[House Report 104-292]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-292
_______________________________________________________________________
 
  PROVIDING FOR THE CONSIDERATION OF HOUSE CONCURRENT RESOLUTION 109, 
  SENSE OF CONGRESS ON SOCIAL SECURITY EARNINGS TEST REFORM, AND H.R. 
    2491, THE SEVEN-YEAR BALANCED BUDGET RECONCILIATION ACT OF 1995

                                _______


October 26 (legislative day, October 25), 1995.--Referred to the House 
                   Calendar and ordered to be printed

_______________________________________________________________________


   Mr. Solomon, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 245]

    The Committee on Rules, having had under consideration 
House Resolution 245, by a record vote of 9 to 4, report the 
same to the House with the recommendation that the resolution 
be adopted.

               brief summary of provisions of resolution

    The resolution first provides for consideration in the 
House of a concurrent resolution relating to the Social 
Security earnings test, subject to 20 minutes of debate divided 
between the Majority and Minority Leaders or their designees. 
The rule next provides for the further consideration of H.R. 
2491, the ``Seven Year Balanced Budget Reconciliation Act of 
1995,'' providing for an additional three hours of general 
debate, divided equally between the chairman and ranking 
minority member of the Committee on the Budget. The rule 
provides that an amendment in the nature of a substitute 
consisting of the text of H.R. 2517 as modified by the 
amendments printed in the Rules Committee's report on the rule 
shall be considered as adopted in the House and the Committee 
of the Whole and the bill as amended shall be considered as an 
original bill for the purpose of further amendment. All points 
of order are waived against provisions of the bill as amended.
    No amendment is in order to the bill as amended except an 
amendment in the nature of a substitute consisting of the text 
of H.R. 2530, which may only be offered by the Minority Leader 
or his designee. The amendment in the nature of a substitute 
shall be considered as read, shall not be subject to amendment, 
and shall be debatable for one hour equally divided and 
controlled by the proponent and an opponent. All points of 
order against the amendment in the nature of a substitute are 
waived. After a motion to rise has been rejected on any day, 
another such motion may only be offered by the Majority Leader 
or Budget Committee chairman. The rule provides one motion to 
recommit which, if containing instructions, may only be offered 
by the minority leader or a designee. Finally, the rule 
provides that the yeas and nays are ordered on the passage of 
the bill and that the provisions of clause 5(c) of Rule XXI 
(requiring a three-fifths vote on any bill, amendment or 
conference report containing a Federal income tax rate 
increase) shall not apply to the votes on the bill, amendments 
thereto, or conference reports thereon.

       explanation and discussion of clause 5(c), rule xxi waiver

    As indicated in the preceding paragraph, the Committee has 
provided in this rule that the provisions of clause 5(c) of 
House Rule XXI, which require a three-fifths vote on any bill, 
joint resolution, amendment or conference report, ``carrying a 
Federal income tax rate increase,'' shall not apply to the 
votes on passage of H.R. 2491, or to the votes any amendment 
thereto or conference report thereon.
    The suspension of clause 5(c) of rule XXI is not being done 
because there are any Federal income tax rate increases 
contained in the reconciliation substitute being made in order 
as base text by this rule. As the Committee on Ways and Means 
has pointed out in its portion of the report on the 
reconciliation bill--

          The Committee has carefully reviewed the provisions 
        of Titles XIII and XIV of the revenue reconciliation 
        provisions approved by the Committee to determine 
        whether any of these provisions constitute a Federal 
        income tax increase within the meaning of the House 
        Rules. It is the opinion of the Committee that there is 
        no provision of Titles XIII and XIV of the revenue 
        reconciliation provisions that constitutes a Federal 
        income tax rate increase within the meaning of House 
        Rule XXI, 5(c) or (d).

    Nevertheless, the Committee on Rules has suspended the 
application of clause 5(c) as a precautionary measure to avoid 
unnecessary points of order that might otherwise arise over 
confusion or misinterpretations of what is meant by an income 
tax rate increase.
    Such a point of order was raised and overruled on the final 
passage vote of H.R. 1215, the omnibus tax bill, on April 15, 
1995. The ranking minority member of the Rules Committee 
subsequently wrote to the chairman of this Committee requesting 
a clarification of the rule. An exchange of correspondence with 
the Parliamentarian and the Counsel of the Joint Tax Committee 
was subsequently released by the chairman of this Committee on 
June 13, 1995, regarding the ruling and the provisions of the 
bill which gave rise to the point of order.
    The Committee would simply conclude this discussion by 
citing from the section-by-section analysis of H. Res. 6, 
adopting House Rules for the 104th Congress, placed in the 
Congressional Record at the time the rules were adopted on 
January 4, 1995. With respect to clauses 5(c) and (d) which 
require a three-fifths vote on any income tax rate increase and 
prohibit consideration of any retroactive income tax increase, 
respectively:

          For purposes of these rules, the term ``Federal 
        income tax rate increase'' is, for example, an increase 
        in the individual income tax rates established in 
        section 1, and the corporate income tax rates 
        established in section 11, respectively, of the 
        Internal Revenue Code of 1986. (Congressional Record, 
        Jan. 4, 1995, p. H-34)

    The rates established by those sections are the commonly 
understood ``marginal'' tax rates or income ``bracket'' tax 
rates applicable to various minimum and maximum income dollar 
amounts for individuals and corporations. It is the intent of 
this committee that the term ``Federal income tax rate 
increase'' should be narrowly construed and confined to the 
rates specified in those two sections. As indicated in the Ways 
and Means Committee's report, those rates have not been 
increased by any provisions contained in H.R. 2491 as made in 
order as base text by this resolution.

 summary of amendments modifying the text of h.r. 2517 to form the new 
                    base text for amendment purposes

    Upton (MI): Amend Food, Drug and Cosmetic Act to authorize 
the export of new drugs if approved in recipient country. (p. 
275, after line 11, insert new Subtitle F--FDA Export Reform 
and Enhancement Act'')
    Horn (CA)/Davis (VA) (modified): Add new tools for Federal 
agencies to collect debts owed to the United States to enhance 
debt collection and improve financial management (Inserts new 
Subtitle B to title V, ``Debt Collection Improvement Act of 
1995,'' at page 333, line 15)
    Barr (GA): Strike section 7002, ``Civil Monetary Penalty 
Surcharge and Telecommunications Carrier Compliance Payments.'' 
(p. 416, line 3 through p. 419, line 6)
    Davis (VA): Strike section 10404, ``Collection of Parking 
Fees,'' requiring each Executive agency to collect parking fees 
at all Federal parking facilities. (p. 700, line 23 through 
page 701, line 19)
    Davis (VA) (modified): Amend sec. 17201(c), National 
Technical Information Service, to provide that if an 
appropriate arrangement for the privatization of the functions 
of the NTI Service has not been made before the end of the 18-
month period, the Service shall be transferred to the National 
Institute for Science and Technology. (p. 1588, lines 3 through 
7)
    Bliley (VA): Change the Medicaid allocation and lower the 
statutory caps for discretionary spending accordingly.

                            committee votes

    Pursuant to clause 2(l)(2)(B) of House rule XI the results 
of each rollcall vote on an amendment or motion to report, 
together with the names of those voting for and against, are 
printed below. A summary of each motion appears at the end of 
the votes.

Rules Committee Rollcall No. 206

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motion No. 1 (see summary following 
votes).
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 207

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motion No. 2.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 208

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budgetg Reconciliation Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Motion No. 3.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

Rules Committee Rollcall No. 209

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budgetg Reconciliation Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Motions No. 4, No. 5, No. 6.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 210

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491; The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Hall.
    Summary of Motion: Motion No. 7.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 211

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491; The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motion No. 8.
    Results: Rejected, 5 to 8.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Yea; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Yea; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Nay; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 212

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Motion No. 9.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 213

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Motion No. 10.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 214

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Motion No. 11.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 215

    Date: October 25, 1995.
    Measure: H. Con. Res 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Motions No. 12, No. 13, and No. 35.
    Results: Rejected, 5 to 8.
    Vote by Members Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Yea; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Frost--Yea; Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 216

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Motions No. 14, No. 15, and No. 16.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 217

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motion No. 17.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 218

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Motion No. 18.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 219

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Hall.
    Summary of Motion: Motion No. 19.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 220

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Hall.
    Summary of Motion: Motion No. 20.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 221

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Hall.
    Summary of Motion: Motion No. 21.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 222

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motion No. 22.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 223

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Motions No. 24, No. 25, No. 26, No. 28, 
and No. 29.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 224

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Motion No. 27.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay;

Rules Committee Rollcall No. 225

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Motion No. 31.
    Results: Rejected 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 226

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Motion No. 32.
    Results: Rejected, 5 to 8.
    Vote by Members: Quillen--Nay; Drier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Yea; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 227

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Motion No. 34.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Drier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 228

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Hall.
    Summary of Motion: Motions No. 37 & No. 38.
    Results: Rejected 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Nay; Solomon--Nay.

Rules Committee Rollcall No. 229

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Motion No. 39.
    Results: Rejected 4 to 8.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Nay; Solomon--Nay.

Rules Committee Rollcall No. 230

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motion No. 40.
    Result: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 231

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motions No. 41 and No. 42.
    Result: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 232

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motion No. 43.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 233

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Motion No. 44.
    Results: Rejected, 4 to 9.
    Vote by Members: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 234

    Date: October 25, 1995.
    Measure: H. Con. Res. 109, Sense of Congress on Social 
Security Earnings Test Reform, and H.R. 2491, The Seven Year 
Balanced Budget Reconciliation Act of 1995.
    Motion By: Mr. Quillen.
    Summary of Motion: To report the rule.
    Results: Adopted, 9 to 4.
    Vote by Members: Quillen--Yea; Dreier--Yea; Goss--Yea; 
Linder--Yea; Pryce--Yea; Diaz-Balart--Yea; McInnis--Yea; 
Waldholtz--Yea; Moakley--Nay; Beilenson--Nay; Frost--Nay; 
Hall--Nay; Solomon--Yea.

             Amendments Offered on the Reconciliation Bill

    1. Moakley: Amendment to strike any Medicare provisions and 
any tax provisions from the bill.
    2. Moakley: Amendment to restore the current guarantee for 
payment of Medicare premiums for elderly and disabled 
beneficiaries with incomes below 100% of poverty.
    3. Frost: Amendment to restore current law prohibiting 
States from imposing liens on the homes or family farms of 
nursing home residents.
    4. Frost: Amendment restoring current one-year transitional 
health care coverage for low income workers who have moved off 
welfare rolls.
    5. Frost: Amendment to restore current law requiring 
payment of ``reasonable and adequate'' rates to rural hospitals 
for inpatient services to Medicaid patients, and prohibiting 
States from offering fewer benefits or stricter eligibility 
requirements on residents of rural areas.
    6. Hall: Amendment to provide coverage of medically 
necessary services provided by children's hospitals to children 
with special needs, continue coverage for poor pregnant women 
and children under the age of one with incomes up to 133% of 
the poverty line, and children between the ages of 1 and 19 at 
100% of the poverty line, and assure screening, diagnosis and 
treatment for breast and cervical cancer for poor women.
    7. Hall: Amendment to restore current federal minimum 
standards to assure that residents in nursing homes receiving 
Federal funds are not subject to abuse or neglect and receive 
quality care, and to insure that coverage is continued for 
patients who have Alzheimer disease.
    8. Moakley: Senate Medicaid Formula-Amemdment modifying the 
Medicaid formula to provide States more fairness by permitting 
a choice between 1994 and 1995 as a base line rather than 
forcing States into the 1994 base line under the bill's 
formula.
    9. Beilenson: Amendment to strike any provision in the bill 
cutting the Earned Income Tax Credit (EITC). The EITC is an 
effective program which help low income working families stay 
off welfare.
    10. Beilenson: Amendment to strike the ANWR leasing 
provisions in the bill.
    11. Beilenson: Miller (CA): Amendment to void Arctic 
National Wildlife Refuge leasing authority if the state of 
Alaska sues to enforce 90/10 revenue split.
    12. Beilenson-Miller (CA): Amendment to place an 8% royalty 
on hardrock minerals mined from federal lands and increase the 
mining claim holding fee. This would save taxpayers $540 
million over the next 7 years.
    13. Beilenson: Amendment to strike all mining provisions 
from the bill. This amendment would reflect the will of the 
House which has voted against these provisions 3 times this 
Congress.
    14. Beilenson-Miller (CA): Amendment to eliminate national 
forest timber sales that cost the government more than revenue 
generated. This provision would have saved $1 billion over the 
last 3 years had it been in effect.
    15. Beilenson-Miller (CA): Amendment to apply the grazing 
fee level contained in the bill to small ranchers. Small 
ranchers are those permits who graze 500 or less Animal Unit 
Month's (AMU) per grazing year. All other permittees would pay 
market rate fees.
    16. Beilenson-Miller (CA): Amendment to require corporate 
farms which grow surplus crops to pay the full cost of 
reclamation project irrigation water. This amendment would save 
taxpayers $330 million over the next 5 years.
    17. Moakley: Amendment to delete provisions in the bill 
which terminate federal milk marketing orders.
    18. Frost: Amendment to substitute the Agriculture title 
with the Emerson/Combest substitute. This amendment leaves in 
place current farm commodity programs and achieves most of its 
savings by increasing the percentage of unpaid acreage from 15% 
to 30%. It also eliminates the government price support program 
for butter and powdered milk but retains the support price for 
cheese. The amendment also extends the national system of milk 
marketing orders.
    19. Hall: Amendment to strike provisions which incorporate 
Division A of the American Overseas Interest Act consolidating 
three agencies--AID, USIA and ACDA--and folding them into the 
State Department.
    20. Hall: Strikes the provision in the substitute that 
reduces the child tax credit to $365 and replaces it with an 
amendment to insure that all middle income families receive the 
full Contract With America $500 per child tax credit. This is 
done by capping the income level at which families are eligible 
to receive that benefit.
    21. Hall: Amendment to strike provision in the bill which 
eliminates the increased amount of wages social security 
recipients can earn without decreasing their social security 
checks. This provision was included in the Republican Contract 
with America.
    22. Moakley: Amendment to strike the provision that makes 
the repeal of the corporate alternative minimum tax (AMT) a 
refundable tax credit.
    24. Frost: Amendment to preserve EDA as a federal program. 
This amendment strikes section 17201 of the Committee 
substitute and inserts a new section that rewrites the Public 
Works and Economic Development Act of 1965 by eliminating the 
EDA and creating an Office of Economic Development which would 
continue funding for all activities that are currently eligible 
for EDA assistance.
    25. Frost: Amendment to preserve the Manufacturers 
Extension program (MEP) as a federal program. The amendment 
would strike the provision in the bill eliminating this program 
which American manufacturers remain competitive in the global 
economy. This provision was approved by the Science Committee 
when it reported out the Commerce Department Dismantlement Act.
    26. Frost: Amendment to restore the Committee for the 
Implementation of Textile Agreements (CITA) as a separate 
entity to give textile and apparel industries time to adjust to 
the new competitive conditions imposed by the new World Trade 
Organization Agreement.
    27. Frost: Amendment to strike section 17207(g) of the 
substitute. This section will help protect Americans from 
severe weather by eliminating the draconian funding reductions 
in the National Weather Service currently in the bill.
    28. Frost: Amendment to restore 25% cut in funding for 
critical trade and export programs that create and protect 
American jobs.
    29. Frost: Amendment to strike the 75% ceiling on FY 1995 
expenditures for Department of Commerce transfers.
    31. Beilenson: Amendment to strike the park concessions 
provisions in the bill. This would eliminate unfair provisions 
in the bill which give an advantage to current concessionaires 
and provide little competition for concession contract 
renewals.
    32. Beilenson: Amendment to delete the ski area sales 
provisions from the bill. This will insure that public ski 
areas will not become private, members only, ski areas.
    34. Beilenson: Amendment to strike the Ward Valley 
California land transfer provision in the bill. Many safety 
concerns the construction of a low level radioactive waste site 
at Ward Valley have not been resolved.
    35. Beilenson: Amendment to strike the Federal Oil and Gas 
Royalties provisions in the bill. CBO has estimated that these 
provisions in the bill will cost the taxpayers $60 million over 
7 years.
    37. Hall: Amendment to strike the 6 month grace period 
interest subsidy change on student loans from the substitute. 
The language in the substitute will increase students' college 
costs by nearly $4 billion nationwide and will likely result in 
loan defaults.
    38. Hall: Amendment to strike any changes in the substitute 
which affect the PLUS Loan program. This program allows parents 
to take out government backed loans to help defray the high 
costs of a college education for their children. The increase 
contained in the substitute will increase college costs for 
struggling families nationwide by \1/2\ billion dollars.
    39. Frost: Amendment to strike any provision in the bill 
permitting corporations to use pension assets for any purpose. 
This amendment will delete the provision in the substitute 
which allows corporations to loot pensions funds for such 
things as corporate take-overs.
    40. Moakley: Amendment to strike the repeal of the Service 
Contract Act contained in the substitute. This law protects 
workers in low wage occupations, most of whom are minorities 
and female. The repeal in the substitute will destroy this 
safety net for these employees who on average earn less than 
poverty wages.
    41. Moakley: Amendment to strike any provision previously 
defeated by the House or in any committee which is included in 
the bill. These provisions include the farm title which was 
defeated by a vote of 22-27 and the mining claim patent 
provisions which have been defeated by the House 3 times this 
year.
    42. Moakley: Amendment to allow for a separate vote on any 
provision included in the substitute after it was reported by 
the Budget Committee. These provisions include welfare 
provisions, Freedom to Farm Act, Commerce Department 
abolishment changes, and changes made to the Civil Service 
benefits, the Contract With America Tax Cut and Medicare.
    43. Moakley: Amendment to increase the time for general 
debate on the substitute from 1 hour to 2.
    44. Moakley: Amendment to strike the waiver of clause 5C of 
rule XXI which requires that any bill which contains a federal 
income tax rate increase be passed by not less than 3/5 of 
those members voting.
    The amendments modifying the text of H.R. 2517 to form the 
amendment in the nature of a substitute adopted by the rule as 
original text for amendment purposes:
    Page 275, after line 11, insert the following:

           Subtitle F--FDA Export Reform and Enhancement Act

SECTION 3081. SHORT TITLE.

    This Act may be cited as the ``FDA Export Reform and 
Enhancement Act of 1995''.

SEC. 3082. EXPORT OF NEW DRUGS.

  Section 801(e) of the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 381(e) is amended--
          (1) in paragraph (1), by inserting after ``under this 
        Act'' the following: ``or in violation of section 505 
        or section 351 of the Public Health Service Act'',
          (2) in paragraph (1), by striking the last sentence, 
        and
          (3) by amending paragraph (2) to read as follows:
  ``(2) Paragraph (1) does not apply to the export of--
          ``(A) any device--
                  ``(i) which does not comply with an 
                applicable requirement under section 514 or 
                515,
                  ``(ii) which under section 520(g) is exempt 
                from either such section, or
                  ``(iii) which is a banned device under 
                section 516, or
          ``(B) any drug (including a biological product) which 
        does not comply with an applicable requirement under 
        section 505 or 512 or section 351 of the Public Health 
        Service Act,
unless the device or drug is in compliance with the 
requirements of paragraph (1) and if the device or drug is to 
be exported to a country which is not a member of the World 
Trade Organization, the person exporting it has notified the 
Secretary of the export at least 30 days before the export and 
has included in such notice the name of the product, the 
country to which the product is being exported, and a brief 
description of the medical need for such device or drug in such 
country. In the case of a device or drug for which an export 
notice is required under this paragraph, the Secretary may 
prohibit the export of such device or drug if the Secretary 
determines that the possibility of the reimportation of the 
device or drug into the United States presents an imminent 
hazard to the public health and safety of the United States and 
the only means of limiting the hazard is to prohibit the export 
of the device or drug.''.

SEC. 3083. EXPORT OF CERTAIN UNAPPROVED PRODUCTS.

  Section 802 (21 U.S.C. 382) is repealed.

SEC. 3084. PARTIALLY PROCESSED BIOLOGICAL PRODUCTS.

  Subsection (h) of section 351 of the Public Health Service 
Act (42 U.S.C. 262) is amended to read as follows:
  ``(h) A partially-processed biological product which--
          ``(1) is not in a form applicable to the prevention, 
        treatment, or cure of diseases or injuries of man,
          ``(2) is not intended for sale in the United States, 
        and
          ``(3) is intended for further manufacture into final 
        dosage form outside the United States,
shall be subject to no restriction on its export under this Act 
or the Federal, Food, Drug, and Cosmetic Act (21 U.S.C. 321 et 
seq.).''
  Page 308, after line 5, insert the following:

 Subtitle A--Federal Employee and Congressional Benefits; Availability 
              of Surplus Property for Homeless Assistance

  Page 333, after line 15, insert the following new subtitle:

          Subtitle B--Debt Collection Improvement Act of 1995

SEC 5201. SHORT TITLE.

  This subtitle may be cited as the ``Debt Collection 
Improvement Act of 1995''.

SEC. 5202. TABLE OF CONTENTS.

  The table of contents for this subtitle is as follows:

Sec. 5201. Short title.
Sec. 5202. Table of contents.
Sec. 5203. Effective date.
Sec. 5204. Purposes.

               Part I--General Debt Collection Initiatives

                    subpart a--general offset authority

Sec. 5211. Expansion of administrative offset authority.
Sec. 5212. Enhancement of administrative offset authority.
Sec. 5213. Exemption from computer matching requirements under the 
          Privacy Act of 1974.
Sec. 5214. Use of administrative offset authority for debts to States.
Sec. 5215. Technical and conforming amendments.

                    subpart b--salary offset authority

Sec. 5221. Enhancement of salary offset authority.

                  subpart c--taxpayer identifying numbers

Sec. 5231. Access to debtor information.
Sec. 5232. Barring delinquent Federal debtors from obtaining Federal 
          loans or loan guarantees.

      subpart d--expansion and enhancement of collection authorities

Sec. 5241. Disclosure to consumer reporting agencies and commercial 
          reporting agencies.
Sec. 5242. Contracts for collection services.
Sec. 5243. Cross-servicing partnerships and centralization of debt 
          collection activities in the Department of the Treasury.
Sec. 5244. Compromise of claims.
Sec. 5245. Wage garnishment requirement.
Sec. 5246. Debt sales by agencies.
Sec. 5247. Adjustments of administrative debt.
Sec. 5248. Dissemination of information regarding identity of delinquent 
          debtors.

                subpart e--federal civil monetary penalties

Sec. 5251. Adjusting Federal civil monetary penalties for inflation.

                          subpart f--gain sharing

Sec. 5261. Debt collection improvement account.

                  subpart g--tax refund offset authority

Sec. 5271. Expanding tax refund offset authority.
Sec. 5272. Expanding authority to collect past-due support.

                         subpart h--disbursements

Sec. 5281. Electronic funds transfer.
Sec. 5282. Requirement to include taxpayer identifying number with 
          payment voucher.

                         subpart i--miscellaneous

Sec. 5291. Miscellaneous amendments to definitions.
Sec. 5292. Monitoring and reporting.
Sec. 5293. Review of standards and policies for compromise or write-down 
          of delinquent debts.

                    Part II--Justice Debt Management

Sec. 5301. Expanded use of private attorneys.
Sec. 5302. Nonjudicial foreclosure of mortgages.

SEC. 5203. EFFECTIVE DATE.

  Except as otherwise provided in this subtitle, the provisions 
of this subtitle and the amendments made by this subtitle shall 
become effective October 1, 1995.

SEC. 5204. PURPOSES.

  The purposes of this subtitle are the following:
          (1) To maximize collections of delinquent debts owed 
        to the Government by ensuring quick action to enforce 
        recovery of debts and the use of all appropriate 
        collection tools.
          (2) To minimize the costs of debt collection by 
        consolidating related functions and activities and 
        utilizing interagency teams.
          (3) To reduce losses arising from debt management 
        activities by requiring proper screening of potential 
        borrowers, aggressive monitoring of all accounts, and 
        sharing of information within and among Federal 
        agencies.
          (4) To ensure that the public is fully informed of 
        the Federal Government's debt collection policies and 
        that debtors are cognizant of their financial 
        obligations to repay amounts owed to the Federal 
        Government.
          (5) To ensure that debtors have all appropriate due 
        process rights, including the ability to verify, 
        challenge, and compromise claims, and access to 
        administrative appeals procedures which are both 
        reasonable and protect the interests of the United 
        States.
          (6) To encourage agencies, when appropriate, to sell 
        delinquent debt, particularly debts with underlying 
        collateral.
          (7) To rely on the experience and expertise of 
        private sector professionals to provide debt collection 
        services to Federal agencies.

              PART I--GENERAL DEBT COLLECTION INITIATIVES

                  Subpart A--General Offset Authority

SEC. 5211. EXPANSION OF ADMINISTRATIVE OFFSET AUTHORITY.

  Chapter 37 of title 31, United States Code, is amended--
          (1) in each of sections 3711, 3716, 3717, and 3718, 
        by striking ``the head of an executive or legislative 
        agency'' each place it appears and inserting ``the head 
        of an executive, judicial, or legislative agency''; and
          (2) by amending section 3701(a)(4) to read as 
        follows:
          ``(4) `executive, judicial, or legislative agency' 
        means a department, agency, court, court administrative 
        office, or instrumentality in the executive, judicial, 
        or legislative branch of government, including 
        government corporations.''.

SEC. 5212. ENHANCEMENT OF ADMINISTRATIVE OFFSET AUTHORITY.

  (a) Persons Subject to Administrative Offset.--Section 
3701(c) of title 31, United States Code, is amended to read as 
follows:
  ``(c) In sections 3716 and 3717 of this title, the term 
`person' does not include an agency of the United States 
Government.''.
  (b) Requirements and Procedures.--Section 3716 of title 31, 
United States Code, is amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) Before collecting a claim by administrative offset, the 
head of an executive, judicial, or legislative agency must 
either--
          ``(1) adopt, without change, regulations on 
        collecting by administrative offset promulgated by the 
        Department of Justice, the General Accounting Office, 
        or the Department of the Treasury; or
          ``(2) prescribe regulations on collecting by 
        administrative offset consistent with the regulations 
        referred to in paragraph (1).'';
          (2) by amending subsection (c)(2) to read as follows:
          ``(2) when a statute explicitly prohibits using 
        administrative offset or setoff to collect the claim or 
        type of claim involved.'';
          (3) by redesignating subsection (c) as subsection 
        (e); and
          (4) by inserting after subsection (b) the following 
        new subsections:
  ``(c)(1)(A) Except as otherwise provided in this subsection, 
a disbursing official of the Department of the Treasury, the 
Department of Defense, the United States Postal Service, or any 
other government corporation, or any disbursing official of the 
United States designated by the Secretary of the Treasury, 
shall offset at least annually the amount of a payment which a 
payment certifying agency has certified to the disbursing 
official for disbursement, by an amount equal to the amount of 
a claim which a creditor agency has certified to the Secretary 
of the Treasury pursuant to this subsection.
  ``(B) An agency that designates disbursing officials pursuant 
to section 3321(c) of this title is not required to certify 
claims arising out of its operations to the Secretary of the 
Treasury before such agency's disbursing officials offset such 
claims.
  ``(C) Payments certified by the Department of Education under 
a program administered by the Secretary of Education under 
title IV of the Higher Education Act of 1965 shall not be 
subject to administrative offset under this subsection.
  ``(2) Neither the disbursing official nor the payment 
certifying agency shall be liable--
          ``(A) for the amount of the administrative offset on 
        the basis that the underlying obligation, represented 
        by the payment before the administrative offset was 
        taken, was not satisfied; or
          ``(B) for failure to provide timely notice under 
        paragraph (8).
  ``(3) The Secretary of the Treasury shall exempt from 
administrative offset under this subsection payments under 
means-tested programs when requested by the head of the 
respective agency. The Secretary may exempt other payments from 
administrative offset under this subsection upon the written 
request of the head of a payment certifying agency. A written 
request for exemption of other payments must provide 
justification for the exemption under standards prescribed by 
the Secretary. Such standards shall give due consideration to 
whether administrative offset would tend to interfere 
substantially with or defeat the purposes of the payment 
certifying agency's program. The Secretary shall report to the 
Congress annually on exemptions granted under this section.
  ``(4) The Secretary of the Treasury may charge a fee 
sufficient to cover the full cost of implementing this 
subsection. The fee may be collected either by the retention of 
a portion of amounts collected pursuant to this subsection, or 
by billing the agency referring or transferring a claim for 
those amounts. Fees charged to the agencies shall be based on 
actual administrative offsets completed. Amounts received by 
the United States as fees under this subsection shall be 
deposited into the account of the Department of the Treasury 
under section 3711(g)(4) of this title, and shall be collected 
and accounted for in accordance with the provisions of that 
section.
  ``(5) The Secretary of the Treasury may disclose to a 
creditor agency the current address of any payee and any data 
related to certifying and authorizing payments to a payee in 
accordance with section 552a of title 5, United States Code, 
even if the payment has been exempt from administrative offset. 
If a payment is made electronically, the Secretary may obtain 
the current address of the payee from the institution receiving 
the payment. Upon request by the Secretary, the institution 
receiving the payment shall report the current address of the 
payee to the Secretary.
  ``(6) The Secretary of the Treasury may prescribe such rules, 
regulations, and procedures as the Secretary of the Treasury 
considers necessary to carry out this subsection. The Secretary 
shall consult with the heads of affected agencies in the 
development of such rules, regulations, and procedures.
  ``(7) Any Federal agency that is owed by a person a past due, 
legally enforceable nontax debt that is over 180 days 
delinquent, including nontax debt administered by a third party 
acting as an agent for the Federal Government, shall notify the 
Secretary of the Treasury of all such nontax debts for purposes 
of administrative offset under this subsection.
  ``(8)(A) The disbursing official conducting an administrative 
offset with respect to a payment to a payee shall notify the 
payee in writing of--
          ``(i) the occurrence of the administrative offset to 
        satisfy a past due legally enforceable debt, including 
        a description of the type and amount of the payment 
        otherwise payable to the payee against which the offset 
        was executed;
          ``(ii) the identity of the creditor agency requesting 
        the offset; and
          ``(iii) a contact point within the creditor agency 
        that will handle concerns regarding the offset.
  ``(B) If the payment to be offset is a periodic benefit 
payment, the disbursing official shall take reasonable steps, 
as determined by the Secretary of the Treasury, to provide the 
notice to the payee not later than the date on which the payee 
is otherwise scheduled to receive the payment, or as soon as 
practical thereafter, but no later than the date of the 
administrative offset. Notwithstanding the preceding sentence, 
the failure of the debtor to receive such notice shall not 
impair the legality of such administrative offset.
  ``(9) A levy pursuant to the Internal Revenue Code of 1986 
shall take precedence over requests for administrative offset 
pursuant to other laws.
  ``(d) Nothing in this section is intended to prohibit the use 
of any other administrative offset authority existing under 
statute or common law.''.
  (c) Nontax Debt or Claim Defined.--Section 3701 of title 31, 
United States Code, is amended--
          (1) in subsection (b) by inserting ``and subsection 
        (a)(8) of this section'' after ``of this chapter''; and
          (2) in subsection (a) by adding at the end the 
        following new paragraph:
          ``(8) `nontax' means, with respect to any debt or 
        claim, any debt or claim other than a debt or claim 
        under the Internal Revenue Code of 1986.''.

SEC. 5213. EXEMPTION FROM COMPUTER MATCHING REQUIREMENTS UNDER THE 
                    PRIVACY ACT OF 1974.

  Section 3716 of title 31, United States Code, as amended by 
section 5212(b) of this subtitle, is further amended by adding 
at the end the following new subsections:
  ``(f) The Secretary may waive the requirements of sections 
552a(o) and (p) of title 5 for administrative offset or claims 
collection upon written certification by the head of the 
executive, judicial, or legislative agency seeking to collect 
the claim that the requirements of subsection (a) of this 
section have been met.
  ``(g) The Data Integrity Board of the Department of the 
Treasury established under 552a(u) of title 5 shall review and 
include in reports under paragraph (3)(D) of that section a 
description of any matching activities conducted under this 
section. If the Secretary has granted a waiver under subsection 
(f) of this section, no other Data Integrity Board is required 
to take any action under section 552a(u) of title 5.''.

SEC. 5214. USE OF ADMINISTRATIVE OFFSET AUTHORITY FOR DEBTS TO STATES.

  Section 3716 of title 31, United States Code, as amended by 
sections 5212 and 5213 of this subtitle, is further amended by 
adding at the end the following new subsection:
  ``(h)(1) The Secretary may, in the discretion of the 
Secretary, apply subsection (a) with respect to any past-due, 
legally-enforceable debt owed to a State if--
          ``(A) the appropriate State disbursing official 
        requests that an offset be performed; and
          ``(B) a reciprocal agreement with the State is in 
        effect which contains, at a minimum--
                  ``(i) requirements substantially equivalent 
                to subsection (b) of this section; and
                  ``(ii) any other requirements which the 
                Secretary considers appropriate to facilitate 
                the offset and prevent duplicative efforts.
  ``(2) This subsection does not apply to--
          ``(A) the collection of a debt or claim on which the 
        administrative costs associated with the collection of 
        the debt or claim exceed the amount of the debt or 
        claim;
          ``(B) any collection of any other type, class, or 
        amount of claim, as the Secretary considers necessary 
        to protect the interest of the United States; or
          ``(C) the disbursement of any class or type of 
        payment exempted by the Secretary of the Treasury at 
        the request of a Federal agency.''.

SEC. 5215. TECHNICAL AND CONFORMING AMENDMENTS.

  (a) Title 31.--Title 31, United States Code, is amended--
          (1) in section 3322(a), by inserting ``section 3716 
        and section 3720A of this title and'' after ``Except as 
        provided in'';
          (2) in section 3325(a)(3), by inserting ``or pursuant 
        to payment intercepts or offsets pursuant to section 
        3716 or 3720A of this title,'' after ``voucher''; and
          (3) in each of sections 3711(e)(2) and 3717(h) by 
        inserting ``, the Secretary of the Treasury,'' after 
        ``Attorney General''.
  (b) Internal Revenue Code of 1986.--Subsection 6103(l)(10)(A) 
of the Internal Revenue Code of 1986 (26 U.S.C. 6103(l)(10)(A)) 
is amended--
          (1) in subparagraph (A), by inserting ``and to 
        officers and employees of the Department of the 
        Treasury in connection with such reduction'' after 
        ``6402''; and
          (2) in subparagraph (B), by inserting ``and officers 
        and employees of the Department of the Treasury'' after 
        ``agency'' the first place it appears.

                   Subpart B--Salary Offset Authority

SEC. 5221. ENHANCEMENT OF SALARY OFFSET AUTHORITY.

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

                Subpart C--Taxpayer Identifying Numbers

SEC. 5231. ACCESS TO DEBTOR INFORMATION.

  Section 4 of the Debt Collection Act of 1982 (Public Law 97-
365, 96 Stat. 1749, 26 U.S.C. 6103 note) is amended--
          (1) in subsection (b), by striking ``For purposes of 
        this section'' and inserting ``For purposes of 
        subsection (a)''; and
          (2) by adding at the end the following new 
        subsections:
  ``(c) Federal Agencies.--
          ``(1) In general.--Each Federal agency shall require 
        each person doing business with that agency to furnish 
        to that agency such person's taxpayer identifying 
        number.
          ``(2) Doing business.--For purposes of this 
        subsection, a person shall be considered to be doing 
        business with a Federal agency if the person is--
                  ``(A) a lender or servicer in a Federal 
                guaranteed or insured loan program administered 
                by the agency;
                  ``(B) an applicant for, or recipient of--
                          ``(i) a Federal guaranteed, insured, 
                        or direct loan administered by the 
                        agency; or
                          ``(ii) a Federal license, permit, 
                        right-of-way, grant, or benefit payment 
                        administered by the agency or insurance 
                        administered by the agency;
                  ``(C) a contractor of the agency;
                  ``(D) assessed a fine, fee, royalty or 
                penalty by the agency; and
                  ``(E) in a relationship with the agency that 
                may give rise to a receivable due to that 
                agency, such as a partner of a borrower in or a 
                guarantor of a Federal direct or insured loan 
                administered by the agency.
          ``(3) Disclosure.--Each agency shall disclose to a 
        person required to furnish a taxpayer identifying 
        number under this subsection its intent to use such 
        number for purposes of collecting and reporting on any 
        delinquent amounts arising out of such person's 
        relationship with the Government.
          ``(4) Definitions.--For purposes of this subsection--
                  ``(A) the term `taxpayer identifying number' 
                has the meaning given such term in section 6109 
                of the Internal Revenue Code of 1986 (26 U.S.C. 
                6109); and
                  ``(B) the term `person'--
                          ``(i) subject to clause (ii), means 
                        an individual, sole proprietorship, 
                        partnership, corporation, or nonprofit 
                        organization, or any other form of 
                        business association; and
                          ``(ii) does not include debtors under 
                        third party claims of the United 
                        States, other than debtors owing claims 
                        resulting from petroleum pricing 
                        violations.
  ``(d) Access to Debtor Information.--Notwithstanding section 
552a(b) of title 5, United States Code, creditor agencies to 
which a delinquent claim is owed, and their agents, may match 
their debtor records with Department of Health and Human 
Services and Department of Labor records to obtain names 
(including names of employees), name controls, names of 
employers, social security account numbers, addresses 
(including addresses of employers), and dates of birth. The 
Department of Health and Human Services and the Department of 
Labor shall release that information to creditor agencies and 
may charge reasonable fees sufficient to pay the costs 
associated with that release.
  ``(e) Electronic Payments.--If a payment is made 
electronically by any executive, judicial, or legislative 
agency, the Secretary of the Treasury may obtain from the 
institution receiving the payment the taxpayer identification 
number of any joint holder of the account to which the payment 
is made. Upon request of the Secretary, the institution 
receiving the payment shall report the taxpayer identification 
number of the joint holder to the Secretary.''.

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

  (a) In General.--Title 31, United States Code, is amended by 
inserting after section 3720A the following new section:

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

  ``(a) Unless this subsection is waived by the head of a 
Federal agency, a person may not obtain any Federal financial 
assistance in the form of a loan (other than a disaster loan) 
or loan guarantee administered by the agency if the person has 
an outstanding debt (other than a debt under the Internal 
Revenue Code of 1986) with any Federal agency which is in a 
delinquent status, as determined under standards prescribed by 
the Secretary of the Treasury. Such a person may obtain 
additional loans or loan guarantees only after such delinquency 
is resolved in accordance with those standards. The Secretary 
of the Treasury may exempt, at the request of an agency, any 
class of claims.
  ``(b) The head of a Federal agency may delegate the waiver 
authority under subsection (a) to the Chief Financial Officer 
of the agency. The waiver authority may be redelegated only to 
the Deputy Chief Financial Officer of the agency.
  ``(c) For purposes of this section, the term `person' means--
          ``(1) an individual; or
          ``(2) any sole proprietorship, partnership, 
        corporation, nonprofit organization, or other form of 
        business association.''.
  (b) Clerical Amendment.--The table of sections for subchapter 
II of chapter 37 of title 31, United States Code, is amended by 
inserting after the item relating to section 3720A the 
following new item:

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

     Subpart D--Expansion and Enhancement of Collection Authorities

SEC. 5241. DISCLOSURE TO CONSUMER REPORTING AGENCIES AND COMMERCIAL 
                    REPORTING AGENCIES.

  Section 3711(f) of title 31, United States Code, is amended--
          (1) by striking ``may'' the first place it appears 
        and inserting ``shall'';
          (2) by striking ``an individual'' each place it 
        appears and inserting ``a covered person'';
          (3) by striking ``the individual'' each place it 
        appears and inserting ``the covered person''; and
          (4) by adding at the end the following new 
        paragraphs:
  ``(4) The head of each executive agency shall require, as a 
condition for guaranteeing any loan, financing, or other 
extension of credit under any law to a covered person, that the 
lender provide information relating to the extension of credit 
to consumer reporting agencies or commercial reporting 
agencies, as appropriate.
  ``(5) The head of each executive agency may provide to a 
consumer reporting agency or commercial reporting agency 
information from a system of records that a covered person is 
responsible for a claim which is current, if notice required by 
section 552a(e)(4) of title 5 indicates that information in the 
system may be disclosed to a consumer reporting agency or 
commercial reporting agency, respectively.
  ``(6) In this subsection, the term `covered person' means an 
individual, a sole proprietorship, a corporation (including a 
nonprofit corporation), or any other form of business 
association.''.

SEC. 5242. CONTRACTS FOR COLLECTION SERVICES.

  Section 3718 of title 31, United States Code, is amended--
          (1) in subsection (a), by striking the first sentence 
        and inserting the following: ``Under conditions the 
        head of an executive, judicial, or legislative agency 
        considers appropriate, the head of the agency may enter 
        into a contract with a person for collection service to 
        recover indebtedness owed, or to locate or recover 
        assets of, the United States Government. The head of an 
        agency may not enter into a contract under the 
        preceding sentence to locate or recover assets of the 
        United States held by a State government or financial 
        institution unless that agency has established 
        procedures approved by the Secretary of the Treasury to 
        identify and recover such assets.''; and
          (2) in subsection (d), by inserting ``, or to locate 
        or recover assets of,'' after ``owed''.

SEC. 5243. CROSS-SERVICING PARTNERSHIPS AND CENTRALIZATION OF DEBT 
                    COLLECTION ACTIVITIES IN THE DEPARTMENT OF THE 
                    TREASURY.

  Section 3711 of title 31, United States Code, is amended by 
adding at the end the following new subsections:
  ``(g)(1) If a nontax debt or claim owed to the United States 
has been delinquent for a period of 180 days--
          ``(A) the head of the executive, judicial, or 
        legislative agency that administers the program that 
        gave rise to the debt or claim shall transfer the debt 
        or claim to the Secretary of the Treasury; and
          ``(B) upon such transfer the Secretary of the 
        Treasury shall take appropriate action to collect or 
        terminate collection actions on the debt or claim.
  ``(2) Paragraph (1) shall not apply--
          ``(A) to any debt or claim that--
                  ``(i) is in litigation or foreclosure;
                  ``(ii) will be disposed of under an asset 
                sales program within 1 year after the date the 
                debt or claim is first delinquent, or a greater 
                period of time if a delay would be in the best 
                interests of the United States, as determined 
                by the Secretary of the Treasury;
                  ``(iii) has been referred to a private 
                collection contractor for collection for a 
                period of time determined by the Secretary of 
                the Treasury;
                  ``(iv) has been referred by, or with the 
                consent of, the Secretary of the Treasury to a 
                debt collection center for a period of time 
                determined by the Secretary of the Treasury; or
                  ``(v) will be collected under internal 
                offset, if such offset is sufficient to collect 
                the claim within 3 years after the date the 
                debt or claim is first delinquent; and
          ``(B) to any other specific class of debt or claim, 
        as determined by the Secretary of the Treasury at the 
        request of the head of an executive, judicial, or 
        legislative agency or otherwise.
  ``(3) For purposes of this section, the Secretary of the 
Treasury may designate, and withdraw such designation of debt 
collection centers operated by other Federal agencies. The 
Secretary of the Treasury shall designate such centers on the 
basis of their performance in collecting delinquent claims owed 
to the Government.
  ``(4) At the discretion of the Secretary of the Treasury, 
referral of a nontax claim may be made to--
          ``(A) any executive department or agency operating a 
        debt collection center for servicing, collection, 
        compromise, or suspension or termination of collection 
        action;
          ``(B) a contractor operating under a contract for 
        servicing or collection action; or
          ``(C) the Department of Justice for litigation.
  ``(5) nontax claims referred or transferred under this 
section shall be serviced, collected, or compromised, or 
collection action thereon suspended or terminated, in 
accordance with otherwise applicable statutory requirements and 
authorities. Executive departments and agencies operating debt 
collection centers may enter into agreements with the Secretary 
of the Treasury to carry out the purposes of this subsection. 
The Secretary of the Treasury shall--
          ``(A) maintain competition in carrying out this 
        subsection;
          ``(B) maximize collections of delinquent debts by 
        placing delinquent debts quickly;
          ``(C) maintain a schedule of contractors and debt 
        collection centers eligible for referral of claims; and
          ``(D) refer delinquent debts to the person most 
        appropriate to collect the type or amount of claim 
        involved.
  ``(6) Any agency operating a debt collection center to which 
nontax claims are referred or transferred under this subsection 
may charge a fee sufficient to cover the full cost of 
implementing this subsection. The agency transferring or 
referring the nontax claim shall be charged the fee, and the 
agency charging the fee shall collect such fee by retaining the 
amount of the fee from amounts collected pursuant to this 
subsection. Agencies may agree to pay through a different 
method, or to fund an activity from another account or from 
revenue received from the procedure described under section 
3720C of this title. Amounts charged under this subsection 
concerning delinquent claims may be considered as costs 
pursuant to section 3717(e) of this title.
  ``(7) Notwithstanding any other law concerning the depositing 
and collection of Federal payments, including section 3302(b) 
of this title, agencies collecting fees may retain the fees 
from amounts collected. Any fee charged pursuant to this 
subsection shall be deposited into an account to be determined 
by the executive department or agency operating the debt 
collection center charging the fee (in this subsection referred 
to in this section as the `Account'). Amounts deposited in the 
Account shall be available until expended to cover costs 
associated with the implementation and operation of 
Governmentwide debt collection activities. Costs properly 
chargeable to the Account include--
          ``(A) the costs of computer hardware and software, 
        word processing and telecommunications equipment, and 
        other equipment, supplies, and furniture;
          ``(B) personnel training and travel costs;
          ``(C) other personnel and administrative costs;
          ``(D) the costs of any contract for identification, 
        billing, or collection services; and
          ``(E) reasonable costs incurred by the Secretary of 
        the Treasury, including services and utilities provided 
        by the Secretary, and administration of the Account.
  ``(8) Not later than January 1 of each year, there shall be 
deposited into the Treasury as miscellaneous receipts an amount 
equal to the amount of unobligated balances remaining in the 
Account at the close of business on September 30 of the 
preceding year, minus any part of such balance that the 
executive department or agency operating the debt collection 
center determines is necessary to cover or defray the costs 
under this subsection for the fiscal year in which the deposit 
is made.
  ``(9) To carry out the purposes of this subsection, the 
Secretary of the Treasury may prescribe such rules, 
regulations, and procedures as the Secretary considers 
necessary.
  ``(h)(1) The head of an executive, judicial, or legislative 
agency acting under subsection (a)(1), (2), or (3) of this 
section to collect a claim, compromise a claim, or terminate 
collection action on a claim may obtain a consumer report (as 
that term is defined in section 603 of the Fair Credit 
Reporting Act (15 U.S.C. 1681a)) or comparable credit 
information on any person who is liable for the claim.
  ``(2) The obtaining of a consumer report under this 
subsection is deemed to be a circumstance or purpose authorized 
or listed under section 604 of the Fair Credit Reporting Act 
(15 U.S.C. 1681b).''.

SEC. 5244. COMPROMISE OF CLAIMS.

  Section 11 of the Administrative Dispute Resolution Act 
(Public Law 101-552, 104 Stat. 2736, 5 U.S.C. 571 note) is 
amended by adding at the end the following sentence: ``This 
section shall not apply to section 8(b) of this Act.''.

SEC. 5245. WAGE GARNISHMENT REQUIREMENT.

  (a) In General.--Chapter 37 of title 31, United States Code, 
is amended in subchapter II by adding after section 3720C, as 
added by section 5261 of this subtitle, the following new 
section:

``Sec. 3720D. Garnishment

  ``(a) Notwithstanding any provision of State law, the head of 
an executive, judicial, or legislative agency that administers 
a program that gives rise to a delinquent nontax debt owed to 
the United States by an individual may in accordance with this 
section garnish the disposable pay of the individual to collect 
the amount owed, if the individual is not currently making 
required repayment in accordance with any agreement between the 
agency head and the individual.
  ``(b) In carrying out any garnishment of disposable pay of an 
individual under subsection (a), the head of an executive, 
judicial, or legislative agency shall comply with the following 
requirements:
          ``(1) The amount deducted under this section for any 
        pay period may not exceed 15 percent of disposable pay, 
        except that a greater percentage may be deducted with 
        the written consent of the individual.
          ``(2) The individual shall be provided written 
        notice, sent by mail to the individual's last known 
        address, a minimum of 30 days prior to the initiation 
        of proceedings, from the head of the executive, 
        judicial, or legislative agency, informing the 
        individual of--
                  ``(A) the nature and amount of the debt to be 
                collected;
                  ``(B) the intention of the agency to initiate 
                proceedings to collect the debt through 
                deductions from pay; and
                  ``(C) an explanation of the rights of the 
                individual under this section.
          ``(3) The individual shall be provided an opportunity 
        to inspect and copy records relating to the debt.
          ``(4) The individual shall be provided an opportunity 
        to enter into a written agreement with the executive, 
        judicial, or legislative agency, under terms agreeable 
        to the head of the agency, to establish a schedule for 
        repayment of the debt.
          ``(5) The individual shall be provided an opportunity 
        for a hearing in accordance with subsection (c) on the 
        determination of the head of the executive, judicial, 
        or legislative agency concerning--
                  ``(A) the existence or the amount of the 
                debt, and
                  ``(B) in the case of an individual whose 
                repayment schedule is established other than by 
                a written agreement pursuant to paragraph (4), 
                the terms of the repayment schedule.
          ``(6) If the individual has been reemployed within 12 
        months after having been involuntarily separated from 
        employment, no amount may be deducted from the 
        disposable pay of the individual until the individual 
        has been reemployed continuously for at least 12 
        months.
  ``(c)(1) A hearing under subsection (b)(5) shall be provided 
prior to issuance of a garnishment order if the individual, on 
or before the 15th day following the mailing of the notice 
described in subsection (b)(2), and in accordance with such 
procedures as the head of the executive, judicial, or 
legislative agency may prescribe, files a petition requesting 
such a hearing.
  ``(2) If the individual does not file a petition requesting a 
hearing prior to such date, the head of the agency shall 
provide the individual a hearing under subsection (a)(5) upon 
request, but such hearing need not be provided prior to 
issuance of a garnishment order.
  ``(3) The hearing official shall issue a final decision at 
the earliest practicable date, but not later than 60 days after 
the filing of the petition requesting the hearing.
  ``(d) The notice to the employer of the withholding order 
shall contain only such information as may be necessary for the 
employer to comply with the withholding order.
  ``(e)(1) An employer may not discharge from employment, 
refuse to employ, or take disciplinary action against an 
individual subject to wage withholding in accordance with this 
section by reason of the fact that the individual's wages have 
been subject to garnishment under this section, and such 
individual may sue in a State or Federal court of competent 
jurisdiction any employer who takes such action.
  ``(2) The court shall award attorneys' fees to a prevailing 
employee and, in its discretion, may order reinstatement of the 
individual, award punitive damages and back pay to the 
employee, or order such other remedy as may be reasonably 
necessary.
  ``(f)(1) The employer of an individual--
          ``(A) shall pay to the head of an executive, 
        judicial, or legislative agency as directed in a 
        withholding order issued in an action under this 
        section with respect to the individual, and
          ``(B) shall be liable for any amount that the 
        employer fails to withhold from wages due an employee 
        following receipt by such employer of notice of the 
        withholding order, plus attorneys' fees, costs, and, in 
        the court's discretion, punitive damages.
  ``(2)(A) The head of an executive, judicial, or legislative 
agency may sue an employer in a State or Federal court of 
competent jurisdiction to recover amounts for which the 
employer is liable under paragraph (1)(B).
  ``(B) A suit under this paragraph may not be filed before the 
termination of the collection action, unless earlier filing is 
necessary to avoid expiration of any applicable statute of 
limitations period.
  ``(3) Notwithstanding paragraphs (1) and (2), an employer 
shall not be required to vary its normal pay and disbursement 
cycles in order to comply with this subsection.
  ``(g) For the purpose of this section, the term `disposable 
pay' means that part of the compensation of any individual from 
an employer remaining after the deduction of any amounts 
required by any other law to be withheld.
  ``(h) The Secretary of the Treasury shall issue regulations 
to implement this section.''.
  (b) Clerical Amendment.--The table of sections for subchapter 
II of chapter 37 of title 31, United States Code, is amended by 
inserting after the item relating to section 3720C (as added by 
section 5261 of this subtitle) the following new item:

``3720D. Garnishment.''.

SEC. 5246. DEBT SALES BY AGENCIES.

  Section 3711 of title 31, United States Code, is further 
amended by adding at the end the following new subsection:
  ``(h)(1) The head of an executive, judicial, or legislative 
agency may sell, subject to section 504(b) of the Federal 
Credit Reform Act of 1990 and using competitive procedures, any 
nontax debt owed to the United States that is delinquent for 
more than 90 days. Appropriate fees charged by a contractor to 
assist in the conduct of a sale under this subsection may be 
payable from the proceeds of the sale.
  ``(2) After terminating collection action, the head of an 
executive, judicial, or legislative agency shall sell, using 
competitive procedures, any nontax debt or class of nontax 
debts owed to the United States, if the Secretary of the 
Treasury determines the sale is in the best interest of the 
United States.
  ``(3) Sales of nontax debt under this subsection--
          ``(A) shall be for--
                  ``(i) cash, or
                  ``(ii) cash and a residuary equity or profit 
                participation, if the head of the agency 
                reasonably determines that the proceeds will be 
                greater than sale solely for cash,
          ``(B) shall be without recourse, but may include the 
        use of guarantees if otherwise authorized, and
          ``(C) shall transfer to the purchaser all rights of 
        the Government to demand payment of the nontax debt, 
        other than with respect to a residuary equity or profit 
        participation under subparagraph (A)(ii).
  ``(4)(A) Within one year after the date of enactment of the 
Debt Collection Improvement Act of 1995, and every year 
thereafter, each executive agency with current and delinquent 
collateralized nontax debts shall report to the Congress on the 
valuation of its existing portfolio of loans, notes and 
guarantees, and other collateralized debts based on standards 
developed by the Director of the Office of Management and 
Budget, in consultation with the Secretary of the Treasury.
  ``(B) The Director of the Office of Management and Budget 
shall determine what information is required to be reported to 
comply with subparagraph (A). At a minimum, for each financing 
account and for each liquidating account (as those terms are 
defined in sections 502(7) and 502(8), respectively, of the 
Federal Credit Reform Act of 1990) the following information 
shall be reported:
          ``(i) The cumulative balance of current debts 
        outstanding, the estimated net present value of such 
        debts, the annual administrative expenses of those 
        debts (including the portion of salaries and expenses 
        that are directly related thereto), and the estimated 
        net proceeds that would be received by the Government 
        if such debts were sold.
          ``(ii) The cumulative balance of delinquent debts, 
        debts outstanding, the estimated net present value of 
        such debts, the annual administrative expenses of those 
        debts (including the portion of salaries and expenses 
        that are directly related thereto), and the estimated 
        net proceeds that would be received by the Government 
        if such debts were sold.
          ``(iii) The cumulative balance of guaranteed loans 
        outstanding, the estimated net present value of such 
        guarantees, the annual administrative expenses of such 
        guarantees (including the portion of salaries and 
        expenses that are directly related to such guaranteed 
        loans), and the estimated net proceeds that would be 
        received by the Government if such loan guarantees were 
        sold.
          ``(iv) The cumulative balance of defaulted loans that 
        were previously guaranteed and have resulted in loans 
        receivables, the estimated net present value of such 
        loan assets, the annual administrative expenses of such 
        loan assets (including the portion of salaries and 
        expenses that are directly related to such loan 
        assets), and the estimated net proceeds that would be 
        received by the Government if such loan assets were 
        sold.
          ``(v) The marketability of all debts.
  ``(5) This subsection is not intended to limit existing 
statutory authority of agencies to sell loans, debts, or other 
assets.''.

SEC. 5247. ADJUSTMENTS OF ADMINISTRATIVE DEBT.

  Section 3717 of title 31, United States Code, is amended by 
adding at the end of subsection (h) the following new 
subsection:
  ``(i)(1) The head of an executive, judicial, or legislative 
agency may increase an administrative claim by the cost of 
living adjustment in lieu of charging interest and penalties 
under this section. Adjustments under this subsection will be 
computed annually.
  ``(2) For the purpose of this subsection--
          ``(A) the term `cost of living adjustment' means the 
        percentage by which the Consumer Price Index for the 
        month of June of the calendar year preceding the 
        adjustment exceeds the Consumer Price Index for the 
        month of June of the calendar year in which the claim 
        was determined or last adjusted; and
          ``(B) the term `administrative claim' includes all 
        debt that is not based on an extension of Government 
        credit through direct loans, loan guarantees, or 
        insurance, including fines, penalties, and 
        overpayments.''.

SEC. 5248. DISSEMINATION OF INFORMATION REGARDING IDENTITY OF 
                    DELINQUENT DEBTORS.

  (a) In General.--Chapter 37 of title 31, United States Code, 
is amended in subchapter II by adding after section 3720D, as 
added by section 5245 of this subtitle, the following new 
section:

``Sec. 3720E. Dissemination of information regarding identity of 
                    delinquent debtors

  ``(a) The head of any agency may, with the review of the 
Secretary of the Treasury, for the purpose of collecting any 
delinquent nontax debt owed by any person, publish or otherwise 
publicly disseminate information regarding the identity of the 
person and the existence of the nontax debt.
  ``(b)(1) The Secretary of the Treasury, in consultation with 
the Director of the Office of Management and Budget and the 
heads of other appropriate Federal agencies, shall issue 
regulations establishing procedures and requirements the 
Secretary considers appropriate to carry out this section.
  ``(2) Regulations under this subsection shall include--
          ``(A) standards for disseminating information that 
        maximize collections of delinquent nontax debts, by 
        directing actions under this section toward delinquent 
        debtors that have assets or income sufficient to pay 
        their delinquent nontax debt;
          ``(B) procedures and requirements that prevent 
        dissemination of information under this section 
        regarding persons who have not had an opportunity to 
        verify, contest, and compromise their nontax debt in 
        accordance with this subchapter; and
          ``(C) procedures to ensure that persons are not 
        incorrectly identified pursuant to this section.''.
  (b) Clerical Amendment.--The table of sections for subchapter 
II of chapter 37 of title 31, United States Code, is amended by 
adding after the item relating to section 3720D (as added by 
section 5245 of this subtitle) the following new item:

``3720E. Dissemination of information regarding identity of delinquent 
          debtors.''.

              Subpart E--Federal Civil Monetary Penalties

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

  (a) In General.--The Federal Civil Penalties Inflation 
Adjustment Act of 1990 (Public Law 101-410, 104 Stat. 890; 28 
U.S.C. 2461 note) is amended--
          (1) by amending section 4 to read as follows:
  ``Sec. 4. The head of each agency shall, not later than 180 
days after the date of enactment of the Debt Collection 
Improvement Act of 1995, and at least once every 4 years 
thereafter--
          ``(1) by regulation adjust each civil monetary 
        penalty provided by law within the jurisdiction of the 
        Federal agency, except for any penalty (including any 
        addition to tax and additional amount) under the 
        Internal Revenue Code of 1986, the Tarriff Act of 1930, 
        or the Social Security Act, by the inflation adjustment 
        described under section 5 of this Act; and
          ``(2) publish each such regulation in the Federal 
        Register.'';
          (2) in section 5(a), by striking ``The adjustment 
        described under paragraphs (4) and (5)(A) of section 
        4'' and inserting ``The inflation adjustment under 
        section 4''; and
          (3) by adding at the end the following new section:
  ``Sec. 7. Any increase under this Act in a civil monetary 
penalty shall apply only to violations which occur after the 
date the increase takes effect.''.
  (b) Limitation on Initial Adjustment.--The first adjustment 
of a civil monetary penalty made pursuant to the amendment made 
by to subsection (a) may not exceed 10 percent of such penalty.

                        Subpart F--Gain Sharing

SEC. 5261. DEBT COLLECTION IMPROVEMENT ACCOUNT.

  (a) In General.--Title 31, United States Code, is amended by 
inserting after section 3720B (as added by section 5232 of this 
subtitle) the following new section:

``Sec. 3720C. Debt Collection Improvement Account

  ``(a)(1) There is hereby established in the Treasury a 
special fund to be known as the `Debt Collection Improvement 
Account' (hereinafter in this section referred to as the 
`Account').
  ``(2) The Account shall be maintained and managed by the 
Secretary of the Treasury, who shall ensure that agency 
programs are credited with amounts transferred under subsection 
(b)(1).
  ``(b)(1) Not later than 30 days after the end of a fiscal 
year, an agency may transfer to the Account the amount 
described in paragraph (3), as adjusted under paragraph (4).
  ``(2) Agency transfers to the Account may include collections 
from--
          ``(A) salary, administrative, and tax refund offsets;
          ``(B) automated levy authority;
          ``(C) the Department of Justice;
          ``(D) private collection agencies;
          ``(E) sales of delinquent loans; and
          ``(F) contracts to locate or recover assets.
  ``(3) The amount referred to in paragraph (1) shall be 5 
percent of the amount of delinquent debt collected by an agency 
in a fiscal year, minus the greater of--
          ``(A) 5 percent of the amount of delinquent nontax 
        debt collected by the agency in the previous fiscal 
        year, or
          ``(B) 5 percent of the amount of delinquent nontax 
        debt collected by the agency in the previous 4 fiscal 
        years.
  ``(4) In consultation with the Secretary of the Treasury, the 
Office of Management and Budget may adjust the amount described 
in paragraph (3) for an agency to reflect the level of effort 
in credit management programs by the agency. As an indicator of 
the level of effort in credit management, the Office of 
Management and Budget shall consider the following:
          ``(A) The number of days between the date a claim or 
        debt became delinquent and the date which an agency 
        referred the debt or claim to the Secretary of the 
        Treasury or obtained an exemption from this referral 
        under section 3711(g)(2) of this title.
          ``(B) The ratio of delinquent debts or claims to 
        total receivables for a given program, and the change 
        in this ratio over a period of time.
  ``(c)(1) The Secretary of the Treasury may make payments from 
the Account solely to reimburse agencies for qualified 
expenses. For agencies with franchise funds, such payments may 
be credited to subaccounts designated for debt collection.
  ``(2) For purposes of this section, the term `qualified 
expenses' means expenditures for the improvement of credit 
management, debt collection, and debt recovery activities, 
including--
          ``(A) account servicing (including cross-servicing 
        under section 3711(g) of this title),
          ``(B) automatic data processing equipment 
        acquisitions,
          ``(C) delinquent debt collection,
          ``(D) measures to minimize delinquent debt,
          ``(E) sales of delinquent debt,
          ``(F) asset disposition, and
          ``(G) training of personnel involved in credit and 
        debt management.
  ``(3)(A) Amounts in the Account shall be available to the 
Secretary of the Treasury for purposes of this section to the 
extent and in amounts provided in advance in appropriation 
Acts.
  ``(B) As soon as practicable after the end of the third 
fiscal year after which appropriations are made pursuant to 
this section, and every 3 years thereafter, any unappropriated 
balance in the Account shall be transferred to the general fund 
of the Treasury as miscellaneous receipts.
  ``(d) For direct loans and loan guarantee programs subject to 
title V of the Congressional Budget Act of 1974, amounts 
credited in accordance with subsection (c) shall be considered 
administrative costs.
  ``(e) The Secretary of the Treasury shall prescribe such 
rules, regulations, and procedures as the Secretary considers 
necessary or appropriate to carry out the purposes of this 
section.''.
  (b) Clerical Amendment.--The table of sections for chapter 37 
of title 31, United States Code, is amended by inserting after 
the item relating to section 3720B (as added by section 5232 of 
this subtitle) the following new item:

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

                 Subpart G--Tax Refund Offset Authority

SEC. 5271. EXPANDING TAX REFUND OFFSET AUTHORITY.

  (a) Discretionary Authority.--Section 3720A of title 31, 
United States Code, is amended by adding after subsection (h) 
the following new subsection:
  ``(i) An agency subject to section 9 of the Act of May 18, 
1933 (16 U.S.C. 831h), may implement this section at its 
discretion.''.
  (b) Federal Agency Defined.--Section 6402(f) of the Internal 
Revenue Code of 1986 (26 U.S.C. 6402(f)), is amended to read as 
follows:
  ``(f) Federal Agency.--For purposes of this section, the term 
`Federal agency' means a department, agency, or instrumentality 
of the United States, and includes a Government corporation (as 
such term is defined in section 103 of title 5, United States 
Code).''.

SEC. 5272. EXPANDING AUTHORITY TO COLLECT PAST-DUE SUPPORT.

  (a) Notification of Secretary of the Treasury.--Section 
3720A(a) of title 31, United States Code, is amended to read as 
follows:
  ``(a) Any Federal agency that is owed by a person a past-due, 
legally enforceable debt (including debt administered by a 
third party acting as an agent for the Federal Government) 
shall, and any agency subject to section 9 of the Act of May 
18, 1933 (16 U.S.C. 831h), owed such a debt may, in accordance 
with regulations issued pursuant to subsections (b) and (d), 
notify the Secretary of the Treasury at least once each year of 
the amount of such debt.''.
  (b) Implementation of Support Collection by Secretary of the 
Treasury.--Section 464(a) of the Act of August 14, 1935 (42 
U.S.C. 664(a)) is amended--
          (1) in paragraph (1), by adding at the end the 
        following: ``This subsection may be executed by the 
        disbursing official of the Department of the 
        Treasury.''; and
          (2) in paragraph (2)(A), by adding at the end the 
        following: ``This subsection may be executed by the 
        disbursing official of the Department of the 
        Treasury.''.

                        Subpart H--Disbursements

SEC. 5281. ELECTRONIC FUNDS TRANSFER.

  Section 3332 of title 31, United States Code, popularly known 
as the Federal Financial Management Act of 1994, is amended--
          (1) by redesignating subsection (e) as subsection 
        (h), and inserting after subsection (d) the following 
        new subsections:
  ``(e)(1) Notwithstanding subsections (a) through (d) of this 
section, sections 5120(a) and (d) of title 38, and any other 
provision of law, all Federal payments to a recipient who 
becomes eligible for that type of payments after 90 days after 
the date of the enactment of the Debt Collection Improvement 
Act of 1995 shall be made by electronic funds transfer.
  ``(2) The head of a Federal agency shall, with respect to 
Federal payments made or authorized by the agency, waive the 
application of paragraph (1) to a recipient of those payments 
upon receipt of written certification from the recipient that 
the recipient does not have an account with a financial 
institution or an authorized payment agent.
  ``(f)(1) Notwithstanding any other provision of law 
(including subsections (a) through (e) of this section and 
sections 5120(a) and (d) of title 38), except as provided in 
paragraph (2) all Federal payments made after January 1, 1999, 
shall be made by electronic funds transfer.
  ``(2)(A) The Secretary of the Treasury may waive application 
of this subsection to payments--
          ``(i) for individuals or classes of individuals for 
        whom compliance imposes a hardship;
          ``(ii) for classifications or types of checks; or
          ``(iii) in other circumstances as may be necessary.
  ``(B) The Secretary of the Treasury shall make determinations 
under subparagraph (A) based on standards developed by the 
Secretary.
  ``(g) Each recipient of Federal payments required to be made 
by electronic funds transfer shall--
          ``(1) designate 1 or more financial institutions or 
        other authorized agents to which such payments shall be 
        made; and
          ``(2) provide to the Federal agency that makes or 
        authorizes the payments information necessary for the 
        recipient to receive electronic funds transfer payments 
        through each institution or agent designated under 
        paragraph (1).''; and
          (2) by adding after subsection (h) (as so 
        redesignated) the following new subsections:
  ``(i)(1) The Secretary of the Treasury may prescribe 
regulations that the Secretary considers necessary to carry out 
this section.
  ``(2) Regulations under this subsection shall ensure that 
individuals required under subsection (g) to have an account at 
a financial institution because of the application of 
subsection (f)(1)--
          ``(A) will have access to such an account at a 
        reasonable cost; and
          ``(B) are given the same consumer protections with 
        respect to the account as other account holders at the 
        same financial institution.
  ``(j) For purposes of this section--
          ``(1) The term `electronic funds transfer' means any 
        transfer of funds, other than a transaction originated 
        by cash, check, or similar paper instrument, that is 
        initiated through an electronic terminal, telephone, 
        computer, or magnetic tape, for the purpose of 
        ordering, instructing, or authorizing a financial 
        institution to debit or credit an account. The term 
        includes Automated Clearing House transfers, Fed Wire 
        transfers, transfers made at automatic teller machines, 
        and point-of-sale terminals.
          ``(2) The term `Federal agency' means--
                  ``(A) an agency (as defined in section 101 of 
                this title); and
                  ``(B) a Government corporation (as defined in 
                section 103 of title 5).
          ``(3) The term `Federal payments' includes--
                  ``(A) Federal wage, salary, and retirement 
                payments;
                  ``(B) vendor and expense reimbursement 
                payments; and
                  ``(C) benefit payments.
        Such term shall not include any payment under the 
        Internal Revenue Code of 1986.''

SEC. 5282. REQUIREMENT TO INCLUDE TAXPAYER IDENTIFYING NUMBER WITH 
                    PAYMENT VOUCHER.

  Section 3325 of title 31, United States Code, is amended by 
adding at the end the following new subsection:
  ``(d) The head of an executive agency or an officer or 
employee of an executive agency referred to in subsection 
(a)(1)(B), as applicable, shall include with each certified 
voucher submitted to a disbursing official pursuant to this 
section the taxpayer identifying number of each person to whom 
payment may be made under the voucher.''.

                        Subpart I--Miscellaneous

SEC. 5291. MISCELLANEOUS AMENDMENTS TO DEFINITIONS.

  Section 3701 of title 31, United States Code, is amended--
          (1) by amending subsection (a)(1) to read as follows:
          ``(1) `administrative offset' means withholding funds 
        payable by the United States (including funds payable 
        by the United States on behalf of a State government) 
        to, or held by the United States for, a person to 
        satisfy a claim.'';
          (2) by amending subsection (b) to read as follows:
  ``(b)(1) In subchapter II of this chapter, the term `claim' 
or `debt' means any amount of funds or property that has been 
determined by an appropriate official of the Federal Government 
to be owed to the United States by a person, organization, or 
entity other than another Federal agency. A claim includes, 
without limitation--
          ``(A) funds owed on account of loans made, insured, 
        or guaranteed by the Government, including any 
        deficiency or any difference between the price obtained 
        by the Government in the sale of a property and the 
        amount owed to the Government on a mortgage on the 
        property,
          ``(B) expenditures of nonappropriated funds,
          ``(C) over-payments, including payments disallowed by 
        audits performed by the Inspector General of the agency 
        administering the program,
          ``(D) any amount the United States is authorized by 
        statute to collect for the benefit of any person,
          ``(E) the unpaid share of any non-Federal partner in 
        a program involving a Federal payment and a matching, 
        or cost-sharing, payment by the non-Federal partner,
          ``(F) any fines or penalties assessed by an agency; 
        and
          ``(G) other amounts of money or property owed to the 
        Government.
  ``(2) For purposes of sections 3716 of this title, each of 
the terms `claim' and `debt' includes an amount of funds or 
property owed by a person to a State (including any past-due 
support being enforced by the State), the District of Columbia, 
American Samoa, Guam, the United States Virgin Islands, the 
Commonwealth of the Northern Mariana Islands, or the 
Commonwealth of Puerto Rico.''; and
          (3) by adding after subsection (f) (as added by 
        section 5241 of this subtitle) the following new 
        subsection:
  ``(g) In section 3716 of this title--
          ``(1) `creditor agency' means any agency owed a claim 
        that seeks to collect that claim through administrative 
        offset; and
          ``(2) `payment certifying agency' means any agency 
        that has transmitted a voucher to a disbursing official 
        for disbursement.''.

SEC. 5292. MONITORING AND REPORTING.

  (a) Guidelines.--The Secretary of the Treasury, in 
consultation with concerned Federal agencies, may establish 
guidelines, including information on outstanding debt, to 
assist agencies in the performance and monitoring of debt 
collection activities.
  (b) Report.--Not later than 3 years after the date of 
enactment of this subtitle, the Secretary of the Treasury shall 
report to the Congress on collection services provided by 
Federal agencies or entities collecting debt on behalf of other 
Federal agencies under the authorities contained in section 
3711(g) of title 31, United States Code, as added by section 
5243 of this subtitle.
  (c) Agency Reports.--Section 3719 of title 31, United States 
Code, is amended--
          (1) in subsection (a)--
                  (A) by amending the first sentence to read as 
                follows: ``In consultation with the Comptroller 
                General of the United States, the Secretary of 
                the Treasury shall prescribe regulations 
                requiring the head of each agency with 
                outstanding nontax claims to prepare and submit 
                to the Secretary at least once each year a 
                report summarizing the status of loans and 
                accounts receivable that are managed by the 
                head of the agency.''; and
                  (B) in paragraph (3), by striking 
                ``Director'' and inserting ``Secretary''; and
          (2) in subsection (b), by striking ``Director'' and 
        inserting ``Secretary''.
  (d) Consolidation of Reports.--Notwithstanding any other 
provision of law, the Secretary of the Treasury may consolidate 
reports concerning debt collection otherwise required to be 
submitted by the Secretary into one annual report.

SEC. 5293. REVIEW OF STANDARDS AND POLICIES FOR COMPROMISE OR WRITE-
                    DOWN OF DELINQUENT DEBTS.

  The Director of the Office of Management and Budget shall--
          (1) review the standards and policies of each Federal 
        agency for compromising, writing-down, forgiving, or 
        discharging indebtedness arising from programs of the 
        agency;
          (2) determine whether those standards and policies 
        are consistent and protect the interests of the United 
        States;
          (3) in the case of any Federal agency standard or 
        policy that the Secretary determines is not consistent 
        or does not protect the interests of the United States, 
        direct the head of the agency to make appropriate 
        modifications to the standard or policy; and
          (4) report annually to the Congress on--
                  (A) deficiencies in the standards and 
                policies of Federal agencies for compromising, 
                writing-down, forgiving, or discharging 
                indebtedness; and
                  (B) progress made in improving those 
                standards and policies.

                    PART II--JUSTICE DEBT MANAGEMENT

SEC. 5301. EXPANDED USE OF PRIVATE ATTORNEYS.

  (a) Elimination of Limitation on Fees.--Section 3718(b)(1)(A) 
of title 31, United States Code, is amended by striking the 
fourth sentence.
  (b) Repeal.--Sections 3 and 5 of the Act of October 28, 1986 
(popularly known as the Federal Debt Recovery Act; Public Law 
99-578, 100 Stat. 3305) are hereby repealed.

SEC. 5302. NONJUDICIAL FORECLOSURE OF MORTGAGES.

  Chapter 176 of title 28, United States Code, is amended--
          (1) in the table of subchapters at the beginning of 
        the chapter by adding at the end the following new 
        item:

``E. Nonjudicial foreclosure............................     3401''; and

          (2) by adding at the end of the chapter the following 
        new subchapter:

                ``SUBCHAPTER E--NONJUDICIAL FORECLOSURE

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

``Sec. 3401. Definitions

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

``Sec. 3402. Rules of construction

  ``(a) In General.--If an agency head elects to proceed under 
this subchapter, this subchapter shall apply and the provisions 
of this subchapter shall govern in the event of a conflict with 
any other provision of Federal law or State law.
  ``(b) Limitation.--This subchapter shall not be construed to 
supersede or modify the operation of--
          ``(1) the lease-back/buy-back provisions under 
        section 335 of the Consolidated Farm and Rural 
        Development Act, or regulations promulgated thereunder; 
        or
          ``(2) The Multifamily Mortgage Foreclosure Act of 
        1981.
  ``(c) Effect on Other Laws.--This subchapter shall not be 
construed to curtail or limit the rights of the United States 
or any of its agencies--
          ``(1) to foreclose a mortgage under any other 
        provision of Federal law or State law; or
          ``(2) to enforce any right under Federal law or State 
        law in lieu of or in addition to foreclosure, including 
        any right to obtain a monetary judgment.
  ``(d) Application to Mortgages.--The provisions of this 
subchapter may be used to foreclose any mortgage, whether 
executed prior or subsequent to the effective date of this 
subchapter.

``Sec. 3403. Election of procedure

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

``Sec. 3404. Designation of foreclosure trustee

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

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

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

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

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

``Sec. 3407. Cancellation of foreclosure sale

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

``Sec. 3408. Stay

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

``Sec. 3409. Conduct of sale; postponement

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

``Sec. 3410. Transfer of title and possession

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

``Sec. 3411. Record of foreclosure and sale

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

``Sec. 3412. Effect of sale

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

``Sec. 3413. Disposition of sale proceeds

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

``Sec. 3414. Deficiency judgment

  ``(a) In General.--If after deducting the disbursements 
described in section 3413, the price at which the security 
property is sold at a foreclosure sale is insufficient to pay 
the unpaid balance of the debt secured by the security 
property, counsel for the United States may commence an action 
or actions against any or all debtors to recover the 
deficiency, unless specifically prohibited by the mortgage. The 
United States is also entitled to recover any amount authorized 
by section 3011 and costs of the action.
  ``(b) Limitation.--Any action commenced to recover the 
deficiency shall be brought within 6 years of the last sale of 
security property.
  ``(c) Credits.--The amount payable by a private mortgage 
guaranty insurer shall be credited to the account of the debtor 
prior to the commencement of an action for any deficiency owed 
by the debtor. Nothing in this subsection shall curtail or 
limit the subrogation rights of a private mortgage guaranty 
insurer.''.
  Strike section 7002 (relating to civil monetary penalty 
surcharge and telecommunications carrier compliance payments).
  Strike section 10404 (page 700, line 23, through page 701, 
line 19).
  Page 1588, lines 3 through 7, amend subsection (c) to read as 
follows:
  (c) National Technical Information Service.--
          (1) Privatization.--All functions of the National 
        Technical Information Service are transferred to the 
        Director of the Office of Management and Budget for 
        privatization in accordance with section 17109 before 
        the end of the 18-month period beginning on the date of 
        the enactment of this Act.
          (2) Transfer to national institute for science and 
        technology.--If an appropriate arrangement for the 
        privatization of functions of the National Technical 
        Information Service under paragraph (1) has not been 
        made before the end of the period described in that 
        paragraph, the National Technical Information Service 
        shall be transferred as of the end of such period to 
        the National Institute for Science and Technology 
        established by section 17207.
          (3) Government corporation.--If an appropriate 
        arrangement for the privatization of functions of the 
        National Technical Information Service under paragraph 
        (1) has not been made before the end of the period 
        described in that paragraph, the Director of the Office 
        of Management and Budget shall, within 6 months after 
        the end of such period, submit to Congress a proposal 
        for legislation to establish the National Technical 
        Information Service as a wholly owned Government 
        corporation. The proposal should provide for the 
        corporation to perform substantially the same functions 
        that, as of the date of enactment of this Act, are 
        performed by the National Technical Information 
        Service.
          (4) Funding.--No funds are authorized to be 
        appropriated for the National Technical Information 
        Service or any successor corporation established 
        pursuant to a proposal under paragraph (3).
  Subparagraphs (A) through (H) of section 2121(b)(1) of the 
Social Security Act (as added by section 16001 of the bill) are 
amended to read as follows:
                  ``(A) fiscal year 1996 is 
                $95,662,990,50095.673 billion deg.;
                  ``(B) fiscal year 1997 is 
                $102,748,012,797102.135 billion deg.;
                  ``(C) fiscal year 1998 is 
                $107,268,354,400106.221 billion deg.;
                  ``(D) fiscal year 1999 is 
                $111,826,877,512110.469 billion deg.;
                  ``(E) fiscal year 2000 is 
                $116,472,575,350114.888 billion deg.;
                  ``(F) fiscal year 2001 is 
                $121,311,325,403119.483 billion deg.;
                  ``(G) fiscal year 2002 is 
                $126,351,055,338124.263 billion deg.; 
                and
                  ``(H) each subsequent fiscal year is the pool 
                amount under this paragraph for the previous 
                fiscal year increased by the lesser of 4.1546 
                percent or the annual percentage increase in 
                the consumer price index for all urban 
                consumers (U.S. city average) for the 12-month 
                period ending in June before the beginning of 
                that subsequent fiscal year.
  Paragraph (3) of section 2121(c) of the Social Security Act 
(as added by section 16001 of the bill) is amended to read as 
follows:
          ``(3) Floors and ceilings.--
                  ``(A) Floors.--In no case shall the amount of 
                the State outlay allotment under paragraph (2) 
                for a fiscal year be less than the following:
                          ``(i) Floor based on previous year's 
                        outlay allotment.--Subject to clause 
                        (ii)--
                                  ``(I) Fiscal year 1997.--For 
                                fiscal year 1997, 103.5 percent 
                                of the amount of the State 
                                outlay allotment under this 
                                subsection for fiscal year 
                                1996.
                                  ``(II) Fiscal year 1998.--For 
                                fiscal year 1998, 103 percent 
                                of the amount of the State 
                                outlay allotment under this 
                                subsection for fiscal year 
                                1997.
                                  ``(III) Fiscal year 1999.--
                                For fiscal year 1999, 102.5 
                                percent of the amount of the 
                                State outlay allotment under 
                                this subsection for fiscal year 
                                1998.
                                  ``(IV) Subsequent fiscal 
                                years.--For a fiscal year after 
                                1999, 102 percent of the amount 
                                of the State outlay allotment 
                                under this subsection for the 
                                previous fiscal year.
                          ``(ii) Floor based on outlay 
                        allotment growth rate in first year.--
                        Beginning with fiscal year 1998, in the 
                        case of a State for which the outlay 
                        allotment under this subsection for 
                        fiscal year 1997 exceeded its outlay 
                        allotment under this subsection for the 
                        previous fiscal year by--
                                  ``(I) more than 120 percent 
                                of the national MediGrant 
                                growth percentage for fiscal 
                                year 1997, 104 percent of the 
                                amount of the State outlay 
                                allotment under this subsection 
                                for the previous fiscal year; 
                                or
                                  ``(II) less than 120 percent 
                                (but more than 75 percent) of 
                                the national MediGrant growth 
                                percentage for fiscal year 
                                1997, 103 percent of the amount 
                                of the State outlay allotment 
                                under this subsection for the 
                                previous fiscal year.
                          ``(ii) Floor based on outlay 
                        allotment growth rate in first year.--
                        Beginning with fiscal year 1998, in the 
                        case of a State for which the outlay 
                        allotment under this subsection for 
                        fiscal year 1997 exceeded its outlay 
                        allotment under this subsection for 
                        fiscal year 1996 by more than 75 
                        percent of the national MediGrant 
                        growth percentage for fiscal year 1997, 
                        104 percent of the amount of the State 
                        outlay allotment under this subsection 
                        for the previous fiscal year. deg.
                  ``(B) Ceilings.--
                          ``(i) In general.--In no case shall 
                        the amount of the State outlay 
                        allotment under paragraph (2) for a 
                        fiscal year be greater than the product 
                        of--
                                  ``(I) the State outlay 
                                allotment under this subsection 
                                for the State for the preceding 
                                fiscal year, and
                                  ``(II) the factor specified 
                                in clause (ii) (or, if 
                                applicable, in clause (iii)) 
                                for the fiscal year.
                          ``(ii) Factor described.--The factor 
                        described in this clause for--
                                  ``(I) fiscal year 1997 is 
                                1.09, and
                                  ``(II) each subsequent fiscal 
                                year is 1.0533.
                          ``(iii) Special rule.--For a fiscal 
                        year after fiscal year 1997, in the 
                        case of a State (among the 50 States 
                        and the District of Columbia) that is 
                        one of the 10 States with the lowest 
                        Federal MediGrant spending per 
                        resident-in-poverty rates (as 
                        determined under clause (iv)) for the 
                        fiscal year, the factor that shall be 
                        applied under clause (i)(II) shall be 
                        the following:
                                  ``(I) For each of fiscal 
                                years 1998 and 1999, 1.06.
                                  ``(II) For fiscal year 2000, 
                                1.060657.
                                  ``(III) For fiscal year 2001, 
                                1.061488.
                                  ``(IV) For any subsequent 
                                fiscal year, 1.062319.
                          ``(iv) Determination of federal 
                        medigrant spending per resident-in-
                        poverty rate.--For purposes of clause 
                        (iii), the `Federal MediGrant spending 
                        per resident-in-poverty rate' for a 
                        State for a fiscal year is equal to--
                                  ``(I) the State's outlay 
                                allotment under this subsection 
                                for the previous fiscal year 
                                (determined without regard to 
                                paragraph (4)), divided by
                                  ``(II) the average annual 
                                number of residents of the 
                                State in poverty (as defined in 
                                subsection (d)(2)) with respect 
                                to the fiscal year.
  Section 2121 of the Social Security Act (as added by section 
16001 of the bill) is amended by adding at the end the 
following:
  ``(f) Supplemental Allotment for Emergency Health Care 
Services to Certain Aliens.--
          ``(1) In general.--Notwithstanding the previous 
        provisions of this section, the amount of the State 
        outlay allotment for a fiscal year for each 
        supplemental allotment eligible State shall be 
        increased by the amount of the supplemental outlay 
        allotment provided under paragraph (2) for the State 
        for that year. The amount of such increased allotment 
        may only be used for the purpose of providing medical 
        assistance for care and services for aliens described 
        in paragraph (1) of section 2123(e) and for which the 
        exception described in paragraph (2) of such section 
        applies. Section 2122(f)(3) shall apply to such 
        assistance in the same manner as it applies to medical 
        assistance described in such section.
          ``(2) Supplemental outlay allotment.--
                  ``(A) In general.--For purposes of paragraph 
                (1), the amount of the supplemental outlay 
                allotment for a supplemental allotment eligible 
                State for a fiscal year is equal to the 
                supplemental allotment ratio (as defined in 
                subparagraph (C)) multiplied by the 
                supplemental pool amount (specified in 
                subparagraph (D)) for the fiscal year.
                  ``(B) Supplemental allotment eligible 
                state.--In this subsection, the term 
                `supplemental allotment eligible State' means 
                one of the 12 States with the highest number of 
                undocumented aliens of all the States.
                  ``(C) Supplemental allotment ratio.--In this 
                paragraph, the `supplemental allotment ratio' 
                for a State is the ratio of--
                          ``(i) the number of undocumented 
                        aliens for the State, to
                          ``(ii) the sum of such numbers for 
                        all supplemental allotment eligible 
                        States.
                  ``(D) Supplemental pool amount.--In this 
                paragraph, the `supplemental pool amount'--
                          ``(i) for each of fiscal years 1996 
                        through 2002, is an amount so that, if 
                        the amount were increased for each such 
                        fiscal year beginning with fiscal year 
                        1996 by the national MediGrant growth 
                        percentage for the year involved, the 
                        total of such amounts for all such 
                        fiscal years would be $3 billion; and
                          ``(ii) for a subsequent year is the 
                        supplemental pool amount for the 
                        previous fiscal year increased by the 
                        national MediGrant growth percentage 
                        for such subsequent year.
                  ``(E) Determination of number.--The number of 
                undocumented aliens in a State under this 
                paragraph shall be determined based on 
                estimates of the resident illegal alien 
                population residing in each State prepared by 
                the Statistics Division of the Immigration and 
                Naturalization Service as of October 1992 (or 
                as of such later date if such date is at least 
                1 year before the beginning of the fiscal year 
                involved).
          ``(3) Treatment for obligation purposes.--For 
        purposes of computing obligation allotments under 
        subsection (a)--
                  ``(A) the amount of the supplemental pool 
                amount for a fiscal year shall be added to the 
                pool amount under subsection (b) for that 
                fiscal year, and
                  ``(B) the amount supplemental allotment to a 
                State provided under paragraph (1) shall be 
                added to the outlay allotment of the State for 
                that fiscal year.
          ``(4) Sequence of obligations.--For purposes of 
        carrying out this title, payments to a supplemental 
        allotment eligible State under section 2122 that are 
        attributable to expenditures for medical assistance 
        described in the second sentence of paragraph (1) shall 
        first be counted toward the supplemental outlay 
        allotment provided under this subsection, rather than 
        toward the outlay allotment otherwise provided under 
        this section.
  ``(g) Special Adjustments for Fiscal Year 1996.--
Notwithstanding the previous provisions of this section--
          ``(1) the State outlay allotment for Oregon for 
        fiscal year 1996 is increased by $155,682,700, and
          ``(2) the State outlay allotment for Tennessee for 
        fiscal year 1996 is increased by $195,468,000.
The increases provided under this subsection shall not apply to 
or affect the computation of State outlay allotments of any 
other States and shall not apply for any fiscal year other than 
fiscal year 1996.
  In section 2174 of the Social Security Act (as added by 
section 16001), insert after paragraph (4) the following new 
paragraph (and redesignate the succeeding paragraph 
accordingly):
          ``(5) Section 1128B(d) (relating to criminal 
        penalties for certain additional charges).
  Page 1740, strike line 5 and all that follows thereafter 
through page 1741, line 8, and insert the following:
                  ``(B) with respect to fiscal year 1996, for 
                the discretionary category: $485,074,000,000 in 
                new budget authority and $531,768,000,000 in 
                outlays;
                  ``(C) with respect to fiscal year 1997, for 
                the discretionary category: $481,423,000,000 in 
                new budget authority and $519,288,000,000 in 
                outlays;
                  ``(D) with respect to fiscal year 1998, for 
                the discretionary category: $489,233,000,000 in 
                new budget authority and $511,173,000,000 in 
                outlays;
                  ``(E) with respect to fiscal year 1999, for 
                the discretionary category: $480,420,000,000 in 
                new budget authority and $508,695,000,000 in 
                outlays;
                  ``(F) with respect to fiscal year 2000, for 
                the discretionary category: $487,347,000,000 in 
                new budget authority and $512,202,000,000 in 
                outlays;
                  ``(G) with respect to fiscal year 2001, for 
                the discretionary category: $494,307,000,000 in 
                new budget authority and $514,109,000,000 in 
                outlays; and
                  ``(H) with respect to fiscal year 2002, for 
                the discretionary category: $496,188,000,000 in 
                new budget authority and $512,426,000,000 in 
                outlays;''.

                                
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