000 above the amounts in the Senate reported bill. 
     At this level federal funds will equal 8.4% of the excess 
     cost of educating disabled children--a substantial increase 
     over the 6% appropriated in fiscal year 1996.
       The conference agreement includes the Senate provisions 
     which provides for (a.) continuing eligibility of the 
     Republic of the Marshall Islands, and the Federated States of 
     Micronesia for funding under part B of the IDEA, (b.) 
     distributing of funds for these grantees in accordance with 
     P.L. 104-134 and (c.) waiving new competitions for 
     continuation grants.
       The conferees concur in the provisions of the Senate reprot 
     indicating that the funding levels for Media and Captioning 
     Services includes an increase of $900,000 for Recordings for 
     the Blind, Inc.


            rehabilitation services and disability research

       The conference agreement includes $2,509,447,000 for 
     Rehabilitation Services and Disability Research, the same 
     amount included in the House in H.R. 3755 and $7,000,000 
     below the amounts proposed by the Senate in H.R. 3755 as 
     reported from the Committee.


                     vocational and adult education

       The conference agreement includes $1,486,531,000 for 
     Vocational and Adult Education instead of the $1,329,669,000 
     included in the House in H.R. 3755 and $1,341,752,000 as 
     proposed by the Senate in H.R. 3755 as reported from the 
     Committee. For Vocational Education basic state grants, the 
     conferees provide $1,029,050,000, $56,300,000 above the 
     amounts provided in the House bill and the level in H.R. 3755 
     as reported in the Senate. For Adult Education the conferees 
     provide $354,562,000, $100,562,000 above the amounts provided 
     in the House bill and $92,979,000 above the level in H.R. 
     3755 as reported in the Senate.
       The conferees have provided no funding for national 
     programs. The conference agreement, however, directs that the 
     Secretary allocate $4,500,000 from the State grant program 
     for the National Center on Research in Vocational Education. 
     If the Secretary feels that it is necessary to transfer 
     additional funds for national activities, the conference 
     agreement permits him to transfer up to $9,000,000 from state 
     grants for these activities. In making such transfers, the 
     Secretary shall provide the Committees with notification 30 
     days in advance of the transfer.

[[Page H11935]]

       The conferees have also included language which provides 
     that a State shall be deemed as having met maintenance of 
     effort provisions of the Carl D. Perkins Vocational and 
     Applied Technology Act.


                      student financial assistance

       The conference agreement provides $7,560,407,000, instead 
     of $6,630,407,000 as proposed by the House in H.R. 3755 and 
     $6,642,830,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. Within the total, the conference 
     agreement provides a maximum Pell Grant of $2,700. In 
     addition, the conference agreement provides $830,000,000 for 
     the work study program, $158,000,000 for Perkins Loans 
     capital contributions, and $50,000,000 for the state student 
     incentive grant program. The conference agreement includes 
     $1,500,000 to carry out the provisions of section 448(f) of 
     the Higher Education act which includes a separate 
     authorization of appropriations for ``work colleges.''


             federal family education loan program account

       The conference agreement provides $46,572,000, instead of 
     $29,977,000 as proposed by the House in H.R. 3755 and the 
     Senate in H.R. 3755 as reported from Committee.


                            higher education

       The conference agreement includes $879,054,000,000, instead 
     of $829,497,000 as proposed by the House in H.R. 3755 and 
     $852,269,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The agreement includes a provision 
     as proposed by the Senate in H.R. 3755 as reported from 
     Committee and not included in H.R. 3755 as passed by the 
     House permitting the award of new Javits fellowships for 
     school year 1997-1998. The conferees agree that no new Javits 
     fellowships will be awarded in future years pending 
     consolidation of the Javits fellowships with the Graduate 
     Assistance in Areas of National Need program in legislation 
     to reauthorize higher education programs. The agreement 
     includes a further provision as proposed by the Senate in 
     H.R. 3755 as reported from Committee and not included in H.R. 
     3755 as passed by the House requiring the Department of 
     Education to prorate downward the amounts of new and 
     continuing Byrd scholarships in order to award the same 
     number of new scholarships in school year 1997-1998 as were 
     awarded in school year 1996-1997. The agreement also includes 
     provisions as proposed by the Senate in H.R. 3755 as reported 
     from Committee and not included in H.R. 3755 as passed by the 
     House providing $3,000,000 each for the George Bush 
     Fellowship program and the Edmund Muskie Foundation 
     endowment, provided these programs are authorized by April 1, 
     1997. The agreement also provides $3,000,000 for the Pell 
     Institute for International Relations and $1,000,000 for the 
     Calvin Coolidge Memorial Foundation to conduct education, 
     archival and preservation activities of the Foundation if 
     authorized by April 1, 1997. Neither H.R. 3755 as passed by 
     the House or H.R. 3755 as reported by the Senate Committee 
     contained these provisions. The conference agreement includes 
     a provision not included in either H.R. 3755 as passed by the 
     House or H.R. 3755 as reported from the Senate Committee 
     providing $2,000,000 for the Pennsylvania Educational 
     Telecommunications Exchange Network to implement a resource-
     sharing video conferencing network.
       The conferees direct the Department to comply with the 
     directives in the House report accompanying H.R. 3755 
     regarding measuring and reporting the success of programs in 
     meeting program and performance goals.
       The conferees have provided sufficient funds within the 
     Fund for the Improvement of Postsecondary Education to 
     initiate a demonstration of Hispanic serving Institutions to 
     improve research and training capacity in science and 
     technology. The conferees encourage collaboration with the 
     Department of Energy in funding this effort.
       If funds are not authorized for the Muskie Foundation, the 
     George Bush Fellowship Program, the Pell Institute for 
     International Relations, or the Calvin Coolidge Memorial 
     Foundation by April 1, 1997, the Committee directs the 
     Department to use these moneys to fund activities within the 
     fund for the improvement of postsecondary education.


                           howard university

       The conference agreement provides $196,000,000, instead of 
     $187,348,000 as proposed by the House in H.R. 3755 and 
     $189,000,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. Within the total amount, the 
     agreement provides $166,511,000 for the academic program.
       Consistent with the policy established in P.L. 104-134 the 
     conference agreement provides Howard with a single 
     appropriation. The conferees believe that Howard should have 
     the discretion to use these funds as the university 
     administration and Board of Trustees see fit. The conferees 
     not that the authority under which funds are appropriated for 
     Howard permits expenditures for academic services, financial 
     support of students, contributions to the university 
     endownment or construction.
       The conferees are concerned that the University failed to 
     submit necessary information to the Congress in a timely and 
     complete fashion during the fiscal year 1997 hearing process. 
     The conferees direct the University to correct this 
     deficiency during subsequent budget cycles.


             education research, statistics and improvement

       The conference agreement includes $598,350,000 for 
     Education Research, Statistics and Improvements, instead of 
     the $317,264,000 included in the House in H.R. 3755 and 
     $350,788,000 as proposed by the Senate in H.R. 3755 as 
     reported from the Committee. The conference agreement 
     includes $305,000,000 for Education Technology, an increase 
     of $257,000,000 over the amounts provided in the House bill 
     and $226,525,000 over the amounts recommended in the Senate 
     reported version of H.R. 3755.
       The conferees are concerned over the ability of the 
     Department of Education to manage the over 500% increase in 
     the Educational Technology program. This concern is 
     heightened by the fact that the Department, in hearings 
     before the House Subcommittee, was unable to determine total 
     education funding already committed to technology or to 
     identify specific, measurable improvements in student 
     performance as a result of increased expenditures. In 
     concurring with the President's request, the conferees want 
     to assure that funding for Education Technology leads to the 
     achievement of measurable goals. These goals should be aimed 
     at enabling all students to become technologically literate 
     and to develop critical communication, math, science and 
     critical thinking skills needed in the 21st century. The 
     conferees therefore direct the Secretary to:
       Within 60 days of the enactment of this bill, provide the 
     House and Senate Committees on Appropriations with a 
     description of all programs within his jurisdiction 
     supporting the purchase of education technology, the amounts 
     spent in fiscal year 1995 and projections for spending in 
     fiscal years 1996 and 1997;
       Within 60 days of the enactment of this bill, provide the 
     House and Senate Committees with specific, measurable goals 
     for improvements in student knowledge and achievement that 
     are to be achieved as a result of this increased spending and 
     a statement of how the Department will collect this 
     information;
       Within 60 days of the enactment of this bill, provide the 
     House and Senate Committees with an operating plan for the 
     technology funds provided in this account including the 
     expected quarterly obligations for these funds and 
     projections of outlays, on a quarterly basis; and
       Provide the House and Senate Committees with quarterly 
     reports on the obligation and outlays of funds provided for 
     technology equipment, software, training, etc. in this 
     account, comparing the actual obligations and outlays with 
     those projected in the operating plan.
       The conferees urge the Secretary to include the student 
     performance measures identified as a result of activities 
     required above in his reports required under the Government 
     Performance and Results Act.
       The conferees have provided funds for an existing public-
     private partnership to develop maritime history learner-based 
     software and provide teacher training.
       The conferees have included $2,000,000 for the Southeastern 
     Pennsylvania Consortium for Higher Education. These funds 
     will establish local and wide area computer networks which 
     allow student access to faculty, other student and 
     instructional resources. Interactive video classrooms will 
     permit faculty from the consortium of colleges to teach 
     students at all eight sites simultaneously, resulting in 
     increased course options at the advanced level. Funds will 
     also be used for pilot projects linking elementary and 
     secondary school teachers in five countries for the purpose 
     of training teachers in new technologies.
       The conferees have also included language to continue the 
     Iowa Communications Network state-wide fiber optics 
     demonstration project at the fiscal year 1996 level.
       The conferees agree that included in the Fund for the 
     Improvement of Education is $125,000 for the National Student 
     and Parent Mock Election.
       Within the Fund for the Improvement of Education, the 
     conferees have included funds for the continuation of support 
     for the expansion and dissemination of and innovative program 
     through which local community-based organizations are 
     collaborating formally with local schools to provide music 
     education and infuse music into core curricula.


                               libraries

       The conference agreement includes $136,369,000 for Library 
     Programs, instead of the $108,000,000 included in the House 
     in H.R. 3755 and $128,369,000 included by the Senate in H.R. 
     3755 as reported from the Committee.
       The conference agreement includes $1,000,000 within the 
     Research and Demonstration account, to be competitively 
     awarded to a non-profit social tolerance resource center. 
     These funds would be used to operate a national training 
     program, and develop educational materials, on prejudice 
     reduction. Included in the program would be educators, 
     students, health care providers, and others involved in 
     community relations.
       The conferees also included within the research and 
     demonstration account $1,000,000 for completion of a catalog 
     conversion effort by research and doctoral institutions 
     initiated under fiber optics demonstrations begun in 1993 and 
     for a continuation of the local library networking component.
       The conference agreement also includes $1,500,000 within 
     the research and demonstration account for the expansion of 
     the Portland Area Library Network System (PORTALS).

[[Page H11936]]

       The agreement also provides $500,000 for the establishment 
     of a history project for the development of teaching and 
     library materials focused on the history of the Columbia 
     River Basin.

                        Departmental Management

       The conference agreement provides $412,000,000, instead of 
     $378,543,000 as proposed by the House in H.R. 3755 and 
     $402,314,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. The conferees direct the Department 
     to comply with the directives in the House report 
     accompanying H.R. 3755.
       The conference agreement deletes a provision included in 
     both the House and Senate bills that would have permitted the 
     Department of Education Office of Inspector General to retain 
     a share of funds from the forfeiture of property in 
     investigations in which the Office participated.
       The conferees are extremely disturbed to learn that the 
     Office of Legislation and Congressional Affairs has 
     inconsistently notified congressional offices of grant 
     awards. The conferees direct the Office to notify all 
     affected congressional offices of grant awards on the same 
     day by the same means of communication.
       It has been brought to the conferees' attention that 
     several public urban schools around this Nation are 
     experiencing very serious overcrowding conditions. These 
     schools are forced to jam classrooms to overcapacity due to 
     their districts' limited budgets and engage in expensive 
     capital campaigns for the construction of new schools. 
     Private and parochial schools in these urban areas may have 
     more than adequate space available to help public schools 
     alleviate the overcrowding situation and could provide 
     educational services, in some instances, for $1,000 per 
     student. The conferees direct the Department of Education to 
     provide to the Appropriations Committees by September 1, 
     1997, a feasibility study outlining the benefits of using 
     private and parochial schools as alternatives to alleviate 
     the overcrowding in public schools and barriers to using 
     public school dollars for tuition reimbursement. The study 
     should address the constitutional issues surrounding the use 
     of these dollars among public, private and parochial entities 
     as well as other statutory or regulatory impediments.
       The conferees are concerned that the establishment of the 
     Grand Staircase-Escalante National Monument could result in 
     significant revenue losses because of the inclusion of the 
     200,000 acres of lands owned by the Utah State School Trust. 
     The conferees are also concerned about the future Federal 
     funding obligations that such an action could have. These 
     lands were granted to the State of Utah, by the Federal 
     Government with the express purpose of generating education 
     revenue. Therefore, the conferees direct the Secretary of 
     Education to report to the Committees by May 15, 1997, in 
     making recommendations for Federal remedies to mitigate the 
     impact to education funding caused by the inclusion of this 
     land. The conferees further direct the Department to work 
     with the State of Utah in drafting these recommendations.

                           GENERAL PROVISIONS

       The conference agreement includes provisions limiting total 
     expenditures for administration of the Federal Direct Student 
     Loan (FDSL) program as authorized by section 458 of the 
     Higher Education Act to $491,000,000 in fiscal year 1997, 
     instead of $595,000,000 as provided in such section, 
     $420,000,000 as proposed by the House in H.R. 3755, and 
     $440,000,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. In addition, the agreement includes 
     provisions proposed by the Senate in H.R. 3755 as reported 
     from Committee requiring the Department to pay $80,000,000 in 
     administrative cost allowances for fiscal year 1996 and not 
     to exceed $70,000,000 for administrative cost allowances in 
     fiscal year 1997 to be paid on the basis of 0.85 percent of 
     the total principal amount of loans upon which insurance is 
     issued up to the first $8,200,000,000 in new loans. H.R. 3755 
     as passed by the House required the payment of $134,000,000 
     for administrative cost allowances for fiscal years 1996 and 
     1997. The conference agreement modifies a provision in H.R. 
     3755 as passed by the House and H.R. 3755 as reported from 
     the Senate Committee to prohibit the use of funds for 
     advertising activities related to direct loans until January 
     1, 1997.
       The conference agreement includes a provision prohibiting 
     the use of funds for the Advisory Board for the Academy of 
     Science, Space, and Technology. In H.R. 3755 as reported from 
     Committee, the Senate proposed prohibiting the use of funding 
     for the Advisory Board, the Historically Black Colleges and 
     Universities Capital Financing Advisory Board, and Jacob J. 
     Javits Fellows Program Fellowship Board. In H.R. 3755, the 
     House proposed prohibiting the use of funds for the Advisory 
     Board, the HBCU Board, the Javits Board and the National 
     Board of the Fund for the Improvement of Postsecondary 
     Education.
       The conference agreement includes a provision as proposed 
     by the House in H.R. 3755 amending the section 8003(f) of the 
     Elementary and Secondary Education Act to clarify the 
     procedure for calculating payments for heavily impacted 
     districts. H.R. 3755 as reported from the Senate Committee 
     did not include this provision.
       The conference agreement does not include a provision 
     proposed by the Senate in H.R. 3755 as reported from 
     Committee and not included in H.R. 3755 as passed by the 
     House to amend the student loan Quality Assurance 
     Demonstration program authorized by section 487A of the 
     Higher Education Act regarding the purposes for which grants 
     may be made and regarding regulatory exemptions available to 
     grantees. The conferees believe that the intend of Congress 
     in establishing the Experimental Sites Authority under 
     Section 487A of the Higher Education Act was to limit that 
     authority only to the verification of student aid application 
     data. Nevertheless, the conference agreement allows all 
     experimental sites approved by the Department as of September 
     15, 1996 to continue. However, the conferees direct that the 
     Department notify the Chairmen and Ranking Members of the 
     relevant authorizing Committees and Appropriations 
     Subcommittees of the House and Senate at least 30 days prior 
     to approval of any demonstrations subsequent to September 15, 
     1996, pursuant to section 487A of the Higher Education Act.
       The conference agreement includes a provision amending 
     section 485(e) of the Higher Education Act to change the 
     annual reporting period for information on athletically-
     related student aid from the one year period ending June 30, 
     of the preceding year to the one year period ending August 30 
     of the preceding year. Neither H.R. 3755 as passed by the 
     House nor H.R. 3755 as reported by the Senate Committee 
     contained a similar provision.

                       TITLE IV--RELATED AGENCIES

                      Armed Forces Retirement Home

       The conference includes $56,204,000 as proposed by the 
     Senate in H.R. 3755 as reported from Committee, instead of 
     $53,184,000 as proposed by the House in H.R. 3755.

             Corporation for National and Community Service


        domestic volunteer service programs, operating expenses

       The conference agreement provides $213,969,000 instead of 
     $203,969,000 as proposed by the House in H.R. 3755 and the 
     Senate in H.R. 3755 as reported from Committee. The 
     conference agreement provides $77,812,000 for the Foster 
     Grandparents program.

                  Corporation for Public Broadcasting

       The conferees are extremely concerned about the continuing 
     broadcast by CPB grantees of anti-Semitic and racist 
     programming. The conferees direct CPB to report to Congress 
     not later than February 1, 1997, on its investigation of such 
     broadcasts and actions taken by the Board to reduce or 
     eliminate such programming and to reduce or eliminate Federal 
     funding for such programming and for grantees broadcasting 
     such programming.

        National Commission on Libraries and Information Science


                         salaries and expenses

       The conference agreement provides $897,000 as proposed by 
     the Senate in H.R. 3755 as reported from Committee, instead 
     of $812,000 as proposed by the House in H.R. 3755.

                     National Council on Disability


                         salaries and expenses

       The conference agreement provides $1,793,000 as proposed by 
     the Senate in H.R. 3755 as reported from Committee, instead 
     of $1,757,000 as proposed by the House in H.R. 3755.
       The conferees are concerned that the Council failed to 
     submit complete and responsive information to the Congress 
     during the fiscal year 1997 hearing process. The conferees 
     direct the Council to correct this problem during subsequent 
     budget cycles.

                     National Education Goals Panel

       The conference agreement provides $1,500,000, as proposed 
     by the Senate in H.R. 3755, instead of $974,000 as proposed 
     by the House in H.R. 3755.

                     National Labor Relations Board


                         salaries and expenses

       The conference agreement provides $175,000,000 instead of 
     $144,692,000 as proposed by the House in H.R. 3755 and 
     $170,266,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee.
       The conferees are concerned that the Board failed to submit 
     necessary information to the Congress in a timely fashion 
     during the fiscal year 1997 hearing process. The conferees 
     direct the Board to correct this deficiency during subsequent 
     budget cycles.

                        National Mediation Board


                         salaries and expenses

       The conference agreement provides $8,300,000 as proposed by 
     the Senate in H.R. 3755 as reported from Committee, instead 
     of $7,656,000 as proposed by the House in H.R. 3755. The 
     agreement includes a provision making available unobligated 
     balances for Presidential Emergency Boards for one additional 
     year for other statutory purposes. H.R. 3755 as reported by 
     the Senate Committee included a provision making all 
     unobligated funds available indefinitely. H.R. 3755 as passed 
     by the House included no similar provision.

                  Physician Payment Review Commission


                         salaries and expenses

       The conference agreement provides $3,263,000 as proposed by 
     the Senate in H.R. 3755 as reported from Committee, instead 
     of $2,920,000 as proposed by the House in H.R. 3755.

[[Page H11937]]

                     Social Security Administration


                  supplemental security income program

       The conference agreement provides $19,372,010,000 instead 
     of $19,422,115,000 as proposed by the House in H.R. 3755 and 
     $19,357,010,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. Within the total, the conference 
     agreement provides $1,946,015,000 for SSI administration. The 
     conference agreement provides an additional $19,895,000 for 
     the automation initiative. The conferees direct that the 
     Social Security Administration comply with the directive in 
     the House report accompanying H.R. 3755 regarding the use of 
     funding for research and demonstrations.
       In addition to the amount provided for the regular 
     supplemental security income program appropriation, the 
     conference agreement provides $175,000,000 as proposed by the 
     Senate in H.R. 3755 as reported from Committee for the 
     processing of continuing disability reviews as authorized by 
     P.L. 104-121, the Senior Citizens' Right to Work Act and P.L. 
     104-193, the welfare reform Act. As passed by the House prior 
     to enactment of P.L. 104-193, H.R. 3755 provided $25,000,000 
     for the processing of continuing disability reviews as 
     authorized by P.L. 104-121.
        The conference agreement includes a technical provision 
     adding the words ``as amended'' to the citation of the law as 
     proposed by the Senate in H.R. 3755 as reported from 
     Committee.


                 limitation on administrative expenses

       The conference agreement provides $5,873,382,000, instead 
     of $5,899,797,000 as proposed by the House in H.R. 3755 and 
     $5,820,907,000 as proposed by the Senate in H.R. 3755 as 
     reported from Committee. Within the total amount, the 
     conference agreement provides $3,080,000,000 from the OASDI 
     trust funds and $1,268,000 for the Social Security Advisory 
     Board. The conference agreement provides an additional 
     $234,895,000 for the automation initiative.
       The conferees agree that the amount provided for operation 
     of the Social Security Advisory Board is sufficient to enable 
     this independent, bipartisan board to fulfill its mandate to 
     provide the Congress, the President, and the Commissioner of 
     Social Security with recommendations on policy issues related 
     to the Social Security and Supplemental Security Income 
     programs.
       In addition to the regular limitation on administration, 
     the conference agreement provides an additional $310,000,000 
     for the processing of continuing disability reviews as 
     proposed by the Senate in H.R. 3755 as reported from 
     Committee and as authorized by P.L. 104-121, the Senior 
     Citizens' Right to Work Act and P.L. 104-193, the welfare 
     reform Act. As passed by the House prior to enactment of P.L. 
     104-193, H.R. 3755 provided $160,000,000 for the processing 
     of continuing disability reviews as authorized by P.L. 104-
     121.


                      office of inspector general

       The conference agreement provides $37,424,000, instead of 
     $27,424,000 as proposed by the House in H.R. 3755 and the 
     Senate in H.R. 3755 as reported from Committee. The conferees 
     believe this additional funding is necessary to provide for 
     the hiring of up to 115 additional FTEs, particularly 
     investigative agents, to adequately protect the Social 
     Security Trust Funds from fraud and criminal abuse.
       The conferees believe that all of the Inspectors General 
     need to do a better job of accounting for and tracking the 
     savings that they claim to generate by their efforts. More 
     attention must be paid to how much money is actually 
     collected each year and paid back to the Federal government. 
     The conferees direct the Inspector General to report to the 
     Committees each quarter on:
       (1) the actual payments, as a result of fines, 
     restitutions, or forfeitures, made to the United States 
     Government as a result of his activities; and
       (2) how ``funds put to better use'' were used; this report 
     must identify funds made available for use by management and 
     the programs, projects, and activities that were increased as 
     a result of these funds.

                       Railroad Retirement Board


             limitation on the office of inspector general

       The conference agreement provides $5,404,000, instead of 
     $5,268,000 as proposed by the House in H.R. 3755 and 
     $5,540,000 as proposed in H.R. 3755 as reported from 
     Committee. The conference agreement includes provisions 
     proposed by the House in H.R. 3755 prohibiting the transfer 
     of funds provided in the Act to the Office of Inspector 
     General from the Department of Health and Human Services and 
     prohibiting the use of funds for any audit, investigation, or 
     review of the Medicare program.
       The conferees believe that all of the Inspectors General 
     need to do a better job of accounting for and tracking the 
     savings that they claim to generate by their efforts. More 
     attention must be paid to how much money is actually 
     collected each year and paid back to the Federal government. 
     The conferees direct the Inspector General to report to the 
     Committees each quarter on:
       (1) the actual payments, as a result of fines, 
     restitutions, or forfeitures, made to the United States 
     Government as a result of his activities; and
       (2) how ``funds put to better use'' were used; this report 
     must identify funds made available for use by management and 
     the programs, projects, and activities that were increased as 
     a result of these funds.

                    United States Institute of Peace


                           operating expenses

       The conferees are concerned that the Institute failed to 
     submit necessary information to the Congress in a timely 
     fashion during the fiscal year 1997 hearing process. The 
     conferees direct the Institute to correct this deficiency 
     during subsequent budget cycles.

                      TITLE V--GENERAL PROVISIONS

       The conference agreement includes a revision to section 503 
     as proposed by the Senate in H.R. 3755 as reported from 
     Committee. The language would include State legislatures in 
     the section's provision prohibiting use of funds in the bill 
     for activities designed to influence legislation pending 
     before the Congress. Funds in the bill could not be used to 
     attempt to influence a State legislature with respect to 
     pending legislation. The House bill had no similar provision.
       The conference agreement includes a revision to section 507 
     as proposed by the Senate in H.R. 3755 as reported from 
     Committee. The House bill would require all Federal grantees 
     to disclose the dollar amount of Federal funds and the 
     percentage of Federal funds involved in a program or project 
     when the grantee is issuing press releases, statements, 
     requests for proposals, bid solicitations and other documents 
     related to the program or project. The agreement changes the 
     House language by limiting the disclosure provisions to only 
     grantees receiving Federal funds from the Labor-HHS-Education 
     appropriations bill, rather than all Federal grantees.
       The conference agreement deletes a provision proposed by 
     the House in H.R. 3755 prohibiting the use of funds by the 
     National Labor Relations Board to exert jurisdiction over any 
     labor dispute involving an employer that does not meet the 
     statutory jurisdictional thresholds for the agency as updated 
     for inflation. H.R. 3755 as reported by the Senate Committee 
     did not include a similar provision.
       The conference agreement does not include section 514 as 
     proposed by the House in H.R. 3755 which would prohibit the 
     use of funds in the bill to assist any illegal alien, except 
     for emergency medical assistance, benefits mandated by the 
     Federal courts or public health assistance for immunizations, 
     testing and treatment for communicable diseases. The Senate 
     bill had no similar provision.
       The conference agreement does not include section 515 as 
     proposed by the House in H.R. 3755 which would have 
     prohibited the Department of Labor from closing or relocating 
     any mine safety and health technology center until after 
     submission of a report to the House Committee on 
     Appropriations detailing any cost savings anticipated and the 
     effect on services. The Senate bill had no similar provision.
       The conference agreement includes a limitation on the use 
     of funds for any educational institution which prohibits the 
     maintaining, establishing, or operation of a unit of the 
     Senior Reserve Officer Training Corps. The conference 
     agreement includes a provision prohibiting the use of funds 
     for any educational institution which prevents the entry to 
     campuses for military recruiting or which prevents access to 
     certain student information to military recruiters. The 
     conference agreement also includes a provision denying funds 
     to entities which have failed to comply with certain 
     reporting requirements administered by the Department of 
     Labor.
       The conferees intend that the limitations on the use of 
     funds relating to ROTC and military recruiting not apply to 
     any individual institution of higher education that is part 
     of a single university system and that does not bar military 
     recruiters or ROTC on campus even though another campus of 
     the same system does prohibit recruiters or ROTC on campus.
       The conferees do not wish to impose an unreasonable 
     administrative burden on institutions of higher education to 
     comply with these provisions. The conferees direct the 
     Secretary of Defense to include in regulations implementing 
     these provisions mechanisms to ensure that institutions of 
     higher education are not subjected to unreasonable requests 
     for student information.
       The conference agreement does not include section 520 as 
     proposed by the House in H.R. 3755 which would have 
     prohibited the enforcement of an OSHA regulation that 
     requires that workers wear long pants if such requirement 
     would cause workers to experience extreme discomfort because 
     of heat. The Senate bill had no similar provision.
       The conference agreement deletes without prejudice a 
     provision proposed by the House in H.R. 3755 but deleted by 
     the Senate prohibiting the use of funds to order, direct, 
     enforce, or compel an employer to pay backpay to any employee 
     for any period during which the employee was not lawfully 
     entitled to be present and employed in the United States. The 
     conferees agree that this is a serious matter which needs to 
     be addressed, but believe it should be dealt with by the 
     appropriate authorizing committees.
       The conference agreement does not include a provision 
     proposed by the House in H.R. 3755 and not included in H.R. 
     3755 as reported from the Senate Committee which prohibits 
     the use of trust funds to compensate employees of the Social 
     Security Administration for union activity conducted on 
     official time.
       The conference agreement includes a provision in the House 
     bill that was deleted in the Senate bill prohibiting the 
     funding of family planning grantees unless the grantee

[[Page H11938]]

     certifies that it encourages family participation in the 
     decision of a minor to seek family planning services.
       The conference agreement modifies a provision as proposed 
     by the Senate in H.R. 3755 as reported from Committee to 
     require a reduction of $30,500,000 in amounts otherwise 
     available for salaries and expenses, and in addition, the 
     conference agreement requires a reduction of $2,000,000 in 
     resources otherwise available for congressional, legislative, 
     and public affairs activities. The conference agreement does 
     not include a provision proposed by the Senate in H.R. 3755 
     as reported from Committee to require a cap on cash 
     performance awards of 1% of salaries for each agency.
       The conference agreement includes a provision proposed by 
     the Senate in H.R. 3755 as reported from Committee and not 
     included in H.R. 3755 as passed by the House permitting the 
     Railroad Retirement Board to offer voluntary separation 
     incentives to its employees.
       The conference agreement includes a provision that was not 
     contained in H.R. 3755 as passed by the House or reported by 
     the Senate Committee that corrects the effective date of the 
     Health Centers Consolidation Act of 1996 so that the 
     legislation will be effective for fiscal year 1997.

                                TITLE VI

                 Commission on Retirement Income Policy

       The conference agreement does not include title VI of the 
     bill as proposed by the Senate in H.R. 3755 as reported from 
     Committee. The proposed title VI was the text of a separate 
     Senate authorizing bill which would have authorized and 
     established a Commission on Retirement Income Policy. The 
     House bill had no similar provision.

           TITLE VII--MUSEUM AND LIBRARY SERVICES ACT OF 1996

       The conference agreement includes a new title VII of the 
     bill which was not included either in H.R. 3755 as passed by 
     the House or reported by the Senate Committee. This title 
     amends the Museum Services Act to transfer all library 
     programs from the Department of Education to the Institute of 
     Museum and Library Services.

                          Conference Agreement

       The following table displays the amounts agreed to for each 
     program, project or activity with appropriate comparisons:

[[Page H11939]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.000
     


[[Page H11940]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.001
     


[[Page H11941]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.002
     


[[Page H11942]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.003
     


[[Page H11943]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.004
     


[[Page H11944]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.005
     


[[Page H11945]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.006
     


[[Page H11946]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.007
     


[[Page H11947]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.008
     


[[Page H11948]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.009
     


[[Page H11949]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.010
     


[[Page H11950]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.011
     


[[Page H11951]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.012
     


[[Page H11952]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.013
     


[[Page H11953]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.014
     


[[Page H11954]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.015
     


[[Page H11955]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.016
     


[[Page H11956]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.017
     


[[Page H11957]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.018
     


[[Page H11958]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.019
     


[[Page H11959]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.020
     


[[Page H11960]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.021
     


[[Page H11961]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.022
     


[[Page H11962]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.023
     


[[Page H11963]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.024
     


[[Page H11964]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.025
     


[[Page H11965]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.026
     


[[Page H11966]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.027
     


[[Page H11967]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.028
     


[[Page H11968]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.029
     


[[Page H11969]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.030
     


[[Page H11970]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.031
     


[[Page H11971]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.032
     


[[Page H11972]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.033
     


[[Page H11973]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.034
     


[[Page H11974]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.035
     


[[Page H11975]]

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[[Page H11976]]

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[[Page H11977]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.038
     


[[Page H11978]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.039
     


[[Page H11979]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.040
     


[[Page H11980]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.041
     


[[Page H11981]]

     [GRAPHIC] [TIFF OMITTED] TH28SE96.042
     


[[Page H11982]]

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[[Page H12005]]

                             Section 101(f)


     Treasury, Postal Service, and General Appropriations Act, 1997

       The conferees on H.R. 3610 agree with the matter inserted 
     in this subsection of this conference agreement and the 
     following description of this matter. This matter was 
     developed through negotiations on the differences in the 
     House and Senate versions of H.R. 3756, the Treasury, Postal 
     Service, and General Appropriations Act, 1997, by members of 
     the appropriations subcommittee of both the House and Senate 
     with jurisdiction over H.R. 3756.
       The conference agreement on the Treasury, Postal Service, 
     and General Government Appropriations Act, 1997, incorporates 
     some of the language and allocations set forth in House 
     Report 104-660 and Senate Report 104-330. The language in 
     these reports should be complied with unless specifically 
     addressed in the following description of the conference 
     agreement.


                             reprogrammings

       The conferees are concerned about the timing of various 
     reprogramming requests submitted by agencies for 
     Congressional review. As stated in both the House and Senate 
     reports accompanying H.R. 3756, agencies are reminded that, 
     except in extraordinary circumstances, reprogramming 
     proposals will not be approved by the Committees 45 days 
     prior to the end of the fiscal year. Agencies are urged to 
     take into consideration periods of non-legislative business 
     in the calculation of the 45 day time period; as a practical 
     matter, reprogramming requests may only be considered by the 
     Committees during legislative business days.

                  TITLE I: DEPARTMENT OF THE TREASURY

                          Departmental Offices


                         Salaries and Expenses

                             Recommendation

       The conference agreement provides $111,760,000. Within this 
     amount, the Department shall ensure that the travel budget is 
     reduced by $654,000; and that the privatization study is 
     funded at $300,000.


                   Fire at the Main Treasury Building

       The Conferees understand that the total requirement for 
     expenses related to the June 26, 1996 fire at the Main 
     Treasury building is $32,207,000. Of this amount, $9,463,000 
     is for Salaries and Expenses and $2,215,000 is for Automatic 
     Data Processing (ADP). These requirements, totaling 
     $11,678,000, were accommodated by reprogramming Internal 
     Revenue Service (IRS) fiscal year 1995 unobligated balances. 
     Additional funds of $20,529,000 for repairs and restoration 
     due to the fire damage are provided in the Treasury Buildings 
     Annex Repair and Restoration Account.


                       Debt Collection Activities

       The conferees support the Administration's intention to 
     issue regulations limiting the offset to not more than 15 
     percent.


                  Treasury Law Enforcement Employment

       The fiscal year 1996 conference report for the Treasury, 
     Postal Service Appropriations Act directed the Office of the 
     Secretary of the Treasury to report on the regulatory and 
     statutory options that could make recruiting, hiring, firing, 
     promotions, demotions and lateral moves of Treasury law 
     enforcement personnel more efficient. The Administration 
     responded with a report that describes the current status of 
     Treasury law enforcement personnel systems, along with some 
     options for reforming them. However, the report failed to 
     provide detail on the costs and benefits of each option or 
     recommended a particular course of action.
       In response to the Treasury report, the House Committee on 
     Appropriations expressed continuing concern regarding the 
     disparate hiring practices at different Federal law 
     enforcement agencies. In House Report 104-660, the Committee 
     directed the Secretary of the Treasury and the Director of 
     the Office of Personnel Management to implement measures to 
     assure that all criminal investigator positions are subject 
     to hiring, conversion and retention procedures similar to 
     those currently in place for the United States Secret 
     Service. Certain parts of the Administration have expressed 
     opposition to this directive, noting that Secret Service 
     hiring practices are unique and may not be appropriate for 
     other Treasury bureaus.
       Nevertheless, the conferees remain concerned by continued 
     reports that Treasury law enforcement bureaus are not able to 
     promote and hire as easily as other Federal law enforcement 
     agencies, or that some Treasury agencies have better 
     practices than others. The conferees therefore direct the 
     Secretary of the Treasury to commission an outside study with 
     an organization having expertise in both Federal personnel 
     law and law enforcement management as a follow-on to the 
     Treasury report. Specifically, the second report should focus 
     on (1) the steps that Treasury enforcement bureaus may take 
     under current laws and regulations to facilitate hiring, 
     firing, promotions and demotions, and (2) the feasibility, 
     costs and benefits of converting Treasury law enforcement 
     positions to the excepted service or of creating a new 
     personnel system for criminal investigators. This report 
     should be submitted by May 1, 1997.


       Intergovernmental Information Technology Enterprise Panel

       The conferees agree to drop the requirement contained in 
     House Report 104-660 which directs that $750,000 of available 
     funds be used to support the Intergovernmental Information 
     Technology Enterprise Panel. The Department of Treasury is no 
     longer the lead agency for this panel and therefore should 
     not be required to provide such funds.


                         Automation Enhancement

                    International Trade Data System

       The conferees are concerned by the lack of cooperation 
     between Treasury's Office of the Secretary and the Customs 
     Service in developing the International Trade Data System 
     (ITDS). The conferees have heard reports that the Customs 
     Service has been uncooperative with the many Federal agencies 
     who will use the data gathered by ITDS and have held 
     discussions with private industry representatives without 
     taking the data needs of any other Federal agency into 
     account. In addition, the conferees understand that the 
     Office of the Secretary has shown little to no interest in 
     minimizing the reporting burden to be placed on private 
     industry by implementation ITDS.
       The conferees are concerned that bureaucratic rivalries 
     have jeopardized this important project. For ITDS to succeed, 
     it will require the cooperation of not only Customs and 
     Treasury, but also importers and a number of other Federal 
     agencies. The conferees have agreed to place the ITDS office 
     within the Customs Service, which will have the 
     responsibility for developing the system, for interacting 
     with outside groups, and for collecting data to be entered 
     into the system. The Office of the Under Secretary for 
     Enforcement shall chair the interagency committee that 
     oversees ITDS development and shall coordinate ITDS 
     development within the Federal government. The conferees 
     direct that the Customs Service obtain the concurrence of the 
     Office of the Under Secretary and the interagency committee 
     for all major decisions related to ITDS development. The 
     Office of the Assistant Secretary for Management shall advise 
     both the Customs Service and the Under Secretary's office on 
     technical aspects of systems development.
       The conferees direct the Secretary of the Treasury to 
     develop a progress report on ITDS implementation and submit 
     it to the House and Senate Committees on Appropriations no 
     later than June 1, 1997.

                 Automated Commercial Environment (ACE)

       The conferees are concerned with a May, 1996 GAO report 
     concerning Customs' modernization efforts. GAO found that the 
     Customs Service did not: (1) conduct the requisite cost-
     benefit analyses, (2) redesign its import and other business 
     processes before the agency selected the hardware for ACE and 
     other systems, (3) manage ACE as an investment, and (4) 
     designate strict accountability for ensuring that Customs 
     incorporates all functions mandated by the National Customs 
     Automation Program.
       In response, the Customs Service accepted GAO's 
     recommendations and began corrective action. Customs has 
     assigned responsibility for implementing the National Customs 
     Automation Program (NCAP), has established an information 
     technology investment review committee, has developed a 
     security plan, and has initiated a variety of evaluations of 
     specific sub-projects.
       Because of the good faith efforts by the Customs Service to 
     comply with GAO's recommendations, the conferees agree to 
     make $11,525,000 available for the Automated Commercial 
     Environment immediately upon enactment of this Act, which 
     should be sufficient to fund ACE development through the 
     first two quarters of fiscal year 1997. The final $3,475,000 
     shall be withheld pending consultation with the House and 
     Senate Committees on Appropriations.

             Report by the General Accounting Office on ACE

       The conferees direct the General Accounting Office to 
     review Customs progress in implementing GAO recommendations 
     on ACE and report its findings to the House and Senate 
     Committees on Appropriations no later than February 1, 1997.

                      Office of Inspector General


                         salaries and expenses

       The conference agreement provides $29,736,000 for the 
     Office of Inspector General.

                       Independent Legal Counsel

       The conferees agree with the House position with regard to 
     providing the Inspector General with independent legal 
     counsel and request that the Secretary of the Treasury 
     resolve this long standing issue.

                 Office of Professional Responsibility


                         salaries and expenses

       The conference agreement provides a direct appropriation of 
     $1,500,000 for the creation of an Office of Professional 
     Responsibility.

 Office of Inspector General and Office of Professional Responsibility

       The conferees are concerned that no duplication of effort 
     take place between the Office of Professional Responsibility 
     (OPR) and the Office of Inspector General (OIG).The conferees 
     direct the Under Secretary for Enforcement to work closely 
     with the Inspector General to ensure no such overlap occurs.

          Treasury Buildings and Annex Repair and Restoration

       The conference agreement provides $28,213,000 for 
     additional costs related to the fire at the Main Treasury 
     building and to accommodate the President's original request 
     of $7,684,000. Funding for the Bureau of Alcohol, Tobacco and 
     Firearms (ATF) and the Secret Service are addressed within 
     the ATF

[[Page H12006]]

     Laboratory Facilities and the Secret Service's Acquisition, 
     Construction, Improvement, and Related Expenses 
     appropriations.

                  Financial Crimes Enforcement Network

       The conferees provide $22,387,000 for the Financial Crimes 
     Enforcement Network, the same as the House-passed and the 
     Senate committee levels.

               Department of the Treasury Forfeiture Fund

       The conference agreement provides $10,000,000, of which 
     $7,500,000 shall be used for the development of a Federal law 
     enforcement wireless communications system and $2,500,000 
     shall be used at the discretion of the Secretary.

                    Violent Crime Reduction Programs


                      including transfer of funds

       The conference agreement provides $97,000,000. This amount 
     is to be used as follows:

Bureau of Alcohol, Tobacco and Firearms:
  Training & Equipment Initiative...........................$29,133,000
  GREAT Administration........................................3,000,000
  CEASEFIRE Program...........................................3,662,000
  Project LEAD..................................................800,000
                                                       ________________
                                                       
  Subtotal ATF...............................................36,595,000
                                                       ================

  GREAT Program...............................................8,000,000
Secret Service:
  White House Security........................................8,000,000
  Child Exploitation..........................................3,000,000
  TRIP........................................................1,000,000
  Counterfeiting..............................................5,000,000
  Financial Institutions Fraud................................3,000,000
                                                       ________________
                                                       
  Subtotal Secret Service....................................20,000,000
                                                       ================

Financial Crimes Enforcement Network: Cybercash Initiative....1,000,000
Office of National Drug Control Policy: High Intensity Drug Trafficking 
  Areas Program..............................................13,105,000
Departmental Offices: Taggant Study..........................18,300,000
                                                       ________________
                                                       
    Total....................................................97,000,000

                      Ballistics Imaging Equipment

       The conferees include language allowing for the purchase, 
     maintenance and upgrading of ballistics equipment.

                 High Intensity Drug Trafficking Areas

       The conference agreement provides a total of $140,207,000 
     for the High Intensity Drug Trafficking Areas program: 
     $13,105,000 from the Violent Crime Reduction Trust Fund and 
     $127,102,000 from the base appropriation. This amount is 
     $37,207,000 greater than the Administration's fiscal year 
     1997 request of $103,000,000 for this program. In addition to 
     fully funding the Administration's request, the conferees 
     include resources for several newly-designated HIDTAs: 
     $3,000,000 for Lake County, Indiana; $6,000,000 for the Gulf 
     Coast states of Louisiana, Alabama and Mississippi; 
     $8,000,000 for the Midwest states of Iowa, Missouri, 
     Nebraska, South Dakota and Kansas to focus on methamphetamine 
     use, production and distribution; $3,000,000 for the State of 
     Colorado; and $3,000,000 for the Pacific Northwest. The 
     remaining $14,207,000 shall be distributed at the discretion 
     of the Director of the Office of National Drug Control 
     Policy.

           National Center for Missing and Exploited Children

       The conference agreement includes $1,400,000 in the Crime 
     Trust Fund for enhanced efforts of the Secret Service to 
     target crimes against children; of this amount, $400,000 is 
     for two additional full time employees within the Secret 
     Service to target child exploitation and pornography; 
     $756,000 is dedicated for a grant to the National Center for 
     Missing and Exploited Children (NCMEC) to establish an 
     Exploited Child Unit, and $235,000 is provided to support the 
     training of additional volunteers through NCMEC's Project 
     ALERT. The conference agreement assumes funds of $1.2 million 
     through the Secret Service Salaries and Expenses 
     appropriation for the 2nd and 3rd years of operating the 
     Exploited Child Unit at the NCMEC and continued funding of 
     $1.6 million through the Crime Trust Fund for the Secret 
     Service to enhance the use of forensic technology into the 
     investigation of missing and exploited children.

                Federal Law Enforcement Training Center


                         Salaries and Expenses

       The conference agreement provides $54,831,000. Of that 
     amount, $3,150,000 shall be used for unforeseen basic 
     training needs. If such amounts are not needed, they may be 
     used for the proposed teletraining initiative. The agreement 
     also makes $13,034,000 available for the support of basic 
     training, which may also be reprogrammed for other uses 
     through established reprogramming guidelines.

                Federal Law Enforcement Training Center


     Acquisition, Construction, Improvements, and Related Expenses

       The conference agreement provides $18,884,000. Resources 
     over and above the Administration's request shall be used to 
     fund a new dormitory at Glynco as well as a classroom 
     building and a practical exercise lab building at Artesia. 
     The conferees understand that the facilities Master Plan for 
     these two sites is a document that FLETC has revised in the 
     past and will continue to revise periodically to reflect the 
     addition of new construction projects, as well as changes in 
     priorities, cost estimates, and project realignments. The 
     conferees direct FLETC to keep the House and Senate 
     Committees on Appropriations apprised of any changes in 
     Master Plan projects or priorities for master plan 
     construction projects at Glynco, Georgia and Artesia, New 
     Mexico.

                      Financial Management Service


                         Salaries and Expenses

       The conference agreement provides $196,069,000 for the 
     Financial Management Service.

                Bureau of Alcohol, Tobacco and Firearms


                         salaries and expenses

       The conference agreement provides $393,971,000. The 
     Committees agree to the following changes from the 1996 
     enacted level of $377,971,000:

Termination of Aircraft Program.............................-$2,000,000
General Program Reduction....................................-3,750,000
EO 12837 Reductions............................................-302,000
Savings from 400 FTE Reduction..............................-25,534,000
Separation Incentive Payments (Buyouts)......................13,408,000
Church Fire Investigations...................................12,011,000
Training & Equipment Initiative..............................12,000,000
Adjustment for Inflation.....................................10,167,000
                                                       ________________
                                                       
    Total Appropriation.....................................393,971,000

       The Committees agree to allow ATF to use the $12,011,000 
     dedicated to church fire investigations on investigations 
     involving explosives or any other violence directed against 
     religious institutions.

                             GREAT Program

       The conferees have provided $8,000,000 for the Gang 
     Resistance Education and Training (GREAT) Program, an 
     increase of $800,000 above the Administration's request. The 
     conferees commend the ATF for its efforts in developing this 
     program and directs ATF to use the additional funds provided 
     by the conferees to establish new GREAT programs in, at 
     least, Bellevue, Washington, and Sioux City, Iowa. ATF should 
     also give strong consideration to establish a GREAT program 
     within the state of Colorado.

                             Downsizing ATF

       The conferees do not believe it is possible for ATF to 
     maintain an adequately equipped or trained force at the 
     current levels of employment and funding. To fully equip and 
     train an average, full-time ATF officer requires 
     approximately $122,441, yet the fiscal year 1997 budget 
     request was $73 million below (15 percent) the amount 
     necessary to sustain such a level. This neglect has resulted 
     in an agency in which pay alone represents 74 percent of the 
     overall budget. The conferees believe this situation can no 
     longer be ignored.
       In order to operate more effectively in the contemporary 
     law enforcement environment, the ATF must become a smaller, 
     better trained and better equipped organization. The 
     conferees are pleased to note that the Director of ATF feels 
     the same. Therefore, the conferees direct ATF to develop and 
     implement a plan to downsize toward its own ``ideal'' 
     distribution of expenditures of 62 percent pay, 23 percent 
     operations and 15 percent fixed costs. The conferees further 
     recommend that ATF downsize in fiscal year 1997 by 
     approximately 400 FTE to realize the immediate benefits of 
     increased training and better equipment. The conferees have 
     provided buyout authority to ease this transition and have 
     deleted a House provision prohibiting ATF from implementing a 
     reduction in force. Although the conferees will not 
     micromanage this downsizing by requiring a specific reduction 
     in FTE's in fiscal year 1997, the conferees direct that no 
     reductions come from the explosives and arson investigative 
     or regulatory functions and strongly recommend that 
     downsizing be targeted toward agents at or near retirement.

                           Revenue Collection

       At a time when the revenue collection components of the 
     Department of the Treasury have experienced difficulty in 
     achieving efficiencies while maintaining a high level of 
     compliance on the part of their taxpayer universe, ATF's 
     revenue protection program stands out as an example of sound 
     management and successful planning. ATF's collections are at 
     historic levels, while regulatory staffing has remained below 
     the authorized level.
       Currently, ATF's regulatory enforcement component is 
     authorized at a level of 1,030 FTE's; actual staffing has 
     been held to approximately 950 FTE's by effective position 
     management. Within that framework, Regulatory Enforcement 
     will achieve a further savings of 50 FTEs by consolidation of 
     technical services functions.
       The conferees believe that ATF should use the FTE savings 
     in technical services functions to offset, at least in part, 
     previous reductions taken by Regulatory Enforcement in the 
     field positions dedicated to alcohol and tobacco revenue and 
     consumer protection programs.
       Therefore, the conferees direct that the ATF pay careful 
     attention to position management by major program area so as 
     to ensure that uneven attrition does not result in

[[Page H12007]]

     untenable staffing reductions in the revenue and consumer 
     protection activities of the ATF, and to ensure that 
     Regulatory Enforcement is not penalized for past efficiency.

                     Federal Firearms Disabilities

       The conference agreement continues language included in the 
     fiscal year 1996 appropriations act prohibiting ATF from 
     acting on applications for relief from federal firearms 
     disabilities.

                       Ballistics Imaging Systems

       The conferees are aware that the Departments of Treasury 
     and Justice have developed separate ballistics imaging 
     systems and are now working with state and local law 
     enforcement agencies to deploy these systems,often with 
     Federal subsidy assistance. Given the pressing national needs 
     for this type of technology, the conferees remain adamant the 
     Federal government not provide subsidy assistance for state 
     and local law enforcement to acquire both systems. The 
     conferees have included language prohibiting Federal 
     assistance for the acquisition of a second system unless the 
     state or local authorities return or fully reimburse the 
     Federal government for the first system. The Committees also 
     note the Department of Justice Appropriations Act will 
     contain a similar prohibition.
       The conferees have included funds in the Violent Crime 
     Trust Fund for expansion and maintenance of this program. 
     Should demand require, the Committee's note that the Director 
     has in his discretion the ability to utilize funds 
     appropriated in the Salaries and Expenses account.

                             Taggants Study

       Public Law 104-132, the Antiterrorism and Effective Death 
     Penalty Act of 1996, directs the Secretary of the Treasury to 
     conduct studies on adding taggants to explosives materials, 
     review the feasibility and practicability of rendering 
     certain explosive chemicals inert, and evaluate the potential 
     of imposing controls on certain materials used to manufacture 
     explosives. The conferees are aware that the Naval Surface 
     Warfare Center's Indian Head Division is widely recognized as 
     a center of excellence in energetics. The conferees urge the 
     Secretary to explore ways to use this Division's expertise in 
     the development and manufacture of energetic chemicals and 
     systems in the studies funded on taggants. Participating 
     agencies are urged to work closely with the Indian Head 
     Division on this important effort.

           Cigarette Tax Evasion on Indian Lands in Oklahoma

       The conferees are concerned about reports of businesses in 
     Oklahoma operating on Indian lands which are evading the 
     payment of state cigarette sales taxes. The conferees are 
     also aware that the ATF, under 18 USC Sec. 2341-2342, has the 
     authority to investigate and enforce state cigarette sales 
     tax laws. The conferees direct the ATF to work closely with 
     the Oklahoma Tax Commission on the investigation of cases of 
     tax evasion by businesses located on Indian land in Oklahoma.

                            ATF Air Program

       The House transferred the ATF aviation program to the 
     Customs Service. Nevertheless, the conferees have since 
     learned that the Customs Service has no use for the OV-10 
     aircraft used by ATF, and that ATF has a letter of agreement 
     with the Department of State to provide a portion of the OV-
     10 aircraft and parts for eradication of illegal coca plants 
     in source countries. The conferees, therefore direct ATF to 
     transfer the OV-10 aircraft to the Department of State and 
     any excess aircraft or parts to the Department of Defense 
     inventory.

                Bureau of Alcohol, Tobacco and Firearms


                         laboratory facilities

       The conference agreement provides $6,978,000 for the design 
     and acquisition of the ATF National Laboratory Center and 
     Fire Research Investigation and Development Center.

                     United States Customs Service


                         salaries and expenses

       The conference agreement provides $1,487,250,000 and up to 
     $30,000 for official representation expenses.
       The conferees agree to the following changes from the 
     fiscal year 1996 appropriation of $1,387,153,000:

Operation Hardline..........................................$74,000,000
Operation Gateway............................................28,000,000
Maintain Current Levels......................................39,625,000
Executive Order 12837 Reduction.............................-13,695,000
Transfer International Trade Data System.....................-5,600,000
Transfer Automated Commercial Environment...................-15,000,000
Headquarters FTE Reduction..................................-20,596,000
Cost of Buyout...............................................11,058,000
General Reduction............................................-5,000,000
Operations & Maintenance for ATF................................500,000
Nogales, Arizona Fence..........................................500,000
Honolulu Customs District.......................................750,000
China Initiative..............................................3,005,000
Western Hemispheric Trade Center..............................2,500,000
Child Pornography................................................50,000
                                                       ________________
                                                       
    Total.................................................1,487,250,000

                Operation Gateway and Operation Hardline

       The conferees agree to include statutory language 
     designating $65,000,000 for Operation Hardline and 
     $28,000,000 for Operation Gateway. An additional $9,000,000 
     shall be available to Operation Hardline for the maintenance 
     of equipment purchased in fiscal year 1996.

                        Miscellaneous Provisions

       The conferees mandate that the Customs Service begin full 
     implementation of the General Aviation Telephonic Entry 
     (GATE) program within 30 days of enactment of this Act, 
     delete language proposed by the House prohibiting any 
     reduction in force in the Customs Service, restore House 
     language to require approval of a staffing plan by the House 
     and Senate Committees on Appropriations prior to 
     implementation of any separation incentive payment program, 
     and restore language proposed by the House prohibiting 
     Customs from providing less than 30 days notice for changes 
     in apparel regulations.

                             Reorganization

       The conferees are concerned by a GAO report to the Ways and 
     Means Committee (GAO/GGD-96-81R Customs Reorganization) 
     stating that Customs had achieved only 40% of its goal of 
     reducing headquarters full time equivalent employment from 
     1,800 to 1,200. The conferees direct the Customs Service to 
     report to the House and Senate Committees on Appropriations, 
     no later than February 1, 1997, with a streamlining plan on 
     how it intends to achieve those reductions or with an 
     explanation as to why such reductions are no longer 
     advisable.

                       Honolulu Customs District

       The conference agreement provides $750,000 for additional 
     part-time and temporary positions in the Honolulu Customs 
     District.

                         Nogales, Arizona Fence

       The conferees provide funding to Customs for construction 
     of a fence in Nogales, Arizona, to prevent smuggling. Work 
     has progressed on construction of this fence, which separates 
     the United States and Mexico. Because of the importance of 
     this fence to antismuggling efforts, the conferees have 
     included an additional $500,000 to complete this project.

                     Non-Intrusive Inspection (NII)

       The conferees have been made aware of a recent evaluation 
     of NII by the Office of National Drug Control Policy (ONDCP) 
     which concludes that deployment of advanced NII technology at 
     land and sea border points can make a significant improvement 
     in the effectiveness of U.S. drug interdiction efforts. The 
     conferees commend the Customs Service (USCS) for recognizing 
     the potential of technologies such as truck X-rays and 
     beginning the deployment of such systems. However, the ONDCP 
     study also suggests that high energy, rather than low energy 
     X-ray technology, and a level one automated targeting system 
     (ATS) represent the best investment in NII technology. The 
     conferees direct the USCS to accelerate development and 
     deployment of an ATS and place a moratorium on the further 
     procurement of low energy X-ray equipment as defined in the 
     ONDCP report. The conferees direct the USCS to reevaluate its 
     plans with regard to ATS, low energy and high energy X-ray 
     equipment and, no later than February 1, 1997, present the 
     Committees on Appropriations with an integrated detection 
     plan which responds to the recommendations made in the ONDCP 
     evaluation.

                    Western Hemispheric Trade Center

       The conference agreement provides $2,500,000 for the 
     Western Hemispheric Trade Center.

                            ATF Air Program

       The conference agreement provides the Customs Service an 
     additional $500,000 for the costs associated with providing 
     aviation support to the ATF. The conferees direct that such 
     service be provided to ATF without reimbursement.

                           Operation Respond

       The conferees urge the Customs Service to work with 
     Operation Respond Institute, Incorporated, a non-profit 
     organization, the Federal Highway Administration, and the 
     Federal Railroad Administration in enhancing and implementing 
     computer software to identify hazardous materials crossing 
     the northern and southern borders of the United States.


                       child labor investigations

       The House passed version of H.R. 3756 contained a provision 
     that funded two additional overseas positions for Customs 
     Service investigators in New Delhi, India and in the Sialkot 
     region of Pakistan. These are two areas in the world where 
     child labor is a particularly significant problem.
       The conferees understand that this provision could not be 
     included in this legislation because pending legislation 
     which would make the import of goods produced by child labor 
     illegal has not yet passed. Nevertheless, the conferees 
     believe that it is important for the Administration, Congress 
     and the people of the United States to be informed as to 
     whether goods being imported into the United States are being 
     produced by child labor.
       The conferees expect that the Customs Service will make 
     this information available to the full extent of its 
     authority under current law. In addition, the conferees 
     direct Customs to report to the Committees on Appropriations 
     what additional legislation is needed to address the problem. 
     This report shall be transmitted with the fiscal year 1998 
     budget request.


                     designations of ports of entry

       The conferees are concerned that the Custom Service has not 
     published firm criteria

[[Page H12008]]

     for determining user fee or port of entry status for 
     airports, leading to confusion and possible loss of revenue 
     in at least one airport. The conferees therefore direct the 
     Customs Service to establish firm, clear guidelines to be 
     used in determining port of entry status and provide those 
     criteria to the Committees on Appropriations with the fiscal 
     year 1998 budget submission. The conferees direct that the 
     status of no airport be changed until transmission of that 
     report, except for changes mandated by law.


                           p-3aew procurement

       The conference agreement provides $42,000,000 to convert 
     one P-3AEW aircraft, to be financed through transfer from the 
     Special Forfeiture Fund within the Office of National Drug 
     Control Policy. This will be in addition to the P-3AEW funded 
     through the Department of Defense.

                    Bureau of Engraving and Printing


                               web press

       The conferees understand that, despite fiscal year 1996 
     Congressional direction to suspend development of the Web 
     Press, the Department of the Treasury and the Bureau of 
     Engraving and Printing (BEP) have resisted compliance with 
     the direction. BEP has instead indicated that it needs 
     additional time to resolve performance shortfalls it has 
     encountered with the operation of the Press.
       The conferees believe that the opportunity to resolve the 
     performance shortfalls was addressed in a December 1, 1995, 
     letter in which the Director of BEP presented a plan to turn 
     the Press into a ``viable piece of operating equipment'' by 
     April of 1996. The conferees did not receive official 
     notification as to whether or not the Director's plan was 
     successful. However, informal communication with the BEP led 
     the conferees to believe that the milestones presented in the 
     December letter were not met in a cost-effective manner.
       While it is unclear why the Department of the Treasury and 
     the BEP want to continue the Web Press effort, the conferees 
     believe the Director should be provided with sufficient 
     authority to conduct all necessary testing to determine if 
     the Press can produce currency in compliance with the 
     original contractual requirements. Therefore, the conferees 
     agree that, if the Director determines it is in the best 
     interest of the government to conduct further testing of the 
     Web Press, a plan to achieve resolution of the issues 
     associated with the performance of the Press shall be 
     submitted to the House and Senate Committees on 
     Appropriations. The objective of the plan, which must include 
     specific performance milestones, should be to determine if 
     the Press can be brought into compliance with the original 
     contract performance requirements. The plan must also include 
     criteria to determine success or failure in meeting the 
     established milestones. This plan shall be submitted to the 
     Committees within 30 days of enactment of this Act. The 
     conferees are adamant that the plan shall be implemented and 
     conducted at no additional cost and shall have a reasonable 
     termination date at which time either the Web Press is in 
     compliance with the original contract requirements or is 
     terminated.


                 exemption from procurement regulations

       The conference agreement does not include an exemption from 
     procurement regulations for the BEP. The conferees believe it 
     is premature to provide such exemption without first 
     determining the effect such an exemption would have on other 
     Treasury bureaus. While it would be beneficial for BEP to 
     have such an exemption, it does not seem appropriate to place 
     the organization in a position not shared by other Treasury 
     bureaus.

                           United States Mint


               united states mint public enterprise fund

       The conferees note that the U.S. Mint has submitted 
     comprehensive reports concerning the implementation of the 
     Mint Public Enterprise Fund. Since certain circulating 
     coinage provisions will expire at the end of fiscal year 
     1996, the conferees request the Director of the U.S. Mint 
     submit an overview of a plan for controlling costs and 
     maximizing 1997 operations. This overview should be included 
     in the next quarterly report submitted to Congress.
       The conferees request the Director also submit a report, by 
     December 1, 1996, which resolves the issue of how best to 
     maintain separate revenue records for circulating and 
     numismatic coins within the Mint Public Enterprise Fund. The 
     conferees want to ensure that revenue generated by 
     circulating coins is not merged with revenue generated by 
     numismatic coins. The 1996 Mint Public Enterprise Fund 
     legislation created one fund for both circulating and 
     numismatic coin revenue, with separate recording of the 
     revenues from these different coin programs. It was not the 
     intent of the legislation to create separate public 
     enterprise funds as a way of keeping revenue separate.


                     performance based organization

       As part of the Vice President's National Performance 
     Review, a proposal was made to allow federal agencies to act 
     more ``business like'' by allowing the performance of the 
     organization to be measured. The agency, now called a 
     Performance Based Organization (PBO), would have established 
     productivity and performance plans, a Chief Executive Officer 
     (CEO), and other ``business like'' components. The pay of 
     both the employees and the CEO would be based on performance 
     against an established annual performance plan.
       The conference agreement does not include a provision which 
     would have established a PBO at the U.S. Mint as proposed by 
     the House. Despite the Department of Treasury's stated 
     position that performance measures should be used to 
     determine funding levels, the U.S. Mint-PBO provision was 
     opposed by the Secretary of the Treasury.
       The Department has not yet responded to the Office of 
     Management and Budget's (OMB) early-1996 request for agency 
     participation in the Vice President's PBO concept. The 
     Department continues to study its organization to determine 
     which of its bureaus would be most appropriate as a PBO. The 
     U.S. Mint, with its reliance on production-based performance 
     measures, is obviously a viable candidate for the PBO format. 
     The conferees strongly recommend that the Department choose 
     the U.S. Mint as its candidate for a PBO.
       The Treasury Department and the OMB should provide 
     legislation which would establish such a PBO to the 
     appropriate Congressional committees with the fiscal year 
     1998 budget request.

                       Bureau of the Public Debt


                            budget estimates

       The conferees agree with language contained in Senate 
     Report 104-330 which encourages the Commissioner of the 
     Public Debt to continue to work toward workload estimates to 
     minimize lapsed appropriations. The conferees do not wish to 
     infer that the large unobligated and lapsed balances which 
     have been experienced by the Bureau of the Public Debt are 
     the result of poor budget practices or a lack of attention by 
     management of the Bureau. These balances are the result of 
     unplanned cost savings. Future workload estimates should be 
     more accurate now that the transfer of people and functions 
     from Washington, DC, has been accomplished.

                        Internal Revenue Service


         processing, assistance, and management recommendation

       The conference agreement provides $1,779,840,000. The 
     Internal Revenue Service (IRS) requested $8,144,000 for an 
     additional payment of 1.5% for CSRS employees in anticipation 
     of costs associated with the implementation of pending 
     legislation. That legislation was not finalized and therefore 
     the Committees agree that the $8,144,000 request is no longer 
     needed for that purpose. The conference agreement provides 
     $8,321,000 to meet additional requirements as a result of 
     increasing 1-800 telephone access.


                taxpayer services and returns processing

       The conference agreement provides $482,049,000 for Taxpayer 
     Services. This amount is $34,447,000 above the fiscal year 
     1995 funding level for Taxpayer Services (7.7% increase) the 
     same as the funding level provided in 1996 and $8,347,000 
     above (2%) the fiscal year 1997 request. The conferees have 
     provided $829,666,000 for Returns Processing. This amount is 
     $15,540,000 above the fiscal year 1995 funding level for 
     Returns processing (2% increase), $56,658,000 above the 
     funding level provided in 1996 (7% increase), and the same as 
     requested in fiscal year 1997.


            opportunities for outscoring returns processing

       The conferees agree that IRS should study the potential 
     costs and benefits of outsourcing certain returns processing 
     activities. This study should be submitted to the House and 
     Senate Committees on Appropriations by December 31, 1996.


                          performance measures

       Measuring the performance of the IRS, especially in the 
     areas of taxpayer service and assistance, tax collection, and 
     compliance, has been an ongoing concern for the House and 
     Senate Committees on Appropriations. Since fiscal year 1995, 
     the Committees have been stressing the need for valid 
     performance measurement in order for IRS to justify its 
     continued request for additional funding. To date, such 
     performance measures have not been forthcoming. Therefore, 
     the conferees agree with the House that the IRS should submit 
     a strategic plan and detailed performance measures with the 
     fiscal year 1998 budget request. This is consistent with the 
     requirements of the Government Performance and Results Act 
     (GPRA).


                          financial management

       The conferees have serious concerns about the ability of 
     the IRS to accurately account for the expenditure of 
     appropriations. A July 1996 General Accounting Office (GAO) 
     report on IRS financial management states that IRS has 
     ineffective controls over safeguarding assets from loss and 
     assuring that IRS is in compliance with laws governing the 
     use of budget authority. Furthermore, the amounts stated by 
     IRS as the total amount of revenue ($1.4 trillion) and the 
     total amount of tax refunds ($122 billion) cannot be verified 
     or reconciled to aggregate accounting records. In other 
     words, IRS may not be collecting the revenue it states, may 
     not be making the refunds it states, and may not be spending 
     taxpayers money in accordance with the law. The conferees 
     believe the IRS must correct these deficiencies. Therefore, 
     the conferees direct the IRS to submit a report by March 1, 
     1997, which presents a plan to correct the deficiencies 
     identified in the GAO's July 1996 report.


                 taxpayer services in alaska and hawaii

       Given the remote distance of Alaska and Hawaii from the 
     U.S. mainland, the many tax compliance issues unique to the 
     communities and geography in these states, and

[[Page H12009]]

     their taxpayers' inability to receive needed assistance by 
     the toll-free line, the conferees believe that the Internal 
     Revenue Service should maintain a Problem Resolution 
     Specialist position, current Problem Resolution positions 
     assisting the Problem Resolution Officer, and tax examination 
     personnel of appropriate number and grade within each of the 
     states of Alaska and Hawaii.


                  national archives access to records

       The conferees believes that an agreement should be reached 
     between the IRS and the National Archives and Records 
     Administration (NARA) concerning NARA's access to certain IRS 
     records. The conferees direct that the IRS and NARA submit a 
     report to the Committees on Appropriations of the House and 
     Senate on NARA's access to records. This report must include 
     an analysis of outstanding issues and a recommendation on how 
     the disposition of these records should proceed. The report 
     should be submitted to the Committees by March 1, 1997.


                 electronic federal tax payment system

       The conferees understand that the IRS has determined it 
     should delay the implementation of the Electronic Federal Tax 
     Payment System (EFTPS) due to the concerns of small 
     businesses. The conferees also understand that the IRS did 
     not implement an adequate education program on the 
     requirement for small businesses to electronically submit 
     Federal withholding tax payments. Due to the lack of basic 
     information on the new process, many small businesses found 
     it impossible to comply with IRS requirements and faced stiff 
     penalties if not in compliance.
       The conferees urge the IRS to implement a major education 
     effort on the requirements of EFTPS and to reschedule its 
     implementation after the education effort has been 
     successful.


         federal tax treatment of aircraft maintenance expenses

       The conferees are aware that, in a recent Technical Advice 
     Memorandum (TAM), the IRS has taken the position that certain 
     Federal Aviation Administration (FAA) mandated aircraft 
     safety inspection and repair costs must, for tax purposes, be 
     capitalized rather deducted as a business expense. This is a 
     reversal of longstanding IRS and airline industry tax 
     accounting practices which have permitted the current 
     deduction of such costs. Additionally, this action will place 
     a significant new tax burden on critical airline safety 
     inspections and repairs.
       The conferees believe that the IRS incorrectly applied 
     Treasury Regulation Sec. 1.162-4 in reaching this position. 
     The conferees are also concerned that this policy change, 
     which affects the entire airline industry and critical 
     airline safety policies, was implemented without apparent 
     input from and coordination with other interested parties 
     such as the Department of Transportation and the FAA. 
     Therefore, the conferees urge the IRS to reverse its recent 
     position on tax treatment of aircraft inspection and safety 
     costs.

                        Internal Revenue Service


                   tax law enforcement recommendation

       The conference agreement provides $4,104,211,000 for Tax 
     Law Enforcement. The conference agreement also provides 
     funds, as necessary, to meet requirements associated with 
     downsizing the Internal Revenue Service.


                    criminal investigative division

       The conferees agree to delete the funding and staffing 
     ``floor'' contained in House Report 104-660 for the Criminal 
     Investigative Division (CID). This should not be interpreted 
     as a lack of interest in the work of CID. The elimination of 
     this ``floor'' simply provides IRS flexibility in managing 
     under the 1997 funding levels.

                        Internal Revenue Service


                          Information Systems

       The conference agreement provides $1,323,075,000 for 
     Information Systems.


                       tax systems modernization

       In July of 1996, the Committee on Appropriations of the 
     House and Senate requested that the Department of the 
     Treasury and the Internal Revenue Service (IRS) provide more 
     detailed information on its request for Tax Systems 
     Modernization (TSM) and non-TSM information systems 
     requirements. In response to this request, IRS and the 
     Department of the Treasury recently provided new and 
     extensive data on these programs. The conferees appreciate 
     the attentive attitude taken by both IRS and the Department 
     in this endeavor. While this additional information is not a 
     formal proposal on the part of the Department of the Treasury 
     for a ``re-vamped'' TSM program, the conferees believe it is 
     an important step toward restructuring and streamlining this 
     troubled program.
       The conferees emphatically repeat their position that there 
     is no more imperative requirement for IRS than to modernize 
     its antiquated information system. A modernized system is the 
     only way to better serve the taxpayers of America and collect 
     taxes in an efficient manner.
       Since 1988, Congress has provided approximately 
     $4,000,000,000 for the IRS-proposed strategy to modernize its 
     information system: the TSM program. Congress provided these 
     funds in accordance with plans and proposals for the TSM 
     program submitted by three successive Administrations. 
     Initially, the Administration projected TSM would be in place 
     by the year 2001. It appears now that this timetable will not 
     be met and it is unclear when TSM will be fully operational.
       It is unfortunate that IRS is no further along with the 
     strategy to modernize its information systems than it was in 
     1988. While many exemplary individual systems of the TSM 
     program have been purchased with the $4,000,000,000 
     appropriated to date, it is also true that, in order for the 
     IRS to maximize this investment, these systems must integrate 
     with a real-time centralized database called the Corporate 
     Account Processing System (CAPS). CAPS is a complex, although 
     not technologically difficult, data base; a type found 
     throughout the Federal government and industry. The conferees 
     are concerned that, based on the most recent information 
     provided by IRS, CAPS is being pushed off into a future 
     development scenario. The conferees are concerned that IRS 
     seems determined to continue to fund TSM projects that appear 
     necessary to ``feed the beast'' at IRS, not to modernize the 
     process. This is unfortunate.
       Based on information provided by the IRS, the conferees 
     have re-defined TSM. TSM should be considered those systems 
     which are under development or are being prepared for 
     deployment. Those TSM systems which have been deployed and 
     are currently being used by the IRS to accomplish its mission 
     are considered Operational Systems and are in addition to the 
     Legacy systems which TSM sought to replace. The Legacy 
     systems continue, after eight years of effort on TSM, to be 
     the backbone of IRS information systems and are no less 
     necessary today than in 1988. Therefore, the conferees agree 
     that both the Operational Systems and the Legacy systems must 
     be funded at a level to fully support the tax filing season. 
     For Legacy systems, the conference agreement includes 
     $758,400,000 which will fund the highest priority systems as 
     identified by IRS. For TSM Operational Systems, the 
     conference agreement includes $206,200,000 for all the 
     systems identified by the IRS as necessary, including the 
     Service Center Consolidation project.
       For TSM deployment and development, which the conferees 
     have redesignated TSM, the IRS identified $155,500,000 in 
     programs which are necessary, but limited its most recent 
     request to $59,100,000 for the highest priority items. The 
     conference agreement funds TSM development and deployment at 
     $130,075,000 which will allow the IRS to continue development 
     of CAPS, the Workload Management System, Electronic Fraud 
     Detection, and other systems as identified by the IRS.
       The IRS has recently identified $94,100,000 in new, ``stay-
     in-business'' requirements. These requirements include the 
     Year 2000 Century Date conversion, quality assurance, 
     replacement of laptop computers for the exam staff, 
     replacement of the Distributed Input System (DIS)/Remittance 
     Processing System (RPS), and an interim Revenue General 
     Ledger System (RGLS). The $5,100,000 for RGLS is needed to 
     comply, in part, with recent General Accounting Office (GAO) 
     criticism of IRS financial management. The $9,000,000 for 
     DIS/RPS is necessary because the Document Processing System 
     (DPS), a TSM system which was to replace DIS/RPS, is being 
     terminated. The termination of DPS means that after eight 
     years and $298,500,000 to develop this document scanning 
     system, IRS is now re-examining its basic requirement for 
     document processing. The century date conversion initiative 
     is the first step in a multi-year, multi-million dollar 
     effort to re-code the 1960's Legacy systems technology so 
     that IRS can process tax returns after 1999. This is 
     necessary because the IRS has not been able to replace the 
     cobal-language database with CAPS as planned. The conference 
     agreement includes $45,000,000 for the Century Date change 
     requirement, understanding that this is an initial 
     investment, and that the IRS continues to refine funding and 
     program requirements for this effort. A total of $62,100,000 
     has been provided for these new ``stay in business'' 
     requirements which IRS should use to address its highest 
     priority requirements. Additionally, the IRS should continue 
     to review these activities for future outsourcing 
     opportunities.
       The IRS also identified one-time costs of $21,900,000 for 
     converting from the Consolidated Data Network (CDN) to the 
     Treasury Communications System (TCS) and $61,000,000 for 
     downsizing activities. The downsizing activities will provide 
     sufficient funds for IRS to reduce its staffing level by over 
     900 positions. The conference agreement provides $82,900,000 
     for these one-time requirements, as requested.
       For program infrastructure, the IRS states that its 
     requirement is $83,400,000. Within this amount, the IRS 
     anticipates $14,700,000 will be required for its Government 
     Program Management Office, $2,000,000 for the Modernization 
     Management Board, $8,200,000 for Systems Life Cycle 
     development, $9,000,000 for Architecture development, 
     $5,000,000 for Reengineering studies, $12,800,000 for Program 
     Management-Associate Commissioner, and $22,800,000 for 
     Systems Engineering and other Infrastructure. The conference 
     agreement provides $83,400,000, as requested, and directs the 
     IRS review these activities for future outsourcing 
     opportunities.
       The Committees direct that, should any of the amounts 
     listed above be executed at a different level than set out in 
     this report, the Department of the Treasury must provide 
     notification and explanation of the changes to the Committees 
     on Appropriations of the House and Senate.


                        architectural blueprint

       The conferees agree that continued Congressional oversight 
     of the TSM program is

[[Page H12010]]

     essential. In order to ensure such oversight, the Secretary 
     of the Treasury shall submit quarterly reports on IRS' 
     implementation of the TSM and Information Systems program. 
     These reports must include (1) an assessment of progress in 
     implementing all the recommendations made by the General 
     Accounting Office in its July 1995 report; (2) performance 
     measures which will be used by the Department of Treasury to 
     determine progress made in implementing TSM; and, (3) a 
     project by project funding profile.
       Additionally, the Secretary shall submit to the Committees 
     on Appropriations of the House and Senate, a complete systems 
     architecture which has been approved by the Department of 
     Treasury's Modernization Management Board. This architecture 
     shall be submitted no later than May 15, 1997.


                      Outsourcing Strategy for TSM

       The IRS and the Department of the Treasury have announced 
     an outsourcing strategy for TSM which was presented by the 
     Department of the Treasury in its May 6, 1996,'' Report to 
     House and Senate Appropriations Committees. ``This strategy, 
     from the perspective of the Committees, does not fully 
     address the outsourcing of TSM until the Spring of 1998. The 
     Treasury Department prefers the opportunity to prepare a 
     Request for Proposal (RFP) by the Spring of 1998 which would 
     be used to solicit competitive bids to obtain a commercial 
     sector company as a ``Prime Contractor'' for TSM. At the 
     point of RFP release, the Department of the Treasury would 
     assess the performance of the current contract vehicles to 
     determine if the release of the RFP is required. The RFP 
     would be released if the Department determined that the 
     current contracting arrangement was not adequate to provide 
     progress to TSM.
       The conferees do not disagree with the need to ensure that 
     progress on TSM be monitored and that all parties, IRS and 
     the private sector community, be held accountable for 
     performance in accordance with established performance 
     requirements. However, the conferees believe that this needs 
     to be done long before the Spring of 1998. Therefore, the 
     conference agreement includes a suspension of funding for the 
     TSM Operational Systems on July 31, 1997, unless the 
     Department has prepared the RFP which it could use to solicit 
     bids for a TSM Prime Contractor. The intent of this action is 
     to require an outsourcing decision at a date earlier than 
     that requested by the Department of the Treasury.
       With regard to the RFP, the conferees believe that the 
     Department of the Treasury's Modernization Management Board 
     (MMB) should have prepared a final version of the RFP by the 
     July 31, 1999 deadline. The conferees understand that the 
     process which the MMB must go through to get a final RFP is a 
     long process which includes obtaining information and input 
     from the private sector. However, the intent of the 
     conference agreement is that the final version of the RFP be 
     ready by July 31, 1999. Should the Department of the Treasury 
     determine that it is unable to have ready for release a final 
     version of the RFP, the Department should notify the 
     Committees on Appropriations of the House and Senate before 
     the July 31, 1999 deadline. Should there by a delay in the 
     development of the RFP, the conferees are committed to 
     releasing the fourth quarter apportionment when the IRS 
     submits an explanation for the delay.
       With regard to the July 31, 1997 schedule to transfer a 
     majority of TSM to contractor, the conferees agree that the 
     current contractor support may count toward the majority 
     level.
       The conference agreement also includes a requirement that 
     the activities associated with the development of the RFP, 
     the contract solicitation, and contract award shall be 
     conducted by the Department of the Treasury's Modernization 
     Management Board. It is the intent of the conferees that the 
     IRS shall not be the ``lead'' on this effort and that the 
     Department shall oversee the efforts of the Modernization 
     Management Board with regard to these activities.
       Furthermore, should the Department of the Treasury 
     determine that it will pursue the release of an RFP to 
     solicit bids for a new contracting arrangement, the 
     Department of the Treasury should provide notification to the 
     House and Senate Committees on Appropriations prior to the 
     release of the RFP.
       Additionally, should the Department determine that it will 
     pursue a new contract with a private sector company to 
     manage, integrate, test, and implement TSM, the Department 
     should take into account the company's prior private and 
     public sector experience. A private sector company's 
     experience in managing large-scale complex computer systems, 
     working with government revenue agencies, showing 
     demonstrable results in reducing costs, increasing 
     productivity, improving service, and integrating human 
     performance factors with technological change would be most 
     beneficial to the IRS.


                           Contractor support

       The conference agreement does not specify the amount of 
     funding which should be applied to the IRS contract with IIT 
     Research Institute, a Federally Funded Research and 
     Development Center (FFRDC) or the Integration Support 
     Contract (ISC). This should not be interpreted as a lack of 
     interest in these groups, or a belief that these groups have 
     not provided exceptional assistance to the IRS. The 
     conference agreement simply reflects a belief that the IRS 
     should not be required by Congress to fund any contract at 
     any particular level.


             Shift from IRS Personnel to Contract Personnel

       While the conference agreement does not specifically 
     address the total number of IRS personnel that should be 
     assigned to the TSM program, the conferees are adamant that 
     IRS reduce the number of employees assigned to both TSM 
     development and operational systems. The conferees understand 
     the benefit of a reassignment of some TSM technical personnel 
     to the century date change program and, to the extent that 
     this shifting of personnel is necessary, it should be 
     pursued. The intent is that the number of IRS personnel 
     assigned to TSM shall be significantly reduced and the 
     program turned over to the private sector for management, 
     development, implementation, and testing.
       The IRS should provide quarterly reports to the House and 
     Senate Committees on Appropriations, which address the number 
     of FTEs funded within each of the appropriation accounts. For 
     the Information Systems appropriation, the breakout of FTEs 
     should be according to each activity funded.

                        Internal Revenue Service


                          Information Systems

                              (Rescission)

       The conference agreement provides a rescission of 
     $174,447,000 from Information Systems appropriations.


          Administrative Provisions--Internal Revenue Service

       Section 103. The conference agreement includes a provision 
     which requires the IRS to maintain the fiscal year 1995 level 
     of service, staffing, and funding for Taxpayer services. The 
     conferees agree that this does not mean that IRS should be 
     required to re-hire staff or to open closed offices. The 
     intent of the provision is to ensure that, overall, IRS 
     maintains a level of Taxpayer Services which meets or exceeds 
     the 1995 level of services. Additionally, the IRS should be 
     very sensitive to the needs of the taxpayers who use walk-in 
     service centers during the tax filing season.
       Sec. 104. The conference agreement includes a provision 
     which requires the IRS receive prior approval before 
     obligating funds for separation agreements in accordance with 
     section 663. Section 663 allows for voluntary separation of 
     employees under certain circumstances. The intent of this 
     provision is to ensure that IRS has in place a strategic plan 
     which will be used to downsize its organization.
       The conference agreement does not include the House 
     provision requiring IRS contract with an independent 
     accounting firm to determine revenue losses (if any) which 
     would result from implementing H.R. 2450.
       The conference agreement does not include a sense of 
     Congress provision adopted by the Senate. The concerns of the 
     Senate were accommodated within the funding levels provided 
     to the IRS.
       Sec. 105. The conference agreement includes a provision 
     which permits the IRS to implement its planned field 
     reorganization under certain conditions. The IRS may proceed 
     with this reorganization only if it maintains the current 
     level of taxpayer service employees that provide taxpayer 
     education and the current level of employees that provide 
     problem resolution on cases generated through walk-in visits. 
     This provision is included due to concerns which have been 
     raised about the potential effects of the proposed IRS 
     restructuring on customer service.
       The conferees direct the IRS to report to the House and 
     Senate Committees on Appropriations no earlier than March 1, 
     1997, on the impact of the reorganization with respect to: 
     (1) taxpayer services, particularly taxpayer education and 
     walk-in customer service offices; (2) problem resolution 
     cases; and (3) the overall cost/benefit of the proposed 
     restructuring. This report should also address how IRS 
     taxpayer services will ensure adequate service to taxpayers 
     in the future.
       Sec. 106. The conference agreement includes a provision 
     which directs that funds shall be available for improved 
     facilities and increased manpower to provide sufficient and 
     effective 1-800 telephone assistance and that the 
     Commissioner make this a priority.
       Sec. 107. The conference agreement includes a provision 
     which prohibits the expenditure of funds for using more than 
     two ink colors on the printed covers of income tax packages.

                      United States Secret Service


                         salaries and expenses

       The conference agreement provides $528,262,000. The 
     conferees provide $18,870,000 for White House security 
     upgrades, as requested by the President, with additional 
     funds provided in the Violent Crime Trust Fund. In addition 
     to start up funds for the Exploited Child Unit the conferees 
     have provided $1,200,000 for the 2nd and 3rd years of 
     operating the Exploited Child Unit through the Salaries and 
     Expenses appropriation, making these funds available until 
     expended. The conference agreement also provides $3,700,000 
     for restoration of base operations, $2,133,000 for costs 
     associated with replacing the mainframe computer and software 
     systems and funds requested by the President for the 
     replacement of vehicles in the security fleet.

                      United States Secret Service


      acquisition, construction, improvement, and related expenses

       The conference agreement provides $37,365,000; of this 
     amount, $8,200,000 has been

[[Page H12011]]

     made available for activities related to the design and 
     construction of the new Classroom Building at the Rowley 
     Secret Service Training Center in Beltsville, Maryland. The 
     conferees have funded replacement of the mainframe computer 
     and related software systems in the Salaries and Expenses 
     Account.


                       secret service rescission

       During fiscal year 1996, Congress provided $42,964,000 for 
     anticipated mandatory costs of protecting candidates during 
     the current Presidential election. The Secret Service now 
     estimates that $7,696,000 of these funds will remain 
     unobligated at the end of fiscal year 1996; the conferees 
     have rescinded $7,600,000 of these funds.

             General Provisions--Department of the Treasury

       Section 116. The conference agreement includes a provision 
     which amends Title 31 to prevent transfers of excess 
     resources from the Treasury Forfeiture Fund to the Special 
     Forfeiture Fund managed by the ONDCP after fiscal year 1996.
       The conference agreement does not include language which 
     would create a priority placement and job retraining program 
     for employees.
       Sec. 118. The conference agreement amends Title 18 to allow 
     licensed Federal firearms dealers to transfer ``curio or 
     relic'' firearms at any location.

                        TITLE II--POSTAL SERVICE

                     Payments to the Postal Service

                  Payments to the Postal Service Fund

       The conference agreement provides $85,080,000, including 
     $61,433,000 for free mail for the blind and overseas voting 
     and $23,617,000 for revenue forgone reimbursement.


      payment to the postal service fund for nonfunded liabilities

       The conference agreement provides $35,536,000 for workman's 
     compensation payments incurred by the pre-1971 Post Office 
     Department.


                    postal service recycling hotline

       Both the House and the Senate reports address the matter of 
     the Postal Service's leadership in the U.S. Environmental/
     Recycling Hotline. The conferees concur with the directives 
     outlined in both reports and strongly support the Postal 
     Service's continued leadership in this voluntary and 
     innovative pollution prevention program. The conferees direct 
     the Postal Service to provide regular updates on the progress 
     being made on this public-private partnership beginning no 
     later than December 1, 1996 to the House and Senate 
     Committees on Appropriations.


                           jessup Post Office

       The conferees are aware of the intent of the Postal Service 
     to move the Jessup Post Office from its current downtown 
     location. The conferees direct the Postal Service to analyze 
     the costs and benefits of such a move, and report the results 
     of that analysis to the Congress no later than February 1, 
     1997. The conferees furthermore direct the Postal Service to 
     work closely with local government and community 
     organizations in determining a final location for the Jessup 
     office.

              TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT

                    Office of Management and Budget


                         salaries and expenses

                           methylene chloride

       On November 7, 1991, the Occupational Safety and Health 
     Administration (OSHA) proposed a revised workplace standard 
     for methylene chloride. On March 29, 1996, the Small Business 
     Regulatory Enforcement Fairness Act was enacted, requiring 
     final rules adopted after June 27, 1996 to contain a final 
     regulatory flexibility analysis assessing the requirements to 
     be imposed on small business and describing the steps taken 
     to minimize the economic impact on small business. On July 
     18, 1996, OSHA sent the final workplace standard for 
     methylene chloride to the Office of Management and Budget for 
     its review and approval. The conferees wish to highlight 
     that, in reviewing the final methylene chloride workplace 
     standard, the Office of Management and Budget must ensure 
     that OSHA has fully complied with the Small Business 
     Regulatory Enforcement Fairness Act in assessing the effect 
     of the standard on small businesses, particularly in light of 
     the fact that OSHA was not required to address these issues 
     in detail at the time the standard was proposed. In addition, 
     the Office of Management and Budget should ensure that OSHA's 
     assessment of the potential health risk posed by methylene 
     chloride is consistent with the Environmental Protection 
     Agency's reassessment of that chemical under its proposed 
     revised guidelines for carcinogen risk assessment, and that 
     the workplace standard would not pose problems for compliance 
     with Environmental Protection Agency regulation of methylene 
     chloride emissions.


                   ballistic imaging interoperability

       The conferees reiterate their concern over the absence of 
     interoperability between existing firearms ballistics imaging 
     systems. The Office of Management and Budget facilitated a 
     Memorandum of Understanding between the ATF and the Federal 
     Bureau of Investigations as a means of achieving 
     interoperability.
       The Committees on Appropriations continue to receive 
     reports of activities outside the scope of cooperation 
     embodied in the MOU, wherein individual local crime lab 
     directors and law enforcement officials are pressured to 
     purchase one system over another. The MOU was to have 
     eliminated such activity.
       The conferees direct OMB to move the MOU process forward to 
     a conclusion by taking a more active oversight role, and to 
     terminate any agency efforts to create new or hybrid systems. 
     The Director of OMB is to report to the House and Senate 
     Appropriations Committees on the progress of activities under 
     the MOU to date, and stipulate a timetable within which the 
     NIST program will be completed. This report is due to the 
     Committees no later than 60 days after the enactment of this 
     Act.


                     year 2000 software conversion

       The conferees are aware that, as part of OMB's preparation 
     of the President's fiscal year 1998 budget, agencies are 
     preparing cost estimates to ensure that information systems 
     are year 2000 compliant. The conferees repeat their concern 
     about the potential complexity and cost of the millennium 
     change and direct OMB to comply with House report language 
     requiring an assessment of the risk to Government systems on 
     this issue. In recognition of ongoing work for the 1998 
     budget cycle, OMB is directed to submit this report with the 
     President's fiscal year 1998 budget instead of by November 1, 
     1996.

                 Office of National Drug Control Policy


                         salaries and expenses

                      including transfer of funds

       The conference agreement provides $35,838,000 to the ONDCP, 
     fully funding the Administration's request and including an 
     additional $1,000,000 for the continuation of model state 
     drug law conferences.
       The conference agreement deletes a provision that prevents 
     the ONDCP from obligating $2,500,000 until it reaches 
     agreement with the House and Senate Committees on 
     Appropriations on a fiscal year 1997 staffing plan.
       The conference agreement includes House language that 
     directs the Director of the ONDCP to transfer unobligated 
     balances from ONDCP's Special Forfeiture Fund to the Treasury 
     Forfeiture Fund.

                          Unanticipated Needs

       The conference agreement does not fund this account and 
     instead uses these funds to support conferences on model 
     state drugs laws through ONDCP in the upcoming fiscal year.

                     Federal Drug Control Programs


  high intensity drug trafficking areas program including transfer of 
                                 funds

       The conference agreement provides a total of $140,207,000 
     for the High Intensity Drug Trafficking Areas program: 
     $13,105,000 from the Violent Crime Reduction Trust Fund and 
     $127,102,000 from the base appropriation. This amount is 
     $37,207,000 greater than the Administration's fiscal year 
     1997 request of $103,000,000 for this program. In addition to 
     fully funding the Administration's request, this level 
     includes resources for several newly-designated HIDTAs: 
     $3,000,000 for Lake County, Indiana; $6,000,000 for the Gulf 
     Coast states of Louisiana, Alabama, and Mississippi; 
     $8,000,000 for the Midwest states of Iowa, Missouri, 
     Nebraska, South Dakota, and Kansas to focus on 
     methamphetamine use, production and distribution; $3,000,000 
     for the State of Colorado; and $3,000,000 for the Pacific 
     Northwest. The remaining $14,207,000 shall be distributed at 
     the discretion of the Director of the Office of National Drug 
     Control Policy.
       Of the total appropriation, $71,000,000 shall be 
     transferred to State and local entities and $69,207,000 may 
     be transferred to other Federal agencies.

                     TITLE IV--INDEPENDENT AGENCIES

                      Federal Election Commission


                         salaries and expenses

       The conference agreement provides $28,165,000, restores 2 
     FTE to the House position, and fences $2,500,000 for computer 
     modernization.


                     Full Time Employee Equivalents

       The conferees assume full salary and benefit increases to 
     support 312 full time employee equivalents in fiscal year 
     1997, a reduction of 1 FTE from 1996. The conferees agree to 
     allow this reduction to be taken at the discretion of the FEC 
     and urge the FEC to be prudent in their allocation of staff 
     so that all statutory responsibilities can be fulfilled in 
     the upcoming fiscal year.


                            Tuition Payments

       The conferees direct the FEC, as part of its fiscal year 
     1998 budget request, to submit a justification for tuition 
     payment assistance, including a description of how these 
     payments are relevant to FEC's statutory responsibilities.


                       Reprogramming Requirements

       The conferees have reviewed FEC's request to address 
     specific items contained in House Report 104-660, 
     particularly as it relates to the fencing of $2,500,000 for 
     computer modernization during the upcoming year. The 
     conferees are aware that certain assumptions will require 
     difficult choices for the FEC. Should the FEC find it 
     difficult to fulfill its statutory responsibilities under the 
     assumptions included in the fiscal year 1997 conference 
     agreement, the FEC is encouraged to submit the appropriate 
     reprogramming requests for Committee consideration.

[[Page H12012]]

                    General Services Administration


                         federal buildings fund

    limitation on availability of review including transfer of funds

       The conference agreement appropriates $400,544,000 into the 
     Federal Building Fund. This appropriation offsets the 
     difference between income into the Fund and expenditures from 
     the Fund. The conference agreement makes $5,555,544,000 
     available from the Federal Buildings Fund for public building 
     services, construction, and repair and alteration of Federal 
     buildings.
       The conference agreement makes $657,711,000 available from 
     the Federal Buildings Fund for new construction and inserts a 
     list of construction projects. The list of projects is as 
     follows:

                            new construction

California: Fresno, Federal Building and U.S. Courthouse.....$6,595,000
Colorado: Denver, Rogers Federal Building-U.S. Courthouse.....9,545,000
District of Columbia: U.S. Courthouse Annex...................5,703,000
Florida:
  Miami, U.S. Courthouse.....................................24,990,000
  Orlando, U.S. Courthouse....................................9,514,000
Kentucky:
  Covington, U.S. Courthouse.................................17,134,000
  London, U.S. Courthouse....................................13,732,000
Montana:
  Babb, Piegan Border Station...................................333,000
  Sweetgrass, Border Station..................................1,059,000
Nevada: Las Vegas, U.S. Courthouse...........................83,719,000
New York: Brooklyn, U.S. Courthouse.........................169,000,000
Ohio:
  Cleveland, U.S. Courthouse................................128,559,000
  Youngstown, U.S. Courthouse................................15,813,000
Oregon: Portland, Consolidated Law Federal Office Building....4,750,000
Pennsylvania:
  Erie, U.S. Courthouse Annex.................................3,300,000
  Philadelphia, DVA-Federal Complex, Phase II................13,765,000
South Carolina: Columbia, U.S. Courthouse Annex..............43,848,000
Texas: Corpus Christi, U.S. Courthouse.......................24,161,000
Utah: Salt Lake City, Moss U.S. Courthouse Annex and Alterati11,474,000
Washington:
  Blaine, U.S. Border Station................................13,978,000
  Oroville, U.S. Border Station...............................1,452,000
  Seattle, U.S. Courthouse...................................16,853,000
  Sumas, U.S. Border Station (Claim)..........................1,177,000

       The conference agreement also includes $10,000,000 for non-
     prospectus construction projects and $27,256,000 for security 
     enhancements. The $27,256,000 for security enhancements is a 
     part of the overall $240,600,000 provided in the conference 
     agreement for enhanced building security.

                      U.S. Courthouse Construction

       The conference agreement reduces construction funds for 
     each of the U.S. Courthouse and U.S. Courthouse Annex project 
     by 10 percent. The conferees do not anticipate that this 
     reduction will affect the construction schedule for any of 
     these projects. However, should GSA determine that the lower 
     funding level will adversely affect the ability of GSA to 
     complete a specific project on time, the Administrator of 
     General Services should submit a reprogramming for Committee 
     consideration.
       The conferees believe that there is strong evidence that, 
     in general, courthouse facilities are not designed and built 
     to achieve maximum efficiencies and cost savings. Congress 
     has held a number of hearings to address the many issues 
     associated with the construction of buildings, especially 
     U.S. Courthouses. These hearings have produced pages of 
     testimony which point to the lack of discipline in the 
     process used to design and construct these facilities. This 
     is an issue which the conferees take seriously and are 
     determined to bring order, discipline, and reasonableness 
     into the U.S. Courthouse construction process.
       The conference agreement modifies bill language proposed by 
     the House which required GSA to implement a 10 percent 
     reduction in the overall cost of the U.S. Courthouse 
     construction projects. Instead, this 10 percent reduction was 
     applied to each U.S. Courthouse project included in the new 
     construction program. The modified language requires a 
     reduction in the cost of future courthouse construction 
     through improving design efficiencies, curtailing planned 
     interior finishes, requiring more efficient use of courthouse 
     and library space, and by otherwise limiting space 
     requirements.
       Furthermore, the conferees agree with the House position 
     that the U.S. Courthouse design guide be reexamined and a new 
     design guide be developed by April 1, 1997. The conferees 
     agree that serious action must be taken to reduce the cost of 
     courthouses through design and construction savings. The 
     revised design guide should include standardized courtroom 
     utilization studies for each requested project. It is 
     understood that these studies will be used to prepare 
     prospectus studies which are under the authorities of the 
     Senate Committee on Environment and Public Works and the 
     House Committee on Transportation and Infrastructure.

                    U.S. Courthouse Site Acquisition

       The conferees are concerned with the process which GSA uses 
     to fund the acquisition of sites for new Federal office 
     buildings and U.S. Courthouses. GSA chooses a site and then 
     requests funding availability based on the estimated cost of 
     acquiring the preferred site. The action of requesting a 
     certain amount of money to purchase a piece of land almost 
     certainly undermines the ability of the GSA to negotiate a 
     lower price. This has prompted the conferees to take the 
     unusual step of reducing, by 5 percent, the amount requested 
     by GSA for site acquisition. This should be interpreted by 
     GSA as another method which Congress can and will use to 
     reduce the overall cost of Federal building construction.
       The City of Fresno, California and the City of Las Vegas, 
     Nevada are to be commended for stepping forward and offering 
     free or reduced cost sites on which GSA is planning to 
     construct new facilities. The action taken by the City of 
     Fresno and the City of Las Vegas will save the government 
     over $6,000,000. This type of cooperation will be necessary 
     for the Federal government to continue its construction 
     program.

                         Repair and Alterations

       The conference agreement makes $639,000,000 available from 
     the Federal Buildings Fund for Repair and Alteration of 
     existing Federal buildings and inserts a list of repair and 
     alteration projects. The conference agreement also includes 
     $345,000,000 for basic repairs and alterations, $23,456,000 
     for the chlorofluorocarbons program, $10,000,000 for the 
     elevators program. $20,000,000 for the energy program and 
     $2,700,000 for security enhancements. The $2,700,000 for 
     security enhancements is a part of the overall $240,600,000 
     provided in the conference agreement for enhanced building 
     security.
       The conference agreement includes $8,000,000 for the 
     renovation of the Agricultural Research Service Laboratory in 
     Ames, Iowa, which is currently occupied by the Animal and 
     Plant Health Inspection Service (APHIS). These funds shall 
     only be used for biomedical safety and operational 
     improvements for APHIS operations. The conferees direct the 
     Administrator of General Services to submit a prospectus for 
     providing additional adequate laboratory and office space for 
     the APHIS in Ames, Iowa. The conferees believe this 
     prospectus should allow for the most efficient method of 
     providing this space, which may include the option to lease 
     commercially available or build-to-suit space, as 
     appropriate.
       The conference agreement also includes $1,450,000 for 
     renovations at the Pioneer Courthouse in Portland, Oregon and 
     $6,000,000 for continuing construction activities at the U.S. 
     Courthouse in Montgomery, Alabama.

             Transfer of Funds to the National Park Service

       The conference agreement includes a transfer of $1,000,000 
     from the Federal Buildings Fund to the Construction 
     appropriation of the National Park Service. The conferees 
     have been made aware of the adverse impact which construction 
     along the 15th Street Corridor in Washington, D.C., has on 
     the size and quality of the multi-purpose field at Wallenberg 
     Place. After reviewing the report submitted by the Park 
     Service in compliance with Congressional direction contained 
     in House Report 104-537, the Conference Report which 
     accompanied H.R. 3019, the conferees determined that funds 
     were needed to regrade, seed, and maintain this field as a 
     quality recreational resource in our Nation's Capital. The 
     conference agreement includes language to transfer $100,000 
     and anticipates the National Park Service will use the funds 
     as follows: $10,000 for seeding, $70,000 for regarding, and 
     $5,000 in each of the next four fiscal years for necessary 
     maintenance activities.

              White Oak Environmental Clean-Up Activities

       The conference agreement includes $10,000,000 to initiate 
     hazardous material clean up activities at the White Oak Naval 
     Facility in Montgomery County, Maryland. These funds should 
     not be expended until the GSA submits to the appropriate 
     Congressional committees a report which addresses the overall 
     plan and cost for environmental clean up activities at the 
     White Oak Naval facility.

                       Natural Resources Building

       The conferees direct GSA to study the need for a natural 
     resources building consolidating USDA and the Department of 
     Interior programs under one roof in Lincoln, Nebraska. The 
     study should include the feasibility of adding federal and 
     state research programs that address natural resources issues 
     of importance to the Great Plains and Western Corn Belt such 
     as water quality, shelterbelt impacts, agroforestry, soil 
     erosion, range management and efficient water use.

                         Raptor Research Center

       The conferees support the GSA's efforts to consolidate the 
     Raptor Research Center at Boise State University in a 
     building donated to the University. The conferees request 
     that the Administrator of General Services provide a report, 
     by February 1, 1997, on the progress made to date on this 
     consolidation.

[[Page H12013]]

                          Building Operations

       The conference agreement makes available $2,343,795,000 for 
     rental of space and $1,552,651,000 for building operations.

                          Electronic Databases

       The conference agreement includes language which transfers 
     funds from Building Operations to the Policy and Operations 
     appropriation. Of the funds transferred to the Policy and 
     Operations appropriation, $2,000,000 shall be used for the 
     University of Nebraska-Lincoln sponsored demonstration 
     project to develop electronic databases, which may be 
     coordinated with federal on-line services.

              Pennsylvania Avenue Development Corporation

       The conference agreement includes language to clarify 
     Congressional intent regarding the Pennsylvania Avenue 
     Development Corporation (PADC). The intent is to provide GSA 
     permanent authority to perform activities necessary to 
     implement the trade center plan at the Federal Triangle and 
     to make payments in lieu of taxes to the District of 
     Columbia. These authorities were previously performed by the 
     PADC. The conference agreement also includes language 
     clarifying GSA's authority to use funds transferred from the 
     PADC and income derived from former PADC properties to carry 
     out the responsibilities of the former PADC.
       The intent of the conference agreement is not to expand the 
     authorities of the GSA with regard to the functions and 
     properties of the former PADC. The agreement simply provides 
     GSA sufficient authority to carry out the responsibilities of 
     the former PADC in an efficient manner.

        Fiscal Year 1996 Internal Revenue Service Rent Payments

       The conferees understand that the Internal Revenue Service 
     (IRS) was not able to pay its total fiscal year 1996 rent 
     payment to the Federal Buildings Fund. The IRS planned to 
     reprogram $11,500,000 in unobligated fiscal year 1995 funds 
     to the 1996 GSA rent payment account. However, the House and 
     Senate Committees on Appropriations directed that the 
     $11,500,000 to be used to offset a portion of the costs 
     associated with the June 26, 1996, fire at the Main Treasury 
     building. The conference agreement includes $11,500,000 in 
     the amount appropriated for building operations to cover the 
     amount which IRS did not pay.

                           Rent Requirements

       The conferees agree that GSA and OMB should develop a 
     system for identifying and informing agencies of annual rent 
     rates and total rent estimates in an accurate and timely 
     manner. The conferees instruct GSA, working with OMB, to 
     submit the proposed rent system to the House and Senate 
     Committees on Appropriations no later than March 1, 1997.

                            Border Stations

       The conferees direct the GSA to continue working with the 
     Department of State and the Border Inspection agencies in 
     their review of the nation's border stations. Many of the 
     stations on the borders are old and antiquated and have been 
     stretched beyond their capabilities. The conferees are 
     concerned that along with the current problem faced at the 
     border crossings, anticipated future growth of trade will 
     further exacerbate the problems faced in processing passenger 
     and trade traffic.
       The Administrator of General Services should provide a 
     final assessment of its plan to upgrade, replace, or 
     construct new facilities along the borders. The conferees 
     believe that special attention should be given to the need of 
     a third bridge for the Port of Laredo, Texas. This assessment 
     should be provided to the appropriate Congressional 
     committees.

          Building Requirements of the Smithsonian Institution

       The conference agreement includes language which direct the 
     Administrator of General Services to initiate discussions 
     with the Smithsonian Institution on the feasibility of 
     transferring Federal Building 10B to the Smithsonian 
     Institution.

                         Post FTS2000 Contract

       The conference agreement provides for mandatory use of the 
     FTS2000 contract until its expiration date of December 31, 
     1998.
       Additionally, the conferees agree that the General Services 
     Administration shall not release a Request for Proposal (RFP) 
     for the Post FTS2000 contract before February 15, 1997. The 
     conferees are, however, very concerned that the GSA has not 
     yet responded to questions concerning the Post FTS2000 
     contract which have been submitted by the Senate Committee on 
     Government Affairs and the Senate Treasury, Postal Service 
     and General Government Subcommittee. The GSA is directed to 
     answer these questions, as submitted, no later than December 
     1, 1996, and provide the details of the RFP to the 
     appropriate House and Senate Committees, and how it will 
     fulfill the requirements of the Information Technology 
     Management Reform Act of 1996.

                    General Services Administration


                         policy and operations

       The conference agreement provides $110,173,000 for the 
     Policy and Operations appropriation. Additionally, the 
     conference agreement transfers $8,000,000 from the Building 
     Operations account to the Policy and Operations 
     appropriation.


                      iowa communications network

       The conferees direct that $10,000,000 in available funds be 
     used to support the Iowa Communications Network (ICN).


                property accountability/asset management

       The conferees note their continuing interest in those 
     activities which lend themselves to managing Federal agency 
     property through automated information procedures and 
     processes. The National Performance Review has noted the 
     potential for cost savings through automated property 
     management systems.
       The conferees believe that, given past shortcomings in 
     agency property management practices government-wide, 
     continued emphasis should be placed on the use of commercial, 
     off-the-shelf information technology including software, 
     computer-based laminate barcode printers and readers, and 
     information storage devices. Accordingly, the conferees 
     strongly urge agency managers to make use of such equipment.


              pre-qualification testing of re-tread tires

       The conferees understand that GSA is planning to suspend 
     its program of pre-qualification testing of re-tread 
     automobile tires. The GSA no longer has a purchasing program 
     for tires and has determined, therefore, that the pre-
     qualification testing program for re-tread tires is not 
     necessary. Furthermore, GSA understood that the Department of 
     Transportation was considering the establishment of safety 
     standards for non-passenger re-tread tires.
       The conferees believe that GSA should continue to publish 
     the qualified product listing for re-tread tires until April 
     3, 1997. During this time GSA should share with the 
     Department of Transportation its testing information to 
     facilitate the development of the Department of 
     Transportation standards for non-passenger re-tread tires.

                    General Services Administration


                      office of inspector general

       The conference agreement provides $33,863,000 for the 
     Office of Inspector General.


          general provisions--general services administration

       The conference agreement does not repeal, as requested by 
     the Administration, a previous provision which requires GSA 
     to hire 1,000 employees as Federal Protective Service 
     Officers.
       Sec. 404. The conference agreement includes a provision 
     which limits funding for courthouse construction if the 
     projects do not meet standards of a capital improvement plan 
     which has been developed by GSA, OMB, and the Judicial 
     Conference. The provision also requires a standardized 
     courtroom utilization study for each of the Courthouse 
     projects included in the 1998 budget request.
       The conference agreement does not include a provision which 
     requires the Woodrow Wilson Center to pay the same rent per 
     square foot as is paid by other Federal agencies for space it 
     will occupy at the Ronald Reagan Federal Building.
       Sec. 405. The conference agreement includes a provision 
     which states that no funds may be used to increase the amount 
     of occupiable square feet, provide cleaning services, 
     security enhancements, or any other service usually provided, 
     to any agency which does not pay to GSA the rent amount 
     requested by the Administration.
       Sec. 406. The conference agreement includes a provision 
     which ensures the materials used for the facade on the U.S. 
     Courthouse Annex in Savannah, Georgia are compatible with the 
     existing building.
       Sec. 407. The conference agreement includes a provision 
     which authorizes GSA to accept and retain income to offset 
     the cost of flexiplace work telecommuting centers.
       The conference agreement does not include a provision 
     repealing the termination of office and staff support to 
     former Presidents.
       Sec. 408. The conference agreement includes a provision 
     which directs the Administrator of General Services to 
     purchase a specific site for the location of the law 
     enforcement center in Portland, Oregon.
       Sec. 409. The conference agreement includes a provision 
     which conveys property at the Iowa Army Ammunition Plant.
       The conference agreement does not include a provision which 
     would authorize GSA to conduct a pilot program which would 
     provide FTS2000 service to up to 10 State governments under 
     certain conditions.
       Sec. 410. The conference agreement includes a provision 
     which conveys property located in Hopewell Township, 
     Pennsylvania.
       Sec. 411. The conference agreement includes a provision 
     which prohibits the government condemnation of property in 
     Denver, Colorado, without the consent of the owner.

                     Merit Systems Protection Board


                         salaries and expenses

                      Including Transfer of Funds

       The conference agreement provides $23,923,000 for the 
     salaries and expenses of the Merit Systems Protection Board 
     including $626,000 for merit systems studies. The Committees 
     are concerned that there is not a sufficient demand for such 
     studies to justify a permanent staff. The conferees therefore 
     direct that the MSPB prepare a report as to how this issue 
     can be addressed while completing the necessary work of the 
     board.

              National Archives and Records Administration


                           operating expenses

       The conference agreement provides $196,963,000 for 
     operating expenses of the National Archives and Records 
     Administration (NARA).

[[Page H12014]]

              National Archives and Records Administration


                              (Rescission)

       The conference agreement includes no rescission for the 
     National Archives and Records Administration.

              National Archives and Records Administration


             Archives Facilities and Presidential Libraries

                        Repairs and Restorations

       The conference agreement provides $16,229,000, including up 
     to $4,000,000 for the Truman Library and up to $4,000,000 for 
     the FDR Library.
       The conferees are aware that significant funds will be 
     needed in the future for continued maintenance and repair of 
     Presidential Libraries. The conferees understand that private 
     funds support, in part, each Library. However, these funds 
     are traditionally not used to offset the cost of maintenance 
     and repair. The NARA should pursue private sector financial 
     assistance, which would then supplement government funding, 
     for the repair and restoration of the Presidential Libraries. 
     The conferees request the Archivist report to the House and 
     Senate Committees on Appropriations on the establishment of 
     such an arrangement for the Truman and Roosevelt libraries 
     before funds are expended for these facilities.

              National Archives and Records Administration


        National Historical Publications and Records Commission

                             Grants Program

       The conference agreement provides $5,000,000 for the NHPRC 
     grants program.

                     Office of Personnel Management


                         Salaries and Expenses

                   Including Transfer of Trust Funds

       The conference agreement provides $87,076,000 and 
     designates $1,000,000 for health promotion and disease 
     prevention programs; provides $94,736,000 for administrative 
     expenses; and provides $3,500,000 for the development of 
     automated retirement recordkeeping systems.

                     Office of Personnel Management


                             Revolving Fund

       The conference agreement provides no funding for the 
     revolving fund of the Office of Personnel Management.


                    Federal Prescription Drug Plans

       The conferees are concerned about significant benefit 
     changes that have been implemented under the Federal 
     Employees Health Benefit Program (FEHBP), including a 20 
     percent copayment on retail pharmacy prescriptions provided 
     under the Blue Cross/Blue Shield plan for Medicare eligible 
     retired Federal employees. There is concern that the 
     prescription coverage change may have been implemented 
     without adequate notice.
       The conferees expect that, in the future, OPM will utilize 
     cost management mechanisms so that disproportionate cost 
     containment requirements are not placed on retirees. OPM 
     should encourage all FEHBP plans to maximize savings to hold 
     down premiums in consultation with the pharmacy community, 
     public and private prescription drug benefit managers, and 
     schools of public health. These options, such as full 
     utilization of drug manufacturer rebates and generic drug 
     substitution, should help to preserve retiree and employee 
     choice in selecting where to purchase prescriptions.
       The conferees believe that differences between the 
     copayments charged for retail and mail order pharmacy 
     coverage should reasonably reflect costs incurred by the 
     health plan.
       In addition to addressing these concerns, the conferees 
     direct OPM, at the conclusion of each year's negotiations 
     with FEHBP participating carriers, to provide a brief report 
     to the Congress on any benefit changes that will have a 
     significant impact on a broad segment of the enrollees. To 
     the extent practicable, and consistent with the need to 
     protect proprietary information, the report shall include for 
     each significant change: (1) the justification, (2) an 
     analysis of the costs and projected savings, and (3) the 
     anticipated impact on access to and quality of care. The 
     report on changes effective January 1, 1997 should be 
     submitted within 30 days of enactment to the appropriate 
     committees of Congress.
       Finally, as requested in the House report, the conferees 
     direct OPM to require a standard, easily readable notice on 
     the front of each plan brochure that says ``FOR CHANGES IN 
     BENEFITS SEE PAGE XXX'' or some similar message directing 
     readers to the page where changes are highlighted.


           General Provisions--Office of Personnel Management

       Sec. 422. The conference agreement allows agencies to 
     advance employee FEHBP premiums for employees on leave 
     without pay.

                       Office of Special Counsel


                         Salaries and Expenses

       The conference agreement provides $8,116,000 and denies the 
     requested increase of seven FTE.

                        United States Tax Court


                         Salaries and Expenses

       The conference agreement provides $33,781,000 for salaries 
     and expenses.

                 TITLE V--GENERAL PROVISIONS--THIS ACT

       The conference agreement deletes House language regarding 
     employment of certain categories of Federal employees within 
     GSA as this provision is now permanent law.
       Sec. 516. The conference agreement prohibits increases in 
     travel funds for agencies without appropriate committee 
     action.
       Sec. 521. The conference agreement provides that personal 
     services contractors employed by the Department of the 
     Treasury shall be considered as Federal employees for 
     purposes of making available Federal employee health and life 
     insurance to all employees, not just overseas.
       Sec. 522. The conference agreement includes a provision 
     which addresses political appointees at the U.S. Mint.
       The conference agreement deletes a House provision 
     providing voluntary separation incentive payments for 
     employees of the U.S. Agency for International Development.
       The conference agreement deletes House language stating 
     that laws governing procurement and public contracts shall 
     not be applicable to the BEP.
       The conference agreement deletes House language 
     establishing a demonstration project pursuant to Title 5 
     authorities to test alternative management systems of the 
     U.S. Mint.
       Sec. 526. The conference agreement provides for 
     reimbursement of certain legal expenses incurred by former 
     White House Travel Office employees and denies reimbursement 
     of attorney fees or costs incurred with respect to any 
     Congressional hearing or investigation into the termination 
     of employment.
       The conference agreement does not include language 
     providing for the minting of coins at the Mint in West Point, 
     New York.
       Sec. 528. The conference agreement provides for the closure 
     of the alley located next to the new U.S. Secret Service 
     Headquarters.
       The conference agreement does not include language 
     authorizing the continuation of the Advisory Commission on 
     Intergovernmental Relations.
       Sec. 529. The conference agreement authorizes certain 
     changes to the commemorative coin program.

                      TITLE VI--GENERAL PROVISIONS

       Sec. 608. The conference agreement modifies language 
     proposed by the House to allow agencies to finance the costs 
     of recycling and waste prevention programs with proceeds from 
     the sale of materials recovered through such programs.
       Sec. 613. The conference agreement includes language 
     providing Federal Executive Boards the ability to expend 
     funds.
       Sec. 626. The conference agreement includes language 
     extending the date for mandatory use of FTS2000 to December 
     31, 1998.
       Sec. 632. The conference agreement includes language naming 
     the U.S. Courthouse currently under construction in Portland, 
     Oregon for Senator Hatfield.
       The conference agreement deletes House language allowing 
     Federal employees to represent the views of employee 
     organizations before government agencies. This is now current 
     law.
       Sec. 633. The conference agreement allows the surviving 
     child of an annuitant whose annuity terminated due to 
     marriage to be restored after dissolution of that marriage, 
     and to enroll in a health benefits plan if that surviving 
     child had been enrolled in such a plan immediately prior to 
     termination of benefits.
       Sec. 634. The conference agreement allows employees that 
     are involuntarily separated due to a reduction in force to 
     use annual leave to qualify for an immediate retirement 
     annuity if using that leave would be sufficient to allow the 
     employee to qualify for such a benefit.
       Sec. 636. The conference agreement allows employees of 
     legislative agencies to be reimbursed for up to one half of 
     the cost of professional liability insurance.
       Sec. 637. The conference agreement provides that no pay 
     adjustments under the Ethics Reform Act of 1989 shall take 
     effect in fiscal year 1997.
       Sec. 638. The conference agreement includes a new provision 
     regarding FSLIC, authorizing reimbursement to the Department 
     of Justice for litigation expenses in claims against the U.S.
       The conference agreement deletes House language capping the 
     number of political appointees in the Executive Branch at 
     2,300.
       Sec. 639. The conference agreement allows the NARA to 
     recoup up to 50 percent of recycling savings of the Federal 
     Register during calendar year 1996.
       Sec. 640. The conference agreement requires executive 
     branch agencies to utilize the private sector to review and 
     analyze issues subject to title LI of the National Defense 
     Authorization Act of 1996.
       Sec. 641. The conference agreement authorizes 
     appropriations for the Merit Systems Protection Board.
       Sec. 642. The conference agreement authorizes 
     appropriations for the Office of Special Counsel.
       Sec. 643. The conference agreement makes technical 
     modifications to the National Commission on restructuring the 
     IRS.
       Sec. 644. The conference agreement allows for a pay raise 
     for the U.S. Postal Service Board of Governors.
       Sec. 645. The conference agreement requires the OMB to do 
     an accounting statement and associated report on the 
     cumulative costs and benefits of Federal regulatory programs.
       Sec. 646. The conference agreement amends the Government 
     Management Reform Act of 1994 to extend OMB's authority to 
     streamline

[[Page H12015]]

     financial management reporting through December 31, 1999.
       Sec. 647. The conference agreement authorizes the Secretary 
     of HHS to transfer the Perrine Primate Center to the 
     University of Miami, subject to certain conditions.
       Sec. 648. The conference agreement amends Title 18 to 
     prohibit the fraudulent production, sale, transportation, or 
     possession of fictitious items purporting to be valid 
     financial instruments of the U.S., foreign governments, 
     States, political subdivisions, or private organizations, and 
     to increase the penalties for counterfeiting violations.
       Sec. 649. The conference agreement provides that no funds 
     may be expended to provide an employee's home address to a 
     labor organization except when the employee has authorized 
     such a disclosure or such disclosure has been ordered by a 
     court of competent jurisdiction.
       The conference agreement does not include language on the 
     use of funds for commercially available property.
       Sec. 650. The conference agreement requires Inspectors 
     General to investigate the use of Administrative 
     Uncontrollable Overtime.
       Sec. 651. The conference agreement provides a $10,000 death 
     gratuity to the personal representative of any civilian 
     employee whose death resulted from an injury sustained in the 
     line of duty on or after August 2, 1990.
       Sec. 653. The conference agreement authorizes the Secretary 
     of the Treasury to establish scientific certification 
     standards for explosives detection canines.
       The conference agreement does not include language 
     expressing the sense of the Senate to fully support the U.S. 
     negotiator's position in the Framework Agreement on autos and 
     auto parts with Japan.
       The conference agreement does not include language 
     directing all Federal agencies to take all actions necessary 
     to reduce energy costs of facilities or enter into energy 
     savings performance contracts with the private sector.
       Sec. 654. The conference agreement establishes a national 
     repository for information on explosives incidents and arson.
       Sec. 655. The conference agreement extends the term of a 
     member of the Morris K. Udall Scholarship Board after the 
     member's term has expired until a successor is chosen.
       Sec. 656. The conference agreement directs the Secretary of 
     Interior to transfer excess portable housing units to the 
     Grand Forks Air Force Base to Indian tribes in North and 
     South Dakota.
       Sec. 657. The conference agreement amends Title 18 to make 
     the possession of a firearm in a school zone unlawful.
       Sec. 658. The conference agreement amends Title 18 to 
     deprive individuals convicted of a crime involving domestic 
     violence of the right to own a firearm.
       The conference agreement does not include the sense of the 
     Senate in support of new border station construction in 
     Laredo, Texas.
       Sec. 659. The conference agreement includes language 
     creating additional investment funds for Federal employees 
     participating in the Thrift Savings Plan.
       Sec. 660. The conference agreement includes language on 
     interagency financing of the National Bioethics Advisory 
     Commission.
       Sec. 661. The conference agreement designates a courthouse 
     in Omaha, Nebraska as the Roman L. Hruska United States 
     Courthouse.
       Sec. 662. The conference agreement includes legislative 
     provisions creating a new Office of the Inspector General for 
     the United States Postal Service.
       Sec. 663. The conference agreement allows employees to 
     receive voluntary separation incentive payments.

 TITLE VII--SUPPLEMENTAL APPROPRIATIONS AND RESCISSIONS FOR THE FISCAL 
                     YEAR ENDING SEPTEMBER 30, 1996

       The Committees have agreed to strike all supplemental 
     appropriations and rescissions for the fiscal year ending 
     September 30, 1996, since supplemental appropriations have 
     already been provided for the church fire investigations of 
     the ATF through the fiscal year 1997 Appropriations Act for 
     the Department of Agriculture and Related Agencies.

         TITLE VII--COUNTER-TERRORISM AND DRUG LAW ENFORCEMENT

       The conference agreement provides that all funding in Title 
     VII shall be considered an emergency requirement pursuant to 
     section 251(b)(2)(D)(i) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                       DEPARTMENT OF THE TREASURY

                          Departmental Offices


                         salaries and expenses

       The conference agreement provides an additional $288,000 to 
     the Office of Foreign Assets Control, as requested by the 
     Administration, to expand federal activities directed toward 
     the seizure and control of assets of foreign terrorists and 
     their sponsoring organizations.

                      Office of Inspector General


                         salaries and expenses

       The conference agreement includes $34,000 requested by the 
     Administration for facility security for the Office of 
     Inspector General.

                          Departmental Offices


                         counterterrorism fund

       The conference agreement includes $15,000,000 requested by 
     the Administration for a counterterrorism fund to cover 
     extraordinary expenses related to any potential or future 
     terrorist incident.

                Federal Law Enforcement Training Center


                         salaries and expenses

       The conference agreement includes $1,354,000 requested by 
     the Administration to hire additional instructors and provide 
     training for additional law enforcement personnel.

                Federal Law Enforcement Training Center


     acquisition, construction, improvements, and related expenses

       The conference agreement includes $2,700,000 requested by 
     the Administration to improve physical security at the two 
     training facilities operated by FLETC.

                      Financial Management Service


                         salaries and expenses

       The conference agreement includes $449,000 requested by the 
     Administration for facility security for the Financial 
     Management Service.

                Bureau of Alcohol, Tobacco and Firearms


                         salaries and expenses

       The conference agreement includes a total of $66,423,000 
     for the Bureau of Alcohol, Tobacco and Firearms, as requested 
     by the Administration.

                     United States Customs Service


                         salaries and expenses

       The conference agreement provides $62,335,000 for the 
     United States Customs Service, to be allocated at the 
     discretion of the Commissioner of Customs. The conference 
     agreement also allows the Customs Service  to  enter  into  
     non-competitive  co- operative agreements with air carriers, 
     airports or other cargo authorities to purchase and install 
     advanced air cargo inspection equipment for joint use.

                       Bureau of the Public Debt


                     administering the public debt

       The conference agreement includes $161,000 requested by the 
     Administration for facility security for the Bureau of the 
     Public Debt.

                        Internal Revenue Service


                 processing, assistance, and management

       The conference agreement includes $10,448,000 requested by 
     the Administration for facility security for the Internal 
     Revenue Service.

                      United States Secret Service


                         salaries and expenses

       The conference agreement includes $3,026,000 requested by 
     the Administration for security-related upgrades to White 
     House facilities and equipment and to replace protective 
     security equipment lost in the crash of an Air Force cargo 
     plane on August 17, 1996.

               General Provisions--Department of Treasury

       The conference agreement does not include legislation 
     proposed by the Administration to require commercial air 
     carriers to provide electronic advance passenger and cargo 
     manifest data prior to entry or exit of aircraft. The 
     Committees note that such legislation deserves consideration 
     by the proper Committees of jurisdiction, and is far too 
     important and controversial to be included in this Act 
     without appropriate debate.

                     Office of Personnel Management


                         salaries and expenses

       The conference agreement includes $210,000 requested by the 
     Administration for facility security for the Office of 
     Personnel Management.

                  FUNDS APPROPRIATED TO THE PRESIDENT

                     Federal Drug Control Programs


                        special forfeiture fund

       The conference agreement provides $112,900,000 for the 
     activities of the Special Forfeiture Fund, of which 
     $42,000,000 shall be transferred to the United States Customs 
     Service for conversion of one P-3AEW aircraft, $10,000,000 
     shall be used by the Office of National Drug Control Policy 
     for methamphetamine reduction efforts, and $60,900,000 shall 
     be available to the Director of the Office of National Drug 
     Control Policy to be used at his discretion.

               TITLE VIII--ADDITIONAL GENERAL PROVISIONS

       The conference agreement deletes House language prohibiting 
     expenditures under the Federal Employees Health Benefits Plan 
     to health care plans that to provide incentives to physicians 
     to use low-cost methods for health care treatment.
       The conference agreement includes a new title, the 
     ``Federal Financial Management Improvement Act of 1996.''

                   TITLE IX--UNITED STATES COURTHOUSE

       The conference agreement includes language naming the U.S. 
     Courthouse currently under construction in Portland, Oregon 
     the ``Mark O. Hatfield United States Courthouse'' in general 
     provisions of the GSA.

           TITLE X--FEDERAL FINANCIAL MANAGEMENT IMPROVEMENT

       The conference agreement does not include any language 
     establishing uniform accounting systems, standards, and 
     reporting systems in the Federal government.

      TITLE II--ECONOMIC GROWTH AND REGULATORY PAPERWORK REDUCTION

       Title II of the conference report makes a number of changes 
     to Federal banking laws

[[Page H12016]]

     in order to remove unnecessary and redundant regulations 
     imposed on the nation's financial institutions without 
     affecting safety and soundness or consumer protections. The 
     title also provides clarity as to when and to what extent 
     lenders and fiduciaries are liable under Federal 
     environmental laws. In addition, Title II makes a number of 
     reforms to the Fair Credit Reporting Act and provides new 
     consumer protections with regard to the credit repair 
     industry. Finally, the title calls for the capitalization of 
     the Savings Association Insurance Fund (SAIF) through a one-
     time assessment on deposits insured by the SAIF.

       Subtitle A--Streamlining the Home Mortgage Lending Process

       Subtitle A substantially amends the two Federal laws that 
     directly affect the home mortgage lending process: The Truth 
     in Lending Act and the Real Estate Settlement Procedures Act. 
     These laws require disclosures related to the terms of a 
     mortgage agreement. The sections in this subtitle modernize 
     these home lending acts to reflect the technological 
     developments in the current marketplace and to eliminate 
     unnecessary burdens.

             Subtitle B--Streamlining Government Regulation

       Subtitle B contains provisions intended to eliminate or 
     revise various application, notice and recordkeeping 
     requirements that are currently required of insured 
     depository institutions or holding companies that control 
     such institutions. These provisions provide significant 
     regulatory relief by eliminating costly and time consuming 
     paperwork for banks and savings associations, without 
     sacrificing safety and soundness.

Subtitle C--Regulatory Impact on Cost of Credit and Credit Availability

       Subtitle C amends various laws and regulations that impose 
     limitations on the manner in which depository institutions, 
     and other financial intermediaries, conduct their business.

                      Subtitle D--Consumer Credit

       Subtitle D includes ``The Consumer Credit Reporting Reform 
     Act'' and the ``Credit Repair Organizations Act.'' The 
     Consumer Credit Reporting Reform Act amends the Fair Credit 
     Reporting Act to address a number of problems that have 
     arisen since its enactment. Many of these problems are a 
     result of ambiguities in the statute; other problems have 
     risen as the credit reporting industry has grown in the wake 
     of information technology advances that have occurred over 
     the last twenty years. The Credit Repair Organizations Act 
     provides new consumer protections with regard to the credit 
     repair industry.

Subtitle E-Asset Conservation, Lender Liability, and Deposit Insurance 
                               Protection

       This subtitle incorporates the ``Asset Conservation, Lender 
     Liability, and Deposit Insurance Protection Act.'' It amends 
     Federal environmental laws to clarify the liability of 
     lenders and fiduciaries for environmental clean-up of 
     property that secures financing.

                       Subtitle F--Miscellaneous

       Subtitle F includes a number of regulatory clarifications, 
     studies and statutory improvements that are intended to 
     provide more cost-effective delivery of financial services.

                  Subtitle G--Deposit Insurance Funds

       Subtitle G incorporates the ``Deposit Insurance Funds Act 
     of 1996'', which provides for the capitalization of the 
     savings association insurance fund (SAIF) to its designated 
     reserve ratio. The SAIF insures the deposits of savings 
     associations and is administered by the Federal Deposit 
     Insurance Corporation. Under this subtitle the FDIC is given 
     the authority to assess a one-time special assessment on all 
     SAIF-insured deposits, including those held by SAIF members 
     and those banks which have purchased SAIF deposits.
       In addition, effective January 1, 1997, the assessment base 
     for payments on the interest on obligations issued by the 
     Financing Corporation (FICO) is to be expanded to include all 
     FDIC-insured institutions, i.e., banks and thrifts. Beginning 
     January 1, 1997 and ending December 31, 1999, banks will pay 
     a FICO-assessment rate one-fifth of that paid by thrifts. 
     After December 31, 1999, banks and thrifts will pay the $780-
     $800 million FICO interest obligation on a pro rata basis.
       Subtitle G raises $3.1 billion in Fiscal Year 1997.

              TITLE III--COMPETITIVE BIDDING FOR SPECTRUM

       Title III requires the Federal Communications Commission 
     (the Commission) to assign by means of competitive bidding, 
     consistent with international agreements, licenses for 
     wireless subscription services for portions of the 
     electromagnetic spectrum located at 2305-2320 megahertz and 
     2345-2360 megahertz. The Commission, in adopting procedures 
     for the assignment of licenses in this band, must: (1) seek 
     to promote the most efficient use of the spectrum; and (2) 
     take into account the needs of public safety radio services. 
     The Commission must also commence the competitive bidding for 
     the assignment of the licenses for these frequencies by April 
     15, 1997. In order to meet the deadlines imposed by this 
     section, the FCC is permitted to waive certain statutory 
     notice and comment timetables. All revenue generated from the 
     assignment of such licenses must be collected and deposited 
     in the U.S. Treasury by September 30, 1997. The requirements 
     of this section apply only to the assignment of licenses for 
     the specified frequencies. Nothing in this section shall be 
     interpreted as a change of current policy governing 
     competitive bidding for spectrum for any frequencies other 
     than those specified in this section.

                 TITLE IV--ADJUSTMENT OF PAYGO BALANCES

       Section 252 of the Balanced Budget and Emergency Deficit 
     Reduction Act (Deficit Control Act), establishes procedures 
     to assure that tax and entitlement legislation does not 
     increase the deficit. As part of these procedures, the Office 
     of Management and Budget (OMB) maintains a scorecard (PAYGO 
     scorecard) that shows the savings and costs of all tax and 
     entitlement legislation. A large amount of savings has been 
     credited to the PAYGO scorecard as a result of legislation 
     passed by this Congress.
       One of the largest components of the current PAYGO balance 
     is the savings from the welfare reform bill, which the Office 
     of Management and Budget estimates at $3.9 billion in fiscal 
     year 1997.
       The conference agreement requires the Directors of OMB and 
     the Congressional Budget Office to reduce to zero the PAYGO 
     balance for fiscal year 1997 if the balance for that fiscal 
     year does not show an increase in the deficit. The 
     adjustments are to be made the day after OMB issues a final 
     sequester report (which is 15 days after the end of the 
     second session).

                   TITLE V--ADDITIONAL APPROPRIATIONS

                               Chapter 1

      Department of Agriculture, Rural Development, Food and Drug 
                  Administration, and Related Agencies

                       Department of Agriculture


      cooperative state research, education, and extension service

                          extension activities

       The conference agreement provides an additional $753,000 to 
     maintain cooperative extension work at the 1890's colleges 
     and Tuskegee University at the fiscal year 1996 funding 
     level.


                 natural resources conservation service

               watershed and flood prevention operations

       The conference agreement provides an additional $63,000,000 
     for emergency assistance to communities to reduce hazards to 
     life and property in watersheds damaged by Hurricanes Fran 
     and Hortense and other natural disasters. Emergency work 
     includes opening dangerously restricted channels and 
     waterways, repairing diversions and levees, and controlling 
     erosion on denuded, steep slopes. The entire amount has been 
     designated as an emergency requirement pursuant to the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

                          Farm Service Agency


                     emergency conservation program

       The conference agreement provides an additional $25,000,000 
     for emergency assistance to farmers and ranchers whose 
     farmland was damaged as a result of flooding and wind damage 
     from Hurricanes Fran and Hortense and other natural 
     disasters. Funds will be used for cleaning debris from 
     fields, mending fences, land shaping and grading, and 
     restoring conservation structures. The entire amount has been 
     designated as an emergency requirement pursuant to the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

                               CHAPTER 2

                          District of Columbia


      education facilities improvement in the district of columbia

       The conferees are extremely concerned about the severe 
     mismanagement of the District of Columbia Public School 
     System. A breakdown in oversight and accountability has 
     occurred at the expense of the children in this city and 
     strong and immediate action must be taken to reverse this 
     situation. The conferees anticipate that the Financial 
     Responsibility and Management Assistance Authority (control 
     board) will take such action to improve the management of the 
     District of Columbia Public Schools. The conferees, however, 
     also believe that as such action is taken, the well being of 
     school children in the Nation's Capital must be of paramount 
     concern and that these children must be able to attend public 
     schools that are safe and free of facility deficiencies that 
     could lead to their closure and consequent disruption of the 
     children's educational progress. In addition, the conferees 
     believe that the District of Columbia Public School system 
     has demonstrated that it is unable to effectively manage 
     school facility improvements.
       The conference agreement, therefore, inserts a new section 
     5201 under chapter 2 that transfers or reallocates an 
     estimated $40,700,000 from the District of Columbia Public 
     School system to the control board, for the purposes of this 
     section, from operating funds appropriated, and capital 
     financing authority provided, in previous appropriations 
     Acts. An estimated $12,000,000 is also made available for the 
     purposes of this section under section 101(e) of Title I of 
     Division

[[Page H12017]]

     A of this Act, which includes language that provides for the 
     reorganization of the Student Loan Marketing Association 
     (Sallie Mae) and the privatization of the College 
     Construction Loan Insurance Association (Connie Lee). The 
     amounts and proceeds from the reorganization and 
     privatization are to be deposited into an account established 
     by the control board, with an estimated $7,000,000 in 
     proceeds from Connie Lee reserved for school facility 
     improvements and an estimated $5,000,000 from Sallie Mae made 
     available for this purpose.
       The conferees direct the General Services Administration 
     (GSA) to provide program management services to assist in the 
     short-term management of the repairs and capital improvements 
     for the District of Columbia Public Schools. The conferees 
     expect that the program management services will include 
     planning, design, construction and program oversight, and 
     include identifying strategies, resources, and priorities for 
     the improvements. Within 30 days of the enactment of this 
     Act, the conferees direct the GSA to develop a program 
     management plan, in consultation with the District of 
     Columbia Public Schools and the District of Columbia Council, 
     subject to approval by the control board within no more than 
     15 days after receipt of the program management plan, and 
     subsequent approval by the House and Senate Appropriations 
     Committees. The conferees expect that the GSA's program 
     management services will be provided primarily through 
     private contractors and that GSA's services will be carried 
     out until an agency or authority, created pursuant to section 
     2552(a)(2) of Public Law 104-134, is authorized to carry out 
     this program management function on a continuing basis. The 
     conferees further expect that any unexpended financing or 
     appropriations, authorized by this Act, will be transferred 
     from the control board to the agency or authority created 
     pursuant to section 2552(a)(2) of Public 104-134.
       The conferees direct the control board to use the funds 
     made available for repairs and capital improvements at those 
     schools deemed by the control board, in consultation with the 
     General Services Administration and the District of Columbia 
     Public Schools and the District of Columbia Council, to have 
     the most immediate facility improvement needs and that are 
     necessary to retain in the inventory of public school 
     buildings.
       The conferees are committed to ensuring that school 
     children in the District of Columbia are able to attend 
     schools that are safe and free of facility deficiencies that 
     could lead to their closure and consequent disruption of the 
     children's educational progress. Accordingly, the conferees 
     intend to carefully monitor the progress of facility repairs 
     and will consider providing additional funds in a 
     supplemental appropriation. In the interim period, the 
     conferees encourage the control board to examine the need for 
     reprogramming of funds to address school facility 
     deficiencies.

                        Miscellaneous Provisions

       The conference action inserts a new section 5202 that 
     waives the 30-day congressional review period for the 
     District's General Obligation Bond Act of 1996 (D.C. Bill 11-
     840). This waiver will permit the District government to go 
     to the private market to sell long-term bonds to finance the 
     city's capital program.
       The conferees have included in section 5203 several 
     clarifications to Public Law 104-8, the District of Columbia 
     Financial Responsibility and Management Assistance Act which 
     created the control board. Subsection (a) clarifies that the 
     7-day review period for acts passed by the Council shall 
     begin on the first business day after the acts are received 
     by the control board. In addition, the subsection clarifies 
     that Saturdays, Sundays and legal holidays are not to be 
     counted in the 7-day review period. Subsection (b) provides 
     that a fine of not more than $1,000 or imprisonment for not 
     more than one year, or both, shall be imposed for a criminal 
     misdemeanor for failure to obey a valid order of the control 
     board and for presenting false or misleading information to 
     the control board or failing to correct such information once 
     it is learned that it is false or misleading. Subsection (c) 
     waives a section of the Federal Privacy Act that was 
     inadvertently omitted in the initial legislation relating to 
     the authority of the control board to secure whatever 
     information it needs to carry out its duties. Subsection (d) 
     permits the control board to review the District government's 
     rule-making which is comprehensive and far reaching and can 
     carry significant financial costs and burdens. This review is 
     consistent with the control board's review of leases and 
     contracts. Subsection (e) clarifies that borrowings by the 
     District government under section 204 of Public Law 104-8 
     shall be deposited into an escrow account held by the control 
     board and allocated by the control board. Subsection (f) 
     provides the control board with rule-making authority to 
     carry out the purposes of Public Law 104-8 and waives all 
     judicial review as to the authority of the control board to 
     issue orders, rules, or regulations but does not waive 
     judicial review as to the content of the orders, rules, or 
     regulations.
       The conference action inserts a new section 5204 that 
     prohibits the use of funds to pay the salaries or costs of 
     individuals or contractors whose services are no longer 
     required as determined by the control board.

                      School Reform Act Amendments

       The conference action inserts a new section 5205 that 
     amends the District of Columbia School Reform Act of 1995 
     that was approved as title II of the District of Columbia 
     Appropriations Act, 1997 (Public Law 104-194). These 
     amendments are intended to clarify and strengthen certain 
     provisions of the Act as well as add new provisions that 
     support implementation of the Act. Language is included by 
     the conferees that prohibits charter applicants from applying 
     to more than one chartering entity or filing more than one 
     application in any one year. The conferees have also agreed 
     to language that clarifies situations in which a charter 
     petitioner does not already possess one or more facilities 
     for the proposed school. Under such conditions, which are 
     common when new schools rather than conversions are proposed, 
     the chartering authority may only grant a conditional charter 
     until such time as the petitioner secures appropriate 
     facilities. Approval of charter positions is to be determined 
     on the basis of the objective criteria described in section 
     2203(d). Previously, the statute may have been interpreted to 
     permit denials of charter petitions regardless of the 
     statutory criteria and merit of the petition. In response to 
     the strong interest in charter schools evidenced by many in 
     the local community, the total number of charter schools that 
     may be approved in any one year by a chartering authority is 
     also increased from five to ten schools. However, if one 
     chartering entity does not approve a full complement of ten 
     charters, another chartering entity may approve additional 
     charters up to a combined total ceiling of twenty in one 
     year.
       The experience of charter schools in other states has shown 
     that securing adequate facilities and start-up capital are 
     the greatest hurdles faced by new charter schools. Several 
     amendments are intended to assist in addressing this 
     obstacle. First, charter schools are to be given preference 
     in the lease or disposition of school buildings no longer in 
     use as District public schools. Second, in order to permit 
     charter schools to secure affordable ten to fifteen year 
     loans for the purchase or renovation of school buildings, the 
     duration of charters is extended to fifteen years from five 
     years. However, a review to decide whether a charter should 
     be revoked must still be conducted at least once every five 
     years.
       The conferees have included language that imposes specific 
     deadlines for all nominations by the Secretary of Education 
     to the charter board. The new provisions ensure that no 
     vacancies of substantial length will occur on the board.
       Subsection (h) makes a technical correction to the code 
     citation included in section 148 of the District of Columbia 
     Appropriations Act, 1997 (Public Law 104-194), concerning 
     exclusions to the waivers granted under section 2561(a) of 
     the School Reform Act. The correct citation is 40 U.S.C. 276a 
     instead of 40 U.S.C. 267a. In addition, subsection (h) 
     clarifies that ``other civil rights standards'' are not 
     waived under section 2561(a).

                     Disposition of School Property

       The conference agreement includes language in section 5206 
     that transfers jurisdiction over certain closed public school 
     facilities to the control board for disposition. During the 
     past few years, the District's Board of Education has closed 
     22 public schools and transferred those properties to the 
     Mayor for disposition. The properties represent not only 
     millions of dollars in potential revenue that could be used 
     for the repair and renovation of existing public schools, but 
     also a promising source of housing for public charter 
     schools. Yet the District government has been slow to act on 
     their disposition.
       Language agreed to by the conferees will transfer 
     jurisdiction over these properties to the control board if 
     the control board determines that the Mayor has not achieved 
     substantial progress in disposing of these properties within 
     90 days of the enactment of this Act. If the control board, 
     in its judgment, finds that the Mayor is acting with 
     diligence, the control board should take that into 
     consideration before exercising its authority. To ensure that 
     disposition of the properties is consistent with the 
     educational objectives and long-term facilities requirements 
     of the school system, the conferees direct the control board 
     to consult with education leaders, elected officials, and 
     community groups involved in planning for the independent 
     school facilities authority envisioned in the District of 
     Columbia School Reform Act of 1995. In addition, the 
     conferees direct the control board to consult with the House 
     and Senate Appropriations Committees before disposing of any 
     properties under this section.

                               CHAPTER 3

                      Energy and Water Development

                      Department of Defense--Civil

                         Department of the Army


                       corps of engineers--civil

                   operation and maintenance, general

       The conference agreement includes $19,000,000 for the Corps 
     of Engineers to repair damages resulting from Hurricane Fran 
     and its aftermath, including high-priority emergency dredging 
     and debris removal in critical waterways.

                               CHAPTER 4

                           Legislative Branch

       The conference agreement includes $3,500,000, the entire 
     amount offset by rescissions of funds, for the design and 
     installation of security systems for Capitol buildings and

[[Page H12018]]

     grounds. Of this amount, $3,250,000 is made available to the 
     Capitol Police Board to supplement funds already transferred 
     to the Board for the same purpose by Section 308 of Public 
     Law 104-53, the fiscal year 1996 Legislative Branch 
     Appropriations Act. These funds may not be obligated, except 
     for minor expenditures, without the approval of the House and 
     Senate Appropriations Committees. Obligations specifically 
     earmarked for use or application only in one or the other 
     body require approval only by the appropriate appropriations 
     committee. In addition, $250,000 has been provided to the 
     Architect of the Capitol to assist the Capitol Police Board 
     in carrying out this project.
       This funding is based on recommendations contained in 
     studies performed for the Capitol Police Board by recognized 
     experts in the field. Some of the projects identified include 
     improving the duress alarm system, modernizing the command 
     and control center, and various security-grade detection and 
     protection items. Pursuant to Section 308(b) of P.L. 104-53, 
     any alteration to a structural, mechanical, or architectural 
     feature of the Capitol buildings or grounds may be carried 
     out only with the approval of the Architect of the Capitol.
       To insure the most efficient and effective use of funds 
     provided for security projects for the Capitol buildings and 
     grounds, and to obtain the benefits of the professional 
     expertise of the respective agencies involved, the Capitol 
     Police and the Architect of the Capitol are directed to enter 
     into a memorandum of understanding, subject to the approval 
     of the Capitol Police Board, to delineate the process for 
     implementing security projects. Finally, the Capitol Police 
     Board is reminded that current procedures and statutory 
     requirements should be followed in securing approvals for 
     alterations or other modifications in the Capitol complex.
       The conference agreement also extends the availability of 
     $650,000 of fiscal year 1996 Senate office building funds 
     until September 30, 1997, for furniture, furnishings, and 
     equipment for the Senate employees' child care center. A 
     general provision has been included to reauthorize the 
     Congressional Award Program through October 1, 1999. Also, 
     section 5402 names the Founders Hall instructional area in 
     the House of Representatives Page School, located in the 
     Thomas Jefferson Building of the Library of Congress, as 
     ``Bill Emerson Hall'' in tribute to the Honorable Bill 
     Emerson, late a Representative from the State of Missouri, 
     for his devotion to the Page program and its participants.

                               Chapter 5

                      Department of Transportation


                    federal aviation administration

       The conference agreement provides total funding of 
     $226,600,000 for additional safety and airport security 
     activities of the Federal Aviation Administration (FAA). This 
     includes $197,600,000 for airport security improvements and 
     related research and $29,000,000 for hire of additional 
     airline safety inspectors and improvements in FAA's airline 
     certification and safety oversight process.


                               operations

                    (airport and airway trust fund)

       The conference agreement includes $57,900,000 for enhanced 
     aviation safety and airport security activities around the 
     country. Through the combined efforts of Congress, the FAA, 
     airports, and airlines, the United States has achieved the 
     safest aviation system in the world today. However, changing 
     threats to aviation security indicate that FAA and the 
     aviation industry need to do more. To begin this effort, the 
     bill includes $18,000,000 for the FAA to hire 30 additional 
     FAA aviation security personnel, in order to establish 
     special security teams to aggressively test security measures 
     at individual airports. In addition, the bill includes 
     $8,900,000 to establish 114 explosive detection K-9 teams at 
     airports. These dog and trainer teams will be used for tasks 
     that include inspection of suspicious baggage, cargo, as well 
     as aircraft and parked vehicles located on airport grounds. 
     The conference agreement also includes $5,500,000 to conduct 
     periodic vulnerability assessments and develop action plans 
     for each airport, in accord with models developed by Sandia 
     National Laboratory.
       The conference agreement also includes $25,500,000 to 
     accelerate new initiatives in aviation safety, as follows:

Implementation of FAA ``Ninety Day Safety Study''...........$13,000,000
Hiring and training of additional aviation safety inspectors..2,500,000
Air traffic controller training contract......................4,000,000
Contract weather observers....................................6,000,000

       These funds will be used to hire approximately 146 
     additional safety inspectors and 74 administrative employees 
     which directly support the safety inspection mission. These 
     220 new positions are in addition to the 367 new positions 
     included in the Department of Transportation and Related 
     Agencies Appropriations Bill, 1997, and will provide a 
     greatly increased level of inspection activity in the wake of 
     problems discovered this year. Funds have also been included 
     to accelerate the hiring of safety inspector positions funded 
     in the regular 1997 appropriations bill.
       While no official budget proposal has been submitted for 
     these items, administration officials have conveyed their 
     support for additional funding. Given the urgent need, the 
     conferees direct FAA to fill these additional safety 
     positions as soon as possible and to report to the House and 
     Senate Committees on Appropriations by December 31, 1996 on 
     the number of positions filled and the hiring plan for 
     remaining vacancies.
       The conference report contains $10,000,000 for air traffic 
     contract support, including $4,000,000 for controller 
     training and $6,000,000 for additional contract weather 
     observers. These funds will provide for a more effectively 
     trained controller workforce and will help relieve 
     controllers from added duties related to weather observation, 
     raising the level of aviation safety.

                        Facilities and Equipment


                    (airport and airway trust fund)

       The conference agreement includes $144,200,000 for 
     explosive detection devices and other advanced security 
     equipment to improve security at our nation's airports. The 
     conferees believe it is imperative that FAA expeditiously 
     field these systems to reduce the threat of terrorist action 
     and gain experience so that existing protocols and standards 
     be further strengthened.
       In addition, the conference agreement includes $3,500,000 
     for accelerated development and deployment of the On-Line 
     Aviation Safety Information System (OASIS), a computerized 
     system for aviation safety inspectors in the field. This 
     system will improve the efficiency and effectiveness of FAA 
     safety inspections.

                 Research, Engineering, and Development


                    (airport and airway trust fund)

       The conference agreement includes $21,000,000 for increased 
     airport security research and to conduct operational testing 
     of new trace explosive detection systems for documents (e.g., 
     boarding passes and passports) and passengers. This raises 
     existing funds for airport security research by approximately 
     50 percent.

                       Grants-in-Aid for Airports


                    (airport and airway trust fund)

                 (rescission of contract authorization)

       The conference agreement rescinds contract authority that 
     is not available for obligation due to annual limits on 
     obligations.

                     Federal Highway Administration


                     highway-related safety grants

                          (highway trust fund)

                 (rescission of contract authorization)

       The conference agreement rescinds contract authority that 
     is not available for obligation due to annual limits on 
     obligations.

                          Federal-Aid Highways


                          (highway trust fund)

       The conference agreement provides $82,000,000 in additional 
     funds for the emergency relief program in fiscal year 1997 to 
     repair highway damage resulting from the September 1996 
     hurricanes in the mid-Atlantic states, Puerto Rico, and the 
     Virgin Islands. These funds are also needed to meet 
     anticipated emergency needs in fiscal year 1997. These funds 
     have been designated as an emergency requirement pursuant to 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended.

                          Federal-Aid Highways


                      (limitation on obligations)

                          (highway trust fund)

       Intelligent transportation systems.--Funds identified for 
     Mobile, Alabama advanced traffic management system in the 
     conference report accompanying H.R. 3675, the Department of 
     Transportation and Related Agencies Appropriations bill for 
     fiscal year 1997, shall be available for a mobile advanced 
     traffic management system in Montgomery, Alabama.

                      Motor Carrier Safety Grants


                          (highway trust fund)

                 (rescission of contract authorization)

       The conference agreement rescinds contract authority that 
     is not available for obligation due to annual limits on 
     obligations.

             NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

                     Highway Traffic Safety Grants


                          (highway trust fund)

                 (rescission of contract authorization)

       The conference agreement rescinds contract authority that 
     is not available for obligation due to annual limits on 
     obligations.

                    FEDERAL RAILROAD ADMINISTRATION

                 Northeast Corridor Improvement Program

       The conference agreement provides $60,000,000 for the 
     Northeast Corridor Improvement Program.

                     Direct Loan Financing Program

       The conferees recommend $58,680,000 for direct loans not to 
     exceed $400,000,000 consistent with the purposes of section 
     505 of the Railroad Revitalization and Regulatory Reform Act 
     of 1976 to the Alameda Corridor Transportation Authority to 
     continue the Alameda corridor project. The administration 
     requested funding for this project. The bill also specifies 
     the terms and conditions of the loan payback and loan 
     administration.
       The Alameda Corridor project consolidates 90 miles of rail 
     operations into a single 20-mile facility to provide rail 
     access to the ports of Los Angeles and Long Beach. The 
     project is to eliminate 200 at-grade crossings and widen 
     Alameda Street, which runs parallel to the rail corridor.
       Disbursements of the loan shall be made over a three year 
     period. Both in fiscal years 1997 and 1998, no more than 
     $140,000,000 shall be made available. In fiscal year 1999,

[[Page H12019]]

     $120,000,000 shall be made available for the project. These 
     disbursements are consistent with the corridor's planned 
     construction schedule.

         Grants to the National Railroad Passenger Corporation

       The conference agreement provides $22,500,000 to the 
     National Passenger Railroad Corporation for operating 
     expenses the Corporation will incur by keeping routes 
     operational beyond their planned termination dates. The 
     routes proposed for termination include the Desert Wind, the 
     Gulf Coast Limited, the Lake Shore Limited, the Pioneer, and 
     the Texas Eagle. Funding for these routes is only available 
     until September 30, 1997. This funding level will support 
     service until the affected state legislatures have an 
     opportunity to meet and decide whether to ``buy back'' 
     services, or take other action necessary to permit the 
     services to continue.

                     Federal Transit Administration


                          Discretionary Grants

                      (Limitation on Obligations)

                          (Highway Trust Fund)

       Bus and bus-related facilities.--Funds made available for 
     Hood River, Oregon in the conference report accompanying H.R. 
     3675, the Department of Transportation and Related Agencies 
     Appropriations bill for fiscal year 1997, shall be available 
     for buses and bus-related facilities.

              RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION

                     Research and Special Programs

       The conferees have provided $3,000,000 for ``Research and 
     Special Programs'' of which $2,500,000 shall be used to 
     conduct a transportation system vulnerability assessment and 
     $500,000 shall be used to contract with the National Academy 
     of Sciences for an Advisory Committee on surface 
     transportation security.

                  NATIONAL TRANSPORTATION SAFETY BOARD


                         Salaries and Expenses

       The conferees have provided $6,000,000 to reimburse the 
     Department of the Navy and other agencies for the costs 
     incurred by these agencies in support of the recovery and 
     investigation of TWA flight 800.

                             Emergency Fund

       The conferees have provided $1,000,000 to replenish the 
     National Transportation Safety Board's emergency fund, which 
     was depleted by the agency's recovery of wreckage and 
     investigation efforts of TWA flight 800.

                           GENERAL PROVISIONS

       The conference agreement includes a provision that 
     establishes government-industry consortia at airports for 
     matters related to aviation security and safety.
       The conference agreement includes a provision that makes 
     certain deteriorating highway conditions eligible for 
     Department of Transportation federal-aid highway emergency 
     relief funds in fiscal years 1996 and 1997.
       The conference agreement includes a provision that makes 
     available $30,000,000 for highway construction from the 
     Federal Highway Administration's administrative takedown. 
     Such funds shall remain available until expended.
       The conference agreement includes several provisions 
     relating to the conveyance of certain Coast Guard-owned 
     parcels within the State of Michigan.

                               CHAPTER 6

                       DEPARTMENT OF THE TREASURY

              COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

   Community Development Financial Institutions Fund Program Account

       The conference agreement provides an additional $5,000,000 
     for the CDFI Fund, of which $850,000 is for direct loan 
     subsidies. The remaining amount is provided for assistance to 
     community development financial institutions.

                    Environmental Protection Agency


                         science and technology

       The conference agreement includes an additional $10,000,000 
     for the EPA science and technology account to carry out the 
     health effects research authorized pursuant to the Safe 
     Drinking Water Act Amendments of 1996, Public Law 104-182. 
     The Agency is directed to identify how these additional funds 
     will be spent in the 1997 Operating Plan.


                 environmental programs and management

       The conference agreement includes an additional $42,221,000 
     for environmental programs and management, of which 
     $2,000,000 is for Climate Change Action Plan programs. This 
     additional amount will provide for a total Climate Change 
     Action Plan program of $70,000,000 in fiscal year 1997. Also 
     within this total, $30,000,000 is for the additional 
     requirements related to the implementation of the Safe 
     Drinking Water Act Amendments of 1996, Public Law 104-182, 
     and the Food Quality Protection Act of 1996, Public Law 104-
     170. With regard to implementing the new safe drinking water 
     legislation, Congress intended to allow for maximum state 
     program flexibility and design on source water protection, 
     operator certification, capacity development, and small 
     system technical assistance. EPA's guidance to the States 
     should concentrate on program and financial accountability, 
     and the Agency should do its utmost to encourage innovative 
     state and local solutions for protecting drinking water. With 
     regard to the Food Quality Protection Act, the Agency should 
     direct its priorities to those issues and regulations which 
     are most important in fulfilling the FQPA mandate to ensure 
     improved safety of the food supply. The conferees recommend 
     that the Agency first focus on addressing those scientific 
     and regulatory policies and other actions which have the 
     largest implications for infants, children and other at-risk 
     populations. This should include the approval of new 
     pesticides and the review of existing pesticides, as these 
     are areas where the Agency may best attain immediate risk 
     reductions. The Agency is expected to identify specifically 
     how it will spend these funds in the Operating Plan. Finally, 
     the conference agreement also includes $10,221,000 to support 
     the collection of pesticide residue data from industry and 
     state sources for the Agency to utilize in its risk 
     assessment activities. The conferees note in this regard that 
     the recently authorized Food Quality Protection Act mandates 
     that residue data collection activities be improved and that 
     sampling of foods most likely consumed by infants and 
     children be increased. To this end, the conferees direct that 
     EPA enhance its in-house data collection abilities so as to 
     conduct this program in a manner which does not result in 
     transfer of these funds to any other federal agency. The 
     conferees further note that this funding is being provided 
     for transitional purposes only in the initial stages of 
     implementation of this new law, and expect that future 
     funding be provided by a more appropriate federal agency.


                   state and tribal assistance grants

       The conference agreement includes an additional $35,000,000 
     for EPA's state and tribal assistance grants. This amount is 
     intended to supplement the $40,000,000 provided in the fiscal 
     year 1997 VA-HUD and Independent Agencies Appropriations Act 
     for the continued wastewater needs in Boston, Massachusetts, 
     bringing the total amount specified for this project in 
     fiscal year 1997 to $75,000,000.

                  Federal Emergency Management Agency


                         salaries and expenses

       The conference agreement includes an additional $3,000,000 
     for FEMA salaries and expenses for counter-terrorism 
     activities, including consequence management planning and 
     coordination as well as Federal/State/local assessment, 
     training and exercises.


              emergency management planning and assistance

       The conference agreement includes an additional $12,000,000 
     for FEMA's emergency management planning and assistance 
     account for counter-terrorism activities, including 
     consequence management planning and coordination as well as 
     Federal/State/local assessment, training and exercises.


                     national flood insurance fund

       The conferees have agreed to the Administration's 
     supplemental request to increase borrowing authority for the 
     Federal Emergency Management Agency's National Flood 
     Insurance Program (NFIP) from $1,000,000,000 to 
     $1,500,000,000, even though there is to date no demonstrated 
     need for this additional authority. Although the current 
     outstanding balance of the program stands at just 
     $626,000,000, concerns have been expressed that additional 
     costs associated with recent disaster events as well as 
     potential such events in the coming months could possibly 
     result in a specific need to increase the borrowing authority 
     above the $1,000,000,000 level. As raising such authority 
     above the existing dollar level can only be done by Congress, 
     the conferees have agreed to take this precautionary measure 
     at this time to foreclose the possibility of a short-term 
     cash flow difficulty throughout 1997.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                       Office of Consumer Affairs

       The conference agreement includes $1,500,000 for the Office 
     of Consumer Affairs. This amount should allow for 
     continuation of this agency's activities at fiscal year 1996 
     levels, with the exception of the production and distribution 
     of the Consumer Resource Handbook. The responsibility for 
     producing and distributing the Handbook was transferred to 
     the Consumer Information Center in the fiscal year 1997 VA-
     HUD and Independent Agencies Appropriations Act. Termination 
     of this agency has been seriously considered in the past two 
     fiscal years due to the failure to submit detailed 
     justification for this expenditure or presentation of 
     compelling evidence of accomplishment. While extension of 
     this entity for another year is recommended, the conferees 
     agree that any additional expenditure for this purpose must 
     be contingent upon a clear demonstration that this agency is 
     materially contributing to the improvement of consumer 
     interests not otherwise served by other governmental and 
     private entities.

             National Aeronautics and Space Administration


                  science, aeronautics, and technology

       The conference agreement includes an additional $5,000,000 
     for NASA's science, aeronautics and technology account. This 
     amount is to be designated for the GLOBE program.

                               Chapter 7

                        Peacekeeping Operations

       The conference agreement appropriates $65,000,000 for 
     peacekeeping operations.

[[Page H12020]]

    Nonproliferation, Anti-terrorism, Demining and Related Programs

       The conference agreement appropriates $18,000,000 for anti-
     terrorism assistance which includes an additional $2,000,000 
     for anti-terrorism assistance as requested by the President 
     on September 12, 1996.

                   Foreign Military Financing Program


                            (grant program)

       The conference agreement appropriates $60,000,000 for 
     foreign military financing grant assistance.

         DIVISION D--THE SMALL BUSINESS IMPROVEMENT ACT OF 1996

       The conference agreement includes a separate division 
     containing legislative language to make improvements to 
     various small business programs.
       Section 101 contains the short tile of the bill, the 
     ``Small Business Improvement Act of 1996''.
       Except as specified herein, the explanation and intent of 
     title I and Sections 201 through 206 of title II are set 
     forth in House Report 104-750 accompanying H.R. 3719, the 
     ``Small Business Improvement Act of 1996''.
     Section 103. Section 7(a) Loan Program
       Subsection (d) [Calculation of Subsidy Rate] adds a new 
     paragraph to Section 7(a) of the Small Business Act 
     specifying that all fees, interest, and profits generated 
     from the administration of the program shall be used to 
     offset the subsidy costs of the 7(a) program. This change is 
     intended to end the current practice in which the Small 
     Business Administration (SBA) utilizes funds derived from the 
     program to augment the appropriations provided to the 
     Administration for salaries and expenses.
       Subsection (e) [Sale of Unguaranteed Portions of SBA Loans] 
     relates to the ability of lenders to securitize the 
     unguaranteed portion of their 7(a) loans. This provision 
     would change current practice in which bank lenders are 
     prohibited from securitizing the unguaranteed portion of 
     their 7(a) loans. In addition to providing equal treatment 
     between bank and non-bank lenders, this provision requires 
     the SBA to set forth the terms and conditions under which 
     such sales will be permitted, including the maintenance of 
     appropriate reserve requirements and other safeguards 
     necessary to protect the safety and soundness of the 7(a) 
     program. Should the SBA fail to promulgate a final regulation 
     implementing this provision by March 31, 1997, the authority 
     to sell the unguaranteed portion of 7(a) loans is suspended 
     for all lenders until a final regulation is published.
       Subsection (f) [Plan for Transfer of Loan Servicing 
     Functions to Centralized Centers] requires a report to the 
     Congress on SBA's plans for completing consolidation of the 
     loan servicing functions into one or more centers. The SBA 
     has transferred approximately half of its loan servicing 
     workload from District offices to two loan servicing centers 
     located in Fresno, CA and Little Rock, AR. Reduced numbers of 
     SBA field personnel and increasing loan volume necessitates 
     the prompt completion of this consolidation effort. The SBA's 
     report, detailing plans for completing the loan servicing 
     consolidation, and any impediments to executing the 
     consolidation plan, shall be submitted to Congress by 
     February 28, 1997.
       Subsection (h) [Preferred Lender Standard Review Program] 
     establishes the requirement for the Administrator to design 
     and initiate a standardized program for the review of 
     participants in the Preferred Lender Program. The provision 
     sets out minimum standards for the contents and frequency of 
     such reviews. This standardized review process is necessary 
     to effectively evaluate the increasing number of participants 
     in the program and the quality of their loan underwriting and 
     administration practices.
     Section. 104. Disaster loans
       Subsection (a) [Private Sector Loan Servicing Demonstration 
     Program] requires the SBA to solicit and award one or more 
     contracts to private sector firms for the servicing of 30 
     percent of SBA's portfolio of residential disaster loans. The 
     specifications for the demonstration project, including the 
     submission of interim and final reports, are detailed in the 
     statutory language.
     Section. 105. Microloan Demonstration Program
       This provision amends the authorizing statute for the 
     microloan program to permit the Administration to provide 
     funding to microloan intermediary lenders in excess of the 
     statutory formula. Specifically, whenever the Administration 
     determines during the fourth quarter of a fiscal year that 
     the funds appropriated for loans under the program are 
     unlikely to be awarded to intermediaries during that fiscal 
     year, the Administration may exceed the otherwise maximum 
     allowable award to an individual state.
     Section. 108. Small Business Competitiveness Demonstration 
         Program
       Subsection (a) [Extension of Demonstration Program] 
     provides for a one-year extension of the Small Business 
     Competitiveness Demonstration Program (SBCDP) through 
     September 30, 1997. In addition, this subsection repeals 
     Section 717(f) of the program's authorizing statute which 
     prohibited the SBA from adjusting the numerical size 
     standards for the four designated industry groups 
     participating in the SBCDP. It is intended that the SBA will 
     promptly initiate appropriate action to adjust these size 
     standards.
       Subsection (b) [Reporting of Subcontract Participation in 
     Contracts for Architectural and Engineering Services] extends 
     the requirement to collect subcontracting data through 
     September 30, 1997. The description of the subcontracting 
     data collection effort is specified in the sections of House 
     Report 104-750 pertaining to the SBCDP.
       Subsection (c) [Reports to Congress] specifies the 
     reporting requirements relating to the SBCDP. A detailed 
     description of these requirements is set forth in House 
     Report 104-750.
     Section. 110. STTR Program extension
       This section extends the pilot Small Business Technology 
     Transfer Program through fiscal year 1997.

        [Title II]--Amendments to Small Business Investments Act

     Section 202. Modifications to Development Company Debenture 
         Program
       Subsection (b) [Guarantee Fee for Development Company 
     Debentures] amends Section 503(b)(7)(A) of the Small Business 
     Investment Act to increase the fee to 0.9375 percent per year 
     of the outstanding balance of the loan, or a lesser 
     percentage, as determined by the Administration, so as to 
     permit a $2 billion program level.
       Subsection (e) [Calculation of Subsidy Rate] adds a new 
     Section 503(g) to the Small Business Investment Act 
     specifying that all fees, interest, and profits generated 
     from the administration of the programs under this Act shall 
     be used to offset the subsidy costs of these programs. This 
     provision is intended to end the current practice in which 
     the SBA utilizes funds derived from the program to augment 
     the appropriations provided to the Administration for 
     salaries and expenses.
     Section 207. Sense of the Congress
       This section expresses the sense of the Congress that the 
     subsidy models prepared by the Office of Management and 
     Budget (OMB) relative to the SBA's loan programs have tended 
     to overestimate potential loss risks and overemphasize 
     historical losses, while discounting the overall economic 
     benefits of the programs. The provision further expresses 
     Congress' expectation that the independent study required by 
     Section [103(i)] of the bill will improve the validity of the 
     OMB subsidy models.
     Section 208. Small Business Investment Company Improvements
       Definitions
       The definition of ``small business concern'' is amended to 
     make clear that investments from venture capital firms or 
     pension plans in small businesses do not affect the small 
     business' size standard as set forth under the Small Business 
     Act.
       A new term, ``small enterprise'' is included in the Act. A 
     small enterprise is a business with net financial worth no 
     greater than $6 million and an average net income of no more 
     than $2 million, or that satisfies the SIC code size 
     standards established by SBA.
       ``Qualified non-private funds'' are defined as funds 
     invested by state or local governments in SBIC's. The bill 
     limits the amount of qualified private, non-private funds 
     that can be included in the private capital of an SBIC. No 
     more than 33% of private capital can be qualified non-private 
     funds.
       For the first time, the Small Business Investment Act is 
     amended to include ``limited liability company'' as the one 
     of the business entities that can qualify to be an SBIC. 
     Current statute allows corporations and partnerships to be 
     SBICs. The ``limited liability company'' is a relatively new 
     business entity that is being organized for raising venture 
     capital.
       Organization of small business investment companies
       This bill includes provisions to speed up the processing of 
     applications from business entities who want to be licensed 
     by SBA as an SBIC. It requires SBA to provide the applicant 
     with a written report detailing status of the application 
     within 90 days of receipt of the application. In addition it 
     states that no application can be denied because Congress has 
     not appropriated sufficient funds to meet leverage demands.
       This bill also permits SBA to approve a new license 
     applicant which has not less than $3 million in private 
     capital so long as the applicant meets all other licensing 
     requirements. Once approved as a licensee, however, the SBIC 
     would not be eligible for leverage until its private capital 
     reaches $5 million.
       Section 301(d) of the Small Business Investment Company Act 
     of 1958 is repealed.
       Capital requirements
       Under this bill, the minimum capital requirements for new 
     license applicants is increased. To be a debenture licensee, 
     new applicants must have $5 million in private capital. To be 
     a participating security licensee, new applicants must have 
     $10 million in private capital; however, SBA is given the 
     discretion to approve a participating security applicant if 
     it has less than $10 million but more than $5 million so long 
     as SBA determines that approval of that applicant would not 
     create or otherwise contribute to an unreasonable risk of 
     default or loss to the federal government.
       This bill also grandfathers existing licensees in the 
     program and includes provisions under which they will be 
     exempt form the increased capital requirement. Existing 
     licensees that do not meet the new, increased capital 
     requirements will continue to be eligible for leverage, based 
     upon the exercise of SBA discretion. Any licensee which 
     continues to

[[Page H12021]]

     receive leverage under this exemption must certify that 50% 
     of its aggregate dollar investments are going to smaller 
     enterprises.
       The bill directs SBA to ensure that each licensee licensed 
     after enactment of this bill maintains diversification 
     between the management and ownership of the licensee. This is 
     a safety and soundness measure designed to maintain 
     independence and objectivity in the financial management and 
     oversight of the investment and operations of the SBIC.
       Borrowing
       This provision requires SBA to regulate SBICs closely to 
     ensure that they do not incur excessive third party debt 
     which would create or contribute to an unreasonable risk of 
     default or loss to federal government. In addition, this 
     provision requires that each SBIC, regardless of its size, 
     invest at least 20% of its aggregate dollar investments in 
     small enterprises.
       This section also requires SBA to ensure that no SBIC 
     receives leverage when it is under capital impairment. This 
     will be a judgment made by SBA in accordance with regulations 
     that take in to consideration the nature of assets of the 
     SBIC and the amount and terms of any third party debt owed by 
     the SBIC.
       This section also includes two increases in fees to be paid 
     by SBICs to SBA. First, SBICs would pay an annual charge of 
     100 basis point on the value of all outstanding leverage 
     granted after the effective date. In addition, the non-
     refundable up-front fee which is currently 2% would be 
     increased to 3% of new leverage amounts.
       Liability of the United States
       This section restates and clarifies the limits of liability 
     on SBA under this program.
       Examinations; valuations
       This is a section designed to improve the examination and 
     oversight function of SBA to enhance the safety and soundness 
     of the program. It requires each SBIC to adopt valuation 
     criteria set forth by SBA to be used for establishing the 
     values of loans and investments of each SBIC. This section 
     requires that an independent certified accountant approved by 
     SBA review these valuations at least once a year to ensure 
     that these requirements are being met.
       Trustee or receivership over licensees
       This section states that it is the finding of the Congress 
     that increased recoveries of assets in liquidation under the 
     SBIC program are in the best interest of the Federal 
     Government. SBA is directed to submit to the Senate and House 
     Committees on Small Business a detailed plan to expedite the 
     orderly liquidation of all licensee assets in liquidation. 
     This plan is to include a timetable for liquidating the 
     liquidation portfolio of assets owned by SBA.
       Technical and conforming amendments
       As SBIC preferred stock buy back program was authorized by 
     Congress effective November 1, 1989. This bill directs that 
     any monies received by SBA under this repurchase program 
     shall be used solely to guarantee debenture leverage for 
     SBICs that maintain an investment portfolio with 50% of its 
     investments in smaller enterprises.
       Authorization of appropriations
       This section increases the authorization for debenture 
     leverage from $220 million to $300 million for FY 1997.
       Effective date
       This section and any amendments will become effective on 
     the date of enactment.

                               DIVISION E

   TITLE I--CALIFORNIA BAY-DELTA ENVIRONMENTAL ENHANCEMENT AND WATER 
                              SECURITY ACT

       The conference agreement includes the text of H.R. 4126, a 
     bill to support the California-Federal (CALFED) Bay-Delta 
     Program in developing, funding and implementing a balanced, 
     long-term solution to the problems of ecosystem quality, 
     water quality, water supply and reliability, and system 
     vulnerability affecting the San Francisco Bay/Sacramento-San 
     Joaquin Delta Watershed (the Bay-Delta) in California.

                   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..$579,522,607,669
Budget estimates of new (obligational) authority, fiscal608,191,881,110
House bill, fiscal year 1997............................604,917,517,710
Senate bill, fiscal year 1997...........................601,684,170,710
Conference agreement, fiscal year 1997..................610,961,282,710
Conference agreement compared with:
  New budget (obligational) authority, fiscal year 1996.+31,438,675,041
  Budget estimates of new (obligational) authority, fisca+2,769,401,600
  House bill, fiscal year 1997...........................+6,043,765,000
  Senate bill, fiscal year 1997..........................+9,277,112,000


     Bill Young,
     Joseph M. McDade,
     Bob Livingston,
     Jerry Lewis (except for chapter 6 of title V of division A),
     Joe Skeen,
     Dave Hobson,
     Henry Bonilla,
     George R. Nethercutt, Jr.,
     Ernest Istook,
     John P. Murtha,
     Norm Dicks,
     Charles Wilson,
     W.G. ``Bill'' Hefner,
     Martin Olav Sabo,
     David Obey,
                                Managers on the Part of the House.


     Ted Stevens,
     Thad Cochran,
     Pete V. Domenici,
     Christopher S. Bond (except for chapter 6 of title V of 
     division A),
     Mitch McConnell,
     Connie Mack,
     Richard C. Shelby,
     Mark O. Hatfield,
     Daniel K. Inouye (with reservation),
     Fritz Hollings,
     J. Bennett Johnston,
     Robert Byrd,
     Patrick J. Leahy,
     Frank R. Lautenberg,
                               Managers of the Part of the Senate.
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                              N O T I C E

                Incomplete record of House proceedings.
 Today's House proceedings will be continued in the next issue of the 
                                Record.
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